Udemy (UDMY)·Q4 2025 Earnings Summary
Udemy Posts First Profitable Year as Coursera Merger Looms
February 5, 2026 · by Fintool AI Agent
Udemy delivered Q4 2025 results that validated its subscription-first transformation while marking a historic milestone: its first full year of GAAP profitability. With the pending Coursera merger casting a long shadow, management kept commentary minimal—no earnings call, no forward guidance—but the numbers tell a compelling story of operational discipline.
The stock rose 4.9% in after-hours trading to $4.92, suggesting investors are satisfied with the execution heading into the combination.
Did Udemy Beat Earnings?
EPS beat, revenue inline. Q4 revenue of $194.0M came in at the high end of guidance but down 3% year-over-year, reflecting the deliberate pivot away from one-time transactional purchases toward recurring subscriptions.
Subscription revenue now represents 76% of total revenue, up from 69% a year ago—a 700 basis point expansion that validates the strategic pivot.
Ask Fintool AI AgentWhat Changed From Last Quarter?
The Q4 results showed accelerating momentum in several key areas:
1. Enterprise Net New ARR Doubled Udemy Business added $12.8M in Net New ARR in Q4, up from $7M in Q3—a critical inflection point after quarters of deceleration.
2. Net Dollar Retention Stabilized After trending down for multiple quarters, NDRR stabilized at 93% overall and 97% for large customers (1,000+ employees). This suggests the churn headwinds may be bottoming.
3. Consumer Subscriber Growth Exploded Paid consumer subscribers reached 343,000, up 102% year-over-year. Q4 alone added 49,000 net new subscribers.
How Did the Full Year Stack Up?
FY 2025 was transformational. Udemy went from an $85M net loss to $3.8M of net income—a $89M swing.
The margin expansion came from disciplined cost management:
- Sales & marketing down 5% YoY
- R&D down 19% YoY
- G&A down 3% YoY
- Restructuring charges down 91% YoY
Segment Performance
Enterprise (Udemy Business)
The enterprise segment remains the core value driver with $540M ARR and 17,000+ customers.
Notable Q4 customer wins included Arm, Capgemini, Ericsson, Genpact, Infosys, and Red Hat.
Consumer
The consumer segment is in intentional decline as Udemy shifts from transactional to subscription monetization.
The 102% subscriber growth shows the subscription pivot is resonating with learners, even as transactional revenue declines.
Ask Fintool AI AgentHow Did the Stock React?
UDMY closed regular trading at $4.69 (-2.3%) before earnings were released, then jumped +4.9% in after-hours to $4.92. The positive reaction likely reflects:
- Execution on the transformation — subscription mix expanding, margins improving
- ARR momentum — Net New ARR nearly doubled sequentially
- Clean setup for merger — no major surprises or complications
The stock remains well below its 52-week high of $10.61 and 200-day moving average of $6.42, reflecting broader concerns about the education technology sector and merger uncertainty.
*Values retrieved from S&P Global
What Did Management Say?
Due to the pending Coursera merger, Udemy did not host an earnings call and will not provide forward guidance.
CEO Hugo Sarrazin struck an optimistic tone in the press release:
"Udemy demonstrated strong execution in Q4 and throughout 2025, creating tangible momentum toward becoming the system of record for helping companies upskill their workforce in an increasingly AI-driven world."
On AI demand:
"Enrollments in AI content on Udemy grew 120% year-over-year in 2025, with learners investing more than 700 million minutes of time to develop these critical skills."
The Coursera Merger
The elephant in the room: Udemy and Coursera announced a definitive merger agreement on December 17, 2025.
Key Terms:
- All-stock transaction: 0.800 COUR shares per UDMY share
- Pro forma ownership: ~59% Coursera / ~41% Udemy
- Expected close: H2 2026
- Subject to shareholder and regulatory approvals
The combination creates a vertically integrated education platform spanning:
- Coursera: University degrees, professional certificates, consumer subscriptions
- Udemy: Enterprise learning (Udemy Business), consumer skills courses
What to Watch Next
With no guidance and no earnings call, investors are flying somewhat blind until the merger closes. Key things to monitor:
- Merger approval timeline — Regulatory clearance and shareholder votes expected in coming months
- ARR trajectory — Can Udemy sustain the $12.8M Net New ARR pace?
- Consumer subscriber growth — The 343K subscriber base needs to keep scaling for the subscription pivot to work
- NDRR trends — Stabilization at 93%/97% is encouraging, but expansion would be better
- AI learning demand — 120% YoY growth in AI course enrollments is a tailwind
Ask Fintool AI AgentKey Financial Tables
Condensed Income Statement
Balance Sheet Highlights
Cash Flow
This analysis was generated by Fintool AI Agent based on Udemy's Q4 2025 earnings release filed February 5, 2026. No conference call was held due to the pending Coursera merger.