Udemy, Inc. ( (UDMY) ) has released its Q3 earnings. Here is a breakdown of the information Udemy, Inc. presented to its investors.
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Udemy, Inc. is a prominent AI-powered skills acceleration platform that focuses on transforming how companies and individuals develop essential skills for the modern workforce. Operating in the education technology sector, Udemy offers a unique blend of on-demand content and real-time innovation to enhance workforce development globally.
In its third-quarter 2025 earnings report, Udemy announced a significant increase in its subscription revenue, achieving an 8% year-over-year growth. The company also surpassed its full-year target for paid consumer subscribers, reaching 294,000 by the end of the quarter.
Key financial highlights include a gross profit increase of 5% and a net income turnaround from a loss of $25.3 million in the previous year to a profit of $1.6 million. The adjusted EBITDA saw a remarkable 110% increase, reflecting improved operational efficiency. The enterprise segment continued to grow, with a 4% rise in annual recurring revenue, while the consumer segment saw an 88% surge in paid subscribers.
Despite a 9% decline in consumer segment revenue, Udemy’s strategic shift towards a subscription-first approach is aimed at creating a more predictable and sustainable business model. The company’s focus on leveraging AI and human expertise positions it well to address the growing demand for upskilling and reskilling in the face of AI and automation.
Looking ahead, Udemy remains committed to expanding its market opportunities by enhancing its platform with AI capabilities and human expertise. The company’s strategic initiatives are expected to drive continued growth and solidify its position as a leader in the skills acceleration market.