Coursera (COUR) AI Stock Analysis

• Market Cap: $1.82B
• Dividend Yield: N/A
• Average Volume (3M): 4.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 7.10%
• EPS Growth: 49.18%
• Country: US
• Employees: 1,260
• Sector: Consumer Defensive
• Sector Strength: 50
• Industry: Education & Training Services
• EPS (TTM): 0.12
• Shares Outstanding: 163,700,000
• 10 Day Avg. Volume: 2,596,792
• 30 Day Avg. Volume: 4,202,495
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 1.65
• Enterprise Value/Ebitda: -11.51
• 1Y Price Target: $12.63
• Price Target Upside: 13.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 73 Outperform
• Price Target: $13.50 ▲(21.40% Upside)

Coursera's strong technical momentum and positive earnings call sentiment are the primary drivers of its stock score. Despite profitability challenges reflected in its valuation, the company's robust cash flow and strategic growth in AI courses contribute positively to its outlook.

Positive Factors

AI and Innovation

New AI functionalities like Coach, translations, and Career Academy are expected to drive consumer segment growth.

Financial Performance

The EBITDA margin of 9.6% was above Street estimates due to better topline, improved revenue share economics, and operational efficiencies.

Revenue Growth

Coursera's Consumer segment grew 10% year-over-year with strength in subscriptions and marketing efforts.

Negative Factors

Degree Segment 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.

Enterprise Outlook

The team remains cautious on the outlook for enterprise, as it continues to assess the challenging corporate spending environment.

Coursera Business Overview & Revenue Model

Company Description

Coursera, 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 Money

Coursera 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	694.67M	635.76M	523.76M	415.29M	293.51M
Gross Profit	371.41M	329.77M	331.48M	249.47M	154.66M
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 Assets	930.27M	920.53M	947.60M	958.91M	417.62M
Cash, Cash Equivalents and Short-Term Investments	726.13M	722.07M	780.47M	821.77M	285.28M
Total Debt	3.06M	6.60M	14.45M	19.89M	26.23M
Total Liabilities	332.85M	304.34M	253.02M	217.40M	177.16M
Stockholders Equity	597.42M	616.19M	694.58M	741.51M	240.47M
Cash Flow
Free Cash Flow	93.78M	13.24M	-51.93M	-11.90M	-26.91M
Operating Cash Flow	95.36M	29.64M	-38.05M	1.75M	-14.99M
Investing Cash Flow	29.90M	384.80M	-234.02M	-51.61M	-101.44M
Financing Cash Flow	-54.94M	-79.23M	12.23M	550.16M	139.01M

Coursera Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 11.12 is below the 20-day moving average (MA) of 11.87, above the 50-day MA of 10.12, and above the 200-day MA of 8.53, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 9.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COUR.

Coursera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COUR	73 Outperform	$1.82B	―	-8.40%	―	7.10%	49.18%
UTI	71 Outperform	$1.44B	23.29	23.11%	―	14.56%	127.02%
UDMY	64 Neutral	$1.03B	―	-12.62%	―	3.93%	63.52%
DAO	63 Neutral	$1.09B	34.13	25.15%	―	-1.66%	―
Sector *	63 Neutral	$20.46B	14.51	-3.60%	3.15%	2.60%	-5.31%
GOTU	56 Neutral	$884.37M	―	-32.95%	―	56.38%	-16.84%
KLC	52 Neutral	$858.75M	35.79	-10.31%	―	3.85%	-208.51%

Coursera Corporate Events

Coursera Stockholders Approve Key Governance Proposals

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.