# EDGAR Filing Document

**Accession Number:** 0001607939
**File Stem:** 0001607939-25-000138
**Filing Date:** 2025-10
**Character Count:** 41317
**Document Hash:** bc6e02a8824ae3d08bedbb6e97b64ef6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001607939-25-000138.hdr.sgml**: 20251029

**ACCESSION NUMBER**: 0001607939-25-000138

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20251029

**ITEM INFORMATION**: Results of Operations and Financial Condition

**FILED AS OF DATE**: 20251029

**DATE AS OF CHANGE**: 20251029

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Udemy, Inc.
- **CENTRAL INDEX KEY:** 0001607939
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EDUCATIONAL SERVICES [8200]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 271779864
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40956
- **FILM NUMBER:** 251430014

**BUSINESS ADDRESS:**
- **STREET 1:** 600 HARRISON STREET
- **STREET 2:** 3RD FLOOR
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94107
- **BUSINESS PHONE:** (510) 378-4789

**MAIL ADDRESS:**
- **STREET 1:** 600 HARRISON STREET
- **STREET 2:** 3RD FLOOR
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94107

?xml version='1.0' encoding='ASCII'? udmy-20251029

**UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): October 29, 2025**

**Udemy, Inc.**

**(Exact name of Registrant as Specified in Its Charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-40956** | **27-1779864** |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| **600 Harrison Street, 3rd Floor** | | |
| **San Francisco, California** | | **94107** |
| **(Address of Principal Executive Offices)** | | **(Zip Code)** |

---

**(415) 813-1710**

(Registrant's Telephone Number, Including Area Code)

**Not Applicable**

**(Former Name or Former Address, if Changed Since Last Report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.00001 par value per share | UDMY | The Nasdaq Stock Market LLC <br>(The Nasdaq Global Select Market) |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 Results of Operations and Financial Condition**

On October 29, 2025, Udemy, Inc. (the "Company") issued a press release announcing its financial results for the three- and nine-month periods ended September 30, 2025. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.

*The information in Item 2.02 of this Current Report on Form 8-K, including the accompanying Exhibit 99.1, is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of Section 18. The information in Item 2.02 of this Current Report on Form 8-K, including the accompanying Exhibit 99.1, shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing.*

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**Item 9.01 Financial Statements and Exhibits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Exhibits</u>

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| 99.1 | <u>[Press release dated October 29, 2025](q32025pressrelease.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | | **UDEMY, INC.** |
| Date: | October 29, 2025 | By: | /s/ Sarah Blanchard |
|  |  |  | Sarah Blanchard<br>Chief Financial Officer |

---

## Exhibit 99.1

**Udemy Reports Third Quarter 2025 Results**

*Consolidated subscription revenue increased 8% year-over-year*

*Ended quarter with 294,000 paid consumer subscribers, surpassing full year target early*

**SAN FRANCISCO –– Oct. 29, 2025** –– Udemy (Nasdaq: UDMY), a leading AI-powered skills acceleration platform, today reported results for the three-month period ended September 30, 2025. Udemy has provided a supplemental deck with earnings highlights, which is available for download on the "Quarterly Results" section of the Investor Relations website.

