# Nerdy Inc. (NRDY)

Informational only - not investment advice.

CIK: 0001819404
SIC: 8200 Services-Educational Services
SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 82](/major-group/82/) > [SIC 8200 Services-Educational Services](/industry/8200/)
Latest 10-K filed: 2026-02-26
SEC page: https://www.sec.gov/edgar/browse/?CIK=1819404
Filing source: https://www.sec.gov/Archives/edgar/data/1819404/000181940426000015/nrdy-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-26 · accession 0001819404-26-000015 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001819404.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 178,988,000 USD | 2025 | verified |
| Net income | -39,920,000 USD | 2025 | verified |
| Assets | 76,166,000 USD | 2025 | verified |
| Free cash flow | -24,216,000 USD | 2025 | computed |
| Net margin | -22.30% | 2025 | computed |
| Operating margin | -34.56% | 2025 | computed |
| Revenue YoY | -5.91% | 2025 | computed |
| ROE | -210.01% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | NRDY | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -22.3% | 10.0% | 0 | 11 |
| Operating margin | -34.6% | 13.7% | 0 | 11 |
| Revenue growth | -5.9% | 7.1% | 0 | 11 |
| FCF margin | -13.5% | 12.1% | 0 | 11 |
| ROE | -210.0% | 16.4% | 0 | 11 |
| ROA | -52.4% | 7.6% | 0 | 11 |
| Liabilities / equity | 2.48 | 0.77 | 100 | 11 |
| Current ratio | 2.27 | 1.75 | 60 | 11 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 8200 Services-Educational Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 178988000 | USD | 2025 | 2026-02-26 |
| Net income | -39920000 | USD | 2025 | 2026-02-26 |
| Assets | 76166000 | USD | 2025 | 2026-02-26 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001819404.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 90,452,000 | 103,968,000 | 140,664,000 | 162,665,000 | 193,399,000 | 190,231,000 | 178,988,000 |
| Net income | 0.00 | 0.00 | -3,779,000 | -35,399,000 | -40,174,000 | -42,585,000 | -39,920,000 |
| Operating income | -20,537,000 | -17,935,000 | -96,454,000 | -90,809,000 | -57,571,000 | -70,108,000 | -61,864,000 |
| Gross profit | 59,622,000 | 69,134,000 | 93,964,000 | 112,933,000 | 136,447,000 | 128,394,000 | 103,780,000 |
| Diluted EPS | 0.00 | 0.00 | -0.05 | -0.41 | -0.41 | -0.38 | -0.33 |
| Operating cash flow | -16,318,000 | -6,654,000 | -38,891,000 | -48,002,000 | -7,560,000 | -15,603,000 | -18,846,000 |
| Capital expenditures | 6,356,000 | 2,874,000 | 5,163,000 | 5,317,000 | 6,887,000 | 6,863,000 | 5,370,000 |
| Assets | 25,093 | 57,274,000 | 177,145,000 | 132,692,000 | 124,744,000 | 92,507,000 | 76,166,000 |
| Liabilities | 8,587 | 76,939,000 | 81,340,000 | 51,642,000 | 39,138,000 | 31,394,000 | 47,233,000 |
| Stockholders' equity | 16,506 | -398,461,000 | 50,663,000 | 46,928,000 | 52,477,000 | 39,479,000 | 19,009,000 |
| Cash and cash equivalents | 25,044,000 | 29,265,000 | 143,964,000 | 90,715,000 | 74,824,000 | 52,541,000 | 47,895,000 |
| Free cash flow | -22,674,000 | -9,528,000 | -44,054,000 | -53,319,000 | -14,447,000 | -22,466,000 | -24,216,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 0.00% | 0.00% | -2.69% | -21.76% | -20.77% | -22.39% | -22.30% |
| Operating margin | -22.70% | -17.25% | -68.57% | -55.83% | -29.77% | -36.85% | -34.56% |
| Return on equity | 0.00% |  | -7.46% | -75.43% | -76.56% | -107.87% | -210.01% |
| Return on assets | 0.00% | 0.00% | -2.13% | -26.68% | -32.21% | -46.03% | -52.41% |
| Liabilities / equity | 0.52 |  | 1.61 | 1.10 | 0.75 | 0.80 | 2.48 |
| Current ratio | 2.92 | 0.92 | 3.71 | 2.88 | 2.67 | 2.28 | 2.27 |

