Udemy Reports Fourth Quarter and Full Year 2025 Results

SAN FRANCISCO--( BUSINESS WIRE)--Udemy (Nasdaq: UDMY), a leading AI-powered skills acceleration platform, today reported results for the three- and twelve-month periods ended December 31, 2025.

In light of the pending combination with Coursera (NYSE: COUR), which remains subject to shareholder and regulatory approvals and other customary closing conditions, Udemy will not host a conference call to discuss the results and will not provide financial guidance.

Financial Results and Key Operating Data Summary

(in millions, except enterprise customers, consumer paid subscribers, percentages, and basis points; unaudited)

Three Months Ended

December 31,

Change

Fiscal Year Ended

December 31,

Change

2025

2024

YoY

2025

2024

YoY

Revenue

194.0

199.9

)

789.8

786.6

Subscription Revenue

146.8

137.4

566.0

522.5

Gross Profit

128.0

127.2

518.4

491.9

Gross Margin

200

bps

300

bps

Net Income (Loss)

(2.3

)

(9.9

)

3.8

(85.3

)

104

Adjusted EBITDA

21.4

19.5

95.3

43.0

122

Adjusted EBITDA Margin

100

bps

700

bps

Enterprise Segment

Total Customers

17,029

17,096

UB Annual Recurring Revenue

540.0

516.9

Segment Revenue

134.2

130.1

524.1

494.5

Subscription Revenue

133.5

128.8

521.5

491.4

Segment Adjusted Gross Margin

100

bps

200

bps

Consumer Segment

Paid Subscribers

343,000

170,000

102

Monthly Average Buyers

1.25

1.32

)

1.32

1.34

)

Segment Revenue

59.8

69.8

(14

)

265.8

292.1

)

Subscription Revenue

13.3

8.7

44.5

31.0

Segment Adjusted Gross Margin

300

bps

200

bps

“Udemy demonstrated strong execution in Q4 and throughout 2025, creating tangible momentum toward becoming the system of record for helping companies upskill their workforce in an increasingly AI-driven world,” said Udemy President & CEO Hugo Sarrazin. “Revenue came in at the high end of our guidance range for both the quarter and year. Importantly, we drove 8% growth in full-year consolidated subscription revenue, which now represents 72% of our total revenue. These results highlight the resilience of our subscription-first approach and validates our strategic transformation toward higher value, recurring revenue streams.

“Udemy Business showed momentum building with year-over-year ARR growth stabilizing, while delivering $13 million in Net New ARR in Q4, up from $7 million in the prior quarter. The strategic actions we took earlier in the year to improve retention and drive expansion also resulted in stabilization of our Net Dollar Retention Rate. These results reflect continued progress in our enterprise business and strategy.

“Our Consumer transformation strategy delivered positive results, with the segment’s full year subscription revenue increasing 44% year-over-year. We added nearly 50,000 paid subscribers during Q4 to reach more than 340,000 total at year end. These results validate our strategic pivot toward subscription monetization.

“We delivered our first full year of positive net income and exceeded the high end of our Adjusted EBITDA guidance, expanding full-year Adjusted EBITDA Margin by 700 basis points. Driven by our focus on operational excellence, cost efficiencies, and operational leverage, Adjusted EBITDA increased by $52 million, representing over 120% growth year-over-year. We ended the year with nearly $360 million in cash, cash equivalents, and marketable securities, providing us with financial flexibility to capitalize on the growth opportunities ahead.

“As AI fundamentally reshapes the future of work, organizations recognize that they will need a comprehensive learning operating system that can intelligently reskill workforces at scale. This demand is reflected in increasing enrollments in AI content on Udemy, which grew 120% year-over-year in 2025, with learners investing more than 700 million minutes of time to develop these critical skills. Enterprises require proprietary, role-specific learning experiences that align with their unique organizational policies and strategic objectives, and we believe Udemy is well-positioned to provide that critical learning system. We look forward to empowering companies around the world to thrive in the AI era by transforming their talent,” concluded Sarrazin.

Full Year 2025 Financial Highlights

Key Financial Results

Udemy Business Segment

Consumer Segment

Operating Expenses

Cash Flow and Balance Sheet

Fourth Quarter 2025 Financial Highlights

Key Financial Results

Udemy Business Segment

Consumer Segment

Operating Expenses

Additional Highlights

Pending Coursera Combination

On December 17, 2025, Udemy and Coursera entered into a definitive merger agreement under which Coursera will combine with Udemy in an all-stock transaction. Under the terms of the definitive agreement, Udemy stockholders will receive 0.800 shares of Coursera common stock for each share of Udemy common stock. Upon the closing of the transaction, existing Coursera stockholders are expected to own approximately 59% and existing Udemy stockholders are expected to own approximately 41% of the combined company, on a fully diluted basis.

The transaction is expected to close by the second half of 2026, subject to the receipt of required regulatory approvals, approval by Coursera and Udemy shareholders, and the satisfaction of other customary closing conditions.

Please visit https://courseraandudemy.com for more information and updates about the transaction.

Non-GAAP Financial Measures

To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures as defined below. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide useful information to investors and others in understanding and evaluating our operating results because our management team and board of directors use these non-GAAP financial measures for the purposes of assessing operating results and business planning. These non-GAAP financial measures also provide useful measures for period-to-period comparisons of our business by removing the effect of certain non-cash expenses and certain variable charges.

Udemy’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Udemy’s consolidated financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.

Adjusted EBITDA and Adjusted EBITDA Margin

We calculate Adjusted EBITDA as net income (loss) determined in accordance with GAAP, adjusted to exclude i) interest income; ii) interest expense; iii) provision for income taxes; iv) depreciation and amortization; v) other income (expense), net, including gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency; vi) stock-based compensation expense; vii) restructuring charges, and viii) acquisition-related costs. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue for the same period.

Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share, Basic and Diluted

We define non-GAAP net income (loss) as net income (loss), adjusted to exclude stock-based compensation expense, amortization of acquired intangible assets, restructuring charges, and acquisition-related costs.

We define non-GAAP net income (loss) per share, basic, as non-GAAP net income (loss) divided by weighted-average shares used to compute net income (loss) per share, basic. We define non-GAAP net income (loss) per share, diluted, as non-GAAP net income (loss) divided by weighted-average shares used to compute net income (loss) per share, diluted, which adjusts for the potentially dilutive effects of our employee equity incentive plans.

Non-GAAP Gross Profit and Non-GAAP Gross Margin

We define non-GAAP gross profit as gross profit, adjusted to exclude stock-based compensation expense and the amortization of acquired intangible assets. We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period.

Free Cash Flow

We define free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized software costs, as we consider these capital expenditures necessary to support our ongoing operations.

Key Business Metrics

Udemy Business customers

We count the total number of Udemy Business (“UB”) customers at the end of each period. To do so, we generally count unique customers using the concept of a domestic ultimate parent, defined as the highest business in the family tree that is in the same country as the contracted entity. In some cases, we deviate from this methodology, defining the contracted entity as a unique customer despite the existence of a domestic ultimate parent. This often occurs where the domestic ultimate parent is a financial owner, government entity, conglomerate, or acquisition target where we have contracted directly with the subsidiary. We define a UB customer as a customer who purchases Udemy via our direct sales force, reseller partnerships or through our self-service platform.

Udemy Business Annual Recurring Revenue

We disclose our UB ARR as a measure of our Enterprise revenue growth. ARR represents the annualized value of our UB customer contracts on the last day of a given period. Only revenue from closed UB contracts with active seats as of the last day of the period are included.

