Udemy Reports Q1 Loss Amid Revenue Decline; Stockholders Approve Coursera Merger
UDMY sits 24% above its 52-week low of $4.02.
Summary
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.
Key Events · M&A and Partnerships · UDMY
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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.
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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.
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Adjusted EBITDA Decreases
Adjusted EBITDA decreased to $12.5 million in Q1 2026 from $21.1 million in the prior year period.
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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.
Analysis · UDMY · Trade & Services
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.
At the time of this filing, UDMY was trading at $4.97 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $675.7M. The 52-week trading range was $4.02 to $8.09. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.