Coursera (NYSE: COUR) posts Q1 2026 growth and details Udemy merger
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Coursera reported Q1 2026 revenue of $195.7 million, up 9% year over year, led by 10% growth in its Consumer segment. Consumer revenue reached $129.5 million, while Enterprise revenue rose 7% to $66.2 million.
GAAP net loss widened to $20.5 million, or a net loss margin of 10.5%, compared with a $7.8 million loss a year earlier. On a non-GAAP basis, Coursera generated net income of $12.4 million and Adjusted EBITDA of $13.5 million, a 6.9% margin, both down versus Q1 2025. Free Cash Flow declined to $3.0 million.
Gross profit improved 11% to $108.6 million, with gross margin expanding to 55.5%, helped by a new platform fee and greater use of Coursera-produced content. The company ended the quarter with about $790 million in cash and no debt, and 205 million total registered learners.
Coursera reaffirmed full-year 2026 guidance for revenue between $805 million and $815 million and Adjusted EBITDA between $70 million and $76 million, targeting an annual Adjusted EBITDA margin of roughly 9%. It also highlighted progress toward its planned all-stock merger with Udemy, which has shareholder approval and is expected to deliver about $115 million in annual run-rate cost synergies within 24 months of closing.
Positive
- Revenue and gross margin expansion: Q1 2026 revenue rose 9% year over year to $195.7 million, driven by 10% Consumer growth, while GAAP gross margin improved 90 bps to 55.5%, supported by a new platform fee and increased engagement with Coursera-produced content.
- Strong balance sheet and reaffirmed outlook: Coursera ended March 31, 2026 with approximately $790 million of cash and cash equivalents and no debt, and reaffirmed full-year 2026 guidance for $805–$815 million in revenue and $70–$76 million in Adjusted EBITDA, targeting about a 9% margin.
- Udemy merger and cost synergy plan: The planned all-stock combination with Udemy, approved by both sets of shareholders, is expected to deliver about $115 million of annual run-rate cost synergies within 24 months of closing, primarily from go-to-market and G&A efficiencies.
Negative
- Wider net loss and lower profitability: GAAP net loss increased to $20.5 million from $7.8 million a year earlier, and Adjusted EBITDA fell to $13.5 million, reducing the Adjusted EBITDA margin from 10.4% to 6.9%, reflecting higher operating expenses and transaction-related costs.
- Free cash flow compression: Free Cash Flow for Q1 2026 declined sharply to $3.0 million from $25.3 million in the prior-year quarter, with net cash provided by operating activities down 56% to $14.6 million, including $11.1 million of M&A transaction-related cash payments.
Insights
Solid top-line growth and margin expansion, but profitability and cash flow stepped back as Coursera invests and preps for Udemy merger.
Coursera grew Q1 2026 revenue 9% to $195.7 million, with Consumer up 10% and Enterprise up 7%. GAAP gross margin expanded 90 bps to 55.5%, helped by a new platform fee and more Coursera-produced content, showing improving unit economics.
However, GAAP net loss widened to $20.5 million and Adjusted EBITDA fell to $13.5 million, a 6.9% margin versus 10.4% a year earlier. Free Cash Flow dropped to $3.0 million, partly reflecting $11.1 million of merger-related cash costs, indicating near-term pressure from deal and integration spending.
The company reaffirmed 2026 revenue guidance of $805–$815 million and Adjusted EBITDA of $70–$76 million, targeting about 9% margin, suggesting confidence in its plan. The planned all-stock combination with Udemy aims for $115 million of annual run-rate cost synergies within 24 months of closing, but actual benefits will depend on regulatory timing, integration execution, and managing any revenue dis-synergies.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 revenue: $195.7 million
Q1 2026 GAAP net loss: $20.5 million
Q1 2026 Adjusted EBITDA: $13.5 million
+5 more
8 metrics
Q1 2026 revenue
$195.7 million
Up 9% year over year for the quarter ended March 31, 2026
Q1 2026 GAAP net loss
$20.5 million
Net loss margin of 10.5% in Q1 2026, wider than prior year
Q1 2026 Adjusted EBITDA
$13.5 million
Adjusted EBITDA margin 6.9% versus 10.4% in Q1 2025
Q1 2026 Free Cash Flow
$3.0 million
Down from $25.3 million in the three months ended March 31, 2025
Cash and cash equivalents
$790 million
Unrestricted cash and cash equivalents as of March 31, 2026, with no debt
2026 revenue guidance
$805–$815 million
Reaffirmed full-year 2026 outlook, implying 6–8% year-over-year growth
2026 Adjusted EBITDA guidance
$70–$76 million
Targets approximately 9% Adjusted EBITDA margin for full year 2026
Planned Udemy cost synergies
$115 million
Expected annual run-rate cost synergies within 24 months of closing
Key Terms
Adjusted EBITDA, Free Cash Flow, Net Retention Rate, all-stock transaction, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $13.5 million, or 6.9% of revenue."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"Free Cash Flow for Q1 2026 declined sharply to $3.0 million from $25.3 million."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Net Retention Rate financial
"Net Retention Rate for Paid Enterprise Customers was 90% for the three months ended March 31, 2026."
