Nerdy

NRDY

Software - Application · Technology

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Weak

Stability

Weak

Valuation

Data not available

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Winston Score History

The full picture

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.

Growth Profile

For growth stock investors

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

Insider Activity

67.8%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

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

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

65.6%

Premium pricing power — 65.6% gross margin

Profit after running costs

Operating Margin

3.7%

Thin — 3.7% operating margin

Return on the money invested

ROCE

-112.2%

Weak — -112.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-2.2%

Shrinking sales (-2.2% YoY)

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

—

Data not available

Spare cash per sale

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

What it owes vs what it owns

Debt / Equity

1.01

Elevated debt (1.01)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

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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