Udemy Business Net Dollar Retention Rate and Udemy Business Large Customer Net Dollar Retention Rate

We disclose UB Net Dollar Retention Rate, or UB NDRR, as a measure of revenue growth for all UB customers within our Enterprise segment, including UB Large Customers, which we define as companies with at least 1,000 employees. We calculate UB NDRR as the total ARR at the end of a trailing twelve-month period divided by the total ARR at the beginning of a trailing twelve-month period for the cohort of all UB customers active at the beginning of the trailing twelve-month period. We calculate UB Large Customer NDRR as the total UB Large Customer ARR at the end of a trailing twelve-month period divided by the total Large Customer ARR at the beginning of a trailing twelve-month period for the cohort of UB customers with at least 1,000 employees active at the beginning of the trailing twelve-month period. Total ARR and Large Customer ARR at the end of a trailing twelve-month period are calculated as ARR and Large Customer ARR, respectively, at the beginning of a trailing twelve-month period that are then adjusted for upsells, downsells, and churns for the same cohort of customers during that period. Large Customer ARR represents the annualized value of contracts for UB customers with active seats and having at least 1,000 employees on the last day of a given period.

Paid Consumer subscribers

We count the total number of paid Consumer subscribers at the end of each period. Paid Consumer subscribers are defined as users who had an active paid subscription to any Consumer subscription offering at the end of the last day of a given period. The count of paid subscribers does not include users who are currently on a free trial.

Monthly average buyers

A buyer is a consumer who purchases a course or subscription through our direct-to-consumer offering. We first determine the number of monthly buyers by taking the total buyers of single courses during a given month plus the total active, paid consumer subscribers at any point in that month, adjusting for duplicate buyers that may be present in both totals. We then calculate monthly average buyers by taking an average of the monthly buyer totals over a particular period, such as a fiscal year. Our monthly average buyer count is not intended as a measure of active engagement, as not all buyers are active at any given time or over any given period.

Segment revenue and segment adjusted gross profit

Segment revenue represents the revenue recognized from our two segments, Enterprise (or Udemy Business), and Consumer. Segment adjusted gross profit is defined as segment revenue less segment adjusted cost of revenue. Segment adjusted cost of revenue includes content costs, customer support services, hosting and platform costs, and payment processing fees that are allocable to each segment. Segment adjusted gross profit excludes amortization of capitalized software, depreciation, stock-based compensation, and amortization of intangible assets included in cost of revenue as our chief operating decision maker does not include the information in his measurement of the performance of the operating segments.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding trends in consumer and learner activity related to our platform; anticipated future expenses and investments; our business strategy and plans, including the impact of our strategic and operational efficiency initiatives and our ability to successfully execute on these initiatives; market growth; and our market position and potential market opportunities. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to, the following: general economic, market or business conditions, including competition, risks related to online learning solutions and risks related to our AI innovations and AI generally; risks related to the business combination, including the effect of the announcement of the business combination on the ability of Coursera or Udemy to retain and hire key personnel and maintain relationships with customers, vendors and others with whom Coursera or Udemy do business, or on Coursera’s or Udemy’s operating results and business generally; risks that the business combination disrupts current plans and operations and the potential difficulties in attracting and retaining qualified personnel as a result of the business combination; the outcome of any legal proceedings related to the business combination; the ability of the parties to consummate the proposed transaction on a timely basis or at all; the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory approvals on the terms expected, at all or in a timely manner; the ability to successfully integrate Coursera’s and Udemy’s operations and business on a timely basis or otherwise in accordance with the standards and obligations applicable to the combined company as a public benefit corporation and as a B Corp.; Coursera’s and Udemy’s ability to implement our plans, forecasts and other expectations with respect to the combined company’s business after the completion of the transaction and realize expected synergies and other benefits of the combination within the expected timeframe or at all; the amount of the costs, fees, expenses and charges related to the proposed combination; fluctuations in the prices of Coursera or Udemy stock; and potential business disruptions following the business combination. The potential risks and uncertainties that could cause actual results to differ from the results predicted include those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our publicly available filings with the Securities and Exchange Commission. All information provided in this release is as of the date hereof, and we undertake no duty to update this information unless required by law.

