Udemy Inc (UDMY) AI Stock Analysis

• Market Cap: $862.34M
• Dividend Yield: N/A
• Average Volume (3M): 3.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: 2.53%
• EPS Growth: 95.79%
• Country: US
• Employees: 1,246
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.13
• Shares Outstanding: 144,445,530
• 10 Day Avg. Volume: 5,893,426
• 30 Day Avg. Volume: 3,057,249
• PEG Ratio: 0.69
• Price to Book (P/B): 6.31
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 24.54
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: 24.51
• 1Y Price Target: $8.90
• Price Target Upside: 49.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.51
• Revenue Forecast (FY): $789.08M

• Rating: 68 Neutral
• Price Target: $7.00 ▲(17.25% Upside)

Udemy's overall stock score reflects strong corporate events and positive earnings call insights, indicating strategic growth potential. However, ongoing profitability challenges and valuation concerns weigh on the score. The technical analysis suggests mixed trends, with potential overbought conditions.

Positive Factors

Subscription Revenue Growth

The shift to a subscription-first model is driving consistent revenue growth, indicating a successful strategic pivot and enhancing long-term revenue stability.

Merger with Coursera

The merger with Coursera is expected to create a leading global platform, driving growth, innovation, and significant cost synergies, positioning Udemy for long-term success.

Improved Cash Flow

Improved cash flow indicates better cash generation capabilities, enhancing financial flexibility and supporting future investments and growth initiatives.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could limit financial performance and shareholder returns if not addressed.

Consumer Segment Revenue Decline

A decline in the Consumer segment's revenue could impact overall growth, indicating challenges in maintaining consumer engagement and market share.

Net Dollar Retention Rate Pressure

Retention rate pressures suggest challenges in maintaining customer loyalty and revenue consistency, which could affect long-term revenue stability.

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 customers. Its platform provides 49 million learners with access to approximately 180,000 courses through direct-to-consumer or Udemy Business offerings in approximately 75 languages. The company's courses offer learning objectives, such as reskilling or upskilling in technology and business, and soft skills, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. Udemy, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

How the Company Makes Money

Udemy primarily generates revenue through course sales on its platform. Instructors set prices for their courses, and Udemy takes a percentage of each sale, which can vary based on how the student discovers the course (e.g., through Udemy's marketing or via the instructor's own promotion). Additionally, Udemy offers a subscription model called Udemy Business, where companies pay for access to a curated library of courses for their employees. This enterprise solution is a significant revenue stream, as it allows organizations to provide continuous learning opportunities. Udemy also engages in partnerships with various educational institutions and organizations to expand its course offerings and reach, further enhancing its revenue potential.

Udemy Inc Financial Statement Overview

Summary

Udemy Inc. is experiencing revenue growth and improving cash flow metrics, with a strong gross profit margin and low leverage. However, profitability challenges persist, as indicated by negative net profit and EBIT margins. The balance sheet is stable, but operational efficiencies and shareholder returns need enhancement.

Income Statement

Udemy Inc. has shown positive revenue growth with a 3.3% increase in the TTM period, indicating a steady upward trajectory. The gross profit margin is strong at 64.33%, reflecting efficient cost management. However, the company is still facing profitability challenges with a negative net profit margin of -3.85% and negative EBIT and EBITDA margins, suggesting ongoing operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.04, indicating low leverage and financial risk. However, the return on equity is negative at -14.65%, pointing to challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears solid relative to its assets.

Cash Flow

Cash flow metrics are improving, with a significant 53.03% growth in free cash flow, indicating better cash generation capabilities. The operating cash flow to net income ratio is positive, suggesting that cash flow is more robust than net income figures might imply. However, the free cash flow to net income ratio of 0.80 indicates that while cash flow is improving, profitability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	795.80M	786.57M	728.94M	629.10M	515.66M	429.90M
Gross Profit	517.57M	491.94M	419.34M	353.78M	279.63M	220.65M
EBITDA	28.80M	-89.33M	-78.53M	-129.12M	-63.33M	-62.27M
Net Income	-3.73M	-85.29M	-107.29M	-153.88M	-80.03M	-77.62M
Balance Sheet
Total Assets	618.90M	605.63M	741.20M	737.57M	739.85M	282.10M
Cash, Cash Equivalents and Short-Term Investments	371.22M	354.44M	476.94M	465.37M	534.61M	175.03M
Total Debt	11.97M	10.82M	6.95M	13.55M	0.00	0.00
Total Liabilities	397.09M	408.23M	384.30M	398.26M	350.15M	268.68M
Stockholders Equity	221.81M	197.39M	356.89M	339.31M	389.70M	13.42M
Cash Flow
Free Cash Flow	64.36M	38.27M	-15.07M	-76.68M	-25.31M	-4.91M
Operating Cash Flow	81.73M	53.04M	-2.00M	-60.96M	-7.10M	9.62M
Investing Cash Flow	2.66M	1.08M	-24.97M	-173.23M	-52.69M	-14.54M
Financing Cash Flow	-53.12M	-171.75M	19.20M	14.76M	418.63M	131.09M

