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Coursera (COUR)
NYSE:COUR
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Coursera
(NYSE:COUR)
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Rating:70Neutral
Price Target:
$12.00
▲(0.84% Upside)
Coursera's strong earnings call performance and financial stability are the most significant factors driving the score. While technical indicators and valuation present some concerns, the company's growth prospects and strategic focus on AI courses provide a positive outlook.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand and effective business strategies, enhancing Coursera's competitive position in the ed-tech sector.
Cash Generation
Improved cash flow generation strengthens Coursera's financial flexibility, enabling strategic investments and cushioning against economic uncertainties.
AI Course Expansion
The expansion of AI courses positions Coursera as a leader in cutting-edge education, attracting learners and partners interested in emerging technologies.
Negative Factors
Profitability Challenges
Ongoing profitability issues could hinder Coursera's ability to reinvest in growth and compete effectively, posing a risk to long-term financial health.
Enterprise Segment Challenges
A suboptimal retention rate in the enterprise segment suggests potential customer satisfaction issues, impacting future revenue stability in this key area.
Growth Deceleration
Anticipated growth deceleration reflects potential market saturation or competitive pressures, challenging Coursera's ability to maintain its growth trajectory.
Coursera (COUR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.95B
Dividend YieldN/A
Average Volume (3M)2.45M
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth7.10%
EPS Growth49.18%
CountryUS
Employees1,260
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding163,700,000
10 Day Avg. Volume2,639,062
30 Day Avg. Volume2,451,345
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)2.24
Price to Sales (P/S)1.93
P/FCF Ratio14.26
Enterprise Value/Market Cap0.33
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit1.65
Enterprise Value/Ebitda-15.89
Forecast
1Y Price Target
$12.55Price Target Upside5.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Coursera Business Overview & Revenue Model
Company DescriptionCoursera, Inc. operates an online educational content platform that connects learners, educators, organizations, and institutions. It offers online courses that include data science, business, computer science, information technology, health, social sciences, logic, project management, and digital marketing services; campus student plans; degree courses; and certification education. Coursera, Inc. was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. The company was incorporated in 2011 and is headquartered in Mountain View, California.
How the Company Makes MoneyCoursera generates revenue through multiple channels, primarily by offering paid courses and degree programs. The company operates on a freemium model, where users can access many courses for free but must pay for certificates, specializations, or full degree programs. Additionally, Coursera partners with universities and companies to provide professional training and upskilling programs, often through subscription models for organizations seeking to train their employees. Significant partnerships with institutions like Stanford University and Google further enhance its credibility and market reach, facilitating a steady stream of revenue from both individual learners and corporate clients.
Coursera Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call highlights Coursera's strong performance in Q2 with raised full-year guidance and significant growth in learners and AI courses. However, there are concerns about anticipated deceleration in growth and challenges in the enterprise segment. Overall, the positive aspects outweigh the negatives, marking a strong quarter for the company.Q2-2025 Updates
Positive Updates
Strong Q2 Performance
Coursera delivered Q2 revenue of $187 million, up 10% year-over-year. Free cash flow was $29 million, up 68% from the prior year.
Raised Full-Year Guidance
Full-year revenue expectations increased to $738 million to $746 million, raising the midpoint by $17 million. Adjusted EBITDA margin target increased to 8%, a 200 basis point improvement year-over-year.
Significant Growth in Learners
Coursera attracted 7.5 million new registered learners in Q2, the largest number since 2020, growing the total cumulative base by 18% year-over-year to 183 million.
Expansion of AI Courses
The generative AI catalog now includes more than 925 courses, having tripled over the past year, with over 10 million enrollments in generative AI courses.
Improved Gross Margin
Gross profit was $105 million, up 13% year-over-year, with a 56% gross margin, up 180 basis points from the prior period.
Enterprise Customer Growth
The number of paid enterprise customers increased by 12% year-over-year to 1,686.
Recognition and Partnerships
Coursera named to the Time 100 Most Influential Companies list and announced collaboration with the University of Cambridge.
Negative Updates
Deceleration in Growth Anticipated
Despite Q2 acceleration, guidance for Q4 indicates below 4% growth, factoring in macro uncertainty and seasonality.
Enterprise Segment Challenges
Net retention rate for paid enterprise customers was 93%, indicating room for improvement to reach above 100%.
Consumer Segment Seasonality
Expected seasonality impact in Q4 with a slight slowdown in consumer growth and Degrees segment decline.
