Adjusted EBITDA was approximately $28 million or 14% of revenue, marking a 1,100 basis point year-over-year expansion and 14th consecutive quarter exceeding expectations.
Consumer segment revenue was $71 million, down 4% year-over-year, impacted by FX and a one-time $2.5 million breakage revenue benefit.
Free cash flow generated was $39 million or 20% of revenue, with a strong balance sheet holding $393 million in cash and marketable securities.
Gross margin improved 300 basis points year-over-year to 67%.
Operating expenses were $112 million or 56% of revenue, an 800 basis point improvement compared to Q2 2024.
Positive GAAP net income of approximately $6 million was achieved, the first since IPO, compared to a loss of $32 million in Q2 last year.
Udemy Business segment revenue increased 7% year-over-year to $129 million with ARR reaching $520 million, a 6% year-over-year growth.
Udemy reported Q2 revenues of $200 million, up 3% year-over-year and above the high end of guidance.
Dafinchi