Financial Data and Key Metrics Changes - Fourth quarter revenue was $49.1 million, exceeding guidance and up 2% year-over-year, marking the first quarter since Q1 2024 with simultaneous growth in both consumer and institutional businesses [4][19] - Non-GAAP adjusted EBITDA was positive $1.3 million, significantly improving by $6.8 million from Q4 2024 and beating guidance of -$2 million to break even [4][26] - Active members ended the year at 33.2 thousand, with ARPM reaching $364, a 21% increase year-over-year [21][22] Business Line Data and Key Metrics Changes - Consumer revenue was $41.6 million, a 6% increase year-over-year, representing 85% of total company revenues [19][22] - Institutional revenue was $7.2 million, accounting for 14% of total revenue, with bookings of $4.1 million, down 11% year-over-year due to funding delays [22][24] - Gross margin for Q4 was 66.8%, showing sequential improvement and driven by a shift to higher frequency learning memberships and price increases [23][24] Market Data and Key Metrics Changes - The U.S. academic tutoring market is estimated at approximately $20 billion per year, with the company currently serving fewer than 40,000 active members [6][7] - The demand for high-quality, personalized tutoring remains strong, with approximately 50 million students progressing through the K-12 and higher education systems in the U.S. each year [5][6] Company Strategy and Development Direction - The company aims to enhance personalized learning across its Live+AI platform, leveraging AI to improve user experience and operational efficiency [15][16] - Plans to return to active member growth through new marketing channels and an improved mobile experience are in place [16][17] - The focus for 2026 includes compounding gross margin and structural cost improvements, targeting break-even non-GAAP adjusted EBITDA for the full year [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the top-of-funnel trends and the ability to optimize customer acquisition and retention [39][40] - The completion of the new AI-native platform is expected to enhance engagement and operational speed, leading to better customer experiences [36][37] - The company anticipates continued gross margin improvement and operational efficiencies as it leverages AI capabilities [24][30] Other Important Information - The company completed the rollout of new learner and expert user experiences, receiving positive feedback from 85% of surveyed customers [12][22] - Significant reductions in sales and marketing expenses were noted, alongside a 22% year-over-year decline in headcount due to automation [25][26] Q&A Session Summary Question: Impact of new platform on engagement and retention - Management noted that the new platform allows for faster and more flexible operations, leading to improved engagement and retention [34][36] Question: Navigating changes in the search environment - Management expressed optimism about top-of-funnel trends and the ability to optimize discoverability and conversion rates [39][40]

Nerdy (NYSE:NRDY) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Company ParticipantsChuck Cohn - Founder, Chairman, and CEOJason Pello - CFORyan MacDonald - Managing DirectorTJ Lynn - Associate General CounselModeratorGood afternoon. Thank you for attending Nerdy Inc.'s Q4 2025 earnings call. My name is Tamiya, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to ...

Nerdy (NYSE:NRDY) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Speaker2Good afternoon. Thank you for attending Nerdy Inc.'s Q4 2025 earnings call. My name is Tamiya, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, TJ Lynn, Associate General Counsel of Nerdy. You may proceed.Speaker4Good afternoon, and thank you for join ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________ FORM 10-K _________________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ Commission File Number: 1-39595 _________________________________________ NERDY INC. (Exact ...

Exhibit 99.1 Q4 | 2025 Earnings Release 862200305164 New Learner Experience Varsity Tutors Back to SAT Prep My Subjects SAT Study Plan Your SAT Study Plan A Note to Our Shareholders Dear Shareholders, In the fourth quarter, we delivered on the three goals we set entering 2025: return the business to growth, accelerate our transformation into an AI-native platform, and achieve positive non-GAAP adjusted EBITDA. Revenue was $49.1 million, above the top end of guidance and up 2% year-over-year. This was the fi ...