## As-reported value updates

5 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/NRDY/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001819404.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -0.21 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.21 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.03 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 40,296,000 | -12,290,000 | -0.13 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 55,084,000 | -5,655,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 53,727,000 | -7,446,000 | -0.07 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 50,984,000 | -9,093,000 | -0.08 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 37,530,000 | -15,900,000 | -0.14 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 47,990,000 | -10,146,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 47,595,000 | -10,496,000 | -0.09 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 45,263,000 | -7,897,000 | -0.07 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 37,019,000 | -12,287,000 | -0.10 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 49,111,000 | -9,240,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 48,735,000 | -4,075,000 | -0.03 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 43,231,000 | -4,653,000 | -0.04 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from NRDY's latest 10-K: [/company/NRDY/business/](/company/NRDY/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from NRDY's latest 10-K: [/company/NRDY/risk-factors/](/company/NRDY/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1819404/000181940426000080/nrdy-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion summarizes the significant factors affecting the consolidated operating results, financial condition, liquidity, and capital resources of Nerdy Inc. and its consolidated subsidiaries. This discussion should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto included herein and our audited consolidated financial statements and notes thereto found in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”), filed with the United States Securities and Exchange Commission (the “SEC”) on February 26, 2026. In addition, the following discussion and analysis of Nerdy Inc.’s financial condition and results of operations also contains forward-looking statements that involve risks, uncertainties, and assumptions. Actual results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those set forth in the sections entitled “Item 1A. Risk Factors” in Part I of the 2025 Annual Report and “Item 1A. Risk Factors” in Part II of this report, as well as under the section “Cautionary Note On Forward-Looking Statements” below. Unless otherwise stated or the context otherwise indicates, all references in the succeeding paragraphs to “Nerdy,” “the Company,” “us,” “our” or “we” mean Nerdy Inc. and its consolidated subsidiaries.

OVERVIEW

We operate a next-generation live tutoring and intervention platform that leverages the power of human expertise with advanced artificial intelligence (“AI”) to personalize learning, accelerate student achievement, and empower educators. Our mission is to transform the way people learn through technology. Our purpose-built proprietary platform leverages technology, including AI, to connect students, users, parents, guardians, and purchasers (“Learner(s)”) of all ages to tutors, instructors, subject matter experts, educators, and other professionals (“Expert(s)”), delivering superior value on both sides of the network. Our 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, chat, essay review, adaptive assessments, and self-study tools. Our flagship business, Varsity Tutors LLC (“Varsity Tutors”), is one of the nation’s largest platforms for live online tutoring and classes. Our solutions are available to Learners either directly through Learning Memberships (“Consumers”) and, historically, through education systems (“Institutions”). Our platform offers Experts the opportunity to generate income from the convenience of home, while also increasing access for Learners by removing barriers to high-quality live online learning. Our offerings have included our legacy Varsity Tutors for Schools, a product suite that leveraged our next-generation live tutoring and intervention platform capabilities to offer high-dosage tutoring and our online learning solutions to Institutions. We have built a diversified business across the following audiences: K-8, High School, College, Graduate School, and Professional.

ABANDONMENT OF FIRST TUTORS

In the second quarter of 2026, we made a strategic decision to abandon the First Tutors business, which is operated by EduNation Limited, a limited company incorporated in England and Wales. We will no longer sell new services under the First Tutors trade name, and we are directing resources toward the growth of our core business. In connection with this abandonment, we recorded write-offs of the First Tutors trade name along with other assets and liabilities.

