Udemy Reports First Profitable Year, Advances Coursera Merger, and Completes Share Buyback
UDMY is trading near its 52-week low of $4.35 (11% above the low).
Summary
Udemy reported its first profitable year in 2025, with strong growth in Adjusted EBITDA and free cash flow, alongside significant progress on its all-stock merger with Coursera and the completion of a $50.2 million share repurchase program.
Key Events · M&A and Partnerships · UDMY
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Achieves First Profitable Year
Udemy reported a net income of $3.8 million for fiscal year 2025, a significant turnaround from a net loss of $(85.3) million in 2024. Adjusted EBITDA increased to $95.3 million (12% margin) from $43.0 million (5% margin) in the prior year, and free cash flow rose to $70.0 million from $38.3 million.
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Coursera Merger Progresses
The proposed all-stock merger with Coursera, announced on December 17, 2025, is advancing, with the U.S. Federal Trade Commission granting early termination of the Hart-Scott-Rodino waiting period on February 9, 2026. Udemy stockholders are expected to own approximately 41% of the combined company, with the merger anticipated to close by the second half of 2026.
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Completes Share Repurchase Program
The company completed a $50.2 million share repurchase program in December 2025, buying back 7,971,500 shares, demonstrating capital allocation towards shareholder value.
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Strategic Shift to Subscription Model
Subscription offerings accounted for 72% of total revenue in 2025, up from 66% in 2024, reflecting a successful transformation towards a more predictable, high-value business model. Enterprise segment revenue grew by 6% to $524.1 million.
Analysis · UDMY · Trade & Services
Udemy's annual report highlights a significant financial turnaround, achieving its first full year of positive net income in 2025, a substantial improvement from prior losses. This positive financial performance coincides with key progress on its proposed all-stock merger with Coursera, including the early termination of the HSR waiting period. The company also completed a notable share repurchase program, demonstrating a commitment to shareholder returns. While some operational metrics like Net Dollar Retention Rate saw a slight decline, the overall strategic direction towards a subscription-first model and AI-powered platform, coupled with improved profitability and merger advancement, presents a strong positive outlook.
At the time of this filing, UDMY was trading at $4.83 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $700.6M. The 52-week trading range was $4.35 to $10.26. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.