Nerdy, Inc. Q1 FY2026 earnings call

Beat revenue guidance, delivered second consecutive quarter of positive non-GAAP adjusted EBITDA. Translated AI Native Foundation into learner-facing product. Product velocity with AI-native codebase visible. Cost structure better due to AI. Rate of decline in active members narrowed. Launched new learner experience V3. Upcoming product releases in college/career readiness, daily math/reading content, language learning. Utilizing AI internally for product velocity and productivity.

In Q1 2026, revenue was $48.7 million, above the guidance range. Learning membership revenue was $38.9 million, 80% of total revenue. Institutional revenue was $9.3 million, 19% of total revenue. Non-GAAP adjusted EBITDA was positive $1 million. Gross margin reached 66.2%, expanding over 800 basis points year over year.

Second quarter 2026 revenue expected $42-44M. Full year 2026 revenue expected $180-190M. Second quarter 2026 non-GAAP adjusted EBITDA expected negative $2M to break even. Full year 2026 non-GAAP adjusted EBITDA expected approximately break even.

Forward-looking statements involve significant risks and uncertainties. Refer to SEC filings for discussion of risks. Not all financial measures prepared in accordance with GAAP.

Q: Brian asks about confidence in achieving active member growth and timeline of migrating to V3.

A: Chuck talks about product velocity, new cohorts showing good retention, expecting to get 100% existing customers on new experience. Athol adds on retention driving higher LTV.

Q: Greg follows up on churn and full year guidance.

A: Chuck mentions active member trend improving, cost structure improvements, Q2 and Q3 seasonally weaker, Q4 picks up.