Nerdy Inc. (NRDY) reported a fiscal Q1 2026 revenue of $48.7 million, exceeding its guidance and reflecting a 2% year-over-year increase. The company achieved a positive non-GAAP adjusted EBITDA of $1 million, marking a significant improvement from a loss of $6.3 million in the prior year. Notably, gross margins expanded to 66.2%, driven by earlier price increases, while the adjusted EBITDA margin improved by over 1,500 basis points, indicating operational efficiencies gained through AI integration.
Despite these positive financial metrics, Nerdy faced challenges with active membership, which decreased by 9% year-over-year. However, the rate of decline has narrowed for three consecutive quarters, suggesting potential stabilization. The company’s Learning Membership revenue, comprising 80% of total revenue, grew by 3%, while average revenue per member rose 12% to $374, primarily due to pricing actions.
Looking ahead, Nerdy maintains a full-year revenue guidance of $180 million to $190 million but anticipates continued pressure on institutional revenue due to declining bookings. The company’s focus on enhancing customer retention and leveraging AI for operational improvements will be critical for sustaining growth.
Source: fool.com