Net retention rate measures how much revenue a company keeps and grows from its existing customers over a set period, after accounting for expansions, contractions and lost customers. Think of it like checking whether a garden of existing plants is producing more fruit this year than last — it shows whether the current customer base is becoming more valuable or shrinking. Investors use it to judge revenue sustainability and growth potential without relying on new customers.
all-stock transaction financial
"Coursera will combine with Udemy in an all-stock transaction."
An all-stock transaction is a deal where one company acquires another using only its own shares instead of cash or other assets. For investors, this means exchanging ownership stakes rather than cash, which can affect the value and control of the companies involved. It often signals a focus on growth and can influence the stock prices of both companies.
annual run-rate cost synergies financial
"We are highly confident in our ability to realize approximately $115 million of annual run-rate cost synergies within 24 months of closing."
Earnings Snapshot
Revenue: $195.7 million · Guidance included
Q1 2026
Revenue
$195.7 million
+9% YoY
GAAP net loss
$20.5 million
-163% YoY
Adjusted EBITDA
$13.5 million
-28% YoY
Guidance
For full year 2026, Coursera expects revenue of $805–$815 million and Adjusted EBITDA of $70–$76 million, targeting an annual Adjusted EBITDA margin of about 9% at the midpoint.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________________________
FORM 8-K
__________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 23, 2026
__________________________________________________
(Exact name of Registrant as Specified in Its Charter)
__________________________________________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s Telephone Number, Including Area Code: (650 ) 963-9884
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
__________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On April 23, 2026, Coursera, Inc. (the “Company,” “we,” “us,” or “our”) issued a press release and shareholder letter announcing its financial results for the quarter ended March 31, 2026. The press release and shareholder letter are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K.
The information under Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in Exhibits 99.1 and 99.2 shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
| Exhibit Number | Description | ||||||||||
| 99.1 | Press release announcing Coursera’s first quarter 2026 financial results | ||||||||||
| 99.2 | Shareholder letter, dated April 23, 2026 | ||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| COURSERA, INC. | |||||||||||
| Date: | April 23, 2026 | By: | /s/ Michael Foley | ||||||||
Michael Foley Senior Vice President, Chief Financial Officer, and Treasurer | |||||||||||
Earnings Release Q1 2026 | Exhibit 99.1 | ||||
Coursera Reports First Quarter 2026 Financial Results
•Delivered first quarter revenue of $196 million, up 9% year-over-year
•Grew Consumer segment revenue by 10% year-over-year, the fourth consecutive quarter of double-digit growth
•Added a first quarter record of 7.6 million new registered learners, bringing cumulative total registered learners to 205 million
•Reaffirmed full year 2026 revenue outlook range of $805 to $815 million
MOUNTAIN VIEW, Calif. (BUSINESS WIRE) – Coursera, Inc. (NYSE: COUR), a leading global online learning platform, today announced financial results for its first quarter ended March 31, 2026. A shareholder letter containing additional discussion of the Company’s performance and outlook has been posted to the Investor Relations website at investor.coursera.com.
“Coursera delivered a strong start to 2026, including our fourth consecutive quarter of double-digit year-over-year Consumer revenue growth and a first quarter record of 7.6 million new registered learners. We have now surpassed more than 200 million cumulative learners, giving us both broad scale and deep insight into how the world learns and the skills employers value at a pivotal moment for global labor markets,” said Coursera CEO Greg Hart. “As we execute against our 2026 growth priorities and reaffirm our full year outlook, we are moving quickly on integration planning for our expected combination with Udemy. We see a significant opportunity to build a more comprehensive and adaptive skills platform designed for the AI era.”
