Udemy (UDMY) Stock Forecast & Price Target

Udemy Inc. demonstrated a robust performance in its Enterprise segment, with revenue growth of 5.0% year-over-year, amounting to $132.8 million and representing 67.9% of total revenue, spurred by strong customer adoption and large deal activity. The Consumer segment also showed positive momentum, as gross margins expanded by 300 basis points year-over-year to 57.0% in 3Q25, bolstered by an 8% year-over-year increase in its consumer subscription business, which now constitutes 19% of the segment's revenue. Overall, the company reported slight revenue growth of 0.2% year-over-year, along with adjusted EBITDA of $24.3 million, exceeding prior estimates, driven by revenue gains and operational efficiency.

Udemy Inc has reported a year-over-year decline of 9.2% in Consumer revenues for the third quarter, which has raised concerns about the company’s ability to stabilize this segment, despite posting results above expectations. Additionally, the company's fourth-quarter revenue guidance shows a forecasted decline of 3-5% year-over-year, signaling weakened growth potential, particularly within the Consumer segment, which is anticipated to experience declines in the high teens. The outlook is further complicated by a reduction in net dollar retention rate (NDRR) from 95% to 93%, alongside lowered profitability estimates due to necessary investments amidst declining top-line forecasts.