Udemy returns to profitability in Q2 2025 as enterprise growth offsets consumer decline

The online learning platform reports a three percent revenue increase and positive net income, marking its first profitable quarter under new CEO Hugo Sarrazin.

Udemy has reported a return to profitability in the second quarter of 2025, its first quarterly net income since going public in 2021.

The performance comes in the first full quarter under the leadership of newly appointed CEO Hugo Sarrazin, who took on the role four months ago. The company attributed the improvement to strong performance in its enterprise segment and ongoing efforts to streamline operations.

Udemy delivered net income of $6.3 million on revenue of $199.9 million, reflecting a three percent year-over-year increase. Adjusted EBITDA reached $28.4 million, or a 14 percent margin, compared to $5.5 million and a three percent margin in the same period last year. Gross margin rose to 66 percent, up from 62 percent.

Foreign exchange movements reduced top-line growth by approximately one percentage point.

Enterprise growth and consumer softness

The enterprise division, Udemy Business, accounted for $129.3 million in revenue, up seven percent year-over-year. Annual recurring revenue for the segment reached $520 million, a six percent increase. Gross margin in the segment rose to 75 percent, with total enterprise customers growing three percent to 17,107.

Performance in the consumer segment declined, with revenue down four percent to $70.6 million and monthly average buyers falling three percent year-over-year. Subscriptions accounted for 15 percent of segment revenue, up two percentage points from the previous quarter. Adjusted gross profit for the segment was $42.1 million, with a margin of 60 percent.

CEO outlines strategic direction

Sarrazin says, “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.”

He adds, “Since I joined the company four months ago, we have enhanced our go-to-market execution, expanded our leadership team, and sharpened our focus on high-growth opportunities. All of our efforts are focused on capitalizing on the global imperative for continuous skills development as organizations urgently navigate AI transformations.

“We are successfully building subscription momentum, strengthening operational discipline, and accelerating product innovation. This progress makes me increasingly confident that we have established the foundation for Udemy to be a leader in the AI-powered skills acceleration of the global workforce while delivering sustainable, profitable growth.”

AI-driven product rollouts and future guidance

During the quarter, Udemy introduced new AI training packages aimed at enterprise customers, including the AI Growth Collection and AI Readiness Collection. It also launched Role Play, a simulation tool for soft skills training, and integrated Lummi, a creative technology company offering AI-generated content creation tools for instructors.

The company signed or expanded agreements with clients including AON, Samsung SDS America, Commvault Systems, Kaizen Gaming, and Saxo Bank. It also crossed the milestone of 200,000 paid subscribers to its Personal Plan consumer offering.

Looking ahead, Udemy expects third-quarter revenue in the range of $190 million to $195 million and adjusted EBITDA between $18 million and $20 million. Full-year revenue is projected between $784 million and $794 million, with adjusted EBITDA expected to total between $84 million and $89 million.

The company ended the quarter with $393.1 million in cash, cash equivalents, restricted cash, and marketable securities. It also secured a $200 million senior secured revolving credit facility during the quarter.