Company Guidance
During Coursera's Q2 2025 earnings call, the company reported a strong performance with revenue reaching $187 million, marking a 10% year-over-year increase. The company generated $29 million in free cash flow, a 68% rise from the previous year. Coursera raised its full-year revenue expectation to a range of $738 million to $746 million, with a midpoint increase of $17 million. The adjusted EBITDA margin target was increased to 8%, reflecting a 200 basis point improvement from the previous year. The platform's registered learners grew by 18% year-over-year, reaching 183 million, with 7.5 million new additions in Q2, the largest quarterly increase since 2020. Paid enterprise customers increased by 12% year-over-year, totaling 1,686. Coursera is focusing on expanding its course catalog, which now includes over 10,500 courses, and has seen significant growth in its generative AI offerings, with over 925 courses and 10 million enrollments. The company's efforts in AI education were recognized by the 2025 Newsweek AI Impact Awards. Coursera also reported a Consumer segment revenue of $123 million, a 10% increase, and Enterprise revenue of $64 million, also up 10%. The gross margin improved to 56%, with operating expenses at 50% of revenue. The company ended the quarter with $775 million in cash and equivalents, and no debt, emphasizing strategic investments to drive long-term growth.Coursera Financial Statement Overview
Summary
Coursera shows steady revenue growth and strong cash flow generation, which are positive signs. However, the company faces profitability challenges with consistent net losses and negative profit margins. The balance sheet remains healthy with low leverage, providing financial stability.Income Statement
Coursera shows a steady revenue growth with a TTM increase in total revenue by 1.47% from the previous annual period. However, it continues to operate at a loss, with a negative net profit margin of -9.37% and negative EBIT and EBITDA margins, indicating ongoing operational challenges.65
Positive
Balance Sheet
The company maintains a strong equity base with an equity ratio of 64.17% in TTM, demonstrating good financial stability. The debt-to-equity ratio is low at 0.51%, indicating low leverage risk. However, the negative net income affects the return on equity, which remains negative.72
Positive
Cash Flow
Coursera has shown improvement in its cash flow, with a positive operating cash flow of $104.41M and a positive free cash flow of $87.28M for the TTM. The free cash flow to net income ratio is robust despite negative net income, indicating strong cash generation capabilities.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 721.67M | 694.67M | 635.76M | 523.76M | 415.29M | 293.51M |
| Gross Profit | 392.34M | 371.41M | 329.77M | 331.48M | 249.47M | 154.66M |
| EBITDA | -40.81M | -79.19M | -129.13M | -152.13M | -128.33M | -55.70M |
| Net Income | -50.90M | -79.53M | -116.55M | -175.36M | -145.22M | -66.81M |
Balance Sheet | ||||||
| Total Assets | 979.90M | 930.27M | 920.53M | 947.60M | 958.91M | 417.62M |
| Cash, Cash Equivalents and Short-Term Investments | 775.10M | 726.13M | 722.07M | 780.47M | 821.77M | 285.28M |
| Total Debt | 0.00 | 3.06M | 6.60M | 14.45M | 19.89M | 26.23M |
| Total Liabilities | 352.90M | 332.85M | 304.34M | 253.02M | 217.40M | 177.16M |
| Stockholders Equity | 627.00M | 597.42M | 616.19M | 694.58M | 741.51M | 240.47M |
Cash Flow | ||||||
| Free Cash Flow | 105.33M | 93.78M | 13.24M | -51.93M | -11.90M | -26.91M |
| Operating Cash Flow | 116.06M | 95.36M | 29.64M | -38.05M | 1.75M | -14.99M |
| Investing Cash Flow | -38.03M | 29.90M | 384.80M | -234.02M | -51.61M | -101.44M |
| Financing Cash Flow | -12.75M | -54.94M | -79.23M | 12.23M | 550.16M | 139.01M |
Coursera Technical Analysis
Positive
11.90
Price Trends
11.13
Positive
9.90
Positive
8.89
Positive
Market Momentum
0.09
Negative
58.96
Neutral
77.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COUR, the sentiment is Positive. The current price of 11.9 is above the 20-day moving average (MA) of 11.28, above the 50-day MA of 11.13, and above the 200-day MA of 8.89, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 77.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COUR.
Coursera Risk Analysis
Coursera disclosed 1 risk factors in its most recent earnings report. Coursera reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Coursera Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | 1.58B | 25.57 | 20.57% | ― | 14.56% | 127.02% | |
70 Neutral | $1.95B | ― | -8.40% | ― | 7.10% | 49.18% | |
66 Neutral | 1.10B | -35.27 | -13.13% | ― | 3.93% | 63.52% | |
58 Neutral | 1.09B | 34.24 | -3.84% | ― | -1.66% | 0.00% | |
52 Neutral | 850.35M | -9.11 | -54.25% | ― | 56.38% | -16.84% | |
52 Neutral | 823.32M | -12.74 | -10.74% | ― | 3.85% | -208.51% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
COUR
Coursera
11.90
4.10
52.56%
ATGE
Adtalem Global Education
143.36
68.13
90.56%
LOPE
Grand Canyon Education
211.96
68.26
47.50%
EDU
New Oriental Education Tech
52.79
-9.42
-15.14%
GHC
Graham Holdings
1,161.46
369.73
46.70%
UDMY
Udemy Inc
7.30
-0.73
-9.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.