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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)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
$11.00
▲(6.90% Upside)
Coursera's overall stock score reflects strong financial stability and positive earnings call highlights, including raised guidance and growth in AI courses. However, technical indicators suggest bearish momentum, and valuation concerns persist due to negative earnings and lack of dividends. The company's profitability challenges also weigh on the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.
AI Course Expansion
Expanding AI offerings positions Coursera as a leader in tech education, catering to growing demand and ensuring future relevance.
Strategic Partnership with OpenAI
The partnership with OpenAI enhances Coursera's platform visibility and accessibility, potentially increasing user engagement and growth.
Negative Factors
Profitability Challenges
Ongoing profitability issues may hinder reinvestment and growth opportunities, impacting long-term financial health.
CFO Transition
Leadership changes can disrupt strategic continuity and execution, potentially affecting financial management and investor confidence.
Enterprise Segment Challenges
A low net retention rate indicates challenges in maintaining enterprise customer relationships, which could limit future revenue growth.

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

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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue721.67M694.67M635.76M523.76M415.29M293.51M
Gross Profit392.34M371.41M329.77M331.48M249.47M154.66M
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 Assets979.90M930.27M920.53M947.60M958.91M417.62M
Cash, Cash Equivalents and Short-Term Investments775.10M726.13M722.07M780.47M821.77M285.28M
Total Debt0.003.06M6.60M14.45M19.89M26.23M
Total Liabilities352.90M332.85M304.34M253.02M217.40M177.16M
Stockholders Equity627.00M597.42M616.19M694.58M741.51M240.47M
Cash Flow
Free Cash Flow105.33M93.78M13.24M-51.93M-11.90M-26.91M
Operating Cash Flow116.06M95.36M29.64M-38.05M1.75M-14.99M
Investing Cash Flow-38.03M29.90M384.80M-234.02M-51.61M-101.44M
Financing Cash Flow-12.75M-54.94M-79.23M12.23M550.16M139.01M

Coursera Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.29
Price Trends
50DMA
11.58
Negative
100DMA
10.16
Positive
200DMA
9.03
Positive
Market Momentum
MACD
-0.11
Positive
RSI
36.45
Neutral
STOCH
5.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COUR, the sentiment is Negative. The current price of 10.29 is below the 20-day moving average (MA) of 11.32, below the 50-day MA of 11.58, and above the 200-day MA of 9.03, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 36.45 is Neutral, neither overbought nor oversold. The STOCH value of 5.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
77
Outperform
$6.07B26.1830.77%6.52%11.72%
74
Outperform
$5.34B23.9716.60%12.85%81.69%
74
Outperform
$5.06B7.4516.28%0.62%4.73%426.68%
73
Outperform
$8.74B23.1610.03%1.16%13.86%21.74%
64
Neutral
$1.02B-12.62%3.93%63.52%
63
Neutral
$1.68B-8.40%7.10%49.18%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
COUR
Coursera
10.29
2.72
35.93%
ATGE
Adtalem Global Education
149.87
76.99
105.64%
LOPE
Grand Canyon Education
215.99
80.25
59.12%
EDU
New Oriental Education Tech
52.75
-23.03
-30.39%
GHC
Graham Holdings
1,152.11
352.92
44.16%
UDMY
Udemy Inc
6.86
-0.49
-6.67%
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: Oct 07, 2025