Udemy Inc. Common Stock (UDMY)
FairStock Score: 35/100 — MIXED
Key Financials
| Current Price | $4.63 |
| Market Cap | $668M |
| P/E Ratio | 154.33 |
| ROE | 1.87% |
| Dividend Yield | —% |
| Sector | Consumer Defensive |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
Udemy is an online learning marketplace serving consumers and enterprises, and I look for businesses with durable competitive advantages and consistent owners' earnings. The latest reported quarter, the 2026 first quarter, showed revenue of $191.4 million and a net loss of $12.6 million, a -6.59% margin. Trailing revenue growth of -4.44% and profit growth of -612.25% tell me the economics have weakened materially. A marketplace can have network effects, but these figures do not demonstrate pricing power: ROE is only 1.87%, ROCE 0.12%, and the Piotroski F-Score is 4/9. The balance sheet is conservative, with debt-to-equity of 0.05, and cash generation is the brightest spot: trailing free cash flow is $73.7 million, an 11.0% FCF yield on the $668.4 million market cap. But valuation remains demanding on earnings. At the 2026-05-11 close of $4.63, the FairStock-calculated P/E is 154.33, P/B is 3.24, and the Graham Number is $0.99, leaving a margin of safety of -367.68%. EV/EBITDA is 16.96, and the Altman Z-Score of -0.39 is a warning. FairStock Score is 35/100, and the Lynch category is none because only 0 years of filed results are available, needing 3. The growth trajectory is negative, and the latest quarter's loss shows cash flow may not be durable if revenue keeps shrinking. I would want evidence of stabilizing revenue, restored profitability, and consistent free cash flow before calling this a bargain.
In plain English: Udemy runs an online learning marketplace for individual learners and companies. The business looks weak right now: revenue is shrinking and it lost money in the latest quarter. At $4.63, the stock looks expensive compared with its small profits, though it does generate a meaningful amount of cash.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data as of 2026-05-11 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer