Udemy, Inc. (UDMY)
NASDAQ:UDMY
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Udemy Inc
(NASDAQ:UDMY)
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Rating:60Neutral
Price Target:
$4.50
▼(-4.05% Downside)
Action:ReiteratedDate:04/10/26
The score is primarily supported by improving financial performance (notably strong TTM free cash flow and low leverage) and positive merger-related developments. It is held back by weak technical momentum (price below key moving averages with negative MACD) and an expensive valuation (very high P/E), which increases downside risk if revenue contraction persists.
Positive Factors
Cash Generation
Sustained positive operating and free cash flow (~$88M and $73M TTM) indicates the business now generates internal funding for operations and investments, reducing reliance on external financing and supporting strategic initiatives or integration costs over the next 2–6 months.
Negative Factors
Revenue Contraction
Trailing revenue contraction signals weakness in customer acquisition or engagement; with thin operating margins, sustained top-line decline would pressure profitability and make it harder to fund growth or integration priorities without cutting investment or eroding unit economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained positive operating and free cash flow (~$88M and $73M TTM) indicates the business now generates internal funding for operations and investments, reducing reliance on external financing and supporting strategic initiatives or integration costs over the next 2–6 months.
Read all positive factors
Udemy Inc (UDMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$672.76M
Dividend YieldN/A
Average Volume (3M)1.44M
Price to Earnings (P/E)227.7
Beta (1Y)1.26
Revenue Growth2.53%
EPS Growth95.79%
CountryUS
Employees1,246
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding145,935,530
10 Day Avg. Volume1,080,642
30 Day Avg. Volume1,444,182
Financial Highlights & Ratios
PEG Ratio-2.18
Price to Book (P/B)4.12
Price to Sales (P/S)1.10
P/FCF Ratio10.78
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit0.91
Enterprise Value/Ebitda13.79
Forecast
1Y Price Target
$6.33Price Target Upside34.97% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.5
Revenue Forecast (FY)$806.00M
Udemy Inc Business Overview & Revenue Model
Company Description
Udemy, Inc. operates a marketplace platform for teaching and learning skills in the United States and internationally. The company offers technical and business skills, and personal development courses for individual learners and enterprise custom...
How the Company Makes Money
Udemy generates revenue primarily from two streams: (1) its consumer marketplace and (2) its enterprise offering, Udemy Business. In the consumer marketplace, Udemy sells individual course enrollments to learners (often at promotional prices) and ...
Udemy Inc Key Performance Indicators (KPIs)
Any
Enterprise Segment Net Dollar Retention
Indicates the ability to retain and grow revenue from existing enterprise customers, showcasing customer satisfaction and upsell success.
Indicates the ability to retain and grow revenue from existing enterprise customers, showcasing customer satisfaction and upsell success.
Data provided by:
The Fly
The FlyUdemy Inc Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in subscription revenue and strategic partnerships, indicating a successful pivot to a subscription-first model. However, short-term challenges include declines in Consumer segment revenue and retention rate pressures due to legacy contracts. Overall, Udemy is positioned for long-term growth, but is currently navigating transitional challenges.Positive Updates
Subscription Revenue Growth
Consolidated subscription revenue grew by 8% year-over-year and now comprises 74% of total revenue, indicating strong momentum in Udemy's strategic pivot to a subscription-first model.
Negative Updates
Consumer Segment Revenue Decline
Despite the growth in subscriptions, the Consumer segment's revenue is expected to decline by about 9% for the full year 2025.
Read all updates
Q3-2025 Updates
Positive
Negative
Subscription Revenue Growth
Consolidated subscription revenue grew by 8% year-over-year and now comprises 74% of total revenue, indicating strong momentum in Udemy's strategic pivot to a subscription-first model.
