Udemy (UDMY) Q4 2025 earnings summary

Executive summary

• Full year 2025 consolidated subscription revenue grew 8% year-over-year, reaching $566.0 million and now represents 72% of total revenue, up 600 basis points year-over-year.

• Net income for 2025 was $3.8 million, a turnaround from a net loss of $85.3 million in 2024.

• Adjusted EBITDA more than doubled year-over-year to $95.3 million, with margin expanding by 700 basis points to 12%.

• The company ended 2025 with $359.1 million in cash, cash equivalents, and marketable securities.

• Announced a pending all-stock merger with Coursera, expected to close in the second half of 2026.

Financial highlights

• Total revenue for 2025 was $789.8 million, flat year-over-year and at the high end of guidance.

• Q4 2025 revenue was $194.0 million, down 3% year-over-year but at the high end of guidance.

• Gross margin improved to 66% for the year, up from 63% in 2024.

• Free cash flow for 2025 was $70.0 million, up from $38.3 million in 2024.

• Operating expenses declined to 66% of revenue, an 800 basis point improvement year-over-year.

Outlook and guidance

• No financial guidance provided due to the pending Coursera merger.