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Jun 30, 2025
Udemy Q2 2025 Earnings Report
Udemy delivered GAAP profitability and made meaningful progress on its strategy to drive accelerated growth in Q2 2025, the first quarter under its new CEO.
Key Takeaways
Udemy reported a strong second quarter in 2025, achieving GAAP profitability with a net income of $6.3 million, a significant improvement from a loss in the prior year. Total revenue increased by 3% year-over-year to $199.9 million, driven by a 7% growth in the Enterprise segment. The company also reported positive free cash flow of $39.0 million and surpassed 200,000 paid consumer subscribers.
Achieved GAAP profitability with a net income of $6.3 million, marking an inflection point in the company's evolution.
Total revenue grew 3% year-over-year to $199.9 million, with the Enterprise segment showing robust growth of 7%.
Generated positive free cash flow of $39.0 million for the quarter, demonstrating strong operational discipline.
Surpassed a key milestone of over 200,000 paid subscribers for the consumer subscription, Personal Plan.
Revenue by Segment
Forward Guidance
Udemy provided financial outlook for the third quarter and full year ending December 31, 2025, anticipating continued revenue growth and improved Adjusted EBITDA.
Positive Outlook
- Projected revenue for Q3 2025 is between $190 million and $195 million.
- Full year 2025 revenue is expected to be between $784 million and $794 million.
- Adjusted EBITDA for Q3 2025 is forecasted to be between $18 million and $20 million.
- Full year 2025 Adjusted EBITDA is expected to range from $84 million to $89 million.
- Revenue guidance assumes a positive 30 basis point impact on Q3 year-over-year revenue growth from FX rates.
Challenges Ahead
- Full year 2025 revenue growth is expected to have a negative 60 basis point impact from changes in FX rates.
- The company did not provide a quantitative reconciliation of forecasted Adjusted EBITDA to GAAP net income (loss) due to the inability to calculate certain reconciling items with confidence.
- Guidance is based on current market conditions and expectations, and actual results may differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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