Key Financial Results
| ($ millions, except per share data, unaudited) | Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | YoY Change | |||||||||||||||
| GAAP Financial Measures | |||||||||||||||||
| Revenue | $ | 195.7 | $ | 179.3 | 9 | % | |||||||||||
| Gross profit | $ | 108.6 | $ | 97.9 | 11 | % | |||||||||||
| Gross profit margin | 55.5 | % | 54.6 | % | 90 bps | ||||||||||||
| Net loss | $ | (20.5) | $ | (7.8) | (163) | % | |||||||||||
| Net loss per share | $ | (0.12) | $ | (0.05) | (150) | % | |||||||||||
| Net loss margin | (10.5) | % | (4.4) | % | (610) bps | ||||||||||||
Net cash provided by operating activities(1) | $ | 14.6 | $ | 33.5 | (56) | % | |||||||||||
| Non-GAAP Financial Measures | |||||||||||||||||
| Gross profit | $ | 110.8 | $ | 100.1 | 11 | % | |||||||||||
| Gross profit margin | 56.6 | % | 55.8 | % | 80 bps | ||||||||||||
| Net income | $ | 12.4 | $ | 19.7 | (37) | % | |||||||||||
| Net income per share | $ | 0.07 | $ | 0.12 | (42) | % | |||||||||||
| Adjusted EBITDA | $ | 13.5 | $ | 18.7 | (28) | % | |||||||||||
| Adjusted EBITDA Margin | 6.9 | % | 10.4 | % | (350) bps | ||||||||||||
Free Cash Flow(1) | $ | 3.0 | $ | 25.3 | (88) | % | |||||||||||
(1) Net cash provided by operating activities includes restructuring related cash payments made during the three months ended March 31, 2026 and 2025 of $0 and $5.2 million and cash payments of M&A transaction costs of $11.1 million and $0.
For more information regarding the non-GAAP financial measures discussed in this press release, please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
1
Earnings Release Q1 2026 | |||||
Segment Results
| ($ millions, unaudited) | Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | YoY Change | |||||||||||||||
| Consumer revenue | $ | 129.5 | $ | 117.6 | 10 | % | |||||||||||
| Consumer gross profit | $ | 81.8 | $ | 72.4 | 13 | % | |||||||||||
| Consumer gross profit margin | 63.2 | % | 61.6 | % | 160 bps | ||||||||||||
| Enterprise revenue | $ | 66.2 | $ | 61.7 | 7 | % | |||||||||||
| Enterprise gross profit | $ | 46.9 | $ | 43.2 | 9 | % | |||||||||||
| Enterprise gross profit margin | 70.8 | % | 70.0 | % | 80 bps | ||||||||||||
Key Business Metrics | |||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | YoY Change | |||||||||||||||
New Registered Learners (in millions) | 7.6 | 7.1 | |||||||||||||||
| Net Retention Rate for Paid Enterprise Customers | 90 | % | 91 | % | (1) | % | |||||||||||
| March 31, | |||||||||||||||||
| 2026 | 2025 | YoY Change | |||||||||||||||
Total Registered Learners (in millions) | 205 | 175 | 17 | % | |||||||||||||
| Paid Enterprise Customers | 1,729 | 1,651 | 5 | % | |||||||||||||
For more information regarding the metrics discussed in this press release, please see “Key Business Metrics Definitions” below.
Financial Outlook
•Provides second quarter 2026:
◦Revenue in the range of $196 to $200 million
◦Adjusted EBITDA in the range of $12 to $16 million
•Reaffirms full year 2026:
◦Revenue in the range of $805 to $815 million
◦Adjusted EBITDA in the range of $70 to $76 million, representing an annual Adjusted EBITDA Margin target of approximately 9.0% at the midpoint of the full year ranges
Actual results may differ materially from Coursera’s Financial Outlook as a result of, among other things, the factors described under “Special Note on Forward-Looking Statements” below.
A reconciliation of our non-GAAP guidance measure (Adjusted EBITDA) to the corresponding GAAP guidance measure is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this press release.
Conference Call Details
As previously announced, Coursera will hold a conference call to discuss its first quarter 2026 performance today, April 23, 2026, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
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Earnings Release Q1 2026 | |||||
A live, audio-only webcast of the conference call and earnings release materials will be available to the public on our investor relations page at investor.coursera.com. For those unable to listen to the broadcast live, an archived replay will be accessible in the same location for one year.
Transaction with Udemy
On December 17, 2025, Coursera and Udemy, Inc. (NASDAQ: UDMY) entered into a definitive merger agreement pursuant to which Coursera will combine with Udemy in an all-stock transaction. The transaction has been unanimously approved by the Boards of Directors of both Coursera and Udemy.
On April 9, 2026, the transaction was approved by Coursera and Udemy stockholders. The companies are advancing through the remaining regulatory approval processes and customary closing conditions.
Disclosure Information
In compliance with disclosure obligations under Regulation FD, Coursera announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission (“SEC”), press releases, company blog posts, public conference calls, and webcasts, as well as via Coursera’s investor relations website.
About Coursera
Coursera was launched in 2012 by Andrew Ng and Daphne Koller with a mission to provide universal access to world-class learning. Today, it is one of the largest online learning platforms in the world, with 205 million registered learners as of March 31, 2026. Coursera partners with over 375 leading university and industry partners to offer a broad catalog of content and credentials, including courses, Specializations, Professional Certificates, and degrees. Coursera’s platform innovations — including generative AI-powered features like Coach, Role Play, and Course Builder, and role-based solutions like Skills Tracks — enable instructors, partners, and companies to deliver scalable, personalized, and verified learning. Institutions worldwide rely on Coursera to upskill and reskill their employees, students, and citizens in high-demand fields such as GenAI, data science, technology, and business, while learners globally turn to Coursera to master the skills they need to advance their careers. Coursera is a Delaware public benefit corporation and a B Corp.
Contacts
For investors: Cam Carey, ir@coursera.org
For media: Arunav Sinha, press@coursera.org
# # #
Key Business Metrics Definitions
Registered Learners
We count the total number of registered learners at the end of each period. For purposes of determining our registered learner count, we treat each customer account that registers with a unique email as a registered learner and adjust for any spam, test accounts, and cancellations. Our registered learner count is not intended as a measure of active engagement. New registered learners are individuals that register in a particular period.
Paid Enterprise Customers
We count the total number of Paid Enterprise Customers that are active on our platform at the end of each period. For purposes of determining our customer count, we treat each customer account that has a corresponding contract as a unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers. We define a “Paid Enterprise Customer” as a customer who purchases Coursera via our direct sales force. For purposes of determining our Paid Enterprise Customer count, we exclude our Enterprise customers who do not purchase Coursera via our direct sales force, including organizations engaging on our platform through our Coursera for Teams offering or through our channel partners.
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Earnings Release Q1 2026 | |||||
Net Retention Rate (“NRR”) for Paid Enterprise Customers
We calculate annual recurring revenue (“ARR”) by annualizing each customer’s monthly recurring revenue (“MRR”) for the most recent month at period end. We calculate “Net Retention Rate” for a period by starting with the ARR from all Paid Enterprise Customers as of the 12 months prior to such period end, or Prior Period ARR. We then calculate the ARR from these same Paid Enterprise Customers as of the current period end, or “Current Period ARR.” Current Period ARR includes expansion within Paid Enterprise Customers and is net of contraction or attrition over the trailing 12 months but excludes revenue from new Paid Enterprise Customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at our Net Retention Rate for Paid Enterprise Customers.
Non-GAAP Financial Measures
In addition to financial information presented in accordance with GAAP, this press release includes non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP net income, non-GAAP net income per share, Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow, each of which is a non-GAAP financial measure. These are key measures used by our management to help us analyze our financial results, establish budgets and operational goals for managing our business, evaluate our performance, and make strategic decisions. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, we believe these measures are useful for period-to-period comparisons of our business. We also believe that the presentation of these non-GAAP financial measures provides an additional tool for investors to use in comparing our core business and results of operations over multiple periods with other companies in our industry, many of which present similar non-GAAP financial measures to investors, and to analyze our cash performance. However, the non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. These non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered as a substitute for or in isolation from financial information presented in accordance with GAAP. These non-GAAP financial measures have limitations as analytical tools.
