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Dec 31, 2025
Nerdy Q4 2025 Earnings Report
Nerdy reported Q4 2025 results, returning to year-over-year growth and achieving positive non-GAAP adjusted EBITDA.
Key Takeaways
Nerdy delivered Q4 revenue of $49.1 million, exceeding guidance and growing 2% year-over-year. The company achieved a significant milestone by reaching positive non-GAAP adjusted EBITDA of $1.3 million, driven by a shift toward higher-frequency Learning Memberships and operational efficiencies from AI-driven automation.
Returned to positive year-over-year revenue growth for the first time since Q1 2024.
Achieved positive non-GAAP adjusted EBITDA of $1.3 million, beating the top end of guidance.
Completed the rollout of a new AI-native platform for both Learner and Expert experiences.
Consumer Learning Membership revenue grew 6% year-over-year, representing 85% of total revenue.
Revenue by Segment
Forward Guidance
Nerdy expects to return to full-year growth and profitability in 2026, targeting breakeven non-GAAP adjusted EBITDA for the full year.
Positive Outlook
- Q1 2026 revenue guidance of $46-$48 million.
- Full year 2026 revenue guidance of $180-$190 million.
- Targeting breakeven non-GAAP adjusted EBITDA for both Q1 and Full Year 2026.
- Expected gross margin expansion each quarter as tutor-incentive programs are optimized.
- Anticipated benefits from AI-enabled productivity and operating leverage.
Challenges Ahead
- Institutional revenue remains impacted by federal and state funding delays.
- Active Member count currently lower than the prior year period.
- 2026 guidance does not yet reflect the full benefit of the new platform rollout.
- Tutor incentive investments pressured margins in the first half of the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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