Udemy Q3 revenue beats expectations as subscriptions rise

Udemy

29/10/2025 20:35

Overview

Udemy Q3 revenue beats analyst expectations, adjusted EBITDA also exceeds estimates, per LSEG data

Subscription revenue grows 8% yr/yr, reflecting strategic shift to subscription-first approach

Ended Q3 with 294,000 paid consumer subscribers, surpassing full-year target early

Outlook

Company expects Q4 revenue between $191 mln and $194 mln

Udemy projects full-year revenue of $787 mln to $790 mln

Company forecasts Q4 adjusted EBITDA of $18 mln to $20 mln

Result Drivers

SUBSCRIPTION REVENUE GROWTH - Subscription revenue increased 8% yr/yr, driven by strategic shift to subscription-first approach

CONSUMER SUBSCRIPTION TARGET - Surpassed 2025 consumer subscription target, ending Q3 with 294,000 paid subscribers

STRATEGIC PIVOT - Strategic shift towards higher-value recurring revenue streams impacts near-term Consumer segment growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$195.70 mln
$193.10 mln (8 Analysts)
Q3 Net Income
$1.60 mln
Q3 Adjusted EBITDA
Beat
$24.30 mln
$19.50 mln (6 Analysts)
Q3 Gross Margin
66%
Q3 Adjusted EBITDA Margin
12%
Q3 Gross Profit
$128.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for Udemy Inc is $10.28, about 33.4% above its October 28 closing price of $6.85

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBwbqCv3Xa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)