Non-GAAP Gross Profit, Non-GAAP Gross Profit Margin, Non-GAAP Net Income, and Non-GAAP Net Income Per Share
We define non-GAAP gross profit and non-GAAP net income as GAAP gross profit and GAAP net loss excluding: (1) stock-based compensation expense; (2) amortization of stock-based compensation expense capitalized as internal-use software costs; (3) payroll tax expense related to stock-based compensation; (4) merger and acquisition (“M&A”) related transaction costs; (5) integration related costs; (6) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries; and (7) restructuring related charges. Non-GAAP gross profit margin reflects non-GAAP gross profit as a percentage of revenue. Non-GAAP net income per share is calculated by dividing non-GAAP net income by the diluted weighted average shares of common stock outstanding.
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as our GAAP net loss excluding: (1) depreciation and amortization; (2) interest income, net; (3) income tax expense; (4) other expense (income), net; (5) stock-based compensation expense; (6) payroll tax expense related to stock-based compensation; (7) M&A related transaction costs; (8) integration related costs; (9) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries; and (10) restructuring related charges. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.
Free Cash Flow
We define Free Cash Flow as net cash provided by operating activities, less capitalized internal-use software costs, purchases of content assets, and purchases of property, equipment, and software as we consider these capital expenditures necessary to support our ongoing operations.
We believe the presentation of these adjusted operating results provides useful supplemental information to investors and facilitates the analysis and comparison of our operating results across reporting periods.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix.
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Earnings Release Q1 2026 | |||||
Special Note on Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. Any statements contained in this press release that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as: “accelerate,” “anticipate,” “believe,” “can,” “continue,” “could,” “demand,” “design,” “estimate,” “expand,” “expect,” “intend,” “may,” “might,” “mission,” “need,” “objective,” “ongoing,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. These forward-looking statements include, but are not limited to, statements regarding the proposed combination with Udemy, including the expected timing and benefits of such business combination and the outlook for Coursera’s and Udemy’s results of operations and financial condition (including potential synergies) following the business combination; the expansion of our market opportunity; the global demand to embrace new skills; our progress in our growth initiatives; the opportunity to build a more comprehensive and adaptive skills platform designed for the AI era; our commitment to creating more personalized, engaging, and AI-native learning experiences; our initiatives to strengthen our position as a trusted source for verified learning; our mission to provide universal access to world-class learning; the demand for online learning; the strength of our customer and content creator relationships; the demand from learners to use our offerings to master career advancing skills; anticipated features and benefits of our offerings; the anticipated utility of our non-GAAP financial measures; anticipated growth rates; and our financial outlook, future financial and operational performance, and expectations, including our financial outlook for the second quarter of 2026 and full year 2026, among others. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: our ability to attract, engage, and retain learners; our ability to increase sales of our offerings; our limited operating history; the relative nascency of online learning solutions and generative AI; risks related to market acceptance and demand for our offerings; our ability to maintain and expand our existing content creator relationships and to develop new partnerships with universities, industry leaders, and subject matter experts; our dependence on the supply of content created by our partners; risks related to our AI innovations and AI generally; risks related to the business combination, including the effect of the announcement of the business combination on the ability of Coursera or Udemy to retain and hire key personnel and maintain relationships with customers, vendors and others with whom Coursera or Udemy do business, or on Coursera’s or Udemy’s operating results and business generally; risks that the business combination disrupts current plans and operations and the potential difficulties in attracting and retaining qualified personnel as a result of the business combination; the outcome of any legal proceedings related to the business combination; the ability of the parties to consummate the proposed transaction on a timely basis or at all; the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory approvals on the terms expected, at all or in a timely manner; the ability to successfully integrate Coursera’s and Udemy’s operations and business on a timely basis or otherwise in accordance with the standards and obligations applicable to the combined company as a public benefit corporation and as a B Corp.; Coursera’s and Udemy’s ability to implement our plans, forecasts and other expectations with respect to the combined company’s business after the completion of the transaction and realize expected synergies and other benefits of the combination within the expected timeframe or at all; the amount of the costs, fees, expenses and charges related to the proposed combination; fluctuations in the prices of Coursera or Udemy stock; potential business disruptions following the business combination; our ability to compete effectively; adverse impacts on our business and financial condition due to macroeconomic or market conditions; our ability to manage our growth; regulatory and/or policy matters or changes impacting us or our content creators; risks related to intellectual property; cybersecurity and privacy risks and regulations; potential disruptions to our platform; risks related to operations, regulatory, economic, and geopolitical conditions; current and future legal and regulatory matters; the impact of actions to improve operational efficiencies and operating costs; our history of net losses and ability to achieve or sustain profitability; natural disasters, public health crises, or other catastrophic events; and our status as a certified B Corp, as well as the risks and uncertainties discussed in our most recently filed annual and quarterly reports on Forms 10-K and 10-Q and subsequent filings and as detailed from time to time in our SEC filings. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Such forward-looking statements relate only to events as of the date of this press release. We undertake no obligation to update any forward-looking statements except to the extent required by law.
