Nerdy reported a $6.9 million net loss for Q2, improving margins and reducing adjusted EBITDA loss to $900,000 while exiting two businesses.
Nerdy (NYSE:NRDY) reported a second-quarter net loss of $6.9 million, narrower than prior periods, as revenue declined 4% year over year to $43.3 million. Gross margin expanded to 64.7%, and adjusted EBITDA loss improved to $900,000.
The company announced plans to wind down Varsity Tutors for Schools and exit First Tutors, reducing annual fixed costs by about $11 million. These moves led to a revised 2026 revenue guidance of $168 million–$175 million, though management maintained its consumer business outlook.
Consumer revenue accounted for $36.5 million, or 84% of total revenue. Nerdy expects year-end cash of $30 million–$32 million and believes existing liquidity will fund operations through free-cash-flow breakeven.