Financial Performance - Q2 2025 revenue reached $199.9 million, exceeding expectations, with a 3% year-over-year increase[9, 12, 15] - GAAP net income was $6.3 million, marking the first positive quarter since IPO, a 120% change year-over-year[9, 12] - Adjusted EBITDA stood at $28.4 million, representing a 14% margin, which is above the high end of the guidance range[9, 12] - Free cash flow for Q2 was positive $39.0 million, and year-to-date free cash flow was positive $46.1 million[10] Subscription and Customer Growth - Subscription revenue now accounts for 70% of total revenue, an increase of 200 basis points quarter-over-quarter[14, 16, 17] - The company surpassed 200,000 paid consumer subscribers, with subscription revenue increasing to 15% of the consumer segment's total mix[9, 13] - Udemy Business (UB) Annual Recurring Revenue (ARR) is $520 million, a 6% year-over-year increase[7, 11, 12] - Udemy Business has 17,107 total customers, including 5,799 large enterprise customers[19] Strategic Initiatives and AI Focus - Launched AI Readiness and AI Growth packages for enterprise customers, along with AI-powered Role Play simulations[10, 13] - AI Learning Assistant engagement increased to over 4 million unique inquiries[13] - The company offers over 4,500 AI-focused courses with over 11 million AI course enrollments[7] Future Outlook - Q3 2025 revenue is projected to be between $190 million and $195 million, with an adjusted EBITDA between $18 million and $20 million[24] - Full year 2025 revenue is projected to be between $784 million and $794 million, with an adjusted EBITDA between $84 million and $89 million[7, 24]