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Coursera (COUR)
NYSE:COUR
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Coursera (COUR) AI Stock Analysis

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COUR

Coursera

(NYSE:COUR)

Rating:75Outperform
Price Target:
$14.00
▲(17.06%Upside)
Coursera's overall stock score is driven by strong technical indicators and positive earnings call sentiment, both highlighting growth and momentum. Financial performance shows promise with revenue and cash flow improvements, but ongoing operational losses and a negative P/E ratio weigh down the score.
Positive Factors
AI and Technology
GenAI is driving demand for Coursera content, adding millions of new learners to the platform.
Guidance Increase
Management raised the FY25 revenue guidance by $17 million, driven by enhancements in site experience and new promotional strategies.
Revenue Growth
Coursera's Consumer segment grew 10% year-over-year with strength in subscriptions and marketing efforts.
Negative Factors
Enterprise Spending
The team remains cautious on the outlook for enterprise, as it continues to assess the challenging corporate spending environment.
Macroeconomic Challenges
Headwinds from Degree segment, an Enterprise NRR still in the low-to-mid 90%'s and challenging macro environment for L&D budgets likely keep shares from a material re-rating intra-quarter.

Coursera (COUR) vs. SPDR S&P 500 ETF (SPY)

Coursera Business Overview & Revenue Model

Company DescriptionCoursera, Inc. is a leading online learning platform that partners with universities and organizations worldwide to offer courses, specializations, and degrees across a wide range of subjects. The company operates in the education technology sector, providing access to high-quality educational content and resources to learners globally. Its core services include offering massive open online courses (MOOCs), professional certificates, and degree programs that cater to both individual learners and enterprise clients.
How the Company Makes MoneyCoursera primarily generates revenue through a freemium model where learners can access course materials for free but pay for additional features, such as graded assignments and course completion certificates. The company's key revenue streams include individual learner subscriptions through its Coursera Plus offering, enterprise solutions where organizations pay for employee access to curated learning content, and partnerships with universities to offer fully accredited online degree programs, for which Coursera earns a share of the tuition fees. Additionally, the company collaborates with industry leaders to create professional certificates that provide learners with job-relevant skills, further driving revenue. Significant partnerships with academic institutions and corporations enhance its course offerings and expand its market reach, contributing to its earnings.

Coursera Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: 31.72%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter for Coursera with robust revenue growth, increased free cash flow, and significant expansion in its learner base. The company also experienced strong demand for its generative AI courses and improved gross margins. However, challenges remain in the enterprise segment and with the Degrees product. Overall, the highlights significantly outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Coursera delivered revenue of $187 million for Q2 2025, marking a 10% year-over-year increase. The company also raised its full-year revenue guidance to between $738 million and $746 million.
Significant Increase in Free Cash Flow
The company generated $29 million of free cash flow, up 68% from the prior year, indicating strong bottom-line performance.
Expansion of Learner Base
Coursera attracted 7.5 million new registered learners in Q2, the largest quarterly addition since 2020, growing the total base by 18% year-over-year to 183 million.
Generative AI Course Demand
The generative AI catalog tripled over the past year, surpassing 10 million enrollments in these courses, with 12 enrollments per minute in 2025.
Recognition and New Partnerships
Coursera was named to the Time 100 Most Influential Companies list and announced new courses from AWS, DeepLearning.AI, Google Cloud, IBM, Microsoft, Snowflake, and other partners.
Improved Gross Margins
Gross margin improved to 56%, up 180 basis points from the prior year, driven by increased learner demand and more favorable production arrangements.
Negative Updates
Enterprise Segment Challenges
Enterprise revenue growth was moderate at 10%, with a net retention rate of 93%, indicating room for improvement. The macro environment continues to pose challenges, particularly for corporate spending.
Degrees Product Decline
The Degrees product, now integrated into the Consumer segment, is expected to decrease, impacting overall consumer growth.
Company Guidance
During Coursera's Q2 2025 earnings call, the company reported strong performance with a revenue of $187 million, marking a 10% year-over-year growth. They achieved a free cash flow of $29 million, up 68% from the previous year, and increased their full-year revenue guidance to a range of $738 million to $746 million. Coursera's adjusted EBITDA margin target was raised to 8%, showing a 200 basis point improvement year-over-year. The platform attracted 7.5 million new registered learners, growing its total base by 18% to 183 million. The number of paid enterprise customers rose by 12% to 1,686. Coursera's content catalog expanded by 36% to over 10,500 courses, with a significant focus on generative AI, which now includes over 925 courses. They have surpassed 10 million enrollments in AI courses, with 12 enrollments per minute so far in 2025. The company highlighted the progress of its AI-powered tutor, Coursera Coach, which has facilitated 36 million messages with learners, improving quiz pass rates by 10%. Additionally, AI translations and dubbing have increased engagement, with over 5,500 courses available in up to 26 languages and 350 courses dubbed into six languages. Coursera expects continued growth from its product-led initiatives and plans to invest further in content and product development.

