Udemy, Inc.

Latest Report Overview

Udemy Inc $UDMY reported Q1 2026 financial results, with total revenue of $191.4 million, reflecting a year-over-year decline of 4.4%. The company generated a net loss of $12.6 million for the period, with an operating margin of -6.5%. Gross margin remained resilient at 67.5%. Cash and cash equivalents were $252.6 million as of March 31, 2026, and free cash flow was $10.8 million, demonstrating the company's continued ability to generate cash despite top-line headwinds. Business performance reflects the ongoing strategic pivot toward Udemy Business (enterprise) and subscription-based revenue, which provides more stability but has not yet offset the decline in transactional consumer revenue. The consumer segment faced competitive pressures, while the enterprise segment continues to be the focus for long-term growth and upmarket penetration. The company has prioritized operational efficiency, which has helped maintain positive operating cash flow during this period of revenue contraction.

Key Takeaways for Udemy Inc

• Udemy announced an all-stock merger agreement with Coursera in December 2025, expected to close in the second half of 2026; the deal is a major strategic pivot intended to combine two leading online learning platforms.
• Q1 2026 revenue declined 4.4% year-over-year, indicating a continuing struggle to sustain top-line growth amidst the transition to a subscription-first model.
• Udemy completed its 2025 share repurchase program in December 2025, having repurchased 7,971,500 shares for $50.2 million.
• The enterprise business continues to grow as a percentage of total revenue, but churn in the broader UB customer base has partially offset expansion, resulting in a 93% Net Dollar Retention Rate (NDRR) as of the 2025 fiscal year-end.
• Operational efficiency initiatives remain a priority as management focuses on path-to-profitability, with recent results showing positive free cash flow despite net losses.
• The competitive landscape is increasingly pressured by generative AI, prompting Udemy to integrate features like AI Role Play and MCP servers to differentiate its value proposition for enterprise clients.

What Does Udemy Inc Do?

Udemy is a global learning company that operates an AI-powered skills acceleration platform. The company serves two main customer bases: individual learners through its consumer marketplace and organizations through its enterprise SaaS offering, Udemy Business. The marketplace hosts over 290,000 courses across topics including technology, business, and personal development, created by 90,000+ instructors globally. The enterprise business, Udemy Business, curates the highest-rated content for corporate and government clients to support employee reskilling and upskilling, featuring AI-powered learning paths, immersive labs, and cohort-based leadership development. As of the end of 2025, the company had nearly 84 million learners and approximately 17,000 enterprise customers, with a significant presence in international markets (non-US revenue accounting for 61% of 2025 revenue). The business model is unique because it combines a highly scalable global content marketplace with a high-retention enterprise subscription service, leveraging data insights from the marketplace to improve the enterprise content offering.