Nerdy Inc. Class A Common Stock (NRDY)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I start with durable earnings and a margin of safety. Nerdy fails the first test. It has lost money in each of the last four years, and the FairStock Lynch category is none precisely because it has not earned a profit. In fiscal 2023, the year ended 2023-12-31, revenue was $193.4M; in fiscal 2024, the year ended 2024-12-31, revenue was $190.2M; in fiscal 2025, the year ended 2025-12-31, revenue was $179.0M. The latest reported quarter, fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $43.2M and a net loss of $4.7M, or diluted EPS of -$0.04. That was a smaller loss than fiscal Q2 2025, the quarter ended 2025-06-30, when net loss was $7.9M and diluted EPS was -$0.07, but the business still burns cash: trailing free cash flow is -$17.6M, a -8.0% FCF yield per FairStock. The balance sheet is not a fortress: debt-to-equity of 0.83, Altman Z-Score of -8.83, Piotroski F-Score of 2/9, ROE -122.60%, and ROCE -33.11%. I see no clear moat in the figures; an AI-enabled tutoring platform may have appeal, but 500 employees and a $179.0M revenue base are not enough without profits. Valuation offers no Graham-style bargain. At the $6.06 close on 2026-10-13, FairStock shows P/E -1.62, P/B 2.97, and a FairStock Score of 31/100 while market cap is $221.4M. Paying nearly three times book for a loss-making, cash-burning business is speculative. The stock might work if losses keep shrinking, but I would require evidence of sustained revenue growth, positive free cash flow, and a stronger balance sheet before calling it an investment rather than a lottery ticket.

In plain English: Nerdy runs an online learning platform that uses AI to connect students with tutors. The business is weak: it has lost money every year for the last four years, and sales have fallen from fiscal 2023 to fiscal 2025. At $6.06, the price looks expensive compared with the company's weak results, so it is not a clearly cheap stock.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer