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what it is
Udemy sells online classes to people and training to companies.
how it gets paid
FY 2025 revenue ~$789.8M (essentially flat YoY) per the Feb 2026 release.
why it's growing
FY revenue ~flat on ~$790M. Gross margin ~66% FY 2025 (release)— rounded 65.5% here is fine if tied to the same filing line.
what just happened
Q4 2025 revenue $194.0M (−3% YoY); small quarterly net loss improved vs. prior year— use the release, not revenue ÷ 4.
At a glance
B+ balance sheet — decent shape, but not bulletproof
247.0x trailing p/e — you're paying up for this one
-$0.56 fy2024 eps est
~$790M TTM revenue
near-breakeven operating margin
xvary composite: 45/100 — below average
What they do
Udemy sells online classes to people and training to companies.
You are not buying one class. You are buying a catalog, quizzes, exercises, and an AI helper. That keeps 1,246 employees feeding a platform with $790M of annual revenue and 65.5% gross margin.
How they make money
~$790M
FY 2025 revenue (~flat YoY— release)
total revenue
$790M
+0.4%
The products that matter
enterprise training subscriptions
Udemy Business
$528M · 67% of revenue
this is the part you want to like. it generated $528M last year, and the latest quarter reached $132.8M. the issue is the growth rate: 5% is stable, not explosive.
core segment
direct-to-consumer courses
Consumer Marketplace
$262M · 33% of revenue
this segment fell 7% last year to $262M. its 57.0% gross margin helps, but margin improvement is not the same thing as demand coming back.
shrinking mix
Key numbers
$790M
annual revenue
This is the size of the pie. On a small-cap stock, $790M is real scale, not hobby money.
65.5%
gross margin
You keep 65.5 cents before overhead on each revenue dollar. That is what funds product and marketing.
1.6
beta
Your stock can move 60% more than the market. That matters when the business already trades like a rumor.
$7M
long debt
The debt load is tiny versus $790M revenue. That removes one excuse and leaves operations exposed.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- long-term debt $7M (1% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for UDMY right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Q4 2025 revenue $194.0M (−3% YoY); check the release for diluted EPS / adjusted EBITDA— not back-of-envelope ÷4 revenue.
Company revenue growth is low single digits on a TTM basis; ignore triple-digit vs. prior year headlines unless the filing shows an acquisition or accounting change. Gross margin near 65.5% is the cleaner read.
$194M
Q4 2025 revenue
~$21M
Q4 adj. EBITDA
65.5%
gross margin
the number that mattered
Coherence: Udemy Business can print ~$133M in a quarter (segment card)—that is the right scale, not $596M for the whole company.
source: Udemy Q4 / FY 2025 results · Nasdaq / Business Wire
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What could go wrong
the top risk is the Coursera merger failing to close in Q2 2026.
high
Merger fails to close
The all-stock deal needs approval and is expected to close in Q2 2026. If it breaks, the market has to value Udemy on standalone fundamentals again.
You are back to a $790M business that grew 0.4% last year.
med
Consumer keeps shrinking
Consumer Marketplace fell 7% last year to $262M. That is one-third of revenue moving in the wrong direction.
If the decline keeps running, the enterprise side has to work even harder just to keep the company flat.
med
Udemy Business stays too slow
The better segment grew 5% to $528M. That is healthy enough to stabilize the mix, but not strong enough to turn the whole company back into a growth story.
If this line stays around 5%, the valuation argument has to come from the deal, not the operating model.
low
Volatility does its job
A 1.6 beta and a 10 / 100 price-stability score tell you this is not a calm stock. Event names reprice fast when timelines move.
Even if the business changes little, the stock can swing hard on deal headlines.
If the deal breaks, you are left with a $790M company that grew 0.4% last year, a consumer segment that fell 7%, and a stock already sitting near the bottom of its $4–$9 range.
source: institutional data · regulatory filings · risk analysis
Pay attention to
merger clock
Q2 2026 close timing
This is the main event. If the expected close slips, the stock stops trading like a tidy deal story.
enterprise
Udemy Business at 5% growth
$528M of annual revenue and 67% of the mix is the good news. The question is whether 5% is a floor or a ceiling.
consumer
The 7% decline in Marketplace
$262M of consumer revenue is still large enough to drag on the whole company if the slide keeps going.
valuation
~247x trailing P/E on 65.5% gross margin
The gross margin says the model is not broken. The headline multiple (aligned to the at-a-glance strip) says investors need more than decent margins to justify owning it.
Analyst rankings
risk profile
below average
risk rank 4 — more volatile than most — brace for bigger swings.
source: institutional data
Institutional activity
institutional ownership data for UDMY is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$5
current price
n/a
target midpoint · n/a from current
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