Nerdy Inc.NRDY

Nerdy Inc. Leases Disclosure

10-KFiled Feb 26, 20262 min read
LEASES
The Company leases office space in St. Louis, Missouri through an operating lease agreement. The Company has no finance lease agreements. The lease in St. Louis, Missouri has a remaining term of approximately 5 years, with two extension options.
The following table presents the balance sheet location of the Company’s operating leases.
December 31,
20252024
ROU assets
Other assets$1,699 $2,498 
Lease liabilities:
Other current liabilities$334 $928 
Other liabilities2,065 2,399 
Total lease liabilities$2,399 $3,327 
The following table presents maturities of the Company’s operating lease liabilities as of December 31, 2025.
December 31,
2025
2026$567 
2027577 
2028588 
2029599 
2030610 
Thereafter205 
Total future minimum payments$3,146 
Less: Implied interest747 
Total lease liabilities$2,399 
The following table presents supplemental operations statement information related to the Company’s operating leases and sublease agreements for the periods presented.
Year Ended December 31,
Statement of Operations Location202520242023
Operating lease expenseGeneral and administrative expenses$964 $1,476 $1,577 
Variable lease expenseGeneral and administrative expenses54 19 179 
Sublease incomeGeneral and administrative expenses(532)(1,047)(1,028)
At December 31, 2025, the weighted-average remaining lease term and the weighted-average IBR of the Company’s operating leases was approximately 5.33 years and 10.36%, respectively. At December 31, 2024, the weighted-average remaining lease term and the weighted-average IBR of the Company’s operating leases was approximately 5.22 years and 9.36%, respectively. Operating cash flows for amounts included in the measurement of the Company’s operating lease liabilities were $1,200 and $1,602, and $1,808 for the years ended December 31, 2025, 2024, and 2023, respectively. ROU assets obtained in exchange for operating lease liabilities during the year ended December 31, 2023 were $2,776. No ROU assets were obtained in exchange for operating lease liabilities during the years ended December 31, 2025 or 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 27, 2024
2022Feb 28, 2023

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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