5 School Stocks to Consider Purchasing Ahead of 2026
Shift to Digital Education: The U.S. education market is transitioning from traditional methods to digital, career-focused programs, driven by student demand and government initiatives supporting workforce development and EdTech adoption.
Growth of Hybrid Learning Models: Companies offering hybrid and digital learning models are experiencing enrollment growth, with technology integration enhancing student engagement and retention, particularly in online and adaptive learning systems.
Career-Oriented Programs: There is a rising demand for credentialed skills, with education companies focusing on career training in high-demand fields like healthcare, aligning with workforce needs and benefiting from online delivery.
Government Support for Education: Federal and state initiatives are promoting education and workforce alignment, including new agreements to streamline program delivery and policies aimed at advancing AI education for future careers.
Trade with 70% Backtested Accuracy
Analyst Views on NRDY
About NRDY
About the author

- New CFO Appointment: Nerdy announced that Atul Bagga will take over as CFO on April 6, 2026, succeeding Jason Pello, who resigned on April 3, 2026; Bagga previously served as CFO at JLL, emphasizing the company's strategic focus on financial management.
- Revenue Forecast: The company projects 2026 revenue between $180 million and $190 million, compared to a consensus of $182.98 million, reflecting confidence in future growth and the potential of its AI-native platform investments.
- EBITDA Expectations: Nerdy anticipates that its non-GAAP adjusted EBITDA will be approximately breakeven, indicating an improvement of over 1,000 basis points from 2025, showcasing significant enhancements in cost control and operational efficiency.
- Cash Flow Outlook: The company expects to end 2026 with $40 million to $45 million in cash, including $20 million from a new term loan, ensuring sufficient liquidity to support future growth initiatives.
- New CFO Appointment: Nerdy Inc. announced the appointment of Atul Bagga as Chief Financial Officer effective April 6, 2026, who previously served as CFO at JLL Technologies, indicating a strategic move to enhance the company's global finance organization as it enters a growth phase.
- Financial Performance Improvement: The company achieved adjusted EBITDA profitability in Q4 2025, reflecting significant progress in financial health and suggesting that advancements in its AI-native systems will support sustainable growth moving forward.
- 2026 Revenue Expectations: Nerdy projects revenue for 2026 to be in the range of $180-$190 million, with non-GAAP adjusted EBITDA expected to be approximately breakeven, demonstrating a solid balance between revenue growth and cost management.
- Cash Flow Position: The company anticipates ending 2026 with $40-$45 million in cash, including the current $20 million funded under a new term loan, indicating effective cash flow management while expanding its business operations.
- Compliance Warning: Nerdy received a notice from the NYSE on March 5 due to its Class A common stock averaging below $1.00 for 30 consecutive trading days, which could negatively impact the company's market perception and financing capabilities.
- Remedial Action Plan: On March 6, the company informed the NYSE of its plan to regain compliance, considering options such as a reverse stock split, subject to shareholder approval, aimed at boosting its stock price and restoring compliance status.
- Compliance Timeline: Nerdy can regain compliance within six months if its shares close at $1.00 or higher and maintain a 30-day average closing price of at least $1.00, ensuring its continued listing on the NYSE.
- Financial Position: As of December 31, 2025, Nerdy reported $47.9 million in cash and believes it has sufficient liquidity for operations, indicating that despite stock price pressures, the company can sustain its day-to-day operations.
- Financial Performance: Nerdy Inc. reported a fourth-quarter loss of $9.24 million, or $0.08 per share, which is an improvement from last year's loss of $10.15 million, indicating the company's efforts in cost control.
- Revenue Growth: The company's revenue increased by 2.3% year-over-year to $49.11 million, up from $47.99 million last year, suggesting a recovery in sales performance within the market.
- Future Guidance: Nerdy Inc. provided revenue guidance for the next quarter between $46 million and $48 million, reflecting a cautiously optimistic outlook for future performance despite ongoing market challenges.
- Year-over-Year Comparison: Although the loss has decreased compared to the previous year, the company still needs to work towards profitability, especially in the highly competitive ed-tech sector.

- Significant Revenue Growth: Nerdy Inc. reported Q4 2025 revenue of $49.1 million, exceeding the guidance range of $45 million to $47 million, marking a 2% year-over-year increase and indicating the first positive growth since Q2 2024, showcasing the company's dual growth potential in both consumer and institutional segments.
- Strong EBITDA Performance: The company achieved a positive non-GAAP adjusted EBITDA of $1.3 million, surpassing the guidance range of negative $2 million to breakeven, and improving by $6.8 million from Q4 2024, reflecting significant enhancements in cost control and operational efficiency.
- AI Platform Transformation Completed: Nerdy completed the rollout of its AI-native learner and expert experience, which has improved product development velocity and unit economics, establishing a stronger foundation for future innovation that is expected to further drive user engagement and retention.
- Optimistic 2026 Outlook: Management anticipates Q1 2026 revenue in the range of $46 million to $48 million, with a full-year target of $180 million to $190 million, demonstrating confidence in future growth, although the guidance does not yet fully capture the potential benefits of the new platform.
- Revenue Growth Resurgence: In Q4 2025, Nerdy achieved revenue of $49.1 million, a 2% year-over-year increase that surpassed guidance of $45 to $47 million, marking the first return to positive growth since Q2 2024, reflecting improvements in both consumer and institutional revenue streams.
- Positive Adjusted EBITDA: The company reported a positive adjusted EBITDA of $1.3 million for Q4, exceeding the guidance range of negative $2 million to breakeven, and significantly improving from a loss of $5.5 million in the same quarter last year, indicating a substantial enhancement in cost structure and operational leverage.
- Learning Membership Revenue Growth: Learning Membership revenue reached $41.6 million in Q4, up 6% year-over-year, accounting for 85% of total revenue, with active members totaling 33,200 and ARPM at $364, reflecting improved user experience and retention rates.
- Gross Margin Expansion: The gross margin for Q4 2025 was 66.8%, slightly up from 66.6% in Q4 2024, driven by a shift towards higher frequency Learning Memberships and price increases for new consumer customers, with expectations for continued margin improvement into 2026.






