Consolidated subscription revenue increased 8% year-over-year
E nded quarter with 294,000 paid consumer subscribers, surpassing full year target early
SAN FRANCISCO--(BUSINESS WIRE)--October 29, 2025--
Udemy (Nasdaq: UDMY), a leading AI-powered skills acceleration platform, today reported results for the three-month period ended September 30, 2025. Udemy has provided a supplemental deck with earnings highlights, which is available for download on the "Quarterly Results" section of the Investor Relations website.
Financial Results and Key Operating Data Summary
(in millions, except enterprise customers, subscribers, percentages, and
basis points)
Three Months Ended September 30, Change
----------------------------------------
2025 2024 YoY
Revenue $ 195.7 $ 195.4 -- %
Subscription
Revenue 143.9 133.7 8 %
Gross Profit $ 128.9 $ 123.1 5 %
Gross Margin 66 % 63 % 300 bps
Net Income (Loss) $ 1.6 $ (25.3) 106%
Adjusted EBITDA $ 24.3 $ 11.6 110%
Adjusted
EBITDA
Margin 12 % 6 % 600 bps
Enterprise
Segment
Total Customers 17,111 16,848 2 %
UB Annual
Recurring
Revenue $ 527.2 $ 504.6 4 %
Segment Revenue $ 132.8 $ 126.1 5 %
Subscription
Revenue $ 132.3 $ 125.5 5 %
Segment Adjusted
Gross Margin 75 % 74 % 100 bps
Consumer Segment
Paid Subscribers 294,000 156,000 88 %
Monthly Average
Buyers 1.20 1.31 (9 )%
Segment Revenue $ 62.9 $ 69.3 (9 )%
Subscription
Revenue $ 11.7 $ 8.2 43 %
Segment Adjusted
Gross Margin 57 % 54 % 300 bps
"Our Q3 results demonstrate strong momentum as Udemy evolves towards becoming the world's leading AI-powered skills acceleration platform," said Hugo Sarrazin, President and CEO of Udemy. "Given our excellent progress in the strategic shift toward higher-value recurring revenue streams, we are accelerating our consumer subscription-first approach. This strategic pivot impacts near-term Consumer segment growth but significantly shortens our path to a more durable, predictable business model with compelling unit economics."
"As hundreds of millions of workers globally will need to develop new skills due to AI and automation over the next few years, organizations and individuals that move quickly to upskill and reskill will gain significant competitive advantages. We are combining the power of AI with human expertise to strengthen Udemy's platform solution and expand our market opportunity. Udemy is building a comprehensive learning platform that takes people from curiosity to career advancement with structure, support, and validation that AI alone cannot provide. Ultimately, Udemy bridges the critical gap between where skills are today and where they need to be tomorrow," concluded Sarrazin.
Additional Highlights
-- Surpassed the 2025 consumer subscription target ahead of plan, ending
the quarter with 294,000 paid consumer subscribers.
-- Acquired new, or expanded existing, relationships with Udemy Business
customers globally, including AMD (U.S.), BanRegio (Mexico), Bayer
Corporation (U.S.), Capitec Bank Holdings (South Africa), Daifuku Oceania
(New Zealand), Flutter Entertainment (Ireland), Galicia Seguros
(Argentina), GB Group plc $(UK)$, Hitachi Vantara (U.S.), Mazda Toyota
Manufacturing (U.S.), McLane Company, Inc. (U.S.), OpenBet Limited (UK),
Q2 Holdings, Inc. (U.S.), RIA Advisory (U.S.), and Tawuniya (Saudi
Arabia).
-- Udemy Business Net Dollar Retention Rate (NDRR) was 93%, and Udemy
Business Large Customer Net Dollar Retention Rate was 97%.
-- Net cash provided by operating activities was $15.7 million, while free
cash flow for the quarter was positive $12.1 million. Year-to-date net
cash provided by operating activities was $72.1 million, while free cash
flow was positive $58.2 million.
