Udemy, Inc.

UDMY

Country: United StatesPrice: $4.29Market Cap: $622.3M

Investment snapshot

18%positive consensus

Scored 1d ago

Positive

BUY / PASS

Neutral / negative

2 / 11

NEUTRAL / FAIL

Median fair value

$2.90

-32.4% vs price

Models with upside

2 / 17

Positive margin of safety

Strongest signal

7 of 10 pass — Marks, Sleep and Oshaughnessy object

Key risk

No clean pass — all 8 investors flag at least one efficiency criterion

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

Metric	Graham Defensive Value	Buffett Quality Compounder	Lynch GARP	Greenblatt Magic Formula	Piotroski F-Score	Dreman Contrarian Value	Munger Quality Focus	Pabrai Dhandho Framework	Akre Three-Legged Stool	Marks Risk-Aware Value	Ackman Activist Value	Templeton Global Bargain Hunter	Sleep Scale Economies Shared	Asness Systematic Factors	Neff Low-P/E Total Return	Schloss Asset-Value Discipline	O'Shaughnessy Systematic Factor Composite
Verdict	FAIL	FAIL	FAIL	Not ranked	BUY	FAIL	FAIL	FAIL	FAIL	FAIL	PASS	FAIL	PASS	NEUTRAL	FAIL	FAIL	NEUTRAL
Score
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Intrinsic Value (annual)			N/A	N/A	N/A	N/A			N/A	N/A		N/A	N/A	N/A	N/A	N/A	N/A
Margin of Safety	-333.3%	-125.8%	N/A	N/A	N/A	N/A	+58.3%	-47.9%	N/A	N/A	+64.1%	N/A	N/A	N/A	N/A	N/A	N/A
Financial Basis	TTM ended 2026-03-31 · Balance sheet at 2026-03-31 · Annual history · FY 2025 Latest source filing: 2026-05-11 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-19 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-03-31 vs 2025-03-31 · TTM ended 2026-03-31 Latest source filing: 2026-05-11 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-19 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-19 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-03-31 · Balance sheet at 2026-03-31 · Market data at 2026-04-10 Latest source filing: 2026-05-11 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-02-19 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-02-19 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment · TTM ended 2026-03-31 Latest source filing: 2026-05-11 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-19 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-03-31 · Market data at 2026-04-10 Latest source filing: 2026-05-11 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-04-10 Latest source filing: 2026-02-19 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-19 Score computed: 2026-11-14	TTM ended 2026-03-31 · Balance sheet at 2026-03-31 · Price history 2025-01-01–2026-04-10 · Annual history · FY 2025 Latest source filing: 2026-05-11 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-03-31 Latest source filing: 2026-05-11 Score computed: 2026-11-14	Annual history · FY 2025 · Balance sheet at 2026-03-31 Latest source filing: 2026-05-11 Score computed: 2026-11-14	TTM ended 2026-03-31 · Annual history · FY 2025 · Price history 2025-01-01–2026-04-10 Latest source filing: 2026-05-11 Score computed: 2026-11-14

Where It Passes

Cash Flow70% pass✓ 9✗ 3▾
7 of 10 pass — Marks, Sleep and Oshaughnessy object
Free Cash Flow Proxy$23.4M
✓BuffettPositive and growing
FCF Positive and Growing$86.9M
✓LynchPositive and growing
Operating Cash Flow$87.7M
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=14.19%, ROA=0.62%
✓PiotroskiCFO/Assets > ROA
Price / (CFO / Shares)7.1x
✓Dreman< 8x
P/E or FCF YieldP/E=143.0x, FCF Yield=13.2%
✓PabraiP/E < 15 or FCF Yield > 10%
FCF Positive3/7 years FCF positive
✗MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap13.9%
✓Ackman>= 4%
Price / FCF per Share7.6x
✓Ackman<= 25
Positive Operating Cash Flow frequency3/7 years positive
✗SleepPositive OCF in >= 70% of available years
Operating Cash Flow - Capital Expenditures$86.9M
✓Neff> $0 (app proxy for a strong fundamental case)
(Operating cash flow - capex) / market capitalization+13.97%; #457/4519 (top 10.1%)
✗OshaughnessyTop 10% of eligible cross-section

