What is Nerdy's capitalized software write-off?

Nerdy (NRDY) reported capitalized software write-off of $1.94M in Q4 2025.

What does capitalized software write-off mean?

This metric represents the non-cash charge recognized when the carrying value of capitalized internal-use software exceeds its recoverable value. It signals potential inefficiencies in the software development lifecycle or a shift in strategic product direction that renders previous technology investments obsolete. Monitoring this helps investors assess the quality of capital allocation toward proprietary technology platforms.

Nerdy NRDY Capitalized software write-off

Capitalized software write-off at other companies

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$0-100%

NeuroneticsSTIM

$989K—

IBT

IbottaIBTA

$139K-15.2%

YelpYELP

$834.75K+29.3%

NerdyNRDY

$1.94M—

PennyMac Financial Services, Inc.PFSI

$317K—

Other financials

Income statement

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Revenue$48.7M+2.4%

Gross profit$32.3M+16.9%

Operating income-$5.8M+65.0%

Net income-$4.1M+61.2%

EPS (diluted)-$0.03+66.7%

Balance sheet

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Cash & equivalents$44.7M-0.8%

Total debt$19.5M—

Total equity$19.3M-43.9%

Total assets$73.0M-12.1%

Cash flow

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Operating cash flow-$1.8M+72.4%

CapEx$1.2M+0.6%

Free cash flow-$3.0M+61.1%

Valuation

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Market cap$123.95M-34.5%

Enterprise value$98.7M—

P/S0.7×-0.4×

Profitability

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Gross margin60.2%-4.7pp

Operating margin-28.4%-6.4pp

Net margin-18.6%-3.7pp

FCF margin-10.9%-3.0pp

Returns & leverage

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Return on equity-124.8%+29.8pp

Debt / equity1×—

Current ratio2.4×+0.4×

Where this comes from

Reported directly by Nerdy in its filing.

Tagged under the XBRL concept us-gaap:CapitalizedComputerSoftwareImpairments1.

The official record: Nerdy’s 10-K, filed February 26, 2026, on SEC EDGAR. View the filing →

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What is Nerdy's capitalized software write-off?: Nerdy (NRDY) reported capitalized software write-off of $1.94M in Q4 2025.
What does capitalized software write-off mean?: This metric represents the non-cash charge recognized when the carrying value of capitalized internal-use software exceeds its recoverable value. It signals potential inefficiencies in the software development lifecycle or a shift in strategic product direction that renders previous technology investments obsolete. Monitoring this helps investors assess the quality of capital allocation toward proprietary technology platforms.