About Udemy

Udemy is an AI-powered skills acceleration platform transforming how companies and individuals across the world build the capabilities needed to thrive in a rapidly evolving workplace. By combining on-demand, multi-language content with real-time innovation, Udemy delivers personalized experiences that empower organizations to scale workforce development and help individuals build the technical, business, and soft skills most relevant to their careers. Today, thousands of companies, including Ericsson, Samsung SDS America, ON24, Tata Consultancy Services, The World Bank, and Volkswagen, rely on Udemy Business for its enterprise solutions to build agile, future-ready teams. Udemy is headquartered in San Francisco, with hubs across the United States, Australia, India, Ireland, Mexico, and Türkiye.

Udemy, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

Three Months Ended

December 31,

Fiscal Year Ended

December 31,

2025

2024

2025

2024

Revenue

193,985

199,942

789,844

786,565

Cost of revenue (1)(2)

65,939

72,737

271,438

294,625

Gross profit

128,046

127,205

518,406

491,940

Operating expenses (1)(2)

Sales and marketing

82,619

82,658

326,451

342,946

Research and development

24,613

28,831

101,513

125,438

General and administrative

24,244

21,900

93,020

96,199

Restructuring charges

—

5,410

1,578

16,685

Total operating expenses

131,476

138,799

522,562

581,268

Loss from operations

(3,430

)

(11,594

)

(4,156

)

(89,328

)

Other income (expense), net

Interest income

3,186

4,011

14,208

19,666

Interest expense

(249

)

(45

)

(734

)

379

Other expense, net

(483

)

(578

)

(981

)

(11,655

)

Total other income, net

2,454

3,388

12,493

8,390

Net income (loss) before taxes

(976

)

(8,206

)

8,337

(80,938

)

Income tax provision

1,353

1,658

4,530

4,350

Net income (loss)

(2,329

)

(9,864

)

3,807

(85,288

)

Net income (loss) per share

Basic

(0.02

)

(0.07

)

0.03

(0.56

)

Diluted

(0.02

)

(0.07

)

0.03

(0.56

)

Weighted-average shares used in computing net income (loss) per share

Basic

145,700,236

146,714,126

148,205,408

151,320,497

Diluted

145,700,236

146,714,126

150,005,398

151,320,497

(1)

Includes stock-based compensation expense as follows (in thousands):

Three Months Ended

December 31,

Fiscal Year Ended

December 31,

2025

2024

2025

2024

Cost of revenue

1,588

1,610

6,748

6,887

Sales and marketing

5,021

6,087

22,074

28,665

Research and development

3,732

5,859

18,385

27,046

General and administrative

4,732

6,202

21,547

27,584

Restructuring charges

—

(160

)

Total stock-based compensation expense

15,073

19,758

68,754

90,022

(2)

Includes amortization of intangible assets as follows (in thousands):

Three Months Ended

December 31,

Fiscal Year Ended

December 31,

2025

2024

2025

2024

Cost of revenue

—

1,880

Sales and marketing

229

227

918

915

Research and development

188

—

563

—

Total amortization of intangible assets

417

227

1,481

2,795

Udemy, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

231,485

190,592

Restricted cash, current

201

100

Marketable securities

127,259

163,844

Accounts receivable, net

95,891

88,216

Prepaid expenses and other current assets

25,469

22,735

Deferred contract costs, current

43,908

40,841

Total current assets

524,213

506,328

Property and equipment, net

6,694

4,534

Capitalized software, net

28,964

31,548

Operating lease right-of-use assets

9,040

10,950

Restricted cash, non-current

183

1,115

Deferred contract costs, non-current

28,010

32,212

Intangible assets, net

2,448

2,428

Goodwill

12,646

Other assets

5,500

3,867

Total assets

617,698

605,628

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

8,198

6,311

Accrued expenses and other current liabilities

32,126

31,156

Content costs payable

33,175

37,607

Accrued compensation and benefits

27,958

28,793

Operating lease liabilities, current

4,541

2,502

Deferred revenue, current

294,071

291,106

Total current liabilities

400,069

397,475

Operating lease liabilities, non-current

5,686

8,315

Deferred revenue, non-current

1,248

2,438

Other liabilities, non-current

234

Total liabilities

407,237

408,234

Stockholders' equity:

Common stock

Additional paid-in capital

1,011,477

1,002,390

Accumulated other comprehensive income (loss)

162

(11

)

Accumulated deficit

(801,179

)

(804,986

)

Total stockholders’ equity

210,461

197,394

Total liabilities and stockholders' equity

617,698

605,628

Udemy, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended

December 31,

Fiscal Year Ended

December 31,

2025

2024

2025

2024

Cash flows from operating activities:

Net income (loss)

(2,329

)

(9,864

)

3,807

(85,288

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

6,074

5,906

25,359

25,421

Amortization of deferred contract costs

17,148

15,791

65,540

59,654

Stock-based compensation

15,073

19,758

68,754

90,022

Allowance for credit losses

528

523

3,363

1,549

Net (accretion) amortization of marketable securities

(510

)

(1,650

)

(3,187

)

(8,301

)

Non-cash operating lease expense

1,077

883

3,777

4,524

Unrealized loss on strategic investments

—

10,311

Other

513

1,232

1,559

2,551

Changes in operating assets and liabilities:

Accounts receivable

(19,866

)

(7,575

)

(11,045

)

2,789

Prepaid expenses and other assets

2,763

920

(4,042

)

(4,588

)

Deferred contract costs

(14,863

)

(11,707

)

(64,405

)

(58,333

)

Accounts payable, accrued expenses and other liabilities

12,590

4,088

3,303

10,050

Content costs payable

900

1,307

(4,432

)

(2,671

)

Operating lease liabilities

(1,741

)

(1,254

)

(2,472

)

(5,777

)

Deferred revenue

(1,842

)

(8,776

)

1,780

11,130

Net cash provided by operating activities

15,515

9,582

87,659

53,043

Cash flows from investing activities:

Purchases of marketable securities

(44,800

)

(97,115

)

(182,603

)

(336,898

)

Proceeds from maturities and sales of marketable securities

53,365

87,400

222,415

352,750

Purchases of property and equipment

(522

)

(1,184

)

(5,803

)

(2,300

)

Capitalized software costs

(3,204

)

(2,228

)

(11,880

)

(12,475

)

Payments related to asset acquisitions

—

(1,500

)

—

Net cash provided by (used in) investing activities

4,839

(13,127

)

20,629

1,077

Cash flows from financing activities:

Net proceeds from exercise of stock options

1,424

2,345

Proceeds from share purchases under employee stock purchase plan

1,615

2,521

4,175

7,054

Taxes paid related to net share settlement of equity awards

(5,468

)

(5,461

)

(20,306

)

(30,824

)

Repurchases of common stock and excise taxes paid

(21,753

)

(8,733

)

(50,965

)

(150,324

)

Payments of debt issuance costs

—

(1,438

)

—

Net cash used in financing activities

(25,598

)

(10,249

)

(68,464

)

(171,749

)

Effect of foreign exchange rates on cash flows

(177

)

238

(116

)

Net increase (decrease) in cash, cash equivalents and restricted cash

(5,175

)

(13,971

)

40,062

(117,745

)

Cash, cash equivalents and restricted cash—Beginning of period

237,044

205,778

191,807

309,552

Cash, cash equivalents and restricted cash—End of period

231,869

191,807

231,869

191,807

Udemy, Inc.

Supplemental Revenue and Segment Analysis

(in thousands, except percentages)

(unaudited)

Revenue by Segment and Product Offering

The following table presents revenue disaggregated by product offering for each segment:

Three Months Ended

December 31,

Fiscal Year Ended

December 31,

2025

2024

2025

2024

Enterprise:

Subscription

133,516

128,786

521,493

491,444

Other

711

1,353

2,581

3,014

Enterprise revenue

134,227

130,139

524,074

494,458

Consumer:

Subscription

13,272

8,659

44,514

31,006

Transactional and other

46,486

61,144

221,256

261,101

Consumer revenue

59,758

69,803

265,770

292,107

Total revenue

193,985

199,942

789,844

786,565

Segment revenue, adjusted gross profit, and adjusted gross margin

The following table presents revenue, adjusted gross profit, and adjusted gross margin by segment:

Three Months Ended

December 31,

Fiscal Year Ended

December 31,

2025

2024

2025

2024

Enterprise segment revenue

134,227

130,139

524,074

494,458

Enterprise segment adjusted gross profit

101,356

96,998

394,920

361,673

Enterprise segment adjusted gross margin

Consumer segment revenue

59,758

69,803

265,770

292,107

Consumer segment adjusted gross profit

33,298

37,034

151,493

159,357

Consumer segment adjusted gross margin

Udemy, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except percentages, share and per share amounts)

(unaudited)

Non-GAAP Gross Profit and Non-GAAP Gross Margin

Three Months Ended

December 31,

Fiscal Year Ended

December 31,

2025

2024

2025

2024

Gross profit

128,046

127,205

518,406

491,940

Stock-based compensation expense

1,588

1,610

6,748

6,887

Intangible asset amortization

—

1,880

Non-GAAP gross profit

129,634

128,815

525,154

500,707

Gross margin (1)

Non-GAAP gross margin (2)

(1)

We calculate gross margin as gross profit divided by revenue for the same period.

(2)

We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period.

Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted

Three Months Ended

December 31,

Fiscal Year Ended

December 31,

2025

2024

2025

2024

Net income (loss)

(2,329

)

(9,864

)

3,807

(85,288

)

Stock-based compensation expense

15,073

19,758

68,754

90,182

Intangible asset amortization

417

227

1,481

2,795

Restructuring charges

—

5,410

1,578

16,685

Acquisition related charges

3,729

—

3,729

—

Non-GAAP net income

16,890

15,531

79,349

24,374

Net income (loss) per share, basic

(0.02

)

(0.07

)

0.03

(0.56

)

Net income (loss) per share, diluted

(0.02

)

(0.07

)

0.03

(0.56

)

Weighted-average shares used in computing net income (loss) per share, basic

145,700,236

146,714,126

148,205,408

151,320,497

Weighted-average shares used in computing net income (loss) per share, diluted (3)

145,700,236

146,714,126

150,005,398

151,320,497

Non-GAAP net income per share, basic

0.12

0.11

0.54

0.16

Non-GAAP net income per share, diluted

0.12

0.10

0.53

0.16

Weighted-average shares used in computing non-GAAP net income per share, basic

145,700,236

146,714,126

148,205,408

151,320,497

Weighted-average shares used in computing non-GAAP net income per share, diluted

146,657,116

148,068,999

150,005,398

154,536,509

(3)

For periods presented with a net loss, potentially dilutive securities were excluded from the computation of net loss per share, diluted because the impact of including them would have been anti-dilutive.

Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended

December 31,

Fiscal Year Ended

December 31,

2025

2024

2025

2024

Net income (loss)

(2,329

)

(9,864

)

3,807

(85,288

)

Adjusted to exclude the following:

Interest income

(3,186

)

(4,011

)

(14,208

)

(19,666

)

Interest expense

249

734

(379

)

Income tax provision

1,353

1,658

4,530

4,350

Depreciation and amortization

6,074

5,906

25,359

25,421

Stock-based compensation expense

15,073

19,758

68,754

90,182

Other expense, net

483

578

981

11,655

Restructuring charges

—

5,410

1,578

16,685

Acquisition related costs

3,729

—

3,729

—

Adjusted EBITDA

21,446

19,480

95,264

42,960

Net income (loss) margin (4)

(11

Adjusted EBITDA margin (5)

(4)

We calculate net income (loss) margin as net income (loss) divided by revenue for the same period.

(5)

We calculate adjusted EBITDA margin as adjusted EBITDA divided by revenue for the same period.

Free Cash Flow

Three Months Ended

December 31,

Fiscal Year Ended

December 31,

2025

2024

2025

2024

Net cash provided by operating activities

15,515

9,582

87,659

53,043

Less: purchases of property and equipment

(522

)

(1,184

)

(5,803

)

(2,300

)

Less: capitalized software costs

(3,204

)

(2,228

)

(11,880

)

(12,475

)

Free cash flow

11,789

6,170

69,976

38,268