NRDY

Nerdy ($NRDY) CEO's $30M Buying Confidence vs 11% Revenue Decline Dilemma

12/11/2025 13:41

Nerdy Inc. ($NRDY) operates an online tutoring platform best known for its Varsity Tutors brand. This education technology company that gained attention during the early COVID-19 pandemic surge in online learning demand is now drawing investor focus again due to its CEO's bold buying spree. The most striking pattern is CEO Charles Cohn's confident buying behavior. Since the stock plummeted from $1.59 to $0.83 in August 2024, Cohn has purchased approximately $30 million worth of company shares. Notably, on August 16, he bought nearly 11 million shares in a single transaction, investing almost $10 million, and has continued steady additional purchases since. This goes beyond symbolic buying, suggesting management has considerable confidence in the company's future value. However, other executives paint a somewhat different picture. CFO Jason Pello and CLO Christopher Swenson have been consistently selling their holdings. While most of these sales appear to follow 10b5-1 plans, they contrast sharply with the CEO's aggressive buying, sending mixed signals to investors. Nerdy's financial situation is complex. Looking at Q2 2025 results, the company posted a 7-cent per share loss, which was better than the expected 10-cent loss. The concern is that revenue declined 11.2% year-over-year to $45.26 million. The company continues to post losses, and the revenue decline trend appears likely to continue for the foreseeable future. Nevertheless, there are some positive elements. Learning membership revenue grew 4%, and operational efficiency improvements through AI tool integration are underway. The launch of AI-native Live Learning Platform 2.0 is expected to deliver margin improvements and cost reductions. Additionally, the company secured a $50 million term loan to enhance liquidity. The broader online education sector context must also be considered. Many edtech companies are struggling as pandemic-driven demand normalizes and traditional in-person education returns. In this environment, Nerdy is attempting differentiation by focusing on premium tutoring services, but achieving results will likely take time. At the current $1.27 share price, Wall Street analysts have set a 12-month target of $2.00, suggesting approximately 57% upside potential. However, most analyst ratings are 'hold,' not aggressive buy recommendations. Key indicators investors should watch are whether revenue decline moderates in Q3 and Q4 results, and whether AI platform adoption effects materialize in actual numbers. Whether the CEO's continuous buying represents a bottom signal or catching a falling knife will be revealed by upcoming quarterly results. In the near term, the November earnings release will likely be a crucial inflection point. Achievement of the company's Q3 revenue guidance of $37-40 million and the extent of EBITDA loss reduction will be key factors determining stock direction.