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Earnings Release Q1 2026 | |||||
Coursera Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except per share amounts)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | $ | 195.7 | $ | 179.3 | |||||||
Cost of revenue(2) | 87.1 | 81.4 | |||||||||
| Gross profit | 108.6 | 97.9 | |||||||||
| Operating expenses: | |||||||||||
Research and development(2) | 31.3 | 29.5 | |||||||||
Sales and marketing(2) | 69.3 | 56.8 | |||||||||
General and administrative(1)(2) | 33.3 | 26.9 | |||||||||
Restructuring related charges(2) | — | (0.9) | |||||||||
| Total operating expenses | 133.9 | 112.3 | |||||||||
| Loss from operations | (25.3) | (14.4) | |||||||||
| Other income, net: | |||||||||||
| Interest income, net | 7.1 | 7.8 | |||||||||
| Other (expense) income, net | (0.9) | 0.3 | |||||||||
| Loss before income taxes | (19.1) | (6.3) | |||||||||
| Income tax expense | 1.4 | 1.5 | |||||||||
| Net loss | $ | (20.5) | $ | (7.8) | |||||||
| Net loss per share—basic and diluted | $ | (0.12) | $ | (0.05) | |||||||
| Weighted average shares used in computing net loss per share—basic and diluted | 168.7 | 160.7 | |||||||||
(1)Includes $6.2 million of merger and acquisition related transaction costs and $3.8 million of integration related costs recorded in the three months ended March 31, 2026.
(2)Includes stock-based compensation expense as follows:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cost of revenue | $ | 0.6 | $ | 0.7 | |||||||
| Research and development | 7.6 | 8.6 | |||||||||
| Sales and marketing | 4.9 | 4.9 | |||||||||
| General and administrative | 7.2 | 11.6 | |||||||||
| Restructuring related charges | — | (1.6) | |||||||||
| Total stock-based compensation expense | $ | 20.3 | $ | 24.2 | |||||||
6
Earnings Release Q1 2026 | |||||
Coursera Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 789.8 | $ | 792.6 | |||||||
| Accounts receivable, net | 60.0 | 65.4 | |||||||||
| Deferred costs, net | 19.0 | 19.6 | |||||||||
| Prepaid expenses and other current assets | 24.6 | 20.5 | |||||||||
| Total current assets | 893.4 | 898.1 | |||||||||
| Property, equipment, and software, net | 45.5 | 43.4 | |||||||||
| Intangible assets, net | 30.9 | 27.1 | |||||||||
| Other assets | 30.7 | 31.4 | |||||||||
| Total assets | $ | 1,000.5 | $ | 1,000.0 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Content liabilities | $ | 98.3 | $ | 100.0 | |||||||
| Other accounts payable and accrued expenses | 31.0 | 29.8 | |||||||||
| Accrued compensation and benefits | 21.4 | 36.7 | |||||||||
| Deferred revenue, current | 200.1 | 180.9 | |||||||||
| Other current liabilities | 11.6 | 10.5 | |||||||||
| Total current liabilities | 362.4 | 357.9 | |||||||||
| Deferred revenue, non-current | 1.5 | 1.4 | |||||||||
| Other liabilities | 4.8 | 5.0 | |||||||||
| Total liabilities | 368.7 | 364.3 | |||||||||
| Stockholders’ equity: | |||||||||||
| Additional paid-in capital | 1,563.5 | 1,546.9 | |||||||||
| Accumulated deficit | (931.7) | (911.2) | |||||||||
| Total stockholders’ equity | 631.8 | 635.7 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,000.5 | $ | 1,000.0 | |||||||
7
Earnings Release Q1 2026 | |||||
Coursera Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (20.5) | $ | (7.8) | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 7.5 | 7.1 | |||||||||
| Stock-based compensation expense | 20.3 | 24.2 | |||||||||
| Other | 0.5 | 0.1 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | 5.4 | (0.1) | |||||||||
| Prepaid expenses and other assets | (3.0) | 1.0 | |||||||||
| Accounts payable and accrued expenses | (0.7) | (4.2) | |||||||||
| Accrued compensation and other liabilities | (14.2) | (12.4) | |||||||||