Where It Falls Short

Efficiency0% pass✓ 1✗ 10▾
No clean pass — all 8 investors flag at least one efficiency criterion
Current Ratio1.28
✗Graham>= 2.0
ROIC (3-5 yr avg)
✗Buffett> 10%
ROIC - WACC
✗BuffettPositive (WACC = 10%)
EBIT / (NWC + Net Fixed Assets)N/A (invested capital <= 0)
✗Greenblatt> 25%
Current Ratio Change YoY1.27 -> 1.31
✓PiotroskiIncreased YoY
Revenue / Total Assets Change YoY1.30x -> 1.28x
✗PiotroskiImproved YoY
Current Assets / Current Liabilities1.28
✗Dreman> 1.5
Return on Invested Capital
✗Munger> 15%
ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC
✗AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)
✗SleepROIC > 12% in a majority of years
Profitability6% pass✓ 8✗ 27▾
15 of 16 flag UDMY's profitability — Graham, Buffett, Lynch +12 more
Positive EPS (10 years)1/8 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)
✗Graham>= 33% growth
Net Income Positive (10+ years)1/8 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)-27.5%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)-0.5% (latest)
✓BuffettStable or rising over 10 years
Free Cash Flow Proxy$23.4M
✓BuffettPositive and growing
Earnings Variance (10-yr CoV)N/A (negative mean EPS)
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)P/E 143.0x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
ROE-3.3%
✗Lynch> 15%
EBIT / Enterprise Value-1.1%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=-1.1%, ROC=N/A (invested capital <= 0)
✗GreenblattBoth EY > 10% and ROC > 25%
Net Income / Total Assets0.62%
✓PiotroskiROA > 0
ROA Change YoY-14.08% -> 0.62% (delta: +14.70%)
✓PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=14.19%, ROA=0.62%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY62.5% -> 65.6%
✓PiotroskiImproved YoY
Pre-Tax Income / Revenue-0.2%
✗Dreman>= 8%
Net Income / Shareholders' Equity-3.3%
✗Dreman> 12%
Margin of SafetyP/E=143.0x, P/B=3.0x
✗PabraiP/B < 1.5 or P/E < 15
Return on Equity-23.8% (3-yr avg)
✗AkreROE > 20% (3-year avg)
Discount to Intrinsic ValueN/A (negative normalized EPS)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency1/7 years positive
✗MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue-1.6%
✗Ackman>= 15%
Net Income / Shareholders Equity-3.3%
✗Ackman>= 15%
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend-16.7% (2023) -> -0.5% (2025)
✓TempletonNon-negative operating-margin trend over 3 years
Revenue growth vs. gross and operating margin trendgross margin 57.5% -> 65.6%, operating margin -16.7% -> -0.5%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
Net income / market capitalization-1.13%; #3432/6340 (top 54.1%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Gross profit / total assets+81.66%; #235/3702 (top 6.3%)
✓AsnessTop 30% of eligible cross-section
Net income / positive book equity-3.32%; #3123/5226 (top 59.8%)
✗AsnessTop 30% of eligible cross-section
Negative 5-year standard deviation of ROA-0.0706; #3036/5884 (top 51.6%)
✗AsnessTop 30% of eligible cross-section
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Positive Diluted-EPS Years1/7 years positive
✗Schloss>= 70% positive over 5-10 observed years (app rule)
Debt & Leverage8% pass✓ 1✗ 14▾
11 of 12 flag UDMY's debt & leverage — Graham, Buffett, Lynch +8 more
LT Debt vs Net Current Assets
✗GrahamLT Debt <= Net Current Assets
Debt/Equity & Interest Coverage
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity
✗Lynch< 0.33
Cash - Long-term Debt
✗LynchPositive preferred
LT Debt / Total Assets Change0.00% -> 0.00%
✓PiotroskiDecreased YoY
Current Assets / Current Liabilities1.28
✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders' Equity
✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x
Debt Levels
✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=-13.9x, D/EBITDA=N/A
