Company Targets Breakeven Non-GAAP EBITDA for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy NRDY?
The company states: "The heavy lifting of the past 12 months is now pulling through to the financials. We are targeting breakeven non-GAAP adjusted EBITDA for the full year 2026, an improvement of more than 1,000 basis points for the full year versus 2025. We expect gross margin to expand each quarter as tutor-incentive programs are further optimized and as Consumer revenue continues to shift toward higher-frequency memberships. Combined with a lower overall cost structure that is leaner and more efficient, we believe these changes will deliver increasing operating leverage as revenue grows. We also will use AI to streamline our operations and further reduce costs. Our 2026 guidance does not yet reflect the full benefit of the new platform rollout, which is still early in adoption. We look forward to updating the market as we gather more data throughout the year."
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Analyst Views on NRDY
Wall Street analysts forecast NRDY stock price to rise
7 Analyst Rating
1 Buy
5 Hold
1 Sell
Hold
Current: 0.941
Low
1.00
Averages
1.79
High
3.00
Current: 0.941
Low
1.00
Averages
1.79
High
3.00
About NRDY
Nerdy Inc. operates a platform for live online learning. The Company’s platform leverages technology, including artificial intelligence, to connect students, users, parents, guardians, and purchasers of all ages to tutors, instructors, subject matter experts, educators, and other professionals. Its comprehensive learning destination provides learning experiences across numerous subjects and multiple formats, including learning memberships, one-on-one instruction, small group tutoring, large format classes, tutor chat, essay review, adaptive assessments, and self-study tools. Its flagship business, Varsity Tutors LLC (Varsity Tutors), is a platform for live online tutoring and classes. Its solutions are available directly to students and consumers, as well as through schools and other institutions. Its offerings include Varsity Tutors for Schools, a product suite that leverages its platform capabilities to offer high dosage tutoring and its online learning solutions to institutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nerdy Appoints New CFO, Projects 2026 Revenue of $180M-$190M
- 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.
See More
Nerdy Inc. Appoints New CFO to Drive Growth
- 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.
See More
Nerdy Receives NYSE Compliance Notice for Stock Price Below $1
- 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.
See More
Nerdy Inc. Reports Q4 Loss of $9.24 Million
- 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.
See More
Nerdy Inc. Reports Q4 2025 Earnings with Positive Growth and AI Transformation
- 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.
See More
Nerdy Reports Q4 Revenue Growth and Positive EBITDA
- 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.
See More
Nerdy Appoints New CFO, Projects 2026 Revenue of $180M-$190M
- 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.
See More
Nerdy Inc. Appoints New CFO to Drive Growth
- 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.
See More
Nerdy Receives NYSE Compliance Notice for Stock Price Below $1
- 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.
See More
Nerdy Inc. Reports Q4 Loss of $9.24 Million
- 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.
See More
Nerdy Inc. Reports Q4 2025 Earnings with Positive Growth and AI Transformation
- 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.
See More
Nerdy Reports Q4 Revenue Growth and Positive EBITDA
- 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.
See More