**Financial Results and Key Operating Data Summary**

*(in millions, except enterprise customers, subscribers, percentages, and basis points)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Change** | **Change** |
| | **2025** | **2025** | **2024** | **2024** | **YoY** | **YoY** |
| Revenue | $195.7 |  | $195.4 |  |  | % |
| &nbsp;&nbsp;&nbsp;Subscription Revenue | 143.9 |  | 133.7 |  | 8 | % |
| Gross Profit | $128.9 |  | $123.1 |  | 5 | % |
| &nbsp;&nbsp;&nbsp;Gross Margin | 66 | % | 63 | % | 300 | bps |
| Net Income (Loss) | $1.6 |  | $(25.3) |  | 106 | % |
| Adjusted EBITDA | $24.3 |  | $11.6 |  | 110 | % |
| &nbsp;&nbsp;&nbsp;Adjusted EBITDA Margin | 12 | % | 6 | % | 600 | bps |
| ***Enterprise Segment*** |  |  |  |  |  |  |
| Total Customers | 17111 |  | 16848 |  | 2 | % |
| UB Annual Recurring Revenue | $527.2 |  | $504.6 |  | 4 | % |
| Segment Revenue | $132.8 |  | $126.1 |  | 5 | % |
| &nbsp;&nbsp;&nbsp;Subscription Revenue | $132.3 |  | $125.5 |  | 5 | % |
| Segment Adjusted Gross Margin | 75 | % | 74 | % | 100 | bps |
| ***Consumer Segment*** |  |  |  |  |  |  |
| Paid Subscribers | 294000 |  | 156000 |  | 88 | % |
| Monthly Average Buyers | 1.20 |  | 1.31 |  | (9) | % |
| Segment Revenue | $62.9 |  | $69.3 |  | (9) | % |
| &nbsp;&nbsp;&nbsp;Subscription Revenue | $11.7 |  | $8.2 |  | 43 | % |
| Segment Adjusted Gross Margin | 57 | % | 54 | % | 300 | bps |

---

"Our Q3 results demonstrate strong momentum as Udemy evolves towards becoming the world's leading AI-powered skills acceleration platform," said Hugo Sarrazin, President and CEO of Udemy. "Given our excellent progress in the strategic shift toward higher-value recurring revenue streams, we are accelerating our consumer subscription-first approach. This strategic pivot impacts near-term Consumer segment growth but significantly shortens our path to a more durable, predictable business model with compelling unit economics."

"As hundreds of millions of workers globally will need to develop new skills due to AI and automation over the next few years, organizations and individuals that move quickly to upskill and reskill will gain significant competitive advantages. We are combining the power of AI with human expertise to strengthen Udemy's platform solution and expand our market opportunity. Udemy is building a comprehensive learning platform that takes people from curiosity to career advancement with structure, support, and validation that AI alone cannot provide. Ultimately, Udemy bridges the critical gap between where skills are today and where they need to be tomorrow," concluded Sarrazin.

------

**Additional Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Surpassed the 2025 consumer subscription target ahead of plan, ending the quarter with 294,000 paid consumer subscribers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acquired new, or expanded existing, relationships with Udemy Business customers globally, including AMD (U.S.), BanRegio (Mexico), Bayer Corporation (U.S.), Capitec Bank Holdings (South Africa), Daifuku Oceania (New Zealand), Flutter Entertainment (Ireland), Galicia Seguros (Argentina), GB Group plc (UK), Hitachi Vantara (U.S.), Mazda Toyota Manufacturing (U.S.), McLane Company, Inc. (U.S.), OpenBet Limited (UK), Q2 Holdings, Inc. (U.S.), RIA Advisory (U.S.), and Tawuniya (Saudi Arabia).

&nbsp;&nbsp;&nbsp;&nbsp;• Udemy Business Net Dollar Retention Rate (NDRR) was 93%, and Udemy Business Large Customer Net Dollar Retention Rate was 97%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net cash provided by operating activities was $15.7 million, while free cash flow for the quarter was positive $12.1 million. Year-to-date net cash provided by operating activities was $72.1 million, while free cash flow was positive $58.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;• Repurchased approximately 4.1 million Udemy shares as part of Udemy's $50 million stock repurchase program.

