Nerdy, Inc.
$0.78
+0.26%Nerdy, Inc. operates platform for live online learning. The company's purpose-built proprietary platform leverages technology, including AI, to connect learners of various ages to experts, delivering value on both sides of the network. Its learning destination provides learning experiences across various subjects and multiple formats, including one-on-one instruction, small group classes, large format group classes, and adaptive self-study. The company's flagship business, Varsity Tutors, operates platforms for live online tutoring and classes. Its solutions are available directly to learners, as well as through schools and other institutions. The company was founded in 2007 and is headquartered in Saint Louis, Missouri.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -2.4).
Valuation inputs: P/E -2.4, earnings yield N/A, momentum +0.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -2.1%, ROIC -68.4%).
Profitability stack: net margin -22.3%, ROE -2.1%, ROIC -68.4%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +62.0%, momentum +0.3%, net margin -22.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Nerdy, Inc. Market vs Earnings Trajectory
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Nerdy, Inc. Fair Value Envelope
Nerdy, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Nerdy, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Nerdy, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.
Nerdy, Inc. Street Expectations Map
Wall Street analysts project that NRDY stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 1.75, with estimates ranging from a low of 1.00 to a high of 2.50.
The consensus 1-year price target stands at 1.75, with estimates ranging from a low of 1.00 to a high of 2.50.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Nerdy, Inc. Insider Positioning
During the last 12 months, insiders have purchased $4.30M and sold $895K worth of NRDY shares, resulting in $3.40M of net buying activity.
3 Months
0
0.00
248.4K
225.78K
-226K
-$226K
3-6 Months
1.3M
1.72M
262.1K
310.87K
+1.4M
+$1.41M
6-9 Months
2.1M
2.54M
171.9K
167.04K
+2.4M
+$2.38M
9-12 Months
25.0K
34.00K
138.0K
191.27K
-157K
-$157K
Top Buyers
Cohn Charles K.
Director, 10 Percent Owner, Officer: Chief Executive Officer
$3.60M
Paszterko John Andrew
Officer: Chief Operating Officer
$666K
Blunt Abigail
Director
$34K
Top Sellers
Pello Jason H.
Officer: Chief Financial Officer
$478K
Swenson Christopher C.
Officer: Chief Legal Officer
$325K
Paszterko John Andrew
Officer: Chief Operating Officer
$48K
Mrva Gregory
Director
$44K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $3.40M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
4 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
No Dividend Yield Data
NRDY has not reported any dividend yield values in the available annual periods.
nrdy Dividend History
Learning Layer
Related Guides
Build conviction on NRDY by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.