Udemy Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.97 is above the 20-day moving average (MA) of 5.34, above the 50-day MA of 5.70, and below the 200-day MA of 6.76, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 47.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UDMY.

Udemy Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFYA	79 Outperform	$1.32B	10.31	15.51%	<0.01%	3.48%	12.63%
GHC	75 Outperform	$4.81B	6.59	17.20%	0.65%	4.13%	228.37%
UDMY	68 Neutral	$862.34M	-222.76	-1.78%	―	2.53%	95.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
COUR	62 Neutral	$1.27B	-26.61	-7.43%	―	8.10%	43.35%
GOTU	49 Neutral	$574.83M	-11.09	-21.21%	―	48.81%	61.64%
DAO	46 Neutral	$1.07B	54.49	―	―	-1.51%	155.73%

Udemy Inc Corporate Events

Udemy to Merge with Coursera in All-Stock Deal

On December 17, 2025, Udemy entered into a definitive all-stock merger agreement with rival online education provider Coursera under which Chess Merger Sub, a Coursera subsidiary, will merge with Udemy, leaving Udemy as a wholly owned Coursera subsidiary. Udemy shareholders will receive 0.800 Coursera shares for each Udemy share, with no fractional shares issued, and Udemy’s board unanimously approved the deal and recommended that shareholders vote in favor. Outstanding Udemy restricted stock units, performance stock units, options and stock appreciation rights will be converted into Coursera equity awards based on the agreed exchange ratio, preserving existing vesting and other terms, which helps align incentives and provides continuity for employees and management. Post-closing, Coursera’s board will expand to nine members, including three directors from Udemy, while Coursera’s current chair and CEO will remain in place, signaling Coursera’s continued strategic control of the combined company. The transaction is subject to customary closing conditions, including approvals from Udemy and Coursera shareholders, NYSE listing of the new Coursera shares, U.S. antitrust clearance and other regulatory approvals, as well as effectiveness of a registration statement and a tax opinion that the merger qualifies as a reorganization. The merger agreement includes reciprocal termination rights, a termination outside date that can extend as far as June 17, 2027 if regulatory approvals are delayed, and a $40.5 million breakup fee plus an $8 million expense reimbursement mechanism in specified circumstances, underscoring the strategic importance and negotiated protections for both sides. Supporting the deal’s chances of completion, significant shareholders in each company—holding about 12% of Coursera and 26% of Udemy—have entered into voting agreements committing their shares in favor of the transaction and limiting transfers and alternative deal discussions until the requisite approvals are obtained or the merger agreement is terminated.

Udemy Announces Merger with Coursera for Growth

On December 17, 2025, Udemy and Coursera announced a definitive merger agreement under which Udemy will become a wholly owned subsidiary of Coursera. This strategic move valued at approximately $2.5 billion aims to combine complementary strengths in AI-powered skills development, workforce training, and education, creating a leading global platform with a focus on addressing the growing demand for AI skills. The merger is expected to drive financial growth, generate $115 million in annual cost synergies within 24 months, and enhance innovation in learning experiences globally, positioning the combined company as a transformative force in the evolving education market.

Udemy Inc Releases Supplemental Revenue Data

Udemy, Inc. has released supplemental unaudited historical revenue data to aid in period-over-period comparisons, detailing revenue disaggregated by product offering and segment. This data, which includes information on historical paid consumer subscriber numbers, is intended to provide stakeholders with a clearer view of the company’s financial performance over time, without revising previously reported financial statements.