-- Repurchased approximately 4.1 million Udemy shares as part of Udemy's
$50 million stock repurchase program.
Financial Outlook(1)
Three months ending Year ending December
December 31, 2025 31, 2025
----------------------- -----------------------
Revenue(2) $191 to $194 million $787 to $790 million
Adjusted EBITDA(3) $18 to $20 million $92 to $94 million
Weighted Average Share
Count, Basic(4) 148 million 148 million
Weighted Average Share
Count, Diluted(4) 150 million 150 million
1. Udemy provides guidance based on current market conditions and
expectations. Actual results may differ materially. Please refer to the
comments below regarding forward-looking statements.
2. Revenue guidance assumes FX rates will remain unchanged from the end of the
third quarter of 2025.
3. Udemy has not provided a quantitative reconciliation of forecasted Adjusted
EBITDA to forecasted GAAP net income (loss) within this earnings release
because the company is unable, without making unreasonable efforts, to
calculate certain reconciling items with confidence.
4. Udemy's outlook for weighted average share count, basic and diluted,
excludes any impact from potential future repurchase activities under our
share repurchase program.
Webcast Information
Udemy will host a conference call and webcast at 2:00 p.m. PT / 5:00 p.m. ET today, Wednesday, October 29, to discuss its third quarter 2025 financial results and outlook. A link to the live webcast and recorded replay of the conference call will be available on the "Quarterly Results" section of Udemy's Investor Relations website at https://investors.udemy.com/. The live call may also be accessed via telephone at (833) 630-1963 domestically and (412) 317-5702 internationally. The archived replay of the webcast will be available for approximately one year.
Non-GAAP Financial Measures
To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures as defined below. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide useful information to investors and others in understanding and evaluating our operating results because our management team and board of directors use these non-GAAP financial measures for the purposes of assessing operating results and business planning. These non-GAAP financial measures also provide useful measures for period-to-period comparisons of our business by removing the effect of certain non-cash expenses and certain variable charges.
Udemy's non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Udemy's financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin
We calculate Adjusted EBITDA as net income (loss) determined in accordance with GAAP, adjusted to exclude i) interest income; ii) interest expense; iii) provision for income taxes; iv) depreciation and amortization; v) other income (expense), net, including gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency; vi) stock-based compensation expense; and vii) restructuring charges. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue for the same period. We have not reconciled our expectations for Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss) and net income (loss) margin, respectively, the most directly comparable GAAP measures, because certain items are out of our control or cannot be reasonably predicted and a reconciliation for the guidance for Adjusted EBITDA and Adjusted EBITDA Margin is not available without unreasonable effort.
Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share, Basic and Diluted
We define non-GAAP net income (loss) as net income (loss), adjusted to exclude stock-based compensation expense, amortization of acquired intangible assets, and restructuring charges.
We define non-GAAP net income (loss) per share, basic, as non-GAAP net income (loss) divided by weighted-average shares used to compute net income (loss) per share, basic. We define non-GAAP net income (loss) per share, diluted, as non-GAAP net income (loss) divided by weighted-average shares used to compute net income (loss) per share, diluted, which adjusts for the potentially dilutive effects of our employee equity incentive plans.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit as gross profit, adjusted to exclude stock-based compensation expense and the amortization of acquired intangible assets. We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period.
Free Cash Flow
We define free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized software costs, as we consider these capital expenditures necessary to support our ongoing operations.
Key Business Metrics
Udemy Business customers
We count the total number of Udemy Business ("UB") customers at the end of each period. To do so, we generally count unique customers using the concept of a domestic ultimate parent, defined as the highest business in the family tree that is in the same country as the contracted entity. In some cases, we deviate from this methodology, defining the contracted entity as a unique customer despite the existence of a domestic ultimate parent. This often occurs where the domestic ultimate parent is a financial owner, government entity, conglomerate, or acquisition target where we have contracted directly with the subsidiary. We define a UB customer as a customer who purchases Udemy via our direct sales force, reseller partnerships or through our self-service platform.
Udemy Business Annual Recurring Revenue
We disclose our UB ARR as a measure of our Enterprise revenue growth. ARR represents the annualized value of our UB customer contracts on the last day of a given period. Only revenue from closed UB contracts with active seats as of the last day of the period are included.
Udemy Business Net Dollar Retention Rate and Udemy Business Large Customer Net Dollar Retention Rate
We disclose UB Net Dollar Retention Rate, or UB NDRR, as a measure of revenue growth for all UB customers within our Enterprise segment, including UB Large Customers, which we define as companies with at least 1,000 employees. We calculate UB NDRR as the total ARR at the end of a trailing twelve-month period divided by the total ARR at the beginning of a trailing twelve-month period for the cohort of all UB customers active at the beginning of the trailing twelve-month period. We calculate UB Large Customer NDRR as the total UB Large Customer ARR at the end of a trailing twelve-month period divided by the total Large Customer ARR at the beginning of a trailing twelve-month period for the cohort of UB customers with at least 1,000 employees active at the beginning of the trailing twelve-month period. Total ARR and Large Customer ARR at the end of a trailing twelve-month period are calculated as ARR and Large Customer ARR, respectively, at the beginning of a trailing twelve-month period that are then adjusted for upsells, downsells, and churns for the same cohort of customers during that period. Large Customer ARR represents the annualized value of contracts for UB customers with active seats and having at least 1,000 employees on the last day of a given period.
Paid Consumer subscribers
We count the total number of paid Consumer subscribers at the end of each period. Paid Consumer subscribers are defined as users who had an active paid subscription to any Consumer subscription offering at the end of the last day of a given period. The count of paid subscribers does not include users who are currently on a free trial.
Monthly average buyers
A buyer is a consumer who purchases a course or subscription through our direct-to-consumer offering. We first determine the number of monthly buyers by taking the total buyers of single courses during a given month plus the total active, paid consumer subscribers at any point in that month, adjusting for duplicate buyers that may be present in both totals. We then calculate monthly average buyers by taking an average of the monthly buyer totals over a particular period, such as a fiscal year. Our monthly average buyer count is not intended as a measure of active engagement, as not all buyers are active at any given time or over any given period.
Segment revenue and segment adjusted gross profit
Segment revenue represents the revenue recognized from our two segments, Enterprise (or Udemy Business), and Consumer. Segment adjusted gross profit is defined as segment revenue less segment adjusted cost of revenue. Segment adjusted cost of revenue includes content costs, customer support services, hosting and platform costs, and payment processing fees that are allocable to each segment. Segment adjusted gross profit excludes amortization of capitalized software, depreciation, stock-based compensation, and amortization of intangible assets included in cost of revenue as our chief operating decision maker does not include the information in his measurement of the performance of the operating segments.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding Udemy's expectations relating to future operating results and financial position, including fourth quarter and full year 2025 as well as future periods; trends in consumer and learner activity related to our platform; anticipated future expenses and investments; our business strategy and plans, including the impact of our strategic and operational efficiency initiatives and our ability to successfully execute on these initiatives; market growth; and our market position and potential market opportunities. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "plan," "target," and similar expressions are intended to identify forward-looking statements.
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance.
The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our publicly available filings with the Securities and Exchange Commission. All information provided in this release is as of the date hereof, and we undertake no duty to update this information unless required by law.
About Udemy
Udemy (Nasdaq: UDMY) is an AI-powered skills acceleration platform transforming how companies and individuals across the world build the capabilities needed to thrive in a rapidly evolving workplace. By combining on-demand, multi-language content with real-time innovation, Udemy delivers personalized experiences that empower organizations to scale workforce development and help individuals build the technical, business, and soft skills most relevant to their careers. Today, thousands of companies, including Ericsson, Samsung SDS America, On24, Tata Consultancy Services, The World Bank, and Volkswagen, rely on Udemy Business for its enterprise solutions to build agile, future-ready teams. Udemy is headquartered in San Francisco, with hubs across the United States, Australia, India, Ireland, Mexico and Türkiye.
Udemy, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended September Nine Months Ended September
30, 30,
---------------------------- ------------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Revenue $ 195,680 $ 195,417 $ 595,859 $ 586,623
Cost of revenue
(1)(2) 66,812 72,362 205,499 221,888
----------- ----------- ----------- -----------
Gross profit 128,868 123,055 390,360 364,735
----------- ----------- ----------- -----------
Operating expenses
(1)(2)
Sales and
marketing 81,512 85,997 243,832 260,288
Research and
development 25,581 32,976 76,900 96,607
General and
administrative 21,937 22,266 68,776 74,299
Restructuring
charges -- 11,275 1,578 11,275
----------- ----------- ----------- -----------
Total
operating
expenses 129,030 152,514 391,086 442,469
----------- ----------- ----------- -----------
Loss from
operations (162) (29,459) (726) (77,734)
----------- ----------- ----------- -----------
Other income
(expense), net
Interest income 3,784 4,732 11,022 15,655
Interest
expense (350) 504 (485) 424
Other expense,
net (523) (185) (498) (11,077)
----------- ----------- ----------- -----------
Total other
income,
net 2,911 5,051 10,039 5,002
----------- ----------- ----------- -----------
Net income (loss)
before taxes 2,749 (24,408) 9,313 (72,732)
Income tax
provision 1,107 863 3,177 2,692
----------- ----------- ----------- -----------
Net income (loss) $ 1,642 $ (25,271) $ 6,136 $ (75,424)
=========== =========== =========== ===========
Net income (loss)
per share
Basic $ 0.01 $ (0.17) $ 0.04 $ (0.49)
=========== =========== =========== ===========
Diluted $ 0.01 $ (0.17) $ 0.04 $ (0.49)
=========== =========== =========== ===========
Weighted-average
shares used in
computing net
income (loss) per
share
Basic 149,917,275 149,179,826 149,076,960 152,867,160
=========== =========== =========== ===========
Diluted 151,996,844 149,179,826 151,308,077 152,867,160
=========== =========== =========== ===========
(1) Includes stock-based compensation expense as follows (in thousands):
Three Months Ended Nine Months Ended September
September 30, 30,
-------------------------- ---------------------------
2025 2024 2025 2024
------ ------ --- ------ ------
Cost of revenue $ 1,806 $ 1,807 $ 5,160 $ 5,277
Sales and
marketing 6,038 7,573 17,053 22,578
Research and
development 5,025 7,183 14,653 21,187
General and
administrative 5,425 6,839 16,815 21,382
Restructuring
charges -- (160) -- (160)
------ ------ --- ------ ------
Total
stock-based
compensation
expense $ 18,294 $ 23,242 $ 53,681 $ 70,264
====== ====== === ====== ======
(2) Includes amortization of intangible assets as follows (in
thousands):
Three Months Ended Nine Months Ended September
September 30, 30,
-------------------------- -----------------------------
2025 2024 2025 2024
--- ---- ---- --------- --- ----- --- ------------
Cost of
revenue $ -- $ 430 $ -- $ 1,880
Sales and
marketing 230 228 689 688
Research and
development 187 -- 375 --
--- ---- ---- --------- --- ----- --- ------------
Total
amortization
of
intangible
assets $ 417 $ 658 $ 1,064 $ 2,568
=== ==== ==== ========= === ===== === ============
Udemy, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, December 31,
--------------- ----------------
2025 2024
---------- ---------
Assets
Current assets:
Cash and cash equivalents $ 235,929 $ 190,592
Restricted cash, current 203 100
Marketable securities 135,292 163,844
Accounts receivable, net 76,560 88,216
Prepaid expenses and other current
assets 28,587 22,735
Deferred contract costs, current 47,567 40,841
---------- ---------
Total current assets 524,138 506,328
Property and equipment, net 6,976 4,534
Capitalized software, net 29,122 31,548
Operating lease right-of-use assets 10,117 10,950
Restricted cash, non-current 912 1,115
Deferred contract costs, non-current 26,636 32,212
Intangible assets, net 2,865 2,428
Goodwill 12,646 12,646
Other assets 5,492 3,867
---------- ---------
Total assets $ 618,904 $ 605,628
========== =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 6,534 $ 6,311
Accrued expenses and other current
liabilities 26,190 31,156
Content costs payable 32,275 37,607
Accrued compensation and benefits 22,953 28,793
Operating lease liabilities, current 5,298 2,502
Deferred revenue, current 295,926 291,106
---------- ---------
Total current liabilities 389,176 397,475
Operating lease liabilities,
non-current 6,670 8,315
Deferred revenue, non-current 1,240 2,438
Other liabilities, non-current 5 6
---------- ---------
Total liabilities 397,091 408,234
---------- ---------
Stockholders' equity:
Common stock 1 1
Additional paid-in capital 1,020,518 1,002,390
Accumulated other comprehensive
income (loss) 144 (11)
Accumulated deficit (798,850) (804,986)
---------- ---------
Total stockholders' equity 221,813 197,394
---------- ---------
Total liabilities and stockholders'
equity $ 618,904 $ 605,628
========== =========
Udemy, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ------------------------
2025 2024 2025 2024
------- ------- -------- --------
Cash flows from
operating activities:
Net income (loss) $ 1,642 $(25,271) $ 6,136 $ (75,424)
Adjustments to
reconcile net income
(loss) to net cash
provided by
operating
activities:
Depreciation and
amortization 6,139 6,340 19,285 19,515
Amortization of
deferred
contract costs 16,780 15,221 48,392 43,863
Stock-based
compensation 18,294 23,242 53,681 70,264
Allowance for
credit losses 444 283 2,835 1,026
Net (accretion)
amortization of
marketable
securities (543) (2,201) (2,677) (6,651)
Non-cash
operating lease
expense 854 909 2,700 3,641
Unrealized loss
on strategic
investments -- -- -- 10,311
Other 423 817 1,046 1,319
Changes in
operating assets
and liabilities:
Accounts
receivable 7,437 632 8,821 10,364
Prepaid
expenses and
other assets (6,392) (4,963) (6,805) (5,508)
Deferred
contract
costs (14,550) (13,892) (49,542) (46,626)
Accounts
payable,
accrued
expenses and
other
liabilities 909 3,025 (9,287) 5,962
Content costs
payable (893) 649 (5,332) (3,978)
Operating
lease
liabilities 880 (984) (731) (4,523)
Deferred
revenue (15,693) (9,907) 3,622 19,906
------- ------- -------- --------
Net cash
provided
by (used
in)
operating
activities 15,731 (6,100) 72,144 43,461
------- ------- -------- --------
Cash flows from
investing
activities:
Purchases of
marketable
securities (25,298) (93,405) (137,803) (239,783)
Proceeds from
maturities of
marketable
securities 52,350 91,800 169,050 265,350
Purchases of
property and
equipment (620) (562) (5,281) (1,116)
Capitalized software
costs (3,025) (3,536) (8,676) (10,247)
Payments related to
asset acquisitions -- -- (1,500) --
------- ------- -------- --------
Net cash
provided
by (used
in)
investing
activities 23,407 (5,703) 15,790 14,204
------- ------- -------- --------
Cash flows from
financing
activities:
Net proceeds from
exercise of stock
options 13 482 62 921
Proceeds from share
purchases under
employee stock
purchase plan -- -- 2,560 4,533
Taxes paid related
to net share
settlement of
equity awards (4,921) (5,548) (14,838) (25,363)
Repurchases of
common stock and
excise taxes paid (28,337) (51,014) (29,212) (141,591)
Payments of debt
issuance costs (219) -- (1,438) --
------- ------- -------- --------
Net cash
used in
financing
activities (33,464) (56,080) (42,866) (161,500)
------- ------- -------- --------
Effect of foreign
exchange rates on cash
flows (3) 82 169 61
Net increase (decrease)
in cash, cash
equivalents and
restricted cash 5,671 (67,801) 45,237 (103,774)
Cash, cash equivalents
and restricted
cash--Beginning of
period 231,373 273,579 191,807 309,552
------- ------- -------- --------
Cash, cash equivalents
and restricted
cash--End of period $237,044 $205,778 $ 237,044 $ 205,778
======= ======= ======== ========
Udemy, Inc.
