Udemy Reports Q1 Loss Amid Revenue Decline; Stockholders Approve Coursera Merger

summarizeSummary

Udemy reported a wider Q1 net loss and revenue decline, driven by its Consumer segment, but saw growth in its Enterprise segment and free cash flow. Stockholders also approved the proposed all-stock merger with Coursera, a critical step towards completion.

check_boxKey Events

• Q1 Revenue Decline

  Total revenue decreased by 4% to $191.4 million in Q1 2026 from $200.3 million in Q1 2025, primarily due to a 19% decline in the Consumer segment, partially offset by a 4% increase in the Enterprise segment.

• Net Loss Widens

  Net loss significantly increased to $12.6 million in Q1 2026, compared to a net loss of $1.8 million in Q1 2025.

• Adjusted EBITDA Decreases

  Adjusted EBITDA decreased to $12.5 million in Q1 2026 from $21.1 million in the prior year period.

• Free Cash Flow Improves

  Free cash flow increased to $10.8 million in Q1 2026, up from $7.1 million in Q1 2025, driven by increased cash from operating activities and lower capital expenditures.

auto_awesomeAnalysis

Udemy reported a wider net loss and a 4% revenue decline in Q1 2026 compared to the prior year, primarily due to a significant 19% drop in its Consumer segment revenue. However, the Enterprise segment saw a 4% revenue increase, and free cash flow improved. A key strategic development is the approval of the all-stock merger with Coursera by both companies' stockholders on April 9, 2026, moving the transaction closer to its expected close in the second half of 2026. This merger is a significant strategic pivot for the company, and its progression is a major factor for investors.