Udemy, Inc. Financials
This page shows Udemy, Inc. (UDMY) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Udemy’s recent shift is from growth-at-a-loss to an asset-light cash engine built on widening gross margin.
From FY2023 to FY2025, gross margin moved from57.5% to65.6% even though revenue growth had largely leveled off, so the move toward break-even does not look like simple volume-driven fixed-cost absorption. In FY2025, free cash flow was$81.9M while operating income remained-$4.2M , which points to a model where cash turns positive before the income statement is fully healed.
Capex stayed tiny at
Cash rose to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Udemy, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Udemy, Inc. has an operating margin of -0.5%, meaning the company retains $-1 of operating profit per $100 of revenue. This results in a moderate score of 33/100, indicating healthy but not exceptional operating efficiency. This is up from -11.4% the prior year.
Udemy, Inc.'s revenue grew a modest 0.4% year-over-year to $789.8M. This slow but positive growth earns a score of 47/100.
Udemy, Inc. has a moderate D/E ratio of 1.94. This balance of debt and equity financing earns a leverage score of 31/100.
Udemy, Inc.'s current ratio of 1.31 indicates adequate short-term liquidity, earning a score of 34/100. The company can meet its near-term obligations, though with limited headroom.
Udemy, Inc. has a free cash flow margin of 10.4%, earning a moderate score of 57/100. The company generates positive cash flow after capital investments, but with room for improvement.
Udemy, Inc. generates a 1.8% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 26/100. This is up from -43.2% the prior year.
Udemy, Inc. scores 0.68, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($677.3M) relative to total liabilities ($407.2M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Udemy, Inc. passes 7 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), all 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Udemy, Inc. generates $23.03 in operating cash flow ($87.7M OCF vs $3.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Udemy, Inc. earns $-5.7 in operating income for every $1 of interest expense (-$4.2M vs $734K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Udemy, Inc. generated $789.8M in revenue in fiscal year 2025. This represents an increase of 0.4% from the prior year.
Udemy, Inc.'s EBITDA was $21.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 133.2% from the prior year.
Udemy, Inc. reported $3.8M in net income in fiscal year 2025. This represents an increase of 104.5% from the prior year.
Udemy, Inc. earned $0.03 per diluted share (EPS) in fiscal year 2025. This represents an increase of 105.4% from the prior year.
Cash & Balance Sheet
Udemy, Inc. generated $81.9M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 61.3% from the prior year.
Udemy, Inc. held $231.5M in cash against $0 in long-term debt as of fiscal year 2025.
Udemy, Inc. had 145M shares outstanding in fiscal year 2025. This represents a decrease of 1.6% from the prior year.
Margins & Returns
Udemy, Inc.'s gross margin was 65.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 3.1 percentage points from the prior year.
Udemy, Inc.'s operating margin was -0.5% in fiscal year 2025, reflecting core business profitability. This is up 10.8 percentage points from the prior year.
Udemy, Inc.'s net profit margin was 0.5% in fiscal year 2025, showing the share of revenue converted to profit. This is up 11.3 percentage points from the prior year.
Udemy, Inc.'s ROE was 1.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 45.0 percentage points from the prior year.
Capital Allocation
Udemy, Inc. invested $101.5M in research and development in fiscal year 2025. This represents a decrease of 19.1% from the prior year.
Udemy, Inc. spent $51.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 66.1% from the prior year.
Udemy, Inc. invested $5.8M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 152.3% from the prior year.
UDMY Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $191.4M-1.3% | $194.0M-0.9% | $195.7M-2.1% | $199.9M-0.2% | $200.3M+0.2% | $199.9M+2.3% | $195.4M+0.5% | $194.4M |
| Cost of Revenue | $62.1M-5.8% | $65.9M-1.3% | $66.8M-1.5% | $67.8M-4.3% | $70.9M-2.6% | $72.7M+0.5% | $72.4M-1.2% | $73.2M |
| Gross Profit | $129.3M+1.0% | $128.0M-0.6% | $128.9M-2.4% | $132.0M+2.0% | $129.4M+1.8% | $127.2M+3.4% | $123.1M+1.6% | $121.1M |
| R&D Expenses | $26.8M+8.9% | $24.6M-3.8% | $25.6M-3.0% | $26.4M+5.6% | $25.0M-13.4% | $28.8M-12.6% | $33.0M+1.8% | $32.4M |
| SG&A Expenses | $25.4M+4.7% | $24.2M+10.5% | $21.9M+0.5% | $21.8M-12.7% | $25.0M+14.2% | $21.9M-1.6% | $22.3M-18.3% | $27.3M |
| Operating Income | -$12.5M-265.2% | -$3.4M-2017.3% | -$162K-104.1% | $3.9M+187.4% | -$4.5M+61.3% | -$11.6M+60.6% | -$29.5M-15.3% | -$25.5M |
| Interest Expense | $240K-35.0% | $369K+5.4% | $350K | $0-100.0% | $15K-66.7% | $45K+108.9% | -$504K-754.5% | $77K |
| Income Tax | $2.1M+51.7% | $1.4M+22.2% | $1.1M-2.3% | $1.1M+20.9% | $937K-43.5% | $1.7M+92.1% | $863K+7.6% | $802K |
| Net Income | -$12.6M-441.6% | -$2.3M-241.8% | $1.6M-73.8% | $6.3M+453.8% | -$1.8M+82.0% | -$9.9M+61.0% | -$25.3M+20.6% | -$31.8M |
| EPS (Diluted) | $-0.09 | N/A | $0.01-75.0% | $0.04+500.0% | $-0.01 | N/A | $-0.17+19.0% | $-0.21 |
UDMY Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $634.6M+2.7% | $617.7M-0.2% | $618.9M-3.9% | $644.0M+0.8% | $639.0M+5.5% | $605.6M-0.5% | $608.9M-9.4% | $671.9M |
| Current Assets | $533.6M+1.8% | $524.2M0.0% | $524.1M-4.3% | $547.5M+1.2% | $541.1M+6.9% | $506.3M-0.3% | $508.0M-10.5% | $567.9M |
| Cash & Equivalents | $252.6M+9.1% | $231.5M-1.9% | $235.9M+2.5% | $230.3M+21.4% | $189.6M-0.5% | $190.6M-6.8% | $204.6M-24.9% | $272.4M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $97.1M+1.3% | $95.9M+25.2% | $76.6M-9.3% | $84.4M-24.0% | $111.2M+26.0% | $88.2M+8.7% | $81.2M-1.1% | $82.1M |
| Goodwill | $12.6M0.0% | $12.6M0.0% | $12.6M0.0% | $12.6M0.0% | $12.6M0.0% | $12.6M0.0% | $12.6M0.0% | $12.6M |
| Total Liabilities | $422.4M+3.7% | $407.2M+2.6% | $397.1M-3.3% | $410.6M-4.4% | $429.6M+5.2% | $408.2M-1.1% | $412.6M-1.7% | $419.7M |
| Current Liabilities | $416.2M+4.0% | $400.1M+2.8% | $389.2M-3.4% | $402.7M-4.2% | $420.3M+5.7% | $397.5M-1.3% | $402.9M-1.5% | $408.8M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $212.2M+0.8% | $210.5M-5.1% | $221.8M-4.9% | $233.4M+11.5% | $209.4M+6.1% | $197.4M+0.6% | $196.3M-22.2% | $252.3M |
| Retained Earnings | -$813.8M-1.6% | -$801.2M-0.3% | -$798.9M+0.2% | -$800.5M+0.8% | -$806.8M-0.2% | -$805.0M-1.2% | -$795.1M-3.3% | -$769.9M |
UDMY Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $15.4M-0.5% | $15.5M-1.4% | $15.7M-64.4% | $44.2M+262.0% | $12.2M+27.4% | $9.6M+257.1% | -$6.1M-121.3% | $28.6M |
| Capital Expenditures | $548K+5.0% | $522K-15.8% | $620K-72.8% | $2.3M-4.2% | $2.4M+101.1% | $1.2M+110.7% | $562K+57.4% | $357K |
| Free Cash Flow | $14.9M-0.7% | $15.0M-0.8% | $15.1M-64.0% | $41.9M+326.5% | $9.8M+17.0% | $8.4M+226.1% | -$6.7M-123.6% | $28.2M |
| Investing Cash Flow | $9.1M+87.7% | $4.8M-79.3% | $23.4M+11630.5% | -$203K+97.3% | -$7.4M+43.5% | -$13.1M-130.2% | -$5.7M-124.1% | $23.7M |
| Financing Cash Flow | -$2.9M+88.6% | -$25.6M+23.5% | -$33.5M-857.5% | -$3.5M+40.8% | -$5.9M+42.4% | -$10.2M+81.7% | -$56.1M-44.0% | -$39.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $117K-99.5% | $21.8M-23.2% | $28.3M+3138.5% | $875K | $0-100.0% | $8.7M-82.9% | $51.0M+44.0% | $35.4M |
UDMY Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 67.5%+1.5pp | 66.0%+0.2pp | 65.9%-0.2pp | 66.1%+1.4pp | 64.6%+1.0pp | 63.6%+0.6pp | 63.0%+0.7pp | 62.3% |
| Operating Margin | -6.5%-4.8pp | -1.8%-1.7pp | -0.1%-2.0pp | 2.0%+4.2pp | -2.2%+3.6pp | -5.8%+9.3pp | -15.1%-1.9pp | -13.1% |
