The investable universe is still thin and volatile, but demand tailwinds are real. After the pandemic spike, sector breadth actually narrowed; Education-only ETFs were wound down in 2023, a tell that dedicated public exposure remained shallow and liquidity patchy.
Structurally, education is still under-digitized: <4% of global education spend goes to tech, yet digital outlays were forecast to reach roughly $404B by 2025, implying a long runway for software and platforms that actually drive learning outcomes or lower unit costs. Large addressable markets aren’t the issue: the broader education and training economy is tracking toward ~$10T by 2030, with workforce learning one of the fastest-growing segments.
Near-term fundamentals hinge on two levers. First, enterprise learning budgets: corporate training was ~$360B in 2023 with mid-single-digit CAGRs projected into the 2030s, supportive for at-scale learning platforms and assessment vendors tied to compliance, upskilling, and AI-adjacent productivity. Second, U.S. higher-ed policy: proposed changes around online-program managers (revenue-share, “bundled services”) were delayed into 2025 and prior TPS guidance was rescinded, leaving a live but reduced overhang for public names with exposure to tuition-share models.
Outlook: expect dispersion. AI is moving from buzz to workflow, with embedded generation, adaptive practice, and grading copilots supporting engagement and margin mix; but category concentration, policy risk, and scarce pure-plays mean factor volatility will remain elevated versus broad software.
Sources: HolonIQ, Research and Markets
Methodology
For our list, we scoured through the Edtech industry and picked pure-play (preferably) EdTech, and EdTech adjacent stocks with the highest number of hedge funds holding stake in them, as of Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Nerdy, Inc. (NYSE:NRDY)
Number of Hedge Fund Holders: 6
Nerdy, Inc. (NRDY) is one of the best EdTech stocks to buy now. On November 7, Cantor Fitzgerald’s Yi Fu Lee maintained a Neutral stance but took the price target down to $1.00 from $1.50. That follows his August adjustment from $1.75 to $1.50. The sequence frames a cautious but watchful sell-side posture following Q3.
Nerdy reported Q3 results on November 6 that leaned defensive but operationally cleaner: revenue came in at about $37 million, roughly flat year over year, while adjusted EBITDA improved to a $10.2 million loss, better than guidance for a $11–13 million loss, as marketing and variable staffing were trimmed without derailing product work. The company also narrowed GAAP and non-GAAP net losses versus a year ago, signaling tighter cost control heading into Q4.
Nerdy, Inc. (NRDY) operates a purpose-built, proprietary live-online learning platform led by its flagship, Varsity Tutors. It connects learners with experts for one-on-one and small-group sessions, large/cohort classes, and on-demand support, and serves both consumers and school districts through Varsity Tutors for Schools.
9. Pearson plc (NYSE:PSO)
Number of Hedge Fund Holders: 13
Pearson plc (NYSE:PSO) is one of the best EdTech Stocks to buy now.
On October 23, 2025, Pearson’s virtual-school network Connections Academy announced a partnership with the Center for Energy Workforce Development (CEWD) to steer students toward careers in the fast-growing U.S. energy sector. The collaboration plugs CEWD’s Energy Industry Fundamentals 2.0 curriculum, about 120 hours of online instruction with labs and interactive exercises, directly into Connections Academy’s college-and-career readiness track, with an industry-recognized credential available upon completion.
Pearson frames the move as career-connected learning: pairing coursework with mentorship and exposure to energy roles across fossil, nuclear, and renewables at a time when AI, data-center expansion, rising energy consumption, and onshoring are driving strong labor demand. Executives from both sides pitched the tie-up as a way to close the “awareness gap” and build a future-ready pipeline of technicians, trades, and engineering talent. The program complements Connections Academy’s “tri-credit” model launched in 2023, which can award high-school credit, micro-credentials, and eligibility for college credit through partner institutions.
Pearson plc (NYSE:PSO) is a global learning company spanning digital courseware, assessments, qualifications, and virtual schooling. Through Connections Academy, it serves U.S. K-12 students online, and more broadly operates across nearly 200 countries with roughly 18,000 employees focused on linking education to employability and lifelong learning.
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