Udemy Reports Q2 2025 Revenue of $199.9 Million, Net Income Turnaround

Udemy, Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $199.9 million, a 3% increase from $194.4 million in the same period last year. The growth was primarily driven by a 7% rise in revenue from its Enterprise segment, which accounted for 65% of total revenue, while the Consumer segment saw a 4% decline. The company achieved a net income of $6.3 million, a significant turnaround from a net loss of $31.8 million in the prior year, reflecting improved operational efficiency and a favorable shift in revenue mix.

The company's gross profit for the quarter was $132.0 million, up 9% from $121.1 million a year earlier, resulting in a gross margin of 66%, compared to 62% in the previous year. This improvement was attributed to a reduction in instructor revenue share for subscription offerings and a continued shift towards higher-margin Enterprise revenue. Operating expenses decreased by 13% to $128.1 million, driven by lower sales and marketing costs, as well as reductions in research and development and general administrative expenses.

Udemy's operational metrics showed a slight increase in its customer base, with 17,107 Udemy Business customers as of June 30, 2025, up from 16,595 a year prior. The company also reported a 6% increase in its Udemy Business Annual Recurring Revenue (ARR) to $520.0 million, driven by new customer acquisitions and larger deal sizes, despite facing challenges with net dollar retention rates. The Udemy Business Net Dollar Retention Rate (NDRR) fell to 95%, down from 101% a year ago, indicating some churn among existing customers.

Strategically, Udemy has been focusing on enhancing its platform capabilities through investments in artificial intelligence and expanding its international footprint. The company entered into a $200 million revolving credit facility in May 2025, which remains undrawn as of the end of June. This financial flexibility is expected to support ongoing investments in growth initiatives, including content development and marketing efforts aimed at attracting new learners and enterprise customers.

Looking ahead, Udemy anticipates continued growth in its subscription offerings, which currently account for approximately 70% of its consolidated revenue. The company remains committed to improving its operational efficiency and expanding its market presence, particularly in international markets, while navigating the challenges of a competitive landscape and evolving customer needs.