Revenue growth has decelerated into a 4.4% contraction as of 2026Q1, though gross margins have improved to 67.5% from 57.8% in 2023Q4.
| Sales/Revenue | 780.95M | 789.84M | 786.57M | 728.94M | 629.1M | 515.66M | 429.9M | 276.33M |
| Revenue Growth % | -1.15% | 0.42% | 7.91% | 15.87% | 22% | 19.95% | 55.58% | - |
| Cost of Goods Sold | 262.72M | 271.44M | 294.63M | 309.6M | 275.32M | 236.02M | 209.25M | 143.51M |
| COGS % of Revenue | - | 34.37% | 37.46% | 42.47% | 43.76% | 45.77% | 48.67% | 51.93% |
| Gross Profit | 518.23M | 518.41M | 491.94M | 419.34M | 353.78M | 279.63M | 220.65M | 132.82M |
| Gross Margin % | 66.36% | 65.63% | 62.54% | 57.53% | 56.24% | 54.23% | 51.33% | 48.07% |
| Gross Profit Growth % | - | 5.38% | 17.31% | 18.53% | 26.51% | 26.73% | 66.13% | - |
| Operating Expenses | 530.42M | 520.98M | 581.27M | 541.23M | 504.97M | 357.54M | 294.03M | 200.85M |
| OpEx % of Revenue | - | 65.96% | 73.9% | 74.25% | 80.27% | 69.34% | 68.39% | 72.68% |
| Selling, General & Admin | 426.96M | 419.47M | 439.14M | 410.64M | 400.41M | 291.43M | 243.38M | 166.47M |
| SG&A % of Revenue | - | 53.11% | 55.83% | 56.33% | 63.65% | 56.52% | 56.61% | 60.24% |
| Research & Development | 103.35M | 101.51M | 125.44M | 120.33M | 104.56M | 66.11M | 50.64M | 34.38M |
| R&D % of Revenue | - | 12.85% | 15.95% | 16.51% | 16.62% | 12.82% | 11.78% | 12.44% |
| Other Operating Expenses | 109K | 0 | 16.68M | 10.26M | 0 | 0 | 55K | -384K |
| Operating Income | -12.19M | -2.58M | -89.33M | -121.89M | -151.19M | -77.91M | -73.38M | -68.03M |
| Operating Margin % | -1.56% | -0.33% | -11.36% | -16.72% | -24.03% | -15.11% | -17.07% | -24.62% |
| Operating Income Growth % | - | 97.11% | 26.72% | 19.38% | -94.06% | -6.17% | -7.86% | - |
| EBITDA | 6.96M | 22.78M | -89.4M | -97.31M | -129.97M | -62.61M | -62.33M | -59.29M |
| EBITDA Margin % | 0.89% | 2.88% | -11.37% | -13.35% | -20.66% | -12.14% | -14.5% | -21.46% |
| EBITDA Growth % | 115.16% | 125.48% | 8.13% | 25.13% | -107.59% | -0.46% | -5.12% | - |
| D&A (Non-Cash Add-back) | 19.15M | 25.36M | -69K | 24.59M | 21.22M | 15.3M | 11.05M | 8.74M |
| EBIT | -2.88M | 8.34M | -89.26M | -103.12M | -150.34M | -78.62M | -73.38M | -68.03M |
| Net Interest Income | 12.99M | 14.21M | 19.29M | 20.15M | 4.3M | -16K | -1.15M | 87K |
| Interest Income | 13.46M | 14.21M | 19.67M | 20.67M | 5.55M | 16K | 0 | 87K |
| Interest Expense | 470K | 0 | 379K | 518K | 1.25M | 32K | 1.15M | 0 |
| Other Income/Expense | 10.8M | 10.91M | 8.39M | 18.25M | -399K | -936K | -1.09M | -297K |
| Pretax Income | -1.39M | 8.34M | -80.94M | -103.64M | -151.59M | -78.84M | -74.47M | -68.33M |
| Pretax Margin % | -0.18% | 1.06% | -10.29% | -14.22% | -24.1% | -15.29% | -17.32% | -24.73% |
| Income Tax | 5.65M | 4.53M | 4.35M | 3.65M | 2.29M | 1.18M | 3.15M | 1.38M |
| Effective Tax Rate % | -406.19% | 54.34% | -5.37% | -3.52% | -1.51% | -1.5% | -4.23% | -2.01% |
| Net Income | -7.04M | 3.81M | -85.29M | -107.29M | -153.88M | -80.03M | -77.62M | -69.7M |
| Net Margin % | -0.9% | 0.48% | -10.84% | -14.72% | -24.46% | -15.52% | -18.06% | -25.22% |
| Net Income Growth % | 89.76% | 104.46% | 20.51% | 30.27% | -92.28% | -3.1% | -11.36% | - |
| Net Income (Continuing) | -7.04M | 3.81M | -85.29M | -107.29M | -153.88M | -80.03M | -77.62M | -69.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.05 | 0.03 | -0.56 | -0.71 | -1.09 | -0.56 | -0.56 | -2.17 |
| EPS Growth % | 88.28% | 104.59% | 21.13% | 34.86% | -94.64% | 0% | 74.19% | - |
| EPS (Basic) | - | 0.03 | -0.56 | -0.71 | -1.09 | -0.56 | -0.56 | -2.17 |
| Diluted Shares Outstanding | 145.24M | 150.01M | 151.32M | 150.1M | 140.87M | 139.16M | 139.6M | 32.1M |
| Basic Shares Outstanding | 145.24M | 148.21M | 151.32M | 150.1M | 140.87M | 139.16M | 139.6M | 32.1M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Revenue growth stagnation