| Net Margin | -6.6%-5.4pp | -1.2%-2.0pp | 0.8%-2.3pp | 3.1%+4.0pp | -0.9%+4.0pp | -4.9%+8.0pp | -12.9%+3.4pp | -16.4% |
| Return on Equity | -5.9%-4.8pp | -1.1%-1.8pp | 0.7%-1.9pp | 2.7%+3.5pp | -0.9%+4.1pp | -5.0%+7.9pp | -12.9%-0.3pp | -12.6% |
| Return on Assets | -2.0%-1.6pp | -0.4%-0.7pp | 0.3%-0.7pp | 1.0%+1.3pp | -0.3%+1.3pp | -1.6%+2.5pp | -4.2%+0.6pp | -4.7% |
| Current Ratio | 1.28-0.0 | 1.31-0.0 | 1.35-0.0 | 1.36+0.1 | 1.29+0.0 | 1.27+0.0 | 1.26-0.1 | 1.39 |
| Debt-to-Equity | 1.99+0.1 | 1.94+0.1 | 1.79+0.0 | 1.76-0.3 | 2.05-0.0 | 2.07-0.0 | 2.10+0.4 | 1.66 |
| FCF Margin | 7.8%+0.1pp | 7.7%0.0pp | 7.7%-13.3pp | 21.0%+16.1pp | 4.9%+0.7pp | 4.2%+7.6pp | -3.4%-17.9pp | 14.5% |
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Frequently Asked Questions
What is Udemy, Inc.'s annual revenue?
Udemy, Inc. (UDMY) reported $789.8M in total revenue for fiscal year 2025. This represents a 0.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Udemy, Inc.'s revenue growing?
Udemy, Inc. (UDMY) revenue grew by 0.4% year-over-year, from $786.6M to $789.8M in fiscal year 2025.
Is Udemy, Inc. profitable?
Yes, Udemy, Inc. (UDMY) reported a net income of $3.8M in fiscal year 2025, with a net profit margin of 0.5%.
What is Udemy, Inc.'s EBITDA?
Udemy, Inc. (UDMY) had EBITDA of $21.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Udemy, Inc.'s gross margin?
Udemy, Inc. (UDMY) had a gross margin of 65.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Udemy, Inc.'s operating margin?
Udemy, Inc. (UDMY) had an operating margin of -0.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Udemy, Inc.'s net profit margin?
Udemy, Inc. (UDMY) had a net profit margin of 0.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Udemy, Inc.'s return on equity (ROE)?
Udemy, Inc. (UDMY) has a return on equity of 1.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Udemy, Inc.'s free cash flow?
Udemy, Inc. (UDMY) generated $81.9M in free cash flow during fiscal year 2025. This represents a 61.3% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Udemy, Inc.'s operating cash flow?
Udemy, Inc. (UDMY) generated $87.7M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Udemy, Inc.'s total assets?
Udemy, Inc. (UDMY) had $617.7M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Udemy, Inc.'s capital expenditures?
Udemy, Inc. (UDMY) invested $5.8M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Udemy, Inc. spend on research and development?
Udemy, Inc. (UDMY) invested $101.5M in research and development during fiscal year 2025.
What is Udemy, Inc.'s current ratio?
Udemy, Inc. (UDMY) had a current ratio of 1.31 as of fiscal year 2025, which is considered adequate.
What is Udemy, Inc.'s debt-to-equity ratio?
Udemy, Inc. (UDMY) had a debt-to-equity ratio of 1.94 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Udemy, Inc.'s return on assets (ROA)?
Udemy, Inc. (UDMY) had a return on assets of 0.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Udemy, Inc.'s Altman Z-Score?
Udemy, Inc. (UDMY) has an Altman Z-Score of 0.68, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Udemy, Inc.'s Piotroski F-Score?
Udemy, Inc. (UDMY) has a Piotroski F-Score of 7 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Udemy, Inc.'s earnings high quality?
Udemy, Inc. (UDMY) has an earnings quality ratio of 23.03x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Udemy, Inc. cover its interest payments?
Udemy, Inc. (UDMY) has an interest coverage ratio of -5.7x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Udemy, Inc.?
Udemy, Inc. (UDMY) scores 38 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.