Udemy, Inc. (UDMY)
:UDMY
Want to see UDMY full AI Analyst Report?
Top Page
Udemy Inc
(UDMY)
Select Model
Select Model
Rating:60Neutral
Price Target:
$5.00
▲(6.61% Upside)
Action:Reiterated
Date:05/14/26
The score is supported primarily by improving fundamentals—strong free cash flow and a conservatively financed balance sheet—plus a positive merger development. These positives are tempered by weak technicals (below major moving averages with negative MACD) and limited valuation support due to negative earnings and no dividend.
Positive Factors
Strong free cash flow
Udemy’s operating and free cash flow turned solidly positive in 2025 and TTM (free cash flow ~80–81M). Sustained FCF provides internal funding for product development and integration, reduces reliance on external capital, and improves financial flexibility over the medium term.
Negative Factors
Revenue plateauing
Trailing‑twelve‑month revenue has stalled and edged down. Prolonged top‑line stagnation limits operating leverage and constrains margin expansion, reducing the durability of cash‑flow improvements and limiting the company’s ability to scale investments without external growth drivers.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Udemy’s operating and free cash flow turned solidly positive in 2025 and TTM (free cash flow ~80–81M). Sustained FCF provides internal funding for product development and integration, reduces reliance on external capital, and improves financial flexibility over the medium term.
Read all positive factors
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 (UDMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)N/A
Price to Earnings (P/E)―
Beta (1Y)N/A
Revenue Growth-1.15%
EPS Growth89.07%
CountryUS
Employees1,246
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.06
Shares OutstandingN/A
10 Day Avg. VolumeN/A
30 Day Avg. VolumeN/A
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 Cap10.00T>
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit0.84
Enterprise Value/Ebitda26.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.54
Revenue Forecast (FY)$807.32M
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 Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 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
56
Neutral
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 780.95M | 789.84M | 786.57M | 728.94M | 629.10M | 515.66M |
| Gross Profit | 518.23M | 518.41M | 491.94M | 419.34M | 353.78M | 279.63M |
| EBITDA | 16.27M | 33.70M | -89.33M | -78.53M | -129.12M | -63.33M |
| Net Income | -7.04M | 3.81M | -85.29M | -107.29M | -153.88M | -80.03M |
Balance Sheet | ||||||
| Total Assets | 634.59M | 617.70M | 605.63M | 741.20M | 737.57M | 739.85M |
| Cash, Cash Equivalents and Short-Term Investments | 357.82M | 358.74M | 354.44M | 476.94M | 465.37M | 534.61M |
| Total Debt | 9.72M | 10.23M | 10.82M | 6.95M | 13.55M | 0.00 |
| Total Liabilities | 422.41M | 407.24M | 408.23M | 384.30M | 398.26M | 350.15M |
| Stockholders Equity | 212.18M | 210.46M | 197.39M | 356.89M | 339.31M | 389.70M |
Cash Flow | ||||||
| Free Cash Flow | 80.98M | 80.42M | 38.27M | -15.07M | -76.68M | -25.31M |
| Operating Cash Flow | 90.89M | 86.22M | 53.04M | -2.00M | -60.96M | -7.10M |
| Investing Cash Flow | 37.12M | 20.63M | 1.08M | -24.97M | -173.23M | -52.69M |
| Financing Cash Flow | -65.48M | -67.03M | -171.75M | 19.20M | 14.76M | 418.63M |
Udemy Inc Technical Analysis
Negative
4.69
Price Trends
4.71
Negative
4.88
Negative
5.57
Negative
Market Momentum
-0.04
Positive
47.06
Neutral
9.33
Positive
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 4.72, below the 50-day MA of 4.71, and below the 200-day MA of 5.57, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 9.33 is Positive, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.26B | 6.82 | 16.00% | <0.01% | 13.36% | 15.90% | |
65 Neutral | $4.76B | 39.33 | 6.49% | 0.65% | 3.69% | -52.56% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | ― | ― | -3.21% | ― | -1.15% | 89.07% | |
58 Neutral | $1.52B | -11.97 | ― | ― | 9.79% | 8.61% | |
56 Neutral | $392.71M | -17.40 | -20.84% | ― | 35.18% | 66.84% | |
55 Neutral | $1.55B | 52.14 | -3.46% | ― | 9.41% | -51.90% |
* Consumer Defensive Sector Average
UDMY
Udemy Inc
4.63
-2.24
-32.61%
GHC
Graham Holdings
1,104.69
189.86
20.75%
GOTU
Gaotu Techedu
1.73
-1.92
-52.60%
AFYA
Afya
14.00
-4.07
-22.52%
DAO
Youdao
12.96
4.01
44.80%
COUR
Coursera
5.32
-3.15
-37.19%
Udemy Inc Corporate Events
Executive/Board ChangesDelistings and Listing ChangesM&A TransactionsRegulatory Filings and Compliance
Udemy Completes Merger and Delisting Following Coursera Deal
Neutral
May 11, 2026
On the Closing Date, Udemy completed its merger with Coursera, converting each outstanding Udemy common share into 0.800 Coursera shares plus cash in lieu of fractional shares, while employee and director equity awards were either converted into C...
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 ...
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.