**Financial Outlook**<sup>1</sup>

---

| | | |
|:---|:---|:---|
| | **Three months ending December 31, 2025** | **Year ending December 31, 2025** |
| Revenue<sup>2</sup> | $191 to $194 million | $787 to $790 million |
| Adjusted EBITDA<sup>3</sup> | $18 to $20 million | $92 to $94 million |
| Weighted Average Share Count, Basic<sup>4</sup> | 148 million | 148 million |
| Weighted Average Share Count, Diluted<sup>4</sup> | 150 million | 150 million |

---

*1. Udemy provides guidance based on current market conditions and expectations. Actual results may differ materially. Please refer to the comments below regarding forward-looking statements.*

*2. Revenue guidance assumes FX rates will remain unchanged from the end of the third quarter of 2025.*

*3. Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this earnings release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence.* 

*4. Udemy's outlook for weighted average share count, basic and diluted, excludes any impact from potential future repurchase activities under our share repurchase program.*

**Webcast Information** 

Udemy will host a conference call and webcast at 2:00 p.m. PT / 5:00 p.m. ET today, Wednesday, October 29 to discuss its third quarter 2025 financial results and outlook. A link to the live webcast and recorded replay of the conference call will be available on the "Quarterly Results" section of Udemy's Investor Relations website at https://investors.udemy.com/. The live call may also be accessed via telephone at (833) 630-1963 domestically and (412) 317-5702 internationally. The archived replay of the webcast will be available for approximately one year.

**Non-GAAP Financial Measures** 

To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures as defined below. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide useful information to investors and others in understanding and evaluating our operating results because our management team and board of directors use these non-GAAP financial measures for the purposes of assessing operating results and business planning. These non-GAAP financial measures also provide useful measures for period-to-period comparisons of our business by removing the effect of certain non-cash expenses and certain variable charges.

Udemy's non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Udemy's financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.

*Adjusted EBITDA and Adjusted EBITDA Margin*

We calculate Adjusted EBITDA as net income (loss) determined in accordance with GAAP, adjusted to exclude i) interest income; ii) interest expense; iii) provision for income taxes; iv) depreciation and amortization; v) other income (expense), net, including gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency; vi) stock-based compensation expense; and vii) restructuring charges. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue for the same period. We have not reconciled our expectations for Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss) and net income (loss) margin, respectively, the most directly comparable GAAP measures, because certain items are out of our control or cannot be reasonably predicted and a

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reconciliation for the guidance for Adjusted EBITDA and Adjusted EBITDA Margin is not available without unreasonable effort.

*Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share, Basic and Diluted*

We define non-GAAP net income (loss) as net income (loss), adjusted to exclude stock-based compensation expense, amortization of acquired intangible assets, and restructuring charges.

We define non-GAAP net income (loss) per share, basic, as non-GAAP net income (loss) divided by weighted-average shares used to compute net income (loss) per share, basic. We define non-GAAP net income (loss) per share, diluted, as non-GAAP net income (loss) divided by weighted-average shares used to compute net income (loss) per share, diluted, which adjusts for the potentially dilutive effects of our employee equity incentive plans.

*Non-GAAP Gross Profit and Non-GAAP Gross Margin*

We define non-GAAP gross profit as gross profit, adjusted to exclude stock-based compensation expense and the amortization of acquired intangible assets. We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period.

*Free Cash Flow*

We define free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized software costs, as we consider these capital expenditures necessary to support our ongoing operations.

**Key Business Metrics**

*Udemy Business customers*

We count the total number of Udemy Business ("UB") customers at the end of each period. To do so, we generally count unique customers using the concept of a domestic ultimate parent, defined as the highest business in the family tree that is in the same country as the contracted entity. In some cases, we deviate from this methodology, defining the contracted entity as a unique customer despite the existence of a domestic ultimate parent. This often occurs where the domestic ultimate parent is a financial owner, government entity, conglomerate, or acquisition target where we have contracted directly with the subsidiary. We define a UB customer as a customer who purchases Udemy via our direct sales force, reseller partnerships or through our self-service platform.

*Udemy Business Annual Recurring Revenue*

We disclose our UB ARR as a measure of our Enterprise revenue growth. ARR represents the annualized value of our UB customer contracts on the last day of a given period. Only revenue from closed UB contracts with active seats as of the last day of the period are included.