Coursera Financial Statement Overview

Summary
Coursera is experiencing revenue growth and strong cash flow generation, which are positive signs. However, the company is still facing profitability challenges with consistent net losses and negative profit margins. The balance sheet remains healthy with low leverage, providing financial stability.
Income Statement
65
Positive
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.
Balance Sheet
72
Positive
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.
Cash Flow
78
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue694.67M635.76M523.76M415.29M293.51M
Gross Profit371.41M329.77M331.48M249.47M154.66M
EBITDA-79.19M-129.13M-152.13M-128.33M-55.70M
Net Income-79.53M-116.55M-175.36M-145.22M-66.81M
Balance Sheet
Total Assets930.27M920.53M947.60M958.91M417.62M
Cash, Cash Equivalents and Short-Term Investments726.13M722.07M780.47M821.77M285.28M
Total Debt3.06M6.60M14.45M19.89M26.23M
Total Liabilities332.85M304.34M253.02M217.40M177.16M
Stockholders Equity597.42M616.19M694.58M741.51M240.47M
Cash Flow
Free Cash Flow93.78M13.24M-51.93M-11.90M-26.91M
Operating Cash Flow95.36M29.64M-38.05M1.75M-14.99M
Investing Cash Flow29.90M384.80M-234.02M-51.61M-101.44M
Financing Cash Flow-54.94M-79.23M12.23M550.16M139.01M

Coursera Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.96
Price Trends
50DMA
8.94
Positive
100DMA
8.23
Positive
200DMA
8.11
Positive
Market Momentum
MACD
0.83
Negative
RSI
77.74
Negative
STOCH
72.51
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 11.96 is above the 20-day moving average (MA) of 9.35, above the 50-day MA of 8.94, and above the 200-day MA of 8.11, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 77.74 is Negative, neither overbought nor oversold. The STOCH value of 72.51 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 (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.94B-8.40%7.10%49.18%
75
Outperform
$1.72B30.7121.81%14.69%188.00%
64
Neutral
$1.10B-27.17%5.43%14.22%
55
Neutral
$1.17B35.79-13.54%4.87%-198.67%
54
Neutral
$881.94M-36.29%58.34%-602.43%
53
Neutral
$1.05B50.6425.15%-2.04%
50
Neutral
C$3.12B2.45-63.12%2.59%4.51%-5.95%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
COUR
Coursera
11.96
3.20
36.53%
UTI
Universal Technical Institute
31.85
13.52
73.76%
GOTU
Gaotu Techedu
3.47
-0.76
-17.97%
DAO
Youdao
8.65
5.60
183.61%
UDMY
Udemy Inc
6.99
-0.53
-7.05%
KLC
KinderCare Learning Companies Inc
9.76
-18.28
-65.19%

Coursera Corporate Events

Executive/Board ChangesShareholder Meetings
Coursera Stockholders Approve Key Governance Proposals
Neutral
May 22, 2025

On May 20, 2025, Coursera held its Annual Meeting of Stockholders where three proposals were voted on. The election of Class I directors, approval of executive compensation, and ratification of Deloitte & Touche LLP as the accounting firm were all passed, impacting Coursera’s governance and operational oversight.

The most recent analyst rating on (COUR) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Coursera stock, see the COUR Stock Forecast page.

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.Date of analysis: Jul 29, 2025