Nerdy

Q2 FY2026 EarningsQ2 FY26 results were slightly ahead of consensus on the top line ($43.2M vs. $43.0M expected) with adjusted EBITDA loss of $0.9M beating the $2.0M midpoint guidance. However, the company announced a strategic pivot to exit its Institutional business (VT4S) and UK operations, leading to a significant downward revision in FY26 revenue guidance to $168M-$175M (from $180M-$190M) and a $10M+ reduction in year-end cash expectations. While gross margins improved to 64.7% due to AI efficiencies and lower amortization, the structural wind-down of schools-based revenue creates a transitional period for the stock.