Free cash flow remains consistently negative, with a $3.0 million outflow in 2026Q1 and an OCF/NI conversion ratio of only 0.44, suggesting significant challenges in generating sustainable cash liquidity.
| Cash from Operations | -14.18M | -18.85M | -15.6M | -7.56M | -48M | -38.89M | -6.65M | -16.32M |
| Operating CF Margin % | - | -10.53% | -8.2% | -3.91% | -29.51% | -27.65% | -6.4% | -18.04% |
| Operating CF Growth % | 140.99% | -20.78% | -106.39% | 84.25% | -23.43% | -484.48% | 59.22% | - |
| Net Income | -33.5M | -60.95M | -67.14M | -40.17M | -63.91M | -30.68M | -24.66M | -22.44M |
| Depreciation & Amortization | 6.46M | 7.63M | 7.57M | 6.77M | 6.52M | 6.39M | 6.04M | 5.01M |
| Stock-Based Compensation | 26.2M | 27.81M | 41.09M | 44.27M | 47.24M | 54.42M | 1.73M | 1.75M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 7.96M | 7.9M | 0 | -12.17M | -26.62M | -73.03M | 1.11M | 238K |
| Working Capital Changes | -3.87M | -1.24M | 2.88M | -6.26M | -11.24M | 4.01M | 9.12M | -873K |
| Change in Receivables | 1.6M | 1.7M | 8.06M | -3.8M | -6.28M | -4.85M | 283K | -239K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 260K | 543K | -170K | -474K | -391K | -856K | 2.18M | 953K |
| Cash from Investing | -5.38M | -5.37M | -6.86M | -6.89M | -5.32M | -5.16M | -2.87M | -6.36M |
| Capital Expenditures | -5.38M | -5.37M | -6.86M | -6.89M | -5.32M | -5.16M | -2.87M | -6.36M |
| CapEx % of Revenue | 2.99% | 3% | 3.61% | 3.56% | 3.27% | 3.67% | 2.76% | 7.03% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 19.25M | 19.5M | 0 | -1.94M | -1M | 159.25M | 12.29M | 24.39M |
| Debt Issued (Net) | 19.5M | 19.5M | 0 | 0 | 0 | -39M | 12.29M | 25M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -250K | 0 | 0 | -1.94M | -1M | 198.25M | 0 | -613K |
| Net Change in Cash | -356K | -4.78M | -22.47M | -16.41M | -54.33M | 115.2M | 2.79M | 1.74M |
| Free Cash Flow | -19.56M | -24.22M | -22.47M | -14.45M | -53.32M | -44.05M | -9.53M | -22.67M |
| FCF Margin % | -10.86% | -13.53% | -11.81% | -7.47% | -32.78% | -31.32% | -9.16% | -25.07% |
| FCF Growth % | 39.29% | -7.79% | -55.51% | 72.9% | -21.03% | -362.36% | 57.98% | - |
| FCF per Share | -0.16 | -0.20 | -0.20 | -0.15 | -0.62 | -0.56 | -0.11 | -0.27 |
| FCF Conversion (FCF/Net Income) | 0.58x | 0.47x | 0.37x | 0.19x | 1.36x | 1.42x | 0.27x | 0.73x |
| Interest Paid | 0 | 0 | 0 | 2.44M | 2.4M | 4.07M | 4.15M | 0 |
| Taxes Paid | 0 | 0 | 117K | 93K | 38K | 0 | 0 | 1.44M |
Institutional revenue concentration risk
As reported in recent financial statements, NRDY's operating cash flow consistently trails net income, with the OCF/NI ratio fluctuating significantly and reaching 0.44 in 2026Q1, which suggests that the company's reported earnings are not being effectively converted into actual cash liquidity for the business.
The persistent gap between net income and operating cash flow indicates that non-cash expenses and working capital requirements are heavily weighing on the company's ability to generate internal funding. Investors should monitor whether this conversion inefficiency is a permanent feature of the membership model or a temporary byproduct of the current transition phase.
Based on the provided quarterly data, NRDY's free cash flow trajectory remains firmly in negative territory, with the company reporting a $3.0 million outflow in 2026Q1, highlighting a continued reliance on existing cash reserves to fund ongoing operations and platform development initiatives.
The inability to achieve positive free cash flow margins suggests that the current scale of the business is insufficient to cover both operating costs and necessary capital expenditures. This trend warrants further investigation into whether the company can reach a cash-flow-positive state before its current liquidity cushion is exhausted.
According to recent SEC filings, NRDY's working capital dynamics are highly erratic, characterized by a $2.6 million outflow in 2026Q1 following a $4.2 million outflow in 2025Q4, which indicates significant instability in the timing of cash collections and payments across the platform's diverse revenue streams.
This volatility suggests that the company's cash position is highly sensitive to the timing of institutional contract payments and consumer membership renewals. The lack of a predictable working capital cycle may complicate short-term liquidity planning and increase the risk of cash crunches during seasonal troughs.
As evidenced by the company's quarterly disclosures, stock-based compensation remains a substantial non-cash expense, averaging over $8 million per quarter, which effectively masks the true economic cost of operations and complicates the assessment of the company's underlying cash-burn rate for external stakeholders.
While SBC does not directly impact cash flow, the reliance on equity-based incentives suggests that the company is effectively diluting shareholders to compensate for its inability to generate sufficient cash from operations. Analysts should adjust for these non-cash charges to understand the true magnitude of the company's operational deficit.
Quick answers to the most common questions about buying NRDY stock.
Nerdy, Inc. (NRDY) generated $-18.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nerdy, Inc. (NRDY) reported negative free cash flow of $24.2M in 2025, indicating capital requirements exceeded cash from operations.
Nerdy, Inc. (NRDY) spent $5.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.