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Sep 30, 2025
Udemy Q3 2025 Earnings Report
Udemy reported its financial results for the third quarter ended September 30, 2025.
Key Takeaways
Udemy demonstrated strong momentum in Q3 2025, with revenue remaining stable year-over-year and a significant improvement in net income, turning a loss into a profit. The company surpassed its full-year target for paid consumer subscribers early, driven by a strategic shift towards higher-value recurring revenue streams, particularly in the Consumer segment.
Total revenue for Q3 2025 was $195.7 million, consistent with the prior year.
Net income significantly improved to $1.6 million, compared to a net loss of $25.3 million in Q3 2024.
Paid consumer subscribers reached 294,000, exceeding the full-year target ahead of schedule.
Udemy Business Net Dollar Retention Rate was 93%, and Free Cash Flow was positive $12.1 million for the quarter.
Revenue by Segment
Forward Guidance
Udemy provided guidance for the fourth quarter and full year ending December 31, 2025, anticipating continued revenue growth and improved Adjusted EBITDA.
Positive Outlook
- Q4 2025 revenue expected to be between $191 million and $194 million.
- Full year 2025 revenue expected to be between $787 million and $790 million.
- Q4 2025 Adjusted EBITDA expected to be between $18 million and $20 million.
- Full year 2025 Adjusted EBITDA expected to be between $92 million and $94 million.
- Weighted Average Share Count, Basic and Diluted, for Q4 and full year 2025 are projected to be stable at 148 million and 150 million respectively.
Challenges Ahead
- Revenue guidance assumes FX rates will remain unchanged from the end of Q3 2025, which could be a risk.
- Quantitative reconciliation of forecasted Adjusted EBITDA to GAAP net income (loss) is not provided due to calculation difficulties.
- Weighted average share count outlook excludes any impact from potential future share repurchase activities, which could affect per-share metrics.
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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