WIND-DOWN OF VARSITY TUTORS FOR SCHOOLS

On July 31, 2026, subsequent to the end of the period, we committed to a plan to wind down our Varsity Tutors for Schools offering and business line. In connection with the wind-down, the Company estimates it will incur exit-related costs of approximately $2,000 thousand to $4,000 thousand, consisting of employee severance and other employee termination benefits, contract termination costs, asset impairment charges, and other exit-related costs. The Company expects to recognize substantially all of these costs during the third quarter of 2026. No adjustment has been made to the condensed consolidated financial statements as of and for the three and six months ended June 30, 2026. Varsity Tutors for Schools revenue, included within Institutional revenue below, was $4,311 thousand and $10,339 thousand for the three and six months ended June 30, 2026, respectively.

KEY OPERATING METRICS

We monitor the following key operating metrics, among others, to evaluate the performance of our business.

“Active Member(s)” is defined as the number of Learners with an active paid Learning Membership as of the date presented. Variations in the number of Active Members are due to changes in demand for our solutions, seasonality, testing schedules, and the launch of new membership options. As a result, we believe Active Members is a key indicator of our ability to attract, engage, and retain Learners. Active Members excludes our Institutional business. While our Active Member count as

13

Table of Contents

of June 30, 2026 was lower when compared to June 30, 2025, the rate of decline has narrowed sequentially for four consecutive quarters and we believe the recent rollout and continued advancement of our new Learner and Expert platform user experiences will result in positive growth by the end of 2026.

[[GREPCENT_TABLE]]
[["Active Members in thousands","June 30, 2026","","March 31, 2026","","December 31, 2025","","September 30, 2025","","June 30, 2025","","March 31, 2025"],["Active Members","29.1","","","36.9","","","33.2","","","34.3","","","30.6","","","40.5"],["YoY change","(5)%","","(9)%","","(11)%","","(14)%","","(14)%","","(12)%"]]
[[/GREPCENT_TABLE]]

“Average Revenue per Member per Month” (“ARPM”) is defined as the average Consumer Learning Membership subscription revenue per member per month as of the date presented. Variations in ARPM are primarily due to changes in the mix of Learning Memberships sold and pricing changes. We believe ARPM is a key indicator of the value we provide to our customers. ARPM excludes our Institutional business. ARPM as of June 30, 2026 was higher when compared to June 30, 2025, primarily driven by price increases enacted in February 2025.

[[GREPCENT_TABLE]]
[["ARPM in ones","June 30, 2026","","March 31, 2026","","December 31, 2025","","September 30, 2025","","June 30, 2025","","March 31, 2025"],["ARPM","$","366","","","$","374","","","$","364","","","$","374","","","$","348","","","$","335"],["YoY change","5%","","12%","","21%","","24%","","24%","","14%"]]
[[/GREPCENT_TABLE]]

“Active Experts” is defined as the number of Experts who have instructed one or more sessions in a given period. We believe Active Experts is a key indicator of our ability to service Learners and provide Experts with revenue-generating opportunities. Active Experts includes our Institutional business. The following table summarizes Active Experts for the periods presented. Our Active Expert count during the three and six months ended June 30, 2026 decreased when compared to the prior year periods. This decrease was primarily due to lower Consumer Active Experts, driven by utilization of the highest quality Experts by encouraging them to work with more Learners and develop deeper relationships that allow for increased revenue-generating opportunities. We believe our Active Expert count at June 30, 2026 is sufficient to meet our near-term growth objectives.

