You know, we continue to get more and more excited about the consumer product and the progress we make there and our ability to thread together all these different modalities of learning that allow for us to extend beyond tutoring and for us to have much deeper, much more holistic relationships with learners that span subjects, that span product modalities, that span semesters. And we're excited about the momentum we see, the engagement, and then our ability to continue to improve the product. And there's an opportunity to pull forward that product roadmap and go faster. And at the same time, we're investing in Marcy Tutor's schools, which is a low single-digit percentage of the overall business. There's complexity associated with it. The school funding environment has been challenged for several years. And as we kind of looked at the relative opportunity, we're just way more excited about consumer. We think we get way higher ROI on each dollar of capital invested. And we think we can pull forward our consumer roadmap. And it also helps with the path to permanent profitability and is part of, you know, the kind of focus that we've said we're putting there. And so that was the key sort of element behind the decision. And, you know, frankly, we're excited about our ability to get after consumer and the progress we're already seeing.
So on profitability, that business is profitable, and we have talked about cost out, the full year annualized impact of the cost out is about $11 million. And this is the fixed cost that we have taken out. We have also talked about the reduction in revenue that's coming as a result of VT for us and for SQDor exit. So you can extrapolate and you can see the profitability of the business. But I would say the bigger issue here, again, is going back to what Chuck mentioned. It's about getting our focus behind where we think the biggest opportunities are and where we see the more leverage in our efforts and our resources.
Speaker 2
Got it. So, you know, as it relates to guidance, you know, maybe specifically within the consumer business, what has changed with respect to your expectations there and maybe what you most attribute the moderating decline in learning memberships to?
So, learning membership is very much coming in as per our operating plan.
We have not seen any material changes compared to our original plan. the change in our guidance is purely on the basis of the the exits that we talked about from first tutors and from vt4s businesses and we certainly don't endeavor to decline the goal here is to significantly accelerate growth which we are excited about the products ability to fundamentally change how people interact with the different modalities and then the extent to which we've completely rebuilt and expanded upon all the available content across hundreds of different subjects. So there's an opportunity to really change the trajectory of the consumer relationship. That's not implied in our guide, but it's something that we're working hard to effectuate with the product.
Speaker 2
Yep. Good to hear. Makes sense. Thanks, guys.
Operator
At this time, we'd like to reprompt. if you'd like to ask a question, press star 1. Again, press star 1. There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.