*Udemy Business Net Dollar Retention Rate and Udemy Business Large Customer Net Dollar Retention Rate*

We disclose UB Net Dollar Retention Rate, or UB NDRR, as a measure of revenue growth for all UB customers within our Enterprise segment, including UB Large Customers, which we define as companies with at least 1,000 employees. We calculate UB NDRR as the total ARR at the end of a trailing twelve-month period divided by the total ARR at the beginning of a trailing twelve-month period for the cohort of all UB customers active at the beginning of the trailing twelve-month period. We calculate UB Large Customer NDRR as the total UB Large Customer ARR at the end of a trailing twelve-month period divided by the total Large Customer ARR at the beginning of a trailing twelve-month period for the cohort of UB customers with at least 1,000 employees active at the beginning of the trailing twelve-month period. Total ARR and Large Customer ARR at the end of a trailing twelve-month period are calculated as ARR and Large Customer ARR, respectively, at the beginning of a trailing twelve-month period that are then adjusted for upsells, downsells, and churns for the same cohort of customers during that period. Large Customer ARR represents the annualized value of contracts for UB customers with active seats and having at least 1,000 employees on the last day of a given period.

*Paid Consumer subscribers*

We count the total number of paid Consumer subscribers at the end of each period. Paid Consumer subscribers are defined as users who had an active paid subscription to any Consumer subscription offering at the end of the last day of a given period. The count of paid subscribers does not include users who are currently on a free trial.

*Monthly average buyers*

A buyer is a consumer who purchases a course or subscription through our direct-to-consumer offering. We first determine the number of monthly buyers by taking the total buyers of single courses during a given month plus the total active, paid consumer subscribers at any point in that month, adjusting for duplicate buyers that may be present in both totals. We then calculate monthly average buyers by taking an average of the monthly buyer totals over a particular period, such as a fiscal year. Our monthly average buyer count is not intended as a measure of active engagement, as not all buyers are active at any given time or over any given period.

*Segment revenue and segment adjusted gross profit*

Segment revenue represents the revenue recognized from our two segments, Enterprise (or Udemy Business), and Consumer. Segment adjusted gross profit is defined as segment revenue less segment adjusted cost of revenue. Segment adjusted cost of revenue includes content costs, customer support services, hosting and platform costs, and payment processing fees that are allocable to each segment. Segment adjusted gross profit excludes amortization of

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capitalized software, depreciation, stock-based compensation, and amortization of intangible assets included in cost of revenue as our chief operating decision maker does not include the information in his measurement of the performance of the operating segments.

**Forward-Looking Statements**

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding Udemy's expectations relating to future operating results and financial position, including fourth quarter and full year 2025 as well as future periods; trends in consumer and learner activity related to our platform; anticipated future expenses and investments; our business strategy and plans, including the impact of our strategic and operational efficiency initiatives and our ability to successfully execute on these initiatives; market growth; and our market position and potential market opportunities. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "plan," "target," and similar expressions are intended to identify forward-looking statements.

Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance.

The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our publicly available filings with the Securities and Exchange Commission. All information provided in this release is as of the date hereof, and we undertake no duty to update this information unless required by law.

**About Udemy**

Udemy (Nasdaq: UDMY) is an AI-powered skills acceleration platform transforming how companies and individuals across the world build the capabilities needed to thrive in a rapidly evolving workplace. By combining on-demand, multi-language content with real-time innovation, Udemy delivers personalized experiences that empower organizations to scale workforce development and help individuals build the technical, business, and soft skills most relevant to their careers. Today, thousands of companies, including Ericsson, Samsung SDS America, On24, Tata Consultancy Services, The World Bank, and Volkswagen, rely on Udemy Business for its enterprise solutions to build agile, future-ready teams. Udemy is headquartered in San Francisco, with hubs across the United States, Australia, India, Ireland, Mexico and Türkiye.