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","Change","","Six Months Ended June 30,","","Change"],["Active Experts in thousands","2026","","2025","","%","","2026","","2025","","%"],["Active Experts","8.4","","","9.7","","","(13)%","","9.8","","","12.1","","","(19)%"]]
[[/GREPCENT_TABLE]]

RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","Six Months Ended June 30,"],["dollars in thousands","2026","","%","","2025","","%","","2026","","%","","2025","","%"],["Revenue","$","43,231","","","100","%","","$","45,263","","","100","%","","$","91,966","","","100","%","","$","92,858","","","100","%"],["Cost of revenue","15,247","","","35","%","","17,421","","","38","%","","31,708","","","34","%","","37,405","","","40","%"],["Gross Profit","27,984","","","65","%","","27,842","","","62","%","","60,258","","","66","%","","55,453","","","60","%"],["Sales and marketing expenses","11,571","","","27","%","","13,558","","","30","%","","25,728","","","28","%","","29,343","","","32","%"],["General and administrative expenses","22,889","","","53","%","","26,572","","","59","%","","46,804","","","51","%","","54,983","","","59","%"],["Operating Loss","(6,476)","","","(15)","%","","(12,288)","","","(27)","%","","(12,274)","","","(13)","%","","(28,873)","","","(31)","%"],["Interest expense","672","","","1","%","","\u2014","","","\u2014","%","","1,332","","","1","%","","\u2014","","","\u2014","%"],["Interest income","(325)","","","\u2014","%","","(365)","","","(1)","%","","(693)","","","\u2014","%","","(827)","","","(1)","%"],["Other (income) expense, net","(1)","","","\u2014","%","","4","","","\u2014","%","","15","","","\u2014","%","","4","","","\u2014","%"],["Loss before Income Taxes","(6,822)","","","(16)","%","","(11,927)","","","(26)","%","","(12,928)","","","(14)","%","","(28,050)","","","(30)","%"],["Income tax expense","34","","","\u2014","%","","74","","","\u2014","%","","56","","","\u2014","%","","102","","","\u2014","%"],["Net Loss","(6,856)","","","(16)","%","","(12,001)","","","(26)","%","","(12,984)","","","(14)","%","","(28,152)","","","(30)","%"]]
[[/GREPCENT_TABLE]]

14

Table of Contents

Revenue

Revenue for the three months ended June 30, 2026 decreased when compared to the prior year period due to lower Consumer and Institutional revenue. The decrease in Consumer revenue was primarily driven by a lower Active Member count, partially offset by higher ARPM. As we began to lap the price increases enacted in February 2025, the rate of ARPM growth moderated year-over-year. Revenue for the six months ended June 30, 2026 decreased slightly when compared to the prior year period primarily due to lower Institutional revenue. Consumer revenue was relatively flat year-over-year as a lower Active Member count was offset by higher ARPM, which was primarily a result of price increases enacted in February 2025. Revenue for future periods will be impacted by the previously announced wind-down of Varsity Tutors for Schools.

While both current year periods were impacted by a lower Active Member count when compared to the corresponding prior year periods, the rate of decline has narrowed sequentially for four consecutive quarters, and we expect to return to positive Active Member growth by the end of 2026.

The following tables present our revenue by business category for the periods presented.

[[GREPCENT_TABLE]]
[["","","","Three Months Ended June 30,","","Change"],["dollars in thousands","","","","","","","","","2026","","%","","2025","","%","","$","","%"],["Consumer","","","","","","","","","$","36,452","","","84","%","","$","37,824","","","83","%","","$","(1,372)","","","(4)","%"],["Institutional","","","","","","","","","6,752","","","15","%","","7,308","","","16","%","","(556)","","","(8)","%"],["Other","","","","","","","","","27","","","1","%","","131","","","1","%","","(104)","","","(79)","%"],["Revenue","","","","","","","","","$","43,231","","","100","%","","$","45,263","","","100","%","","$","(2,032)","","","(4)","%"]]
[[/GREPCENT_TABLE]]

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1819404/000181940426000015/nrdy-20251231.htm
Complete FY 2025 MD&A: /company/NRDY/mda/fy2025/