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity
✗Ackman<= 1.0
Negative debt-to-equity (higher means less debt)
✗AsnessTop 30% of eligible cross-section
Growth13% pass✓ 5✗ 8▾
7 of 8 flag UDMY's growth — Graham, Lynch, Dreman +4 more
EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)
✗Graham>= 33% growth
Basic earnings-growth PEG (dividends excluded)P/E 143.0x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthN/A (no inventory)
✓LynchInventory growth < Revenue growth
EPS Growth Direction$-2.57 (2019) -> $0.03 (2025)
✓DremanPositive over recent years
EPS CAGR
✗Dreman> 5% annualized
Positive Net Income Frequency1/7 years positive
✗MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth7.9%
✓Ackman>= 5%
Positive EPS Growth Frequency5/5 years with positive EPS growth
✓AckmanPositive EPS growth in >= 3 of last 5 years
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Revenue growth vs. gross and operating margin trendgross margin 57.5% -> 65.6%, operating margin -16.7% -> -0.5%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR12.9%
✓SleepCAGR > 7%
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Valuation15% pass✓ 3✗ 25▾
11 of 13 flag UDMY's valuation — Graham, Lynch, Greenblatt +8 more
Price / 3-yr avg EPS
✗Graham<= 15x
Price-to-Book Ratio3.0x
✗Graham<= 1.5x
P/E x P/B
✗Graham<= 22.5
Basic earnings-growth PEG (dividends excluded)P/E 143.0x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
EBIT / Enterprise Value-1.1%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=-1.1%, ROC=N/A (invested capital <= 0)
✗GreenblattBoth EY > 10% and ROC > 25%
Price / EPS143.0x
✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
Price / (CFO / Shares)7.1x
✓Dreman< 8x
Price / Book Value per Share3.0x
✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
Valuation ReasonablenessP/E=143.0x, OE Yield=3.7%
✗MungerP/E < 25 or Owner Earnings Yield > 5%
P/E or FCF YieldP/E=143.0x, FCF Yield=13.2%
✓PabraiP/E < 15 or FCF Yield > 10%
P/B or P/E vs. Historical AverageP/E=143.0x, P/B=3.0x
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic ValueN/A (negative normalized EPS)
✗Marks>= 20% below intrinsic value
Price / FCF per Share7.6x
✓Ackman<= 25
Price vs. Trailing Low
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
Net income / market capitalization-1.13%; #3432/6340 (top 54.1%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Positive book equity / market capitalization+0.3410; #3506/6449 (top 54.4%)
✗AsnessTop 30% of eligible cross-section
Price / Diluted EPS143.0x
✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E
✗Neff> 0.7 (Neff's published traditional edge)
Price / Tangible Book Value per Share3.19x
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change
✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Revenue / market capitalization+1.2550; #1535/5247 (top 29.3%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization+13.97%; #457/4519 (top 10.1%)
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date
✗OshaughnessyTop 10% of eligible cross-section
Verdicts21% pass✓ 3✗ 11▾
Split decision: 11 FAIL · 2 PASS · 2 NEUTRAL · 1 BUY
Overall verdict
✗GrahamFAIL (1/9)✗BuffettFAIL (2/9)✗LynchFAIL (2/7)•GreenblattNot ranked✓PiotroskiBUY (F-Score 8)✗DremanFAIL (2/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (0/5)✓AckmanPASS (5/9)✗TempletonFAIL (2/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
Valuation models40% pass✓ 2✗ 3▾
Models split on UDMY at $4.29 — fair values range $0.99–$11.94
Graham fair value$0.99
✗Graham-333.3% margin vs $4.29
Buffett fair value$1.90
✗Buffett-125.8% margin vs $4.29
Munger fair value$10.28
✓Munger+58.3% margin vs $4.29
Pabrai fair value$2.90
✗Pabrai-47.9% margin vs $4.29
Ackman fair value$11.94
✓Ackman+64.1% margin vs $4.29

