Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Domestic and Foreign Components of Income (Loss) before Taxes

The domestic and foreign components of income (loss) before provision for income taxes consisted of the following (in thousands):

	Fiscal Year Ended December 31,
	2025		2024		2023
Domestic	$	(884)	$	(88,789)	$	(110,640)
Foreign	9,221		7,851		6,999
Total net income (loss) before taxes	$	8,337	$	(80,938)	$	(103,641)

Schedule of Provision for Income Taxes

The provision for income taxes consisted of the following (in thousands):

	Fiscal Year Ended December 31,
	2025		2024		2023
Current
Federal	$	—	$	—	$	—
State	234		512		324
Foreign	4,366		3,912		3,494
Total current income tax expense	4,600		4,424		3,818
Deferred:
Federal	—		—		—
State	—		—		—
Foreign	(70)		(74)		(165)
Total deferred income tax benefit	(70)		(74)		(165)
Total provision for income taxes	$	4,530	$	4,350	$	3,653

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between the statutory federal income tax rate and the Company’s effective tax rate as a percentage of net income before taxes is as follows (dollar amounts in thousands):

	Fiscal Year Ended December 31, 2025
	Amount		As a % of net income before taxes
Net income before taxes	$	8,337
U.S. federal statutory tax rate	1,751		21.00	%
State and local income taxes, net of federal income tax effect(1)	182		2.18	%
Foreign tax effects	264		3.16	%
Effect of changes in tax laws or rates enacted in the current period
Effect of cross-border tax laws
Withholding taxes	1,683		20.19	%
Tax credits
Research credits	(1,915)		(22.97)	%
Changes in valuation allowance - federal	(6,371)		(76.43)	%
Non-taxable or non-deductible items
Non-deductible compensation	1,331		15.97	%
Stock-based compensation	6,453		77.41	%
Changes in unrecognized tax benefits	437		5.24	%
Other	715		8.59	%
Income tax provision	$	4,530	54.34	%
(1) States taxes in Virginia and Florida made up the majority (greater than 50%) of the tax effect in this category.

As previously disclosed for the periods ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:

	Fiscal Year Ended December 31,
	2024		2023
Federal tax expense	21.00	%	21.00	%
State taxes, net of federal benefit	0.49	%	0.50	%
Foreign rate differential	(0.28)	%	(1.40)	%
Withholding taxes	(2.43)	%	(1.77)	%
Nondeductible compensation	(6.18)	%	(10.20)	%
Stock-based compensation	(9.48)	%	(1.84)	%
Change in valuation allowance	(16.40)	%	(18.33)	%
Research and development credits	7.57	%	7.94	%
Nontaxable dividends	—	%	1.31	%
Other	0.34	%	(0.73)	%
Effective tax rate	(5.37)	%	(3.52)	%

Schedule of Cash Flow, Supplemental Disclosures

The amount of cash taxes paid by Udemy, Inc., inclusive of amounts withheld by customers and remitted to tax authorities on the Company's behalf, are as follows (in thousands):

	Fiscal Year Ended December 31, 2025
Federal	$	—
State	611
Foreign
India	1,563
Australia	654
All other foreign	2,217
Cash taxes, net of amounts refunded	$	5,045

Schedule of Deferred Tax Assets and Liabilities

Significant components of the net deferred tax assets (liabilities) for the fiscal years ended December 31, 2025 and 2024, consisted of the following (in thousands):

	December 31,		December 31,
	2025		2024
Deferred tax assets:
Accruals and reserves	$	4,340	$	3,852
Deferred revenue	64,332		64,179
Net operating loss	39,420		21,983
Research and development tax credits	37,378		34,772
Stock-based compensation expense	2,518		4,005
Indirect tax reserves	742		377
Property and equipment, net	1,969		2,088
Capitalized research and development costs	22,832		48,726
Operating lease liabilities	1,985		2,152
Other deferred tax assets	4,082		3,052
Gross deferred tax assets	179,598		185,186
Valuation allowance	(160,923)		(165,488)
Total deferred tax assets	18,675		19,698
Deferred tax liabilities:
Deferred contract costs	(9,095)		(9,329)
Operating lease right-of-use-assets	(1,610)		(2,064)
Other deferred tax liabilities	(7,663)		(8,067)
Total deferred tax liabilities	(18,368)		(19,460)
Net deferred tax assets	$	307	$	238

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of unrecognized tax benefit is as follows (in thousands):

	Fiscal Year Ended December 31,
	2025		2024		2023
Gross unrecognized tax benefits at the beginning of the year	$	9,032	$	7,232	$	5,310
Increases related to prior year tax positions	220		133		58
Increases related to current year tax positions	723		1,667		1,864
Statues of limitations expirations	—		—		—
Gross unrecognized tax benefits at the end of the year	$	9,975	$	9,032	$	7,232