Nerdy Inc. Reports Q3 2025 Financial Results

Nerdy ( (NRDY) ) has released its Q3 earnings. Here is a breakdown of the information Nerdy presented to its investors.

Nerdy Inc. is a leading platform for live online learning, leveraging technology and AI to connect learners with experts across various subjects and formats, including its flagship business, Varsity Tutors. In its third-quarter 2025 financial results, Nerdy reported revenue of $37 million, aligning with its guidance, and demonstrated a significant improvement in adjusted EBITDA margins by nearly 1,000 basis points year-over-year. The company launched the Live Learning Platform 2.0, an AI-native tutoring platform, and secured a $50 million term loan to enhance liquidity.

Key financial highlights include a 5% year-over-year increase in Consumer Learning Membership revenue, which now accounts for 89% of total revenue. However, the Institutional segment faced a 20% decline in bookings due to funding delays. Despite a slight decrease in gross margin to 62.9%, Nerdy achieved a sequential improvement, driven by price increases and optimized tutoring incentives. The company’s adjusted EBITDA loss of $10.2 million beat guidance, reflecting cost controls and AI-enabled operational efficiencies.

Nerdy’s strategic focus on AI and operational improvements has led to a 27% reduction in headcount, further supporting its path to profitability. The company expects continued gross margin expansion and aims to achieve non-GAAP adjusted EBITDA profitability in the near term. With a robust liquidity position bolstered by the term loan, Nerdy is well-positioned to pursue growth initiatives.

Looking ahead, Nerdy projects fourth-quarter revenue between $45 million and $47 million, with a potential non-GAAP adjusted EBITDA loss ranging from $2 million to breakeven. For the full year, the company anticipates revenue between $175 million and $177 million, maintaining a strong liquidity outlook to support its strategic priorities.