📊 UDMY Key Takeaways
Is Udemy, Inc. (UDMY) a Good Investment?
Udemy maintains a fortress balance sheet with zero debt and strong FCF generation ($81.9M), but faces headwinds from near-zero revenue growth (0.4% YoY) and razor-thin net margins (0.5%). While the company has improved profitability sequentially (net income +104.5% YoY), it remains operationally unprofitable with only 1.8% ROE, suggesting capital deployment remains challenging.
Why Buy Udemy, Inc. Stock? UDMY Key Strengths
- Debt-free balance sheet with $231.5M cash reserves (37% of total assets) providing significant financial flexibility and low financial risk
- Strong gross margin of 65.6% demonstrates pricing power and healthy unit economics on course delivery
- Positive free cash flow of $81.9M (10.4% FCF margin) shows underlying business generates cash despite paper profitability challenges
UDMY Stock Risks: Udemy, Inc. Investment Risks
- Stagnant revenue growth at 0.4% YoY indicates limited market expansion, competitive pressures, or market saturation in core segments
- Negative operating margin (-0.5%) reveals operating expenses exceed gross profit despite healthy margins, pointing to structural cost issues
- Critically low profitability returns (1.8% ROE, 0.6% ROA) indicate inefficient capital utilization and minimal shareholder value creation on $210.5M equity base
Key Metrics to Watch
- Revenue growth acceleration (must demonstrate >5% YoY to justify capital base)
- Operating margin trajectory (path to positive and sustainable 8-10% operating margins)
- Return on Equity trend (target 8%+ to demonstrate efficient capital deployment)
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $153.1M | -$25.7M | $-0.17 |
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 rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are UDMY's key strengths?
Claude: Debt-free balance sheet with $231.5M cash reserves (37% of total assets) providing significant financial flexibility and low financial risk. Strong gross margin of 65.6% demonstrates pricing power and healthy unit economics on course delivery.
What are the risks of investing in UDMY?
Claude: Stagnant revenue growth at 0.4% YoY indicates limited market expansion, competitive pressures, or market saturation in core segments. Negative operating margin (-0.5%) reveals operating expenses exceed gross profit despite healthy margins, pointing to structural cost issues.
What is UDMY's revenue and growth?
Udemy, Inc. reported revenue of $789.8M.
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 $0.03.
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 rating reflects both perspectives for balanced insights.
Is UDMY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Udemy, Inc. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is UDMY stock overvalued or undervalued?
Valuation metrics for UDMY: ROE of 1.8% (sector avg: 16%), net margin of 0.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy UDMY stock in 2026?
Our dual AI analysis gives Udemy, Inc. a combined HOLD rating 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 $87.7M, with capital expenditures of $5.8M. FCF margin is 10.4%.
How does UDMY compare to other Services stocks?
Vs Services sector averages: Net margin 0.5% (avg: 10%), ROE 1.8% (avg: 16%), current ratio 1.31 (avg: 1.5).