UDMY earnings analysis
What we found in UDMY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Udemy reported a 4% decrease in revenue, with total revenue at $191.4 million for Q1 2026, down from $200.3 million year-over-year. The Enterprise segment saw a growth of 4%, contributing $132.9 million, while the Consumer segment declined by 19% to $58.5 million. The net loss deepened to $12.6 million from $1.8 million in the prior year, largely due to increased operating expenses, despite improved gross margin.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Total revenue decreased by 4%, from $200.3 million to $191.4 million.
- Enterprise Growth
- Enterprise revenue grew by 4% to $132.9 million, comprising 69% of total revenue.
- Consumer Segment Drop
- Consumer revenue decreased by 19% to $58.5 million, impacted by a decline in transactional purchases.
- Improved Gross Margin
- Gross margin improved to 68%, up from 65% year-over-year.
- Increased Free Cash Flow
- Free cash flow rose to $10.8 million from $7.1 million in the prior year.
- Substantial Cash Reserves
- As of March 31, 2026, cash and cash equivalents were $253.6 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising Net Loss
- Net loss increased to $12.6 million from $1.8 million year-over-year due to higher operating expenses.
- Consumer Revenue Decline
- Consumer segment revenue decreased by $14 million (19%) due to fewer transactional purchases.
- Integration Risks with Coursera Merger
- Pending merger with Coursera may face delays or impact business relations, creating operational uncertainties.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.06
- Gross margin
- 68%
- Operating margin
- -6.6%
- Segment
- Enterprise: $132.9M
- Segment
- Consumer: $58.5M
What they said about what is next.
Management expects continued growth in Enterprise segment, but uncertainty remains regarding Consumer revenue.
The filing reads worse than the one before it.
What came before.
- 10-K · February 19, 2026
- Udemy is repositioning as an AI-first, subscription-first learning platform: 72% of 2025 revenue came from subscriptions (up from 66% in 2024) and Udemy Business accounted for 66% of 2025 revenue. The company reports a…
- 10-Q · May 1, 2025
- Udemy reported revenue of $200.3M for the quarter ended March 31, 2025, up from $196.8M a year ago, with gross profit of $129.4M and a materially narrower operating loss of $4.5M. Cash flow from operations was positive…
- 10-K · February 19, 2025
- Udemy positions itself as a global learning marketplace + enterprise SaaS provider focused on skills-based hiring and generative AI. The company highlights scale (nearly 77 million learners, >250,000 courses) and a…
- 10-Q · August 1, 2024
- Udemy reported Q2 revenue of $194,360,000, up versus Q2 2023 and generating improved gross margins, but the company remained GAAP unprofitable with a $31.8M net loss and negative operating margin. Operating cash flow…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing UDMY makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever