Udemy Q4 2025: First Profitable Year Ends in a Loss

In 2025, Udemy hit its first profitable year, but its Q4 2025 ended in a loss. A few days after announcing the numbers, the stock reached an all-time low.

The company didn’t have an earnings call, nor did it release an investor presentation because of its pending merger with Coursera.

The earnings call would have been helpful to break down the numbers, since the numbers look bleak from an investor’s perspective. The overall revenue has fallen for the first time since the company went public, and the Consumer Segment, despite adding more subscribers, is declining.

Here’s a brief report on Udemy’s Q4 2025.

Falling Revenues & Segments

Q4 revenue came in at $194 million, and for the first time since its IPO listing, it declined. It was down 3% year-over-year (YoY), which is the higher end of the company’s forecast. The growth had been declining, and eventually, the revenue did too.

In its first profitable year, the company had a net loss of $2.3 million. This is still growth from the ~$10 million loss in Q4 2024. The loss could be the result of the Consumer Segment revenue dip and a slow-growing Enterprise Segment.

The Enterprise Segment: Lower Customers, Better Performance

Enterprise (Udemy Business) revenue was ~$134 million, up 3% YoY. The Enterprise customer count was 17,029. A year ago, it was 17,096. Despite the lower number, the revenue was up 3%.

The reason for this was that the Annual Recurring Revenue (ARR) was $540M. It was $527M in Q3 2025.

ARR is the total value of all active enterprise contracts at the end of a quarter, multiplied out to a full year. If a company is paying Udemy $10,000 a month, that’s $120,000 in ARR. 

The Net Dollar Retention Rate (NDRR) was 97% for large customers (with 1000+ employees) and 93% overall. This means that companies were paying Udemy less than a year ago. The NDRR was falling too, but in Q4 it managed to be stable.

In the Enterprise Segment, the subscription revenue was $133.5 million. This was just a million more than last quarter. The growth is slowing quickly. In Q3 2025, it grew 5.4% YoY, but in Q4, only 3.6%.

Consumer Segment: More Subscribers, Less Revenue

Consumer Segment revenue was ~$60 million, down 14% YoY. It’s shrinking because Udemy is pivoting away from one-time course purchases toward subscriptions (which makes it keep a higher share of the sale). Instructors would get 37% for one-time course sales and 25% for subscriptions, which has now come to 15%.

The Consumer subscription revenue was $13.3 million, up from $8.7 million in Q4 2025, and the number of paid subscribers almost doubled. It was 170,000 last year, and it grew to 343,000 in Q4 2025.

Aligning with Udemy’s efforts, the transactional revenue (which includes one-time course purchases) has gone down to $46.5 million, down from $61 million last year.

Udemy is focusing on keeping more revenue to themselves. Still, the company’s take-home amount from the Consumer Segment is dropping. It fell nearly $5 million in Q3 2025 and another $2.5 million in Q4.

Why is Udemy not making enough? The revenue drop comes from the decrease in average user revenue. Dhawal calculated that to add more subscribers, Udemy slashed prices aggressively. The average revenue per user dropped from $16 to $13 per month, and one time, the subscription cost was $10.50 a month.

He predicted that if Udemy kept adding 79,000 subscribers per quarter as they did in Q3 2025, they could recover the lost ground. But Udemy only added 50,000 subscribers in Q4 2025.

The Merger Future

The year was profitable but ended with a loss quarter. Still, the company has ~$360 million in cash, which is less than half of what Coursera, its merger partner, has.

The deal with Coursera will close in the second half of 2026, but Udemy hasn’t shared details about the integration, revenue share, etc, with the public or its instructors. The company only mentioned that the Udemy brand will stay. A recent video of Coursera CEO Greg Hart in the community forum only highlighted higher-level principles rather than these specifics.

Overall, according to CEO Hugo Sarrazin, the merger aims to “accelerate our AI-powered product roadmap, expand our global reach through enhanced go-to-market capabilities, and unlock substantial revenue and operating synergies that will strengthen our long-term financial profile.”

Currently, Udemy’s financial profile shows overall revenue declining, Consumer revenue decreasing, and Enterprise growth slowing.

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