Nerdy narrows Q1 loss 65% on price hikes, but new debt covenants limit flexibility

Filed May 7, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 8, 2025 · ~2 min read

Key Changes

• high

  Operating loss improved $10.8M YoY to -$5.8M (from -$16.6M) driven by 8pp gross margin expansion from February 2025 price increases and lower opex; revenue grew 2% despite 9% Active Member decline.

  MD&A: Operating Results verify on EDGAR →
• high

  New term loan (originated Nov 2025) added $660K quarterly interest and restrictive covenants requiring $15M minimum cash or 6-month liquidity; borrowing capacity tied to TTM Contribution Margin exceeding historical levels.

  MD&A: Liquidity and Capital Resources verify on EDGAR →
• high

  Price increases lifted ARPM 12% YoY ($335 to $374) but Active Members fell 9% (40.5K to 36.9K); management expects platform improvements to reverse trend and deliver positive growth by end-2026.

  MD&A: Revenue Drivers verify on EDGAR →