Extracted from a substantive MD&A body after the formal Item 7 span was a TOC or reference stub.
Confidence: high
Filing date: 2026-02-26
Report date: 2025-12-31

OVERVIEW

We operate a next-generation live tutoring and intervention platform that leverages the power of human expertise with advanced artificial intelligence (“AI”) to personalize learning, accelerate student achievement, and empower educators. Our mission is to transform the way people learn through technology. Our purpose-built proprietary platform leverages technology, including AI, to connect students, users, parents, guardians, and purchasers (“Learner(s)”) of all ages to tutors, instructors, subject matter experts, educators, and other professionals (“Expert(s)”), delivering superior value on both sides of the network. Our 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, chat, essay review, adaptive assessments, and self-study tools. Our flagship business, Varsity Tutors LLC (“Varsity Tutors”), is one of the nation’s largest platforms for live online tutoring and classes. Our solutions are available to Learners either directly through Learning Memberships (“Consumers”) and through education systems (“Institutions”). Our platform offers Experts the opportunity to generate income from the convenience of home, while also increasing access for Learners by removing barriers to high-quality live online learning. Our offerings include Varsity Tutors for Schools, a product suite that leverages our next-generation live tutoring and intervention platform capabilities to offer high-dosage tutoring and our online learning solutions to Institutions. We have built a diversified business across the following audiences: K-8, High School, College, Graduate School, and Professional.

Seasonality of our Business

We have experienced in the past, and expect to continue to experience seasonal fluctuations in our revenue and earnings due to Learner and Institutional spending and consumption habits, and the timing of the academic year. Historically, we experience lower than normal revenue during the summer when schools and universities are typically out of session in the United States (the “U.S.”) and when people travel for vacations and holidays. Due to seasonality, comparisons of our historical quarterly results of operations on a sequential basis may not provide meaningful insight into our overall financial performance.

Abandonment of Capitalized Internal-Use Software

In the fourth quarter of 2025, management made a strategic decision to abandon certain components of our previously capitalized internal-use software including our legacy Live Learning Platform, our legacy Learner user experience, our legacy Expert user experience, and our legacy landing pages. These components and functions were rebuilt on entirely new, AI-native codebases, preserving essential business logic and data while migrating to modern, decoupled systems. We believe this modernization of our software platform onto entirely new, AI-native codebases will allow for not only the immediate improvement of the experiences we can offer to Learners, but also allow for more efficient product innovation in the future. In connection with this abandonment, we recorded a write-off of a portion of our previously capitalized internal-use software, which was included in “Cost of revenue” in the Consolidated Statement of Operations for the year ended December 31, 2025. For additional information on the abandonment charge, see Note 8 within “Notes to Consolidated Financial Statements” in Part II, Item 8 of this report.

KEY FINANCIAL AND OPERATING METRICS

We monitor the following key operating metrics, among others, to evaluate the performance of our business.

“Active Member(s)” is defined as the number of Learners with an active paid Learning Membership as of the dates presented. Variations in the number of Active Members are due to changes in demand for our solutions, seasonality, testing schedules, and the launch of new membership options. As a result, we believe Active Members is a key indicator of our ability to attract, engage, and retain Learners. Active Members exclude our Institutional business. Our Active Member count as of December 31, 2025 was lower when compared to December 31, 2024 primarily due to operational challenges that we are actively addressing through the appointment of a new Chief Operating Officer in 2025 to drive enhanced operational execution

38

Table of Contents

and systematic process improvements. We also rolled out new Learner and Expert platform user experiences in the fourth quarter that we believe will re-accelerate growth.