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**Udemy, Inc.**

**Condensed Consolidated Statements of Operations**

(*in thousands, except share and per share amounts*)

*(unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue | $195680 | $195417 | $595859 | $586623 |
| Cost of revenue (1)(2) | 66812 | 72362 | 205499 | 221888 |
| Gross profit | 128868 | 123055 | 390360 | 364735 |
| Operating expenses (1)(2) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 81512 | 85997 | 243832 | 260288 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 25581 | 32976 | 76900 | 96607 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 21937 | 22266 | 68776 | 74299 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges |  | 11275 | 1578 | 11275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 129030 | 152514 | 391086 | 442469 |
| Loss from operations | (162) | (29459) | (726) | (77734) |
| Other income (expense), net |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 3784 | 4732 | 11022 | 15655 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (350) | 504 | (485) | 424 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (523) | (185) | (498) | (11077) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | 2911 | 5051 | 10039 | 5002 |
| Net income (loss) before taxes | 2749 | (24408) | 9313 | (72732) |
| Income tax provision | 1107 | 863 | 3177 | 2692 |
| Net income (loss) | $1642 | $(25271) | $6136 | $(75424) |
| Net income (loss) per share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.01 | $(0.17) | $0.04 | $(0.49) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.01 | $(0.17) | $0.04 | $(0.49) |
| Weighted-average shares used in computing net income (loss) per share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 149917275 | 149179826 | 149076960 | 152867160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 151996844 | 149179826 | 151308077 | 152867160 |

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(1)Includes stock-based compensation expense as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Cost of revenue | $1806 | $1807 | $5160 | $5277 |
| Sales and marketing | 6038 | 7573 | 17053 | 22578 |
| Research and development | 5025 | 7183 | 14653 | 21187 |
| General and administrative | 5425 | 6839 | 16815 | 21382 |
| Restructuring charges |  | (160) |  | (160) |
| Total stock-based compensation expense | $18294 | $23242 | $53681 | $70264 |

---

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(2) &nbsp;&nbsp;&nbsp;&nbsp;Includes amortization of intangible assets as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Cost of revenue | $— | $430 | $— | $1880 |
| Sales and marketing | 230 | 228 | 689 | 688 |
| Research and development | 187 |  | 375 |  |
| Total amortization of intangible assets | $417 | $658 | $1064 | $2568 |

---

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**Udemy, Inc.**

**Condensed Consolidated Balance Sheets**

(*in thousands*)

*(unaudited)*

---

| | | |
|:---|:---|:---|
| | **September 30,** | **December 31,** |
| | **2025** | **2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $235929 | $190592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash, current | 203 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 135292 | 163844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 76560 | 88216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 28587 | 22735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred contract costs, current | 47567 | 40841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 524138 | 506328 |
| Property and equipment, net | 6976 | 4534 |
| Capitalized software, net | 29122 | 31548 |
| Operating lease right-of-use assets | 10117 | 10950 |
| Restricted cash, non-current | 912 | 1115 |
| Deferred contract costs, non-current | 26636 | 32212 |
| Intangible assets, net | 2865 | 2428 |
| Goodwill | 12646 | 12646 |
| Other assets | 5492 | 3867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $618904 | $605628 |
| **Liabilities and stockholders' equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $6534 | $6311 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 26190 | 31156 |
| &nbsp;&nbsp;&nbsp;&nbsp;Content costs payable | 32275 | 37607 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and benefits | 22953 | 28793 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 5298 | 2502 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, current | 295926 | 291106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 389176 | 397475 |
| Operating lease liabilities, non-current | 6670 | 8315 |
| Deferred revenue, non-current | 1240 | 2438 |
| Other liabilities, non-current | 5 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 397091 | 408234 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 1020518 | 1002390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | 144 | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (798850) | (804986) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 221813 | 197394 |
| Total liabilities and stockholders' equity | $618904 | $605628 |

---

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**Udemy, Inc.**

**Condensed Consolidated Statements of Cash Flows**

(*in thousands*)

