Nerdy: Unattractive Risk-Reward

2025-03-09 19:47:08 ET

Summary

• NRDY, an education tech company, has seen its stock drop over 83% since going public in 2021, now trading at $1.6 per share.
• Weak fundamentals include a revenue decline of -1.6% in FY 2024 and ongoing net losses, with significant cash flow issues.
• Management's strategies, like price increases and product improvements, aim to boost growth but are experimental and uncertain, impacting investor confidence.
• My neutral rating reflects an 8% projected return for FY 2025, deeming the risk-reward ratio unattractive given NRDY's current financial health.

Founded in 2007, Nerdy ( NRDY ) is an education technology company focusing on live online learning. It owns various companies, including Veritas Prep and also Varsity Tutors....

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