UDMY Udemy, Inc.

Overview and Growth

In fiscal 2025, Udemy, Inc. recorded $789.84M of revenue, net income of $3.81M, and an operating cash inflow of $87.66M. Revenue of $789.84M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 0.4% above fiscal 2024 revenue of $786.57M, marking a year-over-year increase. The company reported diluted EPS of $0.03, adding a shareholder-level measure to the absolute income figures considered below. Total assets stood at $617.70M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Revenue equaled 1.28x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $518.41M as gross profit before recognizing operating expenses and other items. Gross margin was 65.6%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced a $4.16M operating loss before non-operating and tax effects. An operating margin of -0.5% reflected costs exceeding revenue-level gross profit by 0.5% of sales. After all reported below-operating-line items, the company recorded net income of $3.81M for the fiscal year. Net margin was 0.5%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $8.34M of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 1.1%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $4.53M, the amount recognized between pretax income and the final net-income result. Relative to pretax income, the tax provision measured 54.3%, quantifying the portion of pre-tax earnings paid in income tax. The relationship between net income and period-end equity was 1.8%, indicating the profitability achieved on book capital. The net-income-to-assets relationship measured 0.6%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

Total assets were $617.70M, supported by $407.24M of liabilities and $210.46M of shareholder equity. Current assets were $524.21M against $400.07M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 1.31x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $231.49M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 57.9% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The liabilities-to-assets relationship was 65.9%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 37.5%, comparing reported cash and equivalents with the full positive asset balance. Compared with $605.63M in fiscal 2024, the current asset base moved 2.0% and finished higher. Reported equity changed 6.6% from $197.39M in fiscal 2024, placing the current capital base higher year over year.

Cash Flow and Earnings Quality

The company reported $87.66M of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 23.03x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $5.80M of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 6.6% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $81.86M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 10.4%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 13.3% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.