[[GREPCENT_TABLE]]
[["Active Members in thousands","December 31, 2025","","September 30, 2025","","June 30, 2025","","March 31, 2025","","December 31, 2024","","September 30, 2024"],["Active Members","33.2","","","34.3","","","30.6","","","40.5","","","37.5","","","39.7"],["YoY change","(11)%","","(14)%","","(14)%","","(12)%","","(8)%","","1%"]]
[[/GREPCENT_TABLE]]

“Average Revenue per Member per Month” (“ARPM”) is defined as the average Consumer Learning Membership subscription revenue per member per month as of the dates presented. Variations in ARPM are primarily due to changes in the mix of Learning Memberships sold and pricing changes. We believe ARPM is a key indicator of the value we provide to our customers. ARPM excludes our Institutional business. ARPM as of December 31, 2025 was higher when compared to December 31, 2024 due to the mix shift to higher frequency Learning Memberships coupled with price increases for new Consumer customers enacted during the first quarter of 2025. The impact of these changes was further bolstered by higher retention in newer cohorts due primarily to improvements in the user experience and new Expert incentives.

[[GREPCENT_TABLE]]
[["ARPM in ones","December 31, 2025","","September 30, 2025","","June 30, 2025","","March 31, 2025","","December 31, 2024","","September 30, 2024"],["ARPM","$","364","","","$","374","","","$","348","","","$","335","","","$","302","","","$","302"],["YoY change","21%","","24%","","24%","","14%","","(2)%","","(13)%"]]
[[/GREPCENT_TABLE]]

“Active Experts” is defined as the number of Experts who have instructed one or more sessions in a given period. Active Experts also includes our Institutional business, but excludes First Tutors UK. The following table summarizes Active Experts for the periods presented. Our Active Expert count during the year ended December 31, 2025 decreased when compared to the prior year period. This decrease was primarily due to lower Consumer Active Experts as a result of our Expert incentives, which has promoted utilization of the highest quality Experts by encouraging them to work with more Learners and develop deeper relationships that allow for increased revenue-generating opportunities, coupled with lower utilization of tutoring sessions in our Institutional business as a result of lower bookings. We believe our Active Expert count at December 31, 2025 is sufficient to meet our near-term growth objectives.

[[GREPCENT_TABLE]]
[["","Year Ended December 31,","","Change"],["Active Experts in thousands","2025","","2024","","%"],["Active Experts","15.8","","","20.2","","","(22)%"]]
[[/GREPCENT_TABLE]]

RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["dollars in thousands","2025","","%","","2024","","%"],["Revenue","$","178,988","","","100","%","","$","190,231","","","100","%"],["Cost of revenue","75,208","","","42","%","","61,837","","","33","%"],["Gross Profit","103,780","","","58","%","","128,394","","","67","%"],["Sales and marketing expenses","60,123","","","34","%","","71,623","","","37","%"],["General and administrative expenses","105,521","","","59","%","","126,879","","","67","%"],["Operating Loss","(61,864)","","","(35)","%","","(70,108)","","","(37)","%"],["Interest income, net","(1,073)","","","(1)","%","","(3,104)","","","(2)","%"],["Other (income) expense, net","(2)","","","\u2014","%","","23","","","\u2014","%"],["Loss before Income Taxes","(60,789)","","","(34)","%","","(67,027)","","","(35)","%"],["Income tax expense","159","","","\u2014","%","","115","","","\u2014","%"],["Net Loss","(60,948)","","","(34)","%","","(67,142)","","","(35)","%"]]
[[/GREPCENT_TABLE]]

Revenue

Revenue for the year ended December 31, 2025 decreased when compared to the prior year period primarily due to lower Institutional revenue and a specific state-funded program ($7,437 thousand for the year ended December 31, 2024) within Consumer revenue that did not recur in 2025. Also within Consumer Revenue, Learning Membership revenue increased 2% year-over-year. The current year period was positively impacted by higher ARPM in our Consumer business as a result of a mix

39

Table of Contents

shift to higher frequency Learning Memberships and price increases for new Consumer customers enacted during the first quarter of 2025, coupled with higher retention in newer cohorts due primarily to improvements in the user experience and investments in Expert pay and incentives.