Summary of Nerdy Conference Call Company Overview - **Company**: Nerdy, operating under the consumer-facing name Varsity Tutors, is a leading platform for live learning in the United States, connecting users with experts across 3,000 subjects through a vertically integrated marketplace model [4][10]. Go-to-Market Strategy - **Consumer Model**: Direct-to-consumer internet model focusing on parents purchasing tutoring for their children based on significant educational goals [5][10]. - **Institutional Model**: Direct engagement with school districts and institutions, providing tools for data-driven interventions and personalized learning experiences [8][10]. Revenue Breakdown - **Revenue Composition**: Consumer business accounts for 85% of total revenue, while institutional business represents 15% [10]. - **Active Families**: Approximately 35,000 active families as of Q3, with an average monthly payment of $375 for tutoring services [10]. AI Integration - **AI Utilization**: AI is central to enhancing the learning experience, allowing for personalized and bespoke educational journeys. The company has transitioned to AI-native services, improving customization and operational efficiency [11][12][15][20]. - **Impact on Experience**: The integration of AI enables real-time lesson preparation, personalized content delivery, and improved tutor-student interactions [16][17]. Market Trends and Opportunities - **Consumer Expectations**: Rising expectations for personalization in education driven by AI advancements [27][28]. - **Institutional Market**: Increased openness to AI in education, with a focus on high-dosage tutoring to address learning gaps [31][33][35]. Financial Performance - **Revenue Growth**: Sequential improvement in revenue growth rates throughout 2025, with expectations for continued acceleration into 2026 [22][23]. - **Gross Margins**: Significant improvements in gross margins due to strategic investments in tutor compensation and technology enhancements [39][40]. - **Operating Efficiency**: Adjusted EBITDA margin improved by 960 basis points year-over-year, driven by operational efficiencies and cost reductions [41][42]. Leadership and Strategy - **New Leadership**: Introduction of a new COO and operational team focused on enhancing efficiency and customer experience [45]. - **Balance of Growth and Profitability**: The company aims to be more aggressive in growth while maintaining profitability through scalable systems and improved operational discipline [43][44]. Investment and Financial Flexibility - **Term Loan Agreement**: A recent term loan enhances financial flexibility, allowing for offensive growth strategies and potential M&A opportunities [48][49]. - **Stock Purchases**: CEO Chuck Cohn has invested over $80 million in stock purchases, indicating strong confidence in the company's future [55]. Future Outlook - **Catalysts for Growth**: Investors should focus on revenue acceleration, operating leverage, and the impact of AI on product offerings as key indicators of success [57][59]. - **Product Quality**: Anticipated improvements in product quality and execution pace are expected to drive future growth [66]. This summary encapsulates the key points discussed during the conference call, highlighting Nerdy's strategic direction, financial performance, and market opportunities.

Core Insights - The U.S. education market is transitioning from traditional methods to digital and career-focused programs, driven by student demand and government initiatives [2][11] - The Zacks Schools industry shows resilience, with median share prices above the S&P 500 composite, indicating promising mid to long-term prospects despite current stock performance [3] - Five education stocks are identified with expected earnings growth of over 10% year-over-year by 2026, including Chegg, Adtalem Global Education, Grand Canyon Education, Nerdy, and Legacy Education [4] Market Trends - The shift towards hybrid and AI-based learning models is gaining traction, with education companies adapting to meet the demand for flexible learning formats [5][8] - Companies like Chegg and Nerdy are benefiting from the rise of online and hybrid learning, leveraging AI-enhanced tools and subscription-based digital offerings [6][8] - The focus on career-oriented programs is increasing, particularly in high-demand fields like healthcare, aligning with workforce needs and supporting enrollment growth [9][10] Government Support - Federal and state initiatives are promoting EdTech adoption and workforce development, enhancing the prospects for education companies [11] - New interagency agreements aim to streamline program delivery and reduce administrative burdens, while a national policy established in April 2025 focuses on advancing AI education [11][12] Stock Performance - Chegg (CHGG) has a Zacks Rank of 1, with a projected earnings growth of 228.6% for 2026 despite a year-to-date drop of 42.9% [16] - Adtalem (ATGE) holds a Zacks Rank of 2, with a fiscal 2026 EPS estimate of $7.85 and expected growth of 17.7% [17] - Grand Canyon Education (LOPE) has a Zacks Rank of 2, with a projected earnings growth of 11.2% for 2026 [18] - Nerdy (NRDY) carries a Zacks Rank of 2, with an expected growth of 35.9% for 2026 despite a year-to-date decline of 16.7% [19] - Legacy Education (LGCY) also holds a Zacks Rank of 2, with a projected earnings growth of 11.9% for 2026 and a year-to-date gain of 23.8% [20]

Core Insights - The Zacks Schools industry is experiencing a recovery driven by increased demand for applied and career-oriented education, particularly in healthcare, skilled trades, cybersecurity, and IT [1][5] - Technology is becoming a significant competitive advantage, with institutions investing in adaptive learning systems and online platforms to enhance student engagement and operational efficiency [2][8] - The industry is consolidating, with larger providers acquiring smaller institutions to expand offerings and improve operational leverage [6] Industry Overview - The Zacks Schools industry includes for-profit education companies offering various programs in finance, healthcare, technology, and skilled trades, focusing on career-oriented education [4] - The sector is addressing the shortage of healthcare professionals through intensive training models linked to industry needs [1][5] Trends Influencing Growth - There is a rising demand for workforce-oriented programs, particularly among adult learners and career switchers, as the labor market increasingly values job-ready skills [5] - Government initiatives supporting vocational education and non-degree pathways are contributing to the growth outlook [3][5] Financial Performance and Valuation - The Zacks Schools industry has a Zacks Industry Rank of 65, placing it in the top 27% of over 250 Zacks industries, indicating positive near-term prospects [11][12] - The industry's forward 12-month price-to-earnings ratio is currently at 12.58X, significantly lower than the S&P 500's 23.57X, suggesting potential undervaluation [18] Key Companies and Their Prospects - **McGraw Hill**: Experiencing growth from digital and subscription models, with a projected fiscal 2026 earnings of $1.63 per share on $2.05 billion in revenues, reflecting a 300% surprise in the last quarter [21][24] - **Grand Canyon Education**: Focused on scalable online expansion and healthcare programs, with expected earnings growth of 12.9% and 11.2% for 2025 and 2026, respectively [27][28] - **Perdoceo Education**: Benefiting from rising student interest and expanding program offerings, with expected earnings growth of 11.4% and 9% for 2025 and 2026 [31][32] - **Adtalem**: Gaining from enrollment momentum and strategic partnerships, with projected earnings growth of 17.7% and 13.7% for fiscal 2026 and 2027 [35][37] - **Nerdy**: Enhancing its platform with AI integration, with improvements in earnings estimates for 2025 and 2026, indicating a potential investment opportunity [39][40]

Core Viewpoint - Nerdy, Inc. is considered one of the best EdTech stocks to buy currently, despite a cautious outlook from analysts following its Q3 results [1][2]. Financial Performance - For Q3, Nerdy reported revenue of approximately $37 million, which is roughly flat year-over-year [2]. - The adjusted EBITDA loss improved to $10.2 million, better than the guidance of a loss between $11 million and $13 million, indicating effective cost management [2]. - The company narrowed both GAAP and non-GAAP net losses compared to the previous year, reflecting tighter cost control as it approaches Q4 [2]. Analyst Ratings - Cantor Fitzgerald's Yi Fu Lee maintained a Neutral stance on Nerdy but lowered the price target to $1.00 from $1.50, following a previous adjustment from $1.75 to $1.50 in August [1][3].

Core Viewpoint - Nerdy Inc. (NRDY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Investor Sentiment - The upgrade for Nerdy reflects an improvement in the company's underlying business, which is expected to drive stock appreciation as investors recognize this positive trend [5]. - Over the past three months, the Zacks Consensus Estimate for Nerdy has increased by 5.9%, indicating a positive revision in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates into five groups, with only the top 20% receiving a "Strong Buy" or "Buy" rating, suggesting superior potential for market-beating returns [9][10]. - Nerdy's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for price movement in the near term [10].