Nerdy reports better than expected results for Q3 2025 as it looks to make further use of AI
Nerdy reported revenue of $37 million and an increase in Learning Membership of five percent. It says the results reinforces the company’s confidence in “the near-term path to profitability”.
Using AI, Nerdy says it was able to improve productivity and reduce headcount, which has fallen by around 27 percent in the past year.
“In the third quarter, our revenue was in-line with our guidance range and we beat adjusted EBITDA guidance. We drove nearly 1,000 basis points of improvement in adjusted EBITDA margins year-over-year, reflecting steady progress on cost controls and AI-enabled operations,” Chuck Cohn, Founder, Chairman and CEO of Nerdy, explains.
“The past 45 days in particular brought key product updates with the launch of a 2.0 version of our flagship Live Learning Platform product, as well as entirely new student and tutor experiences, with strong early signals from customers.”
In a call with investors as the results were announced, Cohn added that Nerdy is going through a “replatforming and metamorphosis”.
“What I realized is that to truly harness AI's potential, enhancing every aspect of live human tutoring, we needed to shed legacy constraints entirely,” Cohn said. “I've personally led a small group that worked day and night to rebuild key aspects of our core infrastructure from scratch using AI-assisted software development and preserving essential business logic and data while migrating to modern decoupled systems.”