Read all positive updates
Company Guidance
In Udemy's third-quarter 2025 earnings call, the company highlighted significant progress in subscription revenue growth, achieving an 8% year-over-year increase, which now constitutes 74% of total revenue. The Udemy Business segment saw a 5% rise in revenue, generating $7 million in net new annual recurring revenue (ARR), while the Consumer segment reported a 43% year-over-year growth in subscription revenue, surpassing its full-year paid subscribers target. The company's adjusted EBITDA margin improved to 12%, up from 6% the previous year, with a GAAP net income of $2 million. Udemy's strategic pivot to a subscription-first model is expected to sustain high-single-digit growth in consolidated subscription revenue for 2025, with anticipated double-digit growth in 2026. The company is also investing in AI and partnerships to enhance its platform, focusing on skill acquisition, mastery, and validation to support both enterprise and individual learners.Udemy Inc Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 789.84M | 786.57M | 728.94M | 629.10M | 515.66M |
| Gross Profit | 518.41M | 491.94M | 419.34M | 353.78M | 279.63M |
| EBITDA | 33.70M | -89.33M | -78.53M | -129.12M | -63.33M |
| Net Income | 3.81M | -85.29M | -107.29M | -153.88M | -80.03M |
Balance Sheet | |||||
| Total Assets | 617.70M | 605.63M | 741.20M | 737.57M | 739.85M |
| Cash, Cash Equivalents and Short-Term Investments | 358.74M | 354.44M | 476.94M | 465.37M | 534.61M |
| Total Debt | 10.23M | 10.82M | 6.95M | 13.55M | 0.00 |
| Total Liabilities | 407.24M | 408.23M | 384.30M | 398.26M | 350.15M |
| Stockholders Equity | 210.46M | 197.39M | 356.89M | 339.31M | 389.70M |
Cash Flow | |||||
| Free Cash Flow | 80.42M | 38.27M | -15.07M | -76.68M | -25.31M |
| Operating Cash Flow | 86.22M | 53.04M | -2.00M | -60.96M | -7.10M |
| Investing Cash Flow | 20.63M | 1.08M | -24.97M | -173.23M | -52.69M |
| Financing Cash Flow | -67.03M | -171.75M | 19.20M | 14.76M | 418.63M |
Udemy Inc Technical Analysis
Positive
4.69
Price Trends
4.75
Positive
5.05
Negative
5.89
Negative
Market Momentum
-0.06
Negative
52.33
Neutral
42.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UDMY, the sentiment is Positive. The current price of 4.69 is above the 20-day moving average (MA) of 4.62, below the 50-day MA of 4.75, and below the 200-day MA of 5.89, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 42.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UDMY.
Udemy Inc Risk Analysis
Udemy Inc disclosed 62 risk factors in its most recent earnings report. Udemy Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Udemy Inc Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.41B | 10.35 | 16.24% | <0.01% | 3.48% | 12.63% | |
67 Neutral | $973.55M | -23.64 | -8.12% | ― | 8.10% | 43.35% | |
64 Neutral | $4.79B | 16.28 | 6.53% | 0.65% | 4.13% | 228.37% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $672.76M | 227.74 | 1.74% | ― | 2.53% | 95.79% | |
55 Neutral | $1.15B | 77.54 | -5.25% | ― | -1.51% | 155.73% | |
41 Neutral | $465.22M | -18.93 | -20.60% | ― | 48.81% | 61.64% |
* Consumer Defensive Sector Average
UDMY
Udemy Inc
4.75
-1.36
-22.26%
GHC
Graham Holdings
1,136.43
228.17
25.12%
GOTU
Gaotu Techedu
1.93
-0.76
-28.25%
AFYA
Afya
15.46
-1.76
-10.21%
DAO
Youdao
9.82
2.11
27.37%
COUR
Coursera
5.94
-1.08
-15.38%
Udemy Inc Corporate Events
M&A TransactionsShareholder Meetings
Udemy Shareholders Approve Merger Agreement With Coursera
Positive
Apr 9, 2026
On December 17, 2025, Udemy, Inc. entered into a merger agreement with Coursera, Inc. and Chess Merger Sub, Inc., under which Merger Sub will merge with and into Udemy, resulting in Udemy becoming a wholly owned subsidiary of Coursera. On April 9,...
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Udemy Issues Supplemental Disclosures on Coursera Merger Deal
Neutral
Mar 31, 2026
On December 17, 2025, Udemy agreed to merge with Coursera in an all-stock transaction that would make Udemy a wholly owned subsidiary of Coursera, and a related registration statement and joint proxy statement/prospectus became effective on March ...
M&A TransactionsRegulatory Filings and Compliance
Udemy-Coursera Merger Clears Key FTC Regulatory Hurdle
Positive
Feb 10, 2026
Udemy, Inc., a leading online learning platform, previously agreed on December 17, 2025, to merge with rival Coursera, Inc. in an all-stock transaction that would combine two of the largest players in digital education and expand their scale in th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.