Supplemental Revenue and Segment Analysis
(in thousands, except percentages)
(unaudited)
Revenue by Segment and Product Offering
The following table presents revenue disaggregated by product offering
for each segment:
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ------------------------
2025 2024 2025 2024
--- ------- --------- ------- -------
Enterprise:
Subscription $ 132,284 $ 125,522 $ 387,977 $ 362,658
Other 518 601 1,870 1,661
--- ------- --------- ------- -------
Enterprise
revenue $ 132,802 $ 126,123 $ 389,847 $ 364,319
=== ======= ========= ======= =======
Consumer:
Subscription $ 11,661 $ 8,152 $ 31,242 $ 22,347
Transactional
and other 51,217 61,142 174,770 199,957
--- ------- --------- ------- -------
Consumer revenue $ 62,878 $ 69,294 $ 206,012 $ 222,304
=== ======= ========= ======= =======
Total revenue $ 195,680 $ 195,417 $ 595,859 $ 586,623
=== ======= ========= ======= =======
Segment revenue, adjusted gross profit, and adjusted gross margin
The following table presents revenue, adjusted gross profit, and
adjusted gross margin by segment:
Three Months Ended Nine Months Ended September
September 30, 30,
--------------------------- ---------------------------
2025 2024 2025 2024
------- ------- --- ------- ------- ---
Enterprise
segment
revenue $132,802 $126,123 $389,847 $364,319
Enterprise
segment
adjusted
gross
profit $100,052 $ 92,793 $293,564 $264,675
Enterprise
segment
adjusted
gross
margin 75% 74% 75% 73%
Consumer
segment
revenue $ 62,878 $ 69,294 $206,012 $222,304
Consumer
segment
adjusted
gross
profit $ 35,742 $ 37,610 $118,195 $122,323
Consumer
segment
adjusted
gross
margin 57% 54% 57% 55%
Udemy, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except percentages, share and per share amounts)
(unaudited)
Non-GAAP Gross Profit and Non-GAAP Gross Margin
Three Months Ended Nine Months Ended September
September 30, 30,
--------------------------- ---------------------------
2025 2024 2025 2024
------- ------- --- ------- ------- ---
Gross profit $128,868 $123,055 $390,360 $364,735
Stock-based
compensation
expense 1,806 1,807 5,160 5,277
Intangible
asset
amortization -- 430 -- 1,880
------- ------- --- ------- ------- ---
Non-GAAP gross
profit $130,674 $125,292 $395,520 $371,892
======= ======= === ======= ======= ===
Gross margin
(1) 66% 63% 66% 62%
Non-GAAP gross
margin (2) 67% 64% 66% 63%
(1) We calculate gross margin as gross profit divided by revenue for the same
period.
(2) We calculate non-GAAP gross margin as non-GAAP gross profit divided by
revenue for the same period.
Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted
Three Months Ended Nine Months Ended September
September 30, 30,
--------------------------- -----------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Net income (loss) $ 1,642 $ (25,271) $ 6,136 $ (75,424)
Stock-based
compensation
expense 18,294 23,402 53,681 70,424
Intangible asset
amortization 417 658 1,064 2,568
Restructuring
charges -- 11,275 1,578 11,275
----------- ----------- ----------- -----------
Non-GAAP net
income $ 20,353 $ 10,064 $ 62,459 $ 8,843
=========== =========== =========== ===========
Net income (loss)
per share,
basic $ 0.01 $ (0.17) $ 0.04 $ (0.49)
Net income (loss)
per share,
diluted $ 0.01 $ (0.17) $ 0.04 $ (0.49)
Weighted-average
shares used in
computing net
income (loss)
per share,
basic 149,917,275 149,179,826 149,076,960 152,867,160
Weighted-average
shares used in
computing net
income (loss)
per share,
diluted (3) 151,996,844 149,179,826 151,308,077 152,867,160
Non-GAAP net
income per
share, basic $ 0.14 $ 0.07 $ 0.42 $ 0.06
Non-GAAP net
income per
share, diluted $ 0.13 $ 0.07 $ 0.41 $ 0.06
Weighted-average
shares used in
computing
non-GAAP net
income per
share, basic 149,917,275 149,179,826 149,076,960 152,867,160
Weighted-average
shares used in
computing
non-GAAP net
income per
share, diluted
(3) 151,996,844 150,633,523 151,308,077 156,429,499
(3) For periods presented with a net loss or non-GAAP net loss, potentially
dilutive securities were excluded from the computation of net loss per
share, diluted, and non-GAAP net loss per share, diluted, because the
impact of including them would have been anti-dilutive.
Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended Nine Months Ended September
September 30, 30,
-------------------------- ---------------------------
2025 2024 2025 2024
------ ------- --- ------- ------- ---
Net income (loss) $ 1,642 $(25,271) $ 6,136 $(75,424)
Adjusted to
exclude the
following:
Interest
income (3,784) (4,732) (11,022) (15,655)
Interest
expense 350 (504) 485 (424)
Income tax
provision 1,107 863 3,177 2,692
Depreciation
and
amortization 6,139 6,340 19,285 19,515
Stock-based
compensation
expense 18,294 23,402 53,681 70,424
Other expense,
net 523 185 498 11,077
Restructuring
charges -- 11,275 1,578 11,275
------ ------- --- ------- ------- ---
Adjusted EBITDA $24,271 $ 11,558 $ 73,818 $ 23,480
====== ======= === ======= ======= ===
Net income (loss)
margin (4) 1% (13)% 1% (13)%
Adjusted EBITDA
margin (5) 12% 6% 12% 4%
(4) We calculate net income (loss) margin as net income (loss) divided by
revenue for the same period.
(5) We calculate adjusted EBITDA margin as adjusted EBITDA divided by
revenue for the same period.
Free Cash Flow
Three Months Ended Nine Months Ended September
September 30, 30,
------------------- ---------------------------
2025 2024 2025 2024
------ ------- ------ -------
Net cash
provided by
operating
activities $15,731 $ (6,100) $72,144 $ 43,461
Less:
purchases
of property
and
equipment (620) (562) (5,281) (1,116)
Less:
capitalized
software
costs (3,025) (3,536) (8,676) (10,247)
------ ------- ------ -------
Free cash
flow $12,086 $(10,198) $58,187 $ 32,098
====== ======= ====== =======
View source version on businesswire.com: https://www.businesswire.com/news/home/20251028860907/en/
CONTACT: Investor Contact
Dennis Walsh
Vice President, Investor Relations
dennis.walsh@udemy.com
Media Contact
Glenn Lehrman
Vice President, Corporate Communications
press@udemy.com
(END) Dow Jones Newswires
October 29, 2025 16:05 ET (20:05 GMT)
Comments