*(unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $1642 | $(25271) | $6136 | $(75424) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 6139 | 6340 | 19285 | 19515 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred contract costs | 16780 | 15221 | 48392 | 43863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 18294 | 23242 | 53681 | 70264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | 444 | 283 | 2835 | 1026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (accretion) amortization of marketable securities | (543) | (2201) | (2677) | (6651) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash operating lease expense | 854 | 909 | 2700 | 3641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on strategic investments |  |  |  | 10311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 423 | 817 | 1046 | 1319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 7437 | 632 | 8821 | 10364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (6392) | (4963) | (6805) | (5508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred contract costs | (14550) | (13892) | (49542) | (46626) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses and other liabilities | 909 | 3025 | (9287) | 5962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Content costs payable | (893) | 649 | (5332) | (3978) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 880 | (984) | (731) | (4523) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (15693) | (9907) | 3622 | 19906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 15731 | (6100) | 72144 | 43461 |
| **Cash flows from investing activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of marketable securities | (25298) | (93405) | (137803) | (239783) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities of marketable securities | 52350 | 91800 | 169050 | 265350 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (620) | (562) | (5281) | (1116) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized software costs | (3025) | (3536) | (8676) | (10247) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments related to asset acquisitions |  |  | (1500) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | 23407 | (5703) | 15790 | 14204 |
| **Cash flows from financing activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from exercise of stock options | 13 | 482 | 62 | 921 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from share purchases under employee stock purchase plan |  |  | 2560 | 4533 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes paid related to net share settlement of equity awards | (4921) | (5548) | (14838) | (25363) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock and excise taxes paid | (28337) | (51014) | (29212) | (141591) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of debt issuance costs | (219) |  | (1438) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (33464) | (56080) | (42866) | (161500) |
| Effect of foreign exchange rates on cash flows | (3) | 82 | 169 | 61 |
| **Net increase (decrease) in cash, cash equivalents and restricted cash** | 5671 | (67801) | 45237 | (103774) |
| **Cash, cash equivalents and restricted cash**—Beginning of period | 231373 | 273579 | 191807 | 309552 |
| **Cash, cash equivalents and restricted cash**—End of period | $237044 | $205778 | $237044 | $205778 |

---

------

**Udemy, Inc.**

**Supplemental Revenue and Segment Analysis**

(*in thousands, except percentages*)

*(unaudited)*

***Revenue by Segment and Product Offering***

The following table presents revenue disaggregated by product offering for each segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Enterprise: |  |  |  |  |
| &nbsp;&nbsp;Subscription | $132284 | $125522 | $387977 | $362658 |
| &nbsp;&nbsp;Other | 518 | 601 | 1870 | 1661 |
| Enterprise revenue | $132802 | $126123 | $389847 | $364319 |
| Consumer: |  |  |  |  |
| &nbsp;&nbsp;Subscription | $11661 | $8152 | $31242 | $22347 |
| &nbsp;&nbsp;Transactional and other | 51217 | 61142 | 174770 | 199957 |
| Consumer revenue | $62878 | $69294 | $206012 | $222304 |
| Total revenue | $195680 | $195417 | $595859 | $586623 |

---

***Segment revenue, adjusted gross profit, and adjusted gross margin***

The following table presents revenue, adjusted gross profit, and adjusted gross margin by segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Enterprise segment revenue | $132802 | $126123 | $389847 | $364319 |
| Enterprise segment adjusted gross profit | $100052 | $92793 | $293564 | $264675 |
| Enterprise segment adjusted gross margin | 75% | 74% | 75% | 73% |
| Consumer segment revenue | $62878 | $69294 | $206012 | $222304 |
| Consumer segment adjusted gross profit | $35742 | $37610 | $118195 | $122323 |
| Consumer segment adjusted gross margin | 57% | 54% | 57% | 55% |

---

------

**Udemy, Inc.**

**Reconciliation of GAAP to Non-GAAP Financial Measures**

(*in thousands, except percentages, share and per share amounts*)

