# Nerdy Q3 2026 Earnings Results

> Nerdy reports 10% revenue drop but improved margins and 44% headcount reduction as it shifts to self-service model.
- Title: Nerdy Q3 2026 Earnings Results · The Motley Fool | Shortify
- Summary: Nerdy reports 10% revenue drop but improved margins and 44% headcount reduction as it shifts to self-service model. Nerdy Inc.
- Keywords: nerdy, q3 2026, earnings call, revenue, non-gaap adjusted ebitda, headcount, self-service model, learning membership, ai spend, vt4s, The Motley Fool
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/11/10/nerdy-nrdy-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-11-10T06:27:10+00:00
- Read time: 2 min
- Topics: nerdy, q3 2026, earnings call, revenue, non-gaap adjusted ebitda, headcount, self-service model, learning membership, ai spend, vt4s, finance, money
## Q3 2026 Results
Nerdy reported Q3 2026 revenue of $33.2 million, a 10% decrease year over year.
## Net Loss Improvement
Net loss narrowed to $12.8 million from $18.7 million in Q3 2025.
## Non-GAAP EBITDA Margin
Non-GAAP adjusted EBITDA margin expanded by over 1,000 basis points year over year.
## Consumer Revenue
Consumer revenue totaled $30.7 million, a 7% year-over-year decline representing 93% of total revenue.
## Institutional Revenue
Institutional revenue dropped to $2.5 million, a 34% year-over-year decline from Varsity Tutors for Schools wind-down.
## Active Members
Active members fell to 31,800 as of Sept. 30, a 7% year-over-year decrease.
## ARPM Decline
ARPM decreased to $366, a 2% year-over-year drop due to membership mix shift.
## Headcount Reduction
Total headcount reduced to 525 employees, a 44% decrease from 934 one year ago.
## AI Spend
AI spend dropped to $1.5 million in Q3 2026, 60% below July peak.
## Cash Position
Cash and cash equivalents stood at $42.5 million as of Sept. 30, following $10 million term loan draw.
## Q4 Revenue Guidance
Management expects Q4 revenue in the range of $37 million to $39 million.
## Q4 EBITDA Guidance
Company expects non-GAAP adjusted EBITDA to reach breakeven in Q4 2026.
## Year-End Cash Guidance
Management projects ending 2026 with $35 million to $37 million in cash.
## VT4S Revenue
VT4S revenue was $514,000 in Q3 2026, down from $1.8 million in Q3 2025.
## Product Transformation
Company rolled out messaging-first student experience and self-service checkout model.
## Smart Actions
Smart Actions provides tutors with 3D interactive models from 15,000 lessons.
## AI Efficiency
AI spend run rate was 60% below July peak without reducing employee adoption.
## Retention Improvements
Retention improved year over year across 37-day, 60-day, and 90-day cohorts.
## Key takeaway

Nerdy Inc. reported Q3 2026 revenue of $33.2 million, a 10% year-over-year decline, with non-GAAP adjusted EBITDA margin expanding by over 1,000 basis points and 44% fewer employees.