Nerdy Inc. — Earnings Quality Grade F
NRDY · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 11 days, change -3 days YoY
AR growth -23.1% vs revenue growth -5.9%
Revenue -5.9%, CFFO -20.8%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -21.8% vs revenue -5.9%. Normal
SG&A/Gross Profit = 159.6%, exceeds 70%
Gross margin swung -9.5pp (67.5% → 58.0%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -27.7%. Low accruals
Cash $0.0B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 40% of equity
Debt/EBITDA = -0.4x. Healthy
Other assets -32.0% vs revenue -5.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -7% YoY. Normal
Manipulation Score
M-Score = -4.21 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25