Udemy, Inc. (UDMY)
NASDAQ:UDMY
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Udemy Inc
(NASDAQ:UDMY)
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Rating:58Neutral
Price Target:
$5.00
▲(6.61% Upside)
Action:ReiteratedDate:03/08/26
The score is driven primarily by improving financial quality (stronger margins, solid positive free cash flow, and low leverage). Offsetting this are weak technical trends and an expensive earnings multiple (high P/E, no dividend support). The Coursera merger-related developments provide a positive, but secondary, catalyst.
Positive Factors
Strong cash generation
Udemy’s TTM operating cash flow (~$88M) and free cash flow (~$73M) mark a durable turnaround from prior negative cash flow. Positive FCF supports reinvestment, funds operations without reliance on new debt, and provides flexibility to pursue strategic initiatives or weather demand variability.
Negative Factors
Negative revenue momentum
Despite margin gains, Udemy shows sharply negative TTM revenue momentum. Sustained top-line weakness undermines sustainable profit expansion, limits leverage of fixed-cost improvements, and increases sensitivity to any downturns in course demand or enterprise renewals.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Udemy’s TTM operating cash flow (~$88M) and free cash flow (~$73M) mark a durable turnaround from prior negative cash flow. Positive FCF supports reinvestment, funds operations without reliance on new debt, and provides flexibility to pursue strategic initiatives or weather demand variability.
Read all positive factors
Udemy Inc (UDMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$676.63M
Dividend YieldN/A
Average Volume (3M)1.89M
Price to Earnings (P/E)227.7
Beta (1Y)1.31
Revenue Growth2.53%
EPS Growth95.79%
CountryUS
Employees1,246
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding145,824,570
10 Day Avg. Volume1,680,212
30 Day Avg. Volume1,888,389
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 Cap0.67
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit0.87
Enterprise Value/Ebitda13.20
Forecast
1Y Price Target
$7.75Price Target Upside65.25% Upside
Rating ConsensusHold
Number of Analyst Covering5
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 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 market...
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
Negative
4.69
Price Trends
4.85
Negative
5.14
Negative
6.05
Negative
Market Momentum
-0.08
Positive
44.54
Neutral
24.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UDMY, the sentiment is Negative. The current price of 4.69 is below the 20-day moving average (MA) of 4.82, below the 50-day MA of 4.85, and below the 200-day MA of 6.05, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 44.54 is Neutral, neither overbought nor oversold. The STOCH value of 24.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.37B | 10.35 | 16.24% | <0.01% | 3.48% | 12.63% | |
64 Neutral | $4.67B | 16.28 | 6.53% | 0.65% | 4.13% | 228.37% | |
64 Neutral | $993.87M | -23.64 | -8.12% | ― | 8.10% | 43.35% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $676.63M | 227.74 | 1.74% | ― | 2.53% | 95.79% | |
55 Neutral | $1.23B | 77.54 | -5.25% | ― | -1.51% | 155.73% | |
41 Neutral | $474.97M | -18.93 | -20.60% | ― | 48.81% | 61.64% |
* Consumer Defensive Sector Average
UDMY
Udemy Inc
4.64
-3.89
-45.60%
GHC
Graham Holdings
1,070.23
104.72
10.85%
GOTU
Gaotu Techedu
1.95
-1.21
-38.29%
AFYA
Afya
14.83
-2.35
-13.66%
DAO
Youdao
10.31
2.55
32.86%
COUR
Coursera
5.87
-1.40
-19.26%
Udemy Inc Corporate Events
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...
Executive/Board ChangesM&A TransactionsRegulatory Filings and Compliance
Udemy Accelerates CEO Compensation Amid Planned Coursera Merger
Neutral
Dec 22, 2025
On December 18, 2025, Udemy, Inc. entered into an acceleration agreement with its president and CEO, Hugo Sarrazin, to adjust the timing of certain compensation elements in connection with a planned merger involving Coursera, Inc., with the aim of...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Udemy to Merge with Coursera in All-Stock Deal
Positive
Dec 18, 2025
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 sub...
Business Operations and StrategyM&A Transactions
Udemy Announces Merger with Coursera for Growth
Positive
Dec 17, 2025
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 ...
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.