Nerdy (NRDY) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $45.3M, down 11% year-over-year, mainly due to the absence of a non-recurring state-funded program and lower Institutional revenue; Learning Membership revenue grew year-over-year for the first time since Q2 2024, driven by AI-powered enhancements and improved engagement.

• Consumer Learning Membership revenue grew 4% year-over-year to $37.8M, representing 83–84% of total revenue, with ARPM up 24% to $348.

• Varsity Tutors for Schools bookings increased 21% year-over-year, reflecting strong demand for high-dosage tutoring and positive response to the Live+ AI platform.

• Non-GAAP adjusted EBITDA loss was $2.7M, outperforming guidance, and the company remains on track for non-GAAP adjusted EBITDA profitability in Q4 2025.

• Net loss attributable to Class A stockholders was $7.9M for Q2 2025, an improvement from $9.1M in Q2 2024.

Financial highlights

• Gross margin was 61.5%–62% for Q2 2025 (down from 65.7%–66% year-over-year), but improved sequentially from Q1 2025.

• Cash and cash equivalents stood at $36.7M as of June 30, 2025, with no debt.

• Non-GAAP adjusted EBITDA loss was $2.7M, outperforming guidance.

• Operating loss for Q2 2025 was $12.3M, compared to $15.2M in Q2 2024.

• Basic and diluted loss per share for Q2 2025 was $(0.07), compared to $(0.08) in Q2 2024.

Outlook and guidance

• Q3 2025 revenue guidance: $37M–$40M; full-year 2025 revenue guidance: $191M–$197M.

• Q3 2025 non-GAAP adjusted EBITDA loss guidance: $11M–$13M; full-year 2025: $13M–$17M loss.

• Expect sequential improvements in revenue and gross margin each quarter throughout 2025, with consolidated and Consumer revenues returning to positive year-over-year growth in Q3.

• Projected to achieve non-GAAP adjusted EBITDA profitability in Q4 2025.

• Anticipate ending 2025 with $30M–$35M in cash and no debt.