Nerdy Inc.NRDY

Nerdy Inc. Segments Disclosure

10-KFiled Feb 26, 20262 min read
SEGMENT INFORMATION
The Company has one reportable segment: Tutoring. The Tutoring Segment generates revenue by selling services to Learners and Institutions for tutoring that are fulfilled by Experts, who deliver instruction on its behalf through its proprietary Live Learning Platform. The Company does not have intra-entity sales or transfers. The accounting policies of the Tutoring Segment are the same as those described in Note 2.
The Company’s CODM is the Chief Executive Officer of the Company, who evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. The Company’s CODM assesses performance of the Tutoring Segment and decides how to allocate resources based on consolidated net loss that also is reported in the Consolidated Statements of Operations as “Net Loss.” Consolidated net loss is used to monitor budget versus actual results in order to assess the performance of the Tutoring Segment. The measure of segment assets is reported on the Consolidated Balance Sheets as “Total Assets.” The segment additions to property are reported in the Consolidated Statements of Cash Flows as “Capital expenditures.”
Substantially all of the Company’s tangible long-lived assets and revenues are located within the U.S. The Company does not have a customer that accounted for more than 10% of its consolidated net sales. See Note 5 for the Company’s revenue by business category.
The following table presents information about the Company’s Tutoring Segment for the periods presented.
Year Ended December 31,
202520242023
Revenue$178,988 $190,231 $193,399 
Less:
Cost of revenue75,208 61,837 56,952 
Employee-related expense (excluding product and development expense)
77,846 94,937 85,756 
Marketing expense
30,948 39,593 43,043 
Product and development expense41,338 43,928 40,859 
Depreciation and amortization of intangible assets
1,200 1,512 1,504 
Other segment items (a)14,310 18,555 22,837 
Unrealized loss on derivatives, net— — 13,385 
Interest income, net(1,073)(3,104)(3,377)
Income tax expense159 115 109 
Segment Net Loss$(60,948)$(67,142)$(67,669)
(a)Other segment items consists of tutor acquisition costs, professional services expense, restructuring expense, provisions for legal settlement, rent expense, and other overhead expense.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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