Udemy 2025 Q2 Earnings Strong Performance as Net Income Surges 120%

Udemy reported its fiscal 2025 Q2 earnings on July 31st, 2025. The company's performance exceeded analyst expectations, with revenue reaching $199.9 million, surpassing the anticipated $196.82 million. Udemy's guidance remains optimistic, focusing on capitalizing on AI-driven skills development. The company anticipates continued growth, emphasizing operational discipline and subscription momentum. With these strategic initiatives, Udemy aims to bolster its market position and achieve sustainable growth.

Revenue
Udemy reported a total revenue of $199.88 million for 2025 Q2, marking a 2.8% increase from the prior year's $194.36 million. The Enterprise segment contributed significantly, generating $129.3 million, while the Consumer segment added $70.58 million. This performance underscores Udemy's growth trajectory in both segments.

Earnings/Net Income
Udemy returned to profitability with an EPS of $0.04 in 2025 Q2, reversing from a loss of $0.21 per share in 2024 Q2, marking a 119.0% positive change. The company achieved a remarkable turnaround with net income of $6.26 million in 2025 Q2, representing a 119.7% positive swing from the net loss of $-31.81 million in 2024 Q2. Despite past fiscal challenges, the EPS indicates a solid recovery and successful strategic implementation.

Post-Earnings Price Action Review
The strategy of purchasing Udemy shares after an earnings beat and holding them for 30 days resulted in a significant loss, yielding a return of -67.56%. This performance underperformed the benchmark by 101.47%, indicating a high-risk strategy with a maximum drawdown of 0% and a Sharpe ratio of -0.44. These metrics suggest that despite the earnings beat, holding the stock post-earnings proved unfavorable, highlighting volatility and risk associated with this approach.

CEO Commentary
"Our second quarter results mark an inflection point in Udemy's evolution, as we delivered both GAAP profitability and made meaningful progress on our strategy to drive accelerated growth," said Hugo Sarrazin, President and CEO of Udemy. He highlighted enhancements in go-to-market execution, the expansion of the leadership team, and a sharpened focus on high-growth opportunities. Sarrazin emphasized the urgent global need for continuous skills development, particularly in navigating AI transformations. He expressed confidence that these efforts have laid a strong foundation for Udemy to lead in AI-powered skills acceleration while achieving sustainable, profitable growth.

Guidance
Udemy anticipates continued growth driven by its strategic initiatives, focusing on capitalizing on the demand for skills development amid AI transformations. While specific revenue targets are not disclosed, the leadership asserts a commitment to enhancing subscription momentum and operational discipline. The outlook is optimistic as the company aims to strengthen its position in the market and deliver sustainable growth, leveraging new AI-focused product offerings and expanding customer relationships globally.

Additional News
In recent weeks, Udemy has made significant strides in enhancing its AI-powered learning capabilities. On July 24, 2025, Udemy launched the Vibe Coding Series, a set of expert-led, AI-focused courses designed for practical skill application. Additionally, on July 21, 2025, the company introduced the Model Context Protocol Server to integrate personalized learning into existing workplace AI tools. Furthermore, on July 8, 2025, Udemy's data revealed that individual AI adoption in Japan is outpacing organizational support, highlighting the growing demand for AI skills development. These advancements demonstrate Udemy's commitment to expanding its AI-driven learning solutions and addressing global workforce upskilling needs.