MeritValue

Nerdy Inc.

NRDYdata completeness 100%7 fiscal years on file
The thesis, from the filings

Nerdy Inc. earns about -95% on equity, but has diluted owners by 52% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$140.7M1$162.7M2$193.4M3$190.2M3$179M3
Net income−$3.78M4−$35.4M5−$40.2M6−$42.6M6−$39.9M6
Operating cash flow−$38.9M7−$48M8−$7.56M9−$15.6M9−$18.8M9
Capital expenditure$5.16M10$5.32M11$6.89M12$6.86M12$5.37M12
Free cash flow (derived)−$44.1M7−$53.3M8−$14.4M9−$22.5M9−$24.2M9
Total debt$013——$014$19.3M14
Cash & equivalents$144M15$90.7M16$74.8M16$52.5M17$47.9M17
Diluted shares79.2M85.9M97.2M111.7M120.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$1.57
your share of equity
Profit it earned you last year
−$3.3
Free cash flow it threw off
−$2
Debt you’d be carrying
$1.6

10 shares is a claim on $1.57 of net worth that earned you −$3.3 and generated −$2 of cash last year, against $1.6 of debt.

iii. Is this a good business?
Moat signal · return on equity
-95% avg · 5y
FY21 -7%FY22 -75%FY23 -77%FY24 -108%FY25 -210%

It earned an average -95% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+52% shares · 5y

Share count is up 52% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001819404-24-000019 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001819404-25-000009 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001819404-26-000015 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001819404-24-000019 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001819404-25-000009 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001819404-26-000015 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001819404-24-000019 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001819404-25-000009 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001819404-26-000015 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001819404-24-000019 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001819404-25-000009 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001819404-26-000015 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001819404-22-000016 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2024-12-31 · accession 0001819404-26-000015 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2021-12-31 · accession 0001819404-24-000019 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0001819404-25-000009 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-12-31 · accession 0001819404-26-000015 (CashAndCashEquivalentsAtCarryingValue)