Quarterly ResultMay 7, 2026, 04:14 PM
Nerdy Q1 Revenue $48.7M, Beats Guidance; Adjusted EBITDA Positive $1.0M
AI Summary
Nerdy Inc. reported first-quarter 2026 revenue of $48.7 million, exceeding its guidance range, and achieved positive non-GAAP adjusted EBITDA of $1.0 million, also ahead of expectations. The company saw significant margin expansion, with adjusted EBITDA margin improving over 1,500 basis points year-over-year, driven by AI-enabled productivity and cost control. Nerdy launched its new AI-native Learner Experience (V3) and AI concierge "Maya," with early positive customer feedback, and expects to return to positive Active Member growth by year-end.
Key Highlights
- Q1 2026 revenue was $48.7 million, up 2% year-over-year, exceeding guidance of $46-$48 million.
- Non-GAAP adjusted EBITDA was positive $1.0 million, beating guidance of approximately breakeven.
- Adjusted EBITDA margin expanded over 1,500 basis points year-over-year.
- Gross margin reached 66.2%, an increase of over 800 basis points year-over-year.
- Active Members were 36.9 thousand, down 9% year-over-year, but the rate of decline narrowed for three consecutive quarters.
- Consumer Learning Membership revenue grew 3% to $38.9 million, with Average Revenue per Member per Month (ARPM) up 12% to $374.
- Reaffirmed full-year 2026 revenue guidance of $180-$190 million and approximately breakeven non-GAAP adjusted EBITDA.
- Ended the quarter with $44.7 million in cash and cash equivalents.