Nerdy Reports Q4 Revenue Growth, Positive Adjusted EBITDA, and Guides for 2026 Breakeven
Summary
Nerdy Inc. reported a return to revenue growth and positive adjusted EBITDA in Q4 2025, beating guidance, and provided an outlook for breakeven adjusted EBITDA in 2026, signaling an operational turnaround.
Key Events
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Q4 2025 Financial Performance Exceeds Expectations
Nerdy Inc. reported Q4 2025 revenue of $49.1 million, up 2% year-over-year and above guidance. Non-GAAP adjusted EBITDA was positive $1.3 million, significantly beating guidance of negative $2.0 million to breakeven. Non-GAAP gross margin expanded to 66.8%.
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Full Year 2026 Guidance for Breakeven Adjusted EBITDA
The company provided full year 2026 revenue guidance of $180-$190 million and expects non-GAAP adjusted EBITDA to be approximately breakeven, representing over 1,000 basis points of margin improvement compared to 2025.
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Operational Improvements and Liquidity
Nerdy completed the rollout of its AI-native platform, driving improved unit economics and product development velocity. Cash and cash equivalents stood at $47.9 million as of December 31, 2025, with expected year-end 2026 cash of $40-$45 million, including a new $20 million term loan.
Analysis
Nerdy Inc. announced a significant operational turnaround in its fourth quarter 2025 results, achieving year-over-year revenue growth and positive non-GAAP adjusted EBITDA, both exceeding guidance. This marks the first quarter since Q1 2024 where both Consumer and Institutional businesses grew simultaneously. While the full year 2025 still reflected a revenue decrease and net losses, the company's strategic shift to an AI-native platform and disciplined cost management are showing results. The forward guidance for breakeven non-GAAP adjusted EBITDA for both Q1 and the full year 2026 indicates a continued path towards profitability and improved financial health, which is a strong positive signal for investors.
At the time of this filing, NRDY was trading at $1.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $173.9M. The 52-week trading range was $0.77 to $1.90. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.