As reported in recent financial filings, Udemy's revenue growth has decelerated significantly, reaching a contraction of 4.4% YoY in 2026Q1, which suggests that the post-pandemic demand surge has fully exhausted and the company is struggling to find new catalysts for top-line expansion in its current model.
The transition from 14.6% growth in 2023Q4 to negative territory indicates that the company's core marketplace may be reaching maturity or facing increased competitive pressure. Investors should monitor whether the enterprise segment can offset these consumer-side headwinds or if the overall business model is entering a structural low-growth phase.
Based on the provided income statement data, Udemy has successfully expanded its gross margins from 57.8% in 2023Q4 to 67.5% in 2026Q1, suggesting improved pricing power or a favorable shift in the mix toward higher-margin enterprise subscription services despite the broader revenue decline.
This margin improvement appears to be a critical defensive mechanism as the company navigates a period of stagnant top-line growth. The ability to maintain these levels suggests that the platform's content-sharing model remains efficient, though further expansion may be limited by the inherent royalty structures of the marketplace.
According to the quarterly income statement, operating margins have fluctuated significantly, reaching a near-breakeven point of -0.33% in 2025Q3 before slipping back to -6.5% in 2026Q1, which indicates that the company has yet to achieve the consistent operating leverage required for sustainable GAAP profitability.
While SG&A expenses have been managed with greater discipline compared to previous periods, the lack of consistent operating income suggests that the cost of acquiring enterprise customers remains high. The company appears to be in a delicate balancing act between maintaining market share and achieving the scale necessary for profitability.
As evidenced by the financial data, Udemy continues to rely heavily on stock-based compensation, with $16.4M recorded in 2026Q1, which warrants investigation as it masks the true economic cost of operations and complicates the path toward meaningful, non-dilutive earnings per share for long-term shareholders.
The persistent use of equity-based incentives suggests that GAAP net income may continue to be depressed by non-cash charges. Analysts should carefully evaluate whether the current level of dilution is justified by the company's ability to drive long-term value through its enterprise segment.
Based on the provided figures, the primary risk to the income statement is the potential for margin compression if competitive bidding for top-tier instructors forces a revision of revenue-share agreements, a scenario that would challenge the current narrative of structural margin expansion and long-term profitability.
Short-sellers may focus on the company's inability to reignite revenue growth, viewing the recent margin gains as a temporary byproduct of cost-cutting rather than a sustainable competitive advantage. The reliance on a decentralized content engine may prove fragile if the platform fails to retain the high-quality instructors who drive enterprise demand.
Quick answers to the most common questions about buying UDMY stock.
For fiscal year 2025, Udemy, Inc. (UDMY) reported total revenue of $789.8M. This represents a 185.8% increase compared to $276.3M in 2019.
Udemy, Inc. (UDMY) is profitable, generating $3.8M in net income for the fiscal year ending 2025 with a net profit margin of 0.5%.
Udemy, Inc. (UDMY) reported an operating income of $-2.6M, resulting in an operating profit margin of -0.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Udemy, Inc. (UDMY) generated $518.4M in gross profit for the year, representing a gross profit margin of 65.6%. This demonstrates the company's core pricing power and production efficiency.