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Nerdy

NRDY
25
Software - Application · Technology
Price
$0.83
-0.02 (-2.26%)
Market Cap
$101.6M
Winston Score
25
Winston is worried
Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+52.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 79.2M (2021) → 120.8M (2025)

Nerdy, Inc. runs an online learning platform called Varsity Tutors that connects students with tutors and teachers. It serves learners of all ages — from K-12 students to working adults — offering live tutoring, classes, and test prep across hundreds of subjects. The company operates primarily in the United States and competes in the crowded online education market.

Nerdy makes money by charging fees for tutoring sessions, subscriptions to its learning platform, and partnerships with schools and employers who pay for access on behalf of their students or workers. It is a small company with a market cap around $100 million, and its main competitive edge is its technology platform that matches learners with tutors at scale. However, the company is not yet profitable, losing money on operations, and its biggest challenge is cutting costs and growing revenue fast enough to reach breakeven before its cash runs out.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+63.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$41M/ year

23.1% of revenue

1.5x the sector average (15%)

Research and development spending

Insider Activity

69.9%ownership

Insiders own a meaningful stake in the company

Cash Runway

~4 years

$45M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$45M cash & investments at current burn rate

Growth context

Nerdy is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
66.2%
Premium pricing power — 66.2% gross margin
Operating Margin
3.7%
Thin — 3.7% operating margin
ROCE
4.6%
Weak — 4.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-2.2%
Shrinking sales (-2.2% YoY)
EPS YoY
N/A
—
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
—
Data not available
FCF Margin
-10.9%
Burning cash (-10.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
1.01
Elevated debt (1.01)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
—
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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