📊 UDMY Key Takeaways
Is Udemy, Inc. (UDMY) a Good Investment?
Udemy is unprofitable with virtually flat revenue growth (+0.4% YoY) and is destroying shareholder value with negative ROE (-5.9%) and ROA (-2.0%), despite showing improved losses year-over-year. While the company's fortress balance sheet ($252.6M cash, zero debt) and 67.5% gross margin indicate core business unit economics could support profitability, the current operational structure is unsustainable and requires significant cost restructuring or revenue acceleration. The positive free cash flow masks fundamental operational dysfunction that needs resolution before the investment thesis improves.
Udemy, Inc. Key Strengths (UDMY)
- Fortress balance sheet with $252.6M cash, zero long-term debt, and strong liquidity ratios (1.28x current ratio)
- Exceptional 67.5% gross margin demonstrates core business model has strong unit economics and pricing power
- Positive free cash flow of $14.9M despite operating losses indicates some cash generation efficiency and low capital intensity
UDMY Stock Risks: Udemy, Inc. Investment Risks
- Company is unprofitable with -$12.5M operating loss and -6.5% operating margin, destroying shareholder value at every profit level
- Essentially flat revenue growth at +0.4% YoY shows zero business momentum and inability to drive market expansion or customer acquisition
- Operating expenses are structurally misaligned with revenue base; company must achieve either significant revenue growth or substantial cost restructuring to achieve viability
- 24 insider Form 4 filings in last 90 days requires investigation into nature of transactions
Key Metrics to Watch
- Revenue growth trajectory (needs to accelerate above 5-10% to be meaningful in education sector)
- Operating margin improvement path and timeline to profitability
- Operating expense ratio as percentage of revenue (currently unsustainable; needs compression)
- Cash burn rate and runway sustainability if losses continue
Udemy, Inc. (UDMY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Udemy, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
UDMY Profit Margin, ROE & Profitability Analysis
UDMY vs Services Sector: How Udemy, Inc. Compares
How Udemy, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Udemy, Inc. Stock Overvalued? UDMY Valuation Analysis 2026
Based on fundamental analysis, Udemy, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Udemy, Inc. Balance Sheet: UDMY Debt, Cash & Liquidity
UDMY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Udemy, Inc.'s revenue has grown significantly by 53% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.71 indicates the company is currently unprofitable.
UDMY Revenue Growth, EPS Growth & YoY Performance
UDMY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $191.4M | -$1.8M | $-0.01 |
| Q3 2025 | $195.4M | $1.6M | $0.01 |
| Q2 2025 | $194.4M | $4.5M | $0.03 |
| Q1 2025 | $196.8M | -$1.8M | $-0.01 |
| Q3 2024 | $184.7M | -$16.8M | $-0.11 |
| Q2 2024 | $178.2M | -$25.7M | $-0.17 |
| Q1 2024 | $176.4M | -$18.3M | $-0.12 |
| Q3 2023 | $158.4M | -$16.8M | $-0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Udemy, Inc. Dividends, Buybacks & Capital Allocation
UDMY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Udemy, Inc. (CIK: 0001607939)
📋 Recent SEC Filings
❓ Frequently Asked Questions about UDMY
What is the AI rating for UDMY?
Udemy, Inc. (UDMY) has an AI grade of C with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are UDMY's key strengths?
Claude: Fortress balance sheet with $252.6M cash, zero long-term debt, and strong liquidity ratios (1.28x current ratio). Exceptional 67.5% gross margin demonstrates core business model has strong unit economics and pricing power.
What are the risks of investing in UDMY?
Claude: Company is unprofitable with -$12.5M operating loss and -6.5% operating margin, destroying shareholder value at every profit level. Essentially flat revenue growth at +0.4% YoY shows zero business momentum and inability to drive market expansion or customer acquisition.
What is UDMY's revenue and growth?
Udemy, Inc. reported revenue of $191.4M.
Does UDMY pay dividends?
Udemy, Inc. does not currently pay dividends.
Where can I find UDMY SEC filings?
Official SEC filings for Udemy, Inc. (CIK: 0001607939) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is UDMY's EPS?
Udemy, Inc. has a diluted EPS of $-0.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is UDMY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Udemy, Inc. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is UDMY stock overvalued or undervalued?
Valuation metrics for UDMY: ROE of -5.9% (sector avg: 16%), net margin of -6.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is UDMY's AI grade for 2026?
Our dual AI analysis gives Udemy, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is UDMY's free cash flow?
Udemy, Inc.'s operating cash flow is $15.4M, with capital expenditures of $548.0K. FCF margin is 7.8%.
How does UDMY compare to other Services stocks?
Vs Services sector averages: Net margin -6.6% (avg: 10%), ROE -5.9% (avg: 16%), current ratio 1.28 (avg: 1.5).