Udemy Inc (UDMY) AI Stock Analysis

• Market Cap: $780.19M
• Dividend Yield: N/A
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: 2.53%
• EPS Growth: 95.79%
• Country: US
• Employees: 1,246
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.13
• Shares Outstanding: 146,376,770
• 10 Day Avg. Volume: 2,457,039
• 30 Day Avg. Volume: 2,133,275
• PEG Ratio: 0.69
• Price to Book (P/B): 6.31
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 24.54
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: -394.66
• 1Y Price Target: $9.75
• Price Target Upside: 82.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $6.00 ▲(12.57% Upside)

Udemy's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting growth in subscription revenue and strategic initiatives. However, technical indicators suggest bearish momentum, and valuation metrics reflect profitability challenges, impacting the overall score.

Positive Factors

Subscription Revenue Growth

The shift to a subscription-first model enhances revenue predictability and stability, supporting long-term growth and reducing reliance on one-time sales.

Improved Profitability

Improved profitability indicates better cost management and operational efficiency, which can lead to sustainable financial health.

AI and Partnerships

Investments in AI and strategic partnerships enhance platform capabilities, potentially increasing user engagement and market competitiveness.

Negative Factors

Profitability Challenges

Ongoing profitability issues suggest operational inefficiencies, which may hinder long-term financial sustainability and growth potential.

Consumer Segment Revenue Decline

A decline in consumer segment revenue could impact overall growth, as this segment is crucial for maintaining a broad customer base.

Net Dollar Retention Rate Pressure

Pressure on retention rates may indicate challenges in maintaining customer loyalty and could affect future revenue stability.

Udemy Inc Business Overview & Revenue Model

Company Description

Udemy Inc (UDMY) is a leading online learning and teaching platform that connects learners and instructors globally. The company operates in the education technology sector, offering a diverse range of courses across various domains, including technology, business, arts, and personal development. Udemy enables individuals and organizations to access high-quality educational content, empowering them to acquire new skills and enhance their knowledge through self-paced courses.

How the Company Makes Money

Udemy generates revenue primarily through its marketplace model, where it allows instructors to create and sell courses on its platform. The company takes a percentage of the revenue from each course sale, which constitutes a significant portion of its income. Additionally, Udemy offers a subscription service called Udemy Business, targeting organizations that wish to provide employee training and development. This service provides access to a curated library of courses for a flat fee, contributing to another key revenue stream. Partnerships with educational institutions and corporate clients also play a crucial role in expanding Udemy's reach and driving further revenue growth.

Udemy Inc Financial Statement Overview

Summary

Udemy Inc. demonstrates strong revenue growth and improving cash flow metrics, with a solid gross profit margin and low leverage. However, profitability challenges remain, as indicated by negative net profit and EBIT margins.

Income Statement

Udemy Inc. has shown positive revenue growth with a 3.3% increase in the TTM period, indicating a steady upward trajectory. The gross profit margin is strong at 64.33%, reflecting efficient cost management. However, the company is still facing profitability challenges with a negative net profit margin of -3.85% and negative EBIT and EBITDA margins, suggesting ongoing operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.04, indicating low leverage and financial risk. However, the return on equity is negative at -14.65%, pointing to challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears solid relative to its assets.

