Nerdy, Inc. reported its third‑quarter 2025 results, posting total revenue of $37.0 million—a 1% year‑over‑year decline that reflects a modest drop in institutional sales offset by a 5% rise in consumer Learning Membership revenue.
Consumer revenue accounted for $33.0 million, or 89% of total sales, while institutional revenue fell to $3.7 million. Average revenue per member per month climbed to $374, up 24% from the same period last year, driven by higher pricing and a shift toward higher‑margin subscription plans.
Gross margin for the quarter was 62.9%, down from 70.5% in the same period a year earlier. The compression is largely attributable to investments in expert pay and incentives that support the company’s Live+AI platform, but the margin improved sequentially from the second quarter as cost efficiencies began to offset the higher headcount and technology spend.
Adjusted EBITDA was a loss of $10.2 million, beating the company’s own guidance of a loss between $11.0 million and $13.0 million. The narrower loss results from disciplined cost management and the acceleration of AI‑driven operational efficiencies. Non‑GAAP earnings per share were –$0.10, beating the consensus estimate of –$0.16 by $0.06, a margin improvement that underscores the effectiveness of the company’s cost‑control program.
The company also announced a $50 million term‑loan facility, of which $20 million was drawn on November 3, 2025. The facility is intended to support working capital needs and growth initiatives, providing financial flexibility without immediate equity dilution.
Guidance for the fourth quarter projects revenue of $45 million to $47 million and full‑year 2025 revenue of $175 million to $177 million. Adjusted EBITDA guidance for Q4 is a loss of $2 million to breakeven, and for the full year a loss of $19 million to $21 million, signaling management’s confidence in achieving profitability as cost controls mature.
Founder, Chairman and CEO Chuck Cohn said, “In the third quarter, we beat adjusted EBITDA guidance and are on track for profitability in Q4. The launch of Live Learning Platform 2.0 and our Live+AI strategy are key growth engines that are already delivering early signals from customers.”
Investors noted the profitability beat but also the revenue miss relative to the consensus estimate of $38.77 million to $38.85 million. Headwinds include a decline in institutional sales and delays in product launches tied to the platform overhaul, while tailwinds are the growth in ARPM, AI‑enabled efficiencies, and the new term‑loan facility that supports future expansion.
Nerdy’s results illustrate a company that is tightening its cost base and moving toward profitability, yet still faces top‑line challenges that will require continued focus on institutional demand and the successful execution of its platform roadmap.
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