*(unaudited)*

***Non-GAAP Gross Profit and Non-GAAP Gross Margin***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Gross profit | $128868 | $123055 | $390360 | $364735 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 1806 | 1807 | 5160 | 5277 |
| &nbsp;&nbsp;&nbsp;Intangible asset amortization |  | 430 |  | 1880 |
| Non-GAAP gross profit | $130674 | $125292 | $395520 | $371892 |
| Gross margin <sup>(1)</sup> | 66% | 63% | 66% | 62% |
| Non-GAAP gross margin <sup>(2)</sup> | 67% | 64% | 66% | 63% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We calculate gross margin as gross profit divided by revenue for the same period.

(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period.

***Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net income (loss) | $1642 | $(25271) | $6136 | $(75424) |
| Stock-based compensation expense | 18294 | 23402 | 53681 | 70424 |
| Intangible asset amortization | 417 | 658 | 1064 | 2568 |
| Restructuring charges |  | 11275 | 1578 | 11275 |
| Non-GAAP net income | $20353 | $10064 | $62459 | $8843 |
| Net income (loss) per share, basic | $0.01 | $(0.17) | $0.04 | $(0.49) |
| Net income (loss) per share, diluted | $0.01 | $(0.17) | $0.04 | $(0.49) |
| Weighted-average shares used in computing net income (loss) per share, basic | 149917275 | 149179826 | 149076960 | 152867160 |
| Weighted-average shares used in computing net income (loss) per share, diluted <sup>(3)</sup> | 151996844 | 149179826 | 151308077 | 152867160 |
| Non-GAAP net income per share, basic | $0.14 | $0.07 | $0.42 | $0.06 |
| Non-GAAP net income per share, diluted | $0.13 | $0.07 | $0.41 | $0.06 |
| Weighted-average shares used in computing non-GAAP net income per share, basic | 149917275 | 149179826 | 149076960 | 152867160 |
| Weighted-average shares used in computing non-GAAP net income per share, diluted <sup>(3)</sup> | 151996844 | 150633523 | 151308077 | 156429499 |

---

(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For periods presented with a net loss or non-GAAP net loss, potentially dilutive securities were excluded from the computation of net loss per share, diluted, and non-GAAP net loss per share, diluted, because the impact of including them would have been anti-dilutive.

------

***Adjusted EBITDA and Adjusted EBITDA Margin***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net income (loss) | $1642 | $(25271) | $6136 | $(75424) |
| Adjusted to exclude the following: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (3784) | (4732) | (11022) | (15655) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 350 | (504) | 485 | (424) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax provision | 1107 | 863 | 3177 | 2692 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 6139 | 6340 | 19285 | 19515 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 18294 | 23402 | 53681 | 70424 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | 523 | 185 | 498 | 11077 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges |  | 11275 | 1578 | 11275 |
| Adjusted EBITDA | $24271 | $11558 | $73818 | $23480 |
| Net income (loss) margin <sup>(4)</sup> | 1% | (13)% | 1% | (13)% |
| Adjusted EBITDA margin <sup>(5)</sup> | 12% | 6% | 12% | 4% |

---

(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We calculate net income (loss) margin as net income (loss) divided by revenue for the same period.

(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We calculate adjusted EBITDA margin as adjusted EBITDA divided by revenue for the same period.

***Free Cash Flow***

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net cash provided by operating activities | $15731 | $(6100) | $72144 | $43461 |
| Less: purchases of property and equipment | (620) | (562) | (5281) | (1116) |
| Less: capitalized software costs | (3025) | (3536) | (8676) | (10247) |
| Free cash flow | $12086 | $(10198) | $58187 | $32098 |

---

**Investor Contact**

Dennis Walsh

Vice President, Investor Relations

dennis.walsh@udemy.com

**Media Contact** 

Glenn Lehrman

Vice President, Corporate Communications

press@udemy.com

<br>