Business & financials

Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Personal Services

SIC Sector: Educational Services

Size: Small Cap($622.3M)

Revenue: $789.8M+0.4% YoY

Net Income: $3.8M+104.5% YoY

Financial Snapshot

Operating Margin-0.5%

Return on Equity1.8%

Debt / Equity--

Current Ratio1.31

EPS (Diluted)$0.03

Buybacks (1y)$51.0M

Buybacks (2y)$201.3M

Shares Retired1.6% / 8.0% 2y

Similar Companies

EDUNew Oriental Education & Technology Group Inc.

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GHCGraham Holdings Co

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LAURLAUREATE EDUCATION, INC.

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Shareholder Return

Fiscal 2025

Retired 1.6% of shares last year, 8.0% over two.

Buybacks: $51.0M
Dividends: —

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

The latest annual period end is unavailable. Showing the latest fiscal cycle’s quarters; quarter and annual columns may overlap. Quarterly shows the full quarter history.

Metric	TTM · 2026-03-31 2025-04-01 – 2026-03-31 Sources · derived quarter values 10-Q · 2025-07-31 10-Q · 2025-10-30 10-K · 2026-02-19 10-Q · 2026-05-11 Derived from cumulative filings: operating cash flow, depreciation amortization, capex, buybacks, revenue, net income, operating income, gross profit, ebit, pre tax income, interest expense.	Q1 FY 2026 2026-01-01 – 2026-03-31 Sources 10-Q · 2026-05-11	FY 2025 Sources 10-K · 2026-02-19	FY 2024 Sources 10-K · 2025-02-19	FY 2023 Sources 10-K · 2024-02-26	FY 2022 Sources 10-K · 2023-02-27	FY 2021 Sources 10-K · 2022-03-25
Market Cap	$622.3Mcurrent	--	$699.5Mest.	$1.1Best.	$2.1Best.	$1.8Best.	$890.6Mest.
Revenue	$781.0M↓1%	$191.4M↓4%	$789.8M	$786.6M↑8%	$728.9M↑16%	$629.1M↑22%	$515.7M
Operating Income	-$12.2M↑83%	-$12.5M↓179%	-$4.2M↑95%	-$89.3M↑27%	-$121.9M↑19%	-$151.2M↓94%	-$77.9M
Net Income	-$7.0M↑90%	-$12.6M↓612%	$3.8M↑104%	-$85.3M↑21%	-$107.3M↑30%	-$153.9M↓92%	-$80.0M
EPS (Diluted)	--	$-0.09↓800%	$0.03↑105%	$-0.56↑21%	$-0.71↑35%	$-1.09↑25%	$-1.46
Gross Margin	66.4%↑5%	67.5%↑5%	65.6%↑5%	62.5%↑9%	57.5%↑2%	56.2%↑4%	54.2%
Operating Margin	-1.6%↑83%	-6.5%↓192%	-0.5%↑95%	-11.4%↑32%	-16.7%↑30%	-24.0%↓59%	-15.1%
ROE	-3.3%↑90%	—	1.8%↑104%	-43.2%↓44%	-30.1%↑34%	-45.3%↓121%	-20.5%
Total Debt	--	--	--	--	--	--	--
Shareholders' Equity	$212.2M↑1%	$212.2M↑1%	$210.5M↑7%	$197.4M↓45%	$356.9M↑5%	$339.3M↓13%	$389.7M
Current Ratio	1.28	1.28	1.31↑3%	1.27↓23%	1.66↑5%	1.59↓15%	1.88
Debt / Equity	—	—	—	—	—	—	—
Operating Cash Flow	$90.9M↑105%	$15.4M↑26%	$87.7M↑65%	$53.0M↑2746%	-$2.0M↑97%	-$61.0M↓758%	-$7.1M
Free Cash Flow	$86.9M↑118%	$14.9M↑52%	$81.9M↑61%	$50.7M↑2024%	-$2.6M↑96%	-$62.5M↓403%	-$12.4M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Personal Services

UDMY vs Peers — Financial Grading

Revenue$789.8MBottom 25%

Net Income$3.8MBottom 25%

ROE1.8%Bottom 25%

D/E—

Op. Margin-0.5%Bottom 25%

Curr. Ratio1.31Median

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Greenblatt	Piotroski	Dreman
New Oriental Education & Technology Group Inc.EDU	$8.3B	$53.28	$4.9B	$371.7M	10.2%	0.00	8.7%	1.58	1/9	2/9	3/7	1/3	F-Score 7	6/11
H&R BLOCK INCHRB	$6.1B	$50.01	$3.8B	$605.8M	681.4%	20.73	22.0%	0.90	3/9	4/9	3/7	1/3	F-Score 4	4/11
Graham Holdings CoGHC	$5.2B	$1244.05	$4.9B	$292.3M	6.1%	0.18	4.8%	1.75	6/9	0/9	3/7	0/3	F-Score 6	5/11
LAUREATE EDUCATION, INC.LAUR	$4.8B	$35.03	$1.7B	$281.6M	23.7%	0.11	25.3%	0.67	1/9	5/9	6/7	3/3	F-Score 6	4/11
UNIFIRST CORPUNF	$4.3B	$235.39	$2.4B	$148.3M	6.8%	—	7.6%	3.18	3/9	5/9	2/7	0/3	F-Score 6	3/11
Covista Inc.CVSA	$3.9B	$118.17	$2.0B	$251.6M	17.4%	0.46	19.6%	1.09	1/9	4/9	5/7	0/3	F-Score 6	4/11
BRIGHT HORIZONS FAMILY SOLUTIONS INC.BFAM	$2.5B	$52.68	$2.9B	$193.1M	14.4%	0.56	10.7%	0.52	1/9	1/9	4/7	0/3	F-Score 8	3/11
UNIVERSAL TECHNICAL INSTITUTE INCUTI	$1.2B	$21.99	$835.6M	$63.0M	19.2%	0.27	10.0%	1.07	1/9	4/9	1/7	0/3	F-Score 6	2/11