Nerdy 2025 Q2 Earnings Narrowed Losses but Revenue Declines

Nerdy (NRDY) reported its fiscal 2025 Q2 earnings on August 7, 2025. The results reflect a continued challenge in driving revenue growth, with a 11.2% year-over-year decline in total revenue to $45.26 million. However, the company successfully narrowed its net loss to $-12 million, a 16.6% improvement compared to the $-14.40 million loss in the prior-year quarter.

Nerdy reported total revenue of $45.26 million for Q2 2025, a 11.2% decrease compared to $50.98 million in Q2 2024. The performance was led by the Consumer segment, which accounted for $37.82 million in revenue. Institutional revenue contributed $7.31 million, while Other revenue added $131,000. The decline in overall revenue underscores ongoing market headwinds and operational challenges.

Nerdy narrowed its losses to $0.07 per share in Q2 2025, up from a loss of $0.08 per share in Q2 2024. The company also reduced its net loss to $-12 million for the quarter, down from $-14.40 million in the prior-year period. Despite these improvements, Nerdy has continued to report losses for the past five years during the corresponding fiscal quarter, indicating that profitability remains elusive.

The stock price of Nerdy has seen mixed performance in recent trading periods. Shares climbed 7.14% during the latest trading day but edged down 0.66% during the most recent full trading week. The stock has, however, declined by 8.54% month-to-date, reflecting ongoing investor concerns.

A post-earnings investment strategy of buying Nerdy shares after a revenue increase quarter-over-quarter and holding for 30 days resulted in a -17.59% return. The benchmark return during the same period was 51.38%, highlighting a significant underperformance. The excess return was -68.97%, and the CAGR was -6.37%, illustrating a negative compounding effect. The strategy recorded a maximum drawdown of 0.00%, suggesting that the holding period did not expose investors to additional downside risk.

CEO Adam S. Jones emphasized progress on Nerdy’s Live+AI vision, with AI enhancements embedded across the learning journey. He highlighted stronger engagement and retention in new cohorts, driven by AI-powered updates and improved Learner-Expert matching. Membership revenue returned to year-over-year growth, with 4% YoY growth in Consumer Learning Membership revenue to $37.8 million and a 21% YoY rise in Varsity Tutors for Schools bookings. The CEO expressed optimism, noting that operational improvements and customer engagement are positioning Nerdy for sustained growth in the 2025 school year and beyond.

The company expects Consumer revenue growth to accelerate each quarter in 2025 and anticipates sequential gross margin improvements throughout the year. With an annualized run-rate Learning Membership revenue of $127.6 million (up 7% YoY), Nerdy remains on track to achieve profitability on a non-GAAP adjusted EBITDA basis in Q4 2025. The CEO noted improved financial performance in Q2, including a narrower-than-expected adjusted EBITDA loss of $2.7 million, with an ongoing focus on operational efficiency and AI-driven product enhancements.

Despite the narrowing losses, the earnings results indicate that Nerdy’s earnings per share performance remains negative and challenging.

Additional News

On the same day Nerdy released its earnings, several key developments in Nigeria’s business and political landscape attracted significant attention. In business news, Stanbic IBTC Bank announced a savings promotion in which 148 customers won a total of N23 million, highlighting the bank’s efforts to reward and engage its clients.

In the political sphere, the immediate past Deputy Governor of Abia State, Chief Ude Oko-Chukwu, resigned from the Peoples Democratic Party (PDP), marking a notable shift in the party’s internal dynamics. Meanwhile, Rivers State stakeholders have urged President Bola Tinubu to halt the ongoing local government elections and reinstate former Governor Peter Mbah Fubara, emphasizing the growing political tensions in the state.

In another significant development, the Nigerian government proposed a 3-year initiative aimed at reducing capital costs across Africa, aligning with broader economic reform efforts. These developments reflect the dynamic and evolving business and political environment in Nigeria.