The following table presents our revenue by category of Learners for the periods presented.

[[GREPCENT_TABLE]]
[["","Year Ended December 31,","","Change"],["dollars in thousands","2025","","%","","2024","","%","","$","","%"],["Consumer","$","150,736","","","84","%","","$","154,230","","","81","%","","(3,494)","","","(2)","%"],["Institutional","27,607","","","15","%","","35,277","","","18","%","","(7,670)","","","(22)","%"],["Other","645","","","1","%","","724","","","1","%","","(79)","","","(11)","%"],["Revenue","$","178,988","","","100","%","","$","190,231","","","100","%","","$","(11,243)","","","(6)","%"]]
[[/GREPCENT_TABLE]]

Cost of Revenue and Gross Profit

The following table sets forth our cost of revenue and gross profit for the periods presented.

[[GREPCENT_TABLE]]
[["","Year Ended December 31,","","Change"],["dollars in thousands","2025","","2024","","$","","%"],["Revenue","$","178,988","","$","190,231","","$","(11,243)","","","(6)","%"],["Cost of revenue","75,208","","61,837","","13,371","","","22","%"],["Gross Profit","$","103,780","","$","128,394","","$","(24,614)","","","(19)","%"],["% Margin","58","%","","67","%"]]
[[/GREPCENT_TABLE]]

Cost of revenue for the year ended December 31, 2025 was impacted by a charge for the abandonment of capitalized internal-use software, net of accumulated amortization, of $7,757 thousand related to our replacement of certain components of our platform with AI-native codebases, as discussed above. Excluding this impact, cost of revenue increased $5,614 thousand due to higher Expert costs of $5,243 thousand, primarily driven by investments in Expert pay and incentives. We believe these investments drive Expert satisfaction and engagement with our platform (and Learners) by allowing certain Experts to receive additional income for each sequential recurring session with the same student. Following the adoption of the new incentives, we continue to see faster time to the first session, more sessions in the first 30 days, lower tutor replacement rates, and higher retention.

Gross margin for the year ended December 31, 2025 was negatively impacted by the previously discussed charge related to the abandonment of capitalized internal-use software. Excluding this impact, gross margin decreased primarily due to investments in Expert pay and incentives. For the third consecutive quarter, gross margin improved sequentially quarter-over-quarter as gross margin, excluding the impact of the abandonment charge, of 67% for the fourth quarter of 2025 increased approximately 380 basis points when compared to the third quarter of 2025. The continued expansion was primarily a result of a mix shift to higher frequency Learning Memberships coupled with price increases for new Consumer customers enacted during the first quarter of 2025 and better optimization of tutoring incentives. We expect gross margin improv

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/NRDY/mda/fy2025/
All MD&A years: /company/NRDY/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/NRDY/mda/fy2024/): filed 2025-02-27; accession 0001819404-25-000009 (https://www.sec.gov/Archives/edgar/data/1819404/000181940425000009/nrdy-20241231.htm)
- [FY 2023 MD&A](/company/NRDY/mda/fy2023/): filed 2024-02-27; accession 0001819404-24-000019 (https://www.sec.gov/Archives/edgar/data/1819404/000181940424000019/nrdy-20231231.htm)
- [FY 2022 MD&A](/company/NRDY/mda/fy2022/): filed 2023-02-28; accession 0001819404-23-000013 (https://www.sec.gov/Archives/edgar/data/1819404/000181940423000013/nrdy-20221231.htm)
- [FY 2021 MD&A](/company/NRDY/mda/fy2021/): filed 2022-02-28; accession 0001819404-22-000016 (https://www.sec.gov/Archives/edgar/data/1819404/000181940422000016/nrdy-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 8200 Services-Educational Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/NRDY.md · JSON record: /company/NRDY.json · verified financials: /company/NRDY/financials.json / /company/NRDY/financials.csv · machine TOC for the whole site: /llms.txt