v3.26.1
Segment and geographic information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment and geographic information
13. Segment and geographic information
The Company’s Chief Executive Officer is its CODM. The CODM reviews separate financial information for the Company’s two operating and reportable segments, Enterprise and Consumer, in order to allocate resources and evaluate the Company’s financial performance.
The Enterprise segment primarily generates revenue by selling subscription licenses to a variety of enterprise and government customers. The Consumer segment primarily generates revenue by selling access to course content directly to individual learners. The CODM assesses each segment's performance based on segment adjusted gross profit. The CODM uses segment adjusted gross profit during the annual budgeting process and considers budget to actual variances on a monthly basis when making decisions about the allocation of resources to each segment.
Segment adjusted gross profit, as presented below, 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 the CODM does not include the information in his measurement of the performance of the operating segments. Additionally, the Company does not allocate sales and marketing expenses, research and development expenses, and general and administrative expenses because the CODM does not include the information in his measurement of the performance of the operating segments. The Udemy platform supports the operations of each segment.
The CODM does not use asset information by segments to assess performance and make decisions regarding allocation of resources, and the Company does not track its long-lived assets by segment. The geographic identification of these assets is set forth below.
Financial information for each reportable segment was as follows (in thousands):
Three Months Ended March 31, 2026
Enterprise
ConsumerTotal
Revenue$132,889 $58,518 $191,407 
Content costs(18,004)(16,603)(34,607)
Customer support(11,501)(1,828)(13,329)
Other segment items (1)
(1,927)(5,320)(7,247)
Segment adjusted gross profit$101,457 $34,767 $136,224 
Three Months Ended March 31, 2025
Enterprise
ConsumerTotal
Revenue$127,748 $72,552 $200,300 
Content costs(20,371)(24,806)(45,177)
Customer support(9,885)(1,676)(11,561)
Other segment items (1)
(1,508)(5,669)(7,177)
Segment adjusted gross profit$95,984 $40,401 $136,385 
(1) Other segment items for each segment across all periods presented consisted of payment and mobile processing fees and costs associated with hosting digital content.
The following table provides a reconciliation from segment adjusted gross profit to net income (loss) before taxes (in thousands):
Three Months Ended March 31,
20262025
Segment adjusted gross profit
$136,224 $136,385 
Other costs of revenue (1)
(6,957)(6,942)
Sales and marketing(89,606)(82,500)
Research and development(26,793)(24,958)
General and administrative(25,394)(25,008)
Restructuring charges— (1,469)
Total other income, net1,965 3,658 
Net loss before taxes
$(10,561)$(834)
(1) Consists of amortization of capitalized software, depreciation, stock-based compensation, and amortization of intangible assets that are included in cost of revenue but excluded from segment adjusted gross profit.

Geographic information
Revenue: The following table summarizes the revenue by region based on the billing address of the Company’s customers (in thousands):
Three Months Ended March 31,
20262025
North America$74,870 $78,478 
Europe, Middle East, Africa55,654 60,261 
Asia Pacific48,421 47,894 
Latin America12,462 13,667 
Total revenue$191,407 $200,300 
The following table presents the percentage of revenue recognized in countries that individually accounted for at least 10% of total revenue for the periods presented:
Three Months Ended March 31,
20262025
United States
36 %36 %
Japan
14 %12 %
Long-lived assets: The following table presents the Company’s long-lived assets, which consist of tangible property and equipment, net of depreciation, and operating lease ROU assets, by geographic region (in thousands):
March 31,December 31,
20262025
United States
$9,928 $9,758 
Rest of world5,164 5,976 
Total long-lived assets$15,092 $15,734