📊 NRDY Key Takeaways
Is Nerdy Inc. (NRDY) a Good Investment?
Nerdy Inc. demonstrates a fundamentally sound business model with 66.2% gross margins, but faces severe operational challenges with negative operating cash flow, declining revenue (-5.9% YoY), and inability to achieve profitability or cover interest from operations. While the company maintains a strong cash position of $44.7M, the current trajectory of cash burn and operational losses is unsustainable without significant turnaround execution.
Nerdy shows a high gross margin but remains structurally unprofitable, with declining revenue and deeply negative operating and net margins. Liquidity is adequate with cash exceeding long-term debt, yet persistent cash burn and weak ROA/ROE signal an unsustainable trajectory without material cost cuts or reacceleration of growth. Until the company demonstrates sustained revenue growth and a credible path to positive free cash flow, fundamentals are unfavorable.
Why Buy Nerdy Inc. Stock? NRDY Key Strengths
- Exceptional gross margin of 66.2% indicating strong unit economics and pricing power in core tutoring services
- Strong liquidity position with current ratio of 2.41x and $44.7M in cash providing operational runway
- Balanced capital structure with 1.01x debt-to-equity ratio providing moderate leverage flexibility
- High gross margin (58%) indicative of asset-light model
- Solid liquidity: current ratio 2.27x; cash > long-term debt
- Improving EPS YoY suggests some operating efficiency gains
NRDY Stock Risks: Nerdy Inc. Investment Risks
- Revenue declining at 5.9% YoY with no clear stabilization, indicating market challenges or competitive pressure
- Severely unprofitable operations with -11.9% operating margin and negative operating cash flow of -$1.8M
- Negative free cash flow of -$3.0M with inability to cover interest from operations (Interest Coverage: -1.5x)
- Continued operating losses and negative FCF (-13.5% margin)
- Revenue contraction (-5.9% YoY) indicating demand or pricing headwinds
- Thin equity base and severe negative ROA/ROE raise dilution/solvency risk
Key Metrics to Watch
- Revenue growth trajectory - stabilization or acceleration is critical to investment thesis
- Operating cash flow and path to profitability - the company must stop cash burn
- Operating margin expansion - need to see movement from -11.9% toward positive territory
- Operating margin
- Free cash flow
Nerdy Inc. (NRDY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.41x current ratio provides a solid financial cushion.
NRDY Profit Margin, ROE & Profitability Analysis
NRDY vs Services Sector: How Nerdy Inc. Compares
How Nerdy Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nerdy Inc. Stock Overvalued? NRDY Valuation Analysis 2026
Based on fundamental analysis, Nerdy Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Nerdy Inc. Balance Sheet: NRDY Debt, Cash & Liquidity
NRDY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nerdy Inc.'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.41 indicates the company is currently unprofitable.
NRDY Revenue Growth, EPS Growth & YoY Performance
NRDY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $47.6M | -$4.1M | $-0.03 |
| Q3 2025 | $37.0M | -$12.3M | $-0.10 |
| Q2 2025 | $45.3M | -$7.9M | $-0.07 |
| Q1 2025 | $47.6M | -$7.4M | $-0.07 |
| Q3 2024 | $37.5M | -$12.3M | $-0.13 |
| Q2 2024 | $48.8M | -$3.3M | $-0.03 |
| Q1 2024 | $49.2M | -$7.4M | $-0.07 |
| Q3 2023 | $31.8M | -$12.3M | $-0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nerdy Inc. Dividends, Buybacks & Capital Allocation
NRDY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nerdy Inc. (CIK: 0001819404)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NRDY
What is the AI rating for NRDY?
Nerdy Inc. (NRDY) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NRDY's key strengths?
Claude: Exceptional gross margin of 66.2% indicating strong unit economics and pricing power in core tutoring services. Strong liquidity position with current ratio of 2.41x and $44.7M in cash providing operational runway. ChatGPT: High gross margin (58%) indicative of asset-light model. Solid liquidity: current ratio 2.27x; cash > long-term debt.
What are the risks of investing in NRDY?
Claude: Revenue declining at 5.9% YoY with no clear stabilization, indicating market challenges or competitive pressure. Severely unprofitable operations with -11.9% operating margin and negative operating cash flow of -$1.8M. ChatGPT: Continued operating losses and negative FCF (-13.5% margin). Revenue contraction (-5.9% YoY) indicating demand or pricing headwinds.
What is NRDY's revenue and growth?
Nerdy Inc. reported revenue of $48.7M.
Does NRDY pay dividends?
Nerdy Inc. does not currently pay dividends.
Where can I find NRDY SEC filings?
Official SEC filings for Nerdy Inc. (CIK: 0001819404) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NRDY's EPS?
Nerdy Inc. has a diluted EPS of $-0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NRDY a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Nerdy Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NRDY stock overvalued or undervalued?
Valuation metrics for NRDY: ROE of -21.1% (sector avg: 16%), net margin of -8.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NRDY stock in 2026?
Our dual AI analysis gives Nerdy Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NRDY's free cash flow?
Nerdy Inc.'s operating cash flow is $-1.8M, with capital expenditures of $1.2M. FCF margin is -6.1%.
How does NRDY compare to other Services stocks?
Vs Services sector averages: Net margin -8.4% (avg: 10%), ROE -21.1% (avg: 16%), current ratio 2.41 (avg: 1.5).