Cash Flow

Cash flow metrics are improving, with a significant 53.03% growth in free cash flow, indicating better cash generation capabilities. The operating cash flow to net income ratio is positive, suggesting that cash flow is more robust than net income figures might imply. However, the free cash flow to net income ratio of 0.80 indicates that while cash flow is improving, profitability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	795.80M	786.57M	728.94M	629.10M	518.16M	429.90M
Gross Profit	517.57M	491.94M	419.34M	353.78M	282.13M	220.65M
EBITDA	-1.79M	-89.33M	-78.53M	-129.97M	-63.53M	-62.27M
Net Income	-3.73M	-85.29M	-107.29M	-153.88M	-77.53M	-77.62M
Balance Sheet
Total Assets	618.90M	605.63M	741.20M	737.57M	739.85M	282.10M
Cash, Cash Equivalents and Short-Term Investments	371.22M	354.44M	476.94M	465.37M	533.87M	175.03M
Total Debt	11.97M	10.82M	6.95M	13.55M	0.00	0.00
Total Liabilities	397.09M	408.23M	384.30M	398.26M	347.65M	542.78M
Stockholders Equity	221.81M	197.39M	356.89M	339.31M	392.20M	-260.69M
Cash Flow
Free Cash Flow	73.03M	50.74M	-15.07M	-76.68M	-25.31M	-4.91M
Operating Cash Flow	81.73M	53.04M	-2.00M	-60.96M	-7.10M	9.62M
Investing Cash Flow	2.66M	1.08M	-24.97M	-173.23M	-52.69M	-14.54M
Financing Cash Flow	-53.12M	-171.75M	19.20M	14.76M	418.63M	131.09M

Udemy Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UDMY, the sentiment is Negative. The current price of 5.33 is below the 20-day moving average (MA) of 6.50, below the 50-day MA of 6.77, and below the 200-day MA of 7.29, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 27.11 is Positive, neither overbought nor oversold. The STOCH value of 2.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UDMY.

Udemy Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFYA	76 Outperform	$1.28B	10.56	15.50%	<0.01%	1.02%	9.06%
GHC	75 Outperform	$4.51B	6.18	17.20%	0.70%	4.13%	228.37%
DAO	65 Neutral	$1.24B	38.92	―	―	-1.66%	―
COUR	63 Neutral	$1.34B	―	-7.43%	―	8.10%	43.35%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UDMY	61 Neutral	$780.19M	―	-1.78%	―	2.53%	95.79%
GOTU	48 Neutral	$677.13M	―	-32.95%	―	56.38%	-16.84%

Udemy Inc Corporate Events

Udemy’s Stock Buyback Program Faces Uncertainty Amid New Tax Implications

Udemy, Inc. faces uncertainty regarding its stock repurchase program, which was authorized in September 2025 to buy back up to $50 million of common stock. As of September 30, 2025, the company had repurchased $28.3 million worth of shares, funded by existing cash reserves. The program’s discretionary nature means that repurchases depend on market conditions and management’s decisions, with no obligation to meet specific targets. This flexibility, coupled with the new 1% excise tax on share repurchases, may impact stock price volatility, cash reserves, and ultimately, long-term shareholder value.

Udemy’s Earnings Call: Subscription Growth Amid Challenges

In Udemy, Inc.’s latest earnings call, the sentiment was largely positive, reflecting strong growth in subscription revenue and strategic partnerships. The company is successfully transitioning to a subscription-first model, although it faces short-term challenges such as declines in Consumer segment revenue and pressures on retention rates due to legacy contracts. Despite these hurdles, Udemy is well-positioned for long-term growth.

Udemy, Inc. Reports Strong Q3 2025 Results

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.

Udemy Inc Announces $50 Million Share Buyback

On September 10, 2025, Udemy announced a $50 million share repurchase program, reflecting its Board’s confidence in the company’s growth potential amid the global demand for continuous learning driven by technological advancements. The program allows for the repurchase of common stock in various market conditions, demonstrating Udemy’s strategic focus on enhancing shareholder value while positioning itself as a leader in the upskilling revolution.

The most recent analyst rating on (UDMY) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Udemy Inc stock, see the UDMY Stock Forecast page.

Udemy’s Earnings Call: Strong Growth Amid Challenges

Udemy, Inc. recently held its earnings call, showcasing a generally positive sentiment with strong revenue performance and strategic initiatives in AI and partnerships. Despite these achievements, challenges persist in the Consumer segment and with renewing COVID-era contracts, particularly affecting the SMB cohort.

Udemy Achieves Profitability and Expands AI Offerings

Udemy, Inc. is a leading AI-powered skills acceleration platform that provides on-demand, multi-language content to help companies and individuals build technical, business, and soft skills. The company operates in the education technology sector and is known for its personalized learning experiences.