| Deferred revenue | 19.3 | 25.6 | |||||||||
| Net cash provided by operating activities | 14.6 | 33.5 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of content assets | (5.8) | (4.1) | |||||||||
| Capitalized internal-use software costs | (5.6) | (3.6) | |||||||||
| Purchases of property, equipment, and software | (0.2) | (0.5) | |||||||||
| Net cash used in investing activities | (11.6) | (8.2) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from exercise of stock options | 0.2 | 1.2 | |||||||||
| Payments for tax withholding on vesting of restricted stock units | (5.9) | (6.2) | |||||||||
| Net cash used in financing activities | (5.7) | (5.0) | |||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | (2.7) | 20.3 | |||||||||
| Cash, cash equivalents, and restricted cash—beginning of period | 793.4 | 728.4 | |||||||||
| Cash, cash equivalents, and restricted cash—end of period | $ | 790.7 | $ | 748.7 | |||||||
8
Earnings Release Q1 2026 | |||||
Coursera Inc.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)
(Dollars in millions, except per share amounts)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Gross profit | $ | 108.6 | $ | 97.9 | |||||||
| Stock-based compensation expense | 0.6 | 0.7 | |||||||||
| Amortization of stock-based compensation capitalized as internal-use software costs | 1.6 | 1.5 | |||||||||
| Non-GAAP gross profit | $ | 110.8 | $ | 100.1 | |||||||
| Gross profit margin | 55.5 | % | 54.6 | % | |||||||
| Non-GAAP gross profit margin | 56.6 | % | 55.8 | % | |||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net loss | $ | (20.5) | $ | (7.8) | |||||||
| Stock-based compensation expense | 20.3 | 25.8 | |||||||||
| Amortization of stock-based compensation capitalized as internal-use software costs | 1.6 | 1.5 | |||||||||
| Payroll tax expense related to stock-based compensation | 0.7 | 0.9 | |||||||||
| M&A related transaction costs | 6.2 | — | |||||||||
| Integration related costs | 3.8 | — | |||||||||
| Significant and non-recurring legal and regulatory matters | 0.3 | 0.2 | |||||||||
| Restructuring related charges | — | (0.9) | |||||||||
| Non-GAAP net income | $ | 12.4 | $ | 19.7 | |||||||
| Weighted-average shares used in computing net loss per share—basic | 168.7 | 160.7 | |||||||||
| Effect of dilutive securities | 1.5 | 4.0 | |||||||||
| Weighted-average shares used in computing non-GAAP net income per share—diluted | 170.2 | 164.7 | |||||||||
| Net loss per share—basic and diluted | $ | (0.12) | $ | (0.05) | |||||||
| Non-GAAP net income per share—diluted | $ | 0.07 | $ | 0.12 | |||||||
9
Earnings Release Q1 2026 | |||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net loss | $ | (20.5) | $ | (7.8) | |||||||
| Depreciation and amortization | 7.5 | 7.1 | |||||||||
| Interest income, net | (7.1) | (7.8) | |||||||||
| Income tax expense | 1.4 | 1.5 | |||||||||
| Other expense (income), net | 0.9 | (0.3) | |||||||||
| Stock-based compensation expense | 20.3 | 25.8 | |||||||||
| Payroll tax expense related to stock-based compensation | 0.7 | 0.9 | |||||||||
| M&A related transaction costs | 6.2 | — | |||||||||
| Integration related costs | 3.8 | — | |||||||||
| Significant and non-recurring legal and regulatory matters | 0.3 | 0.2 | |||||||||
| Restructuring related charges | — | (0.9) | |||||||||
| Adjusted EBITDA | $ | 13.5 | $ | 18.7 | |||||||
| Net loss margin | (10.5) | % | (4.4) | % | |||||||
| Adjusted EBITDA Margin | 6.9 | % | 10.4 | % | |||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Net cash provided by operating activities(3) | $ | 14.6 | $ | 33.5 | |||||||
| Less: capitalized internal-use software costs | (5.6) | (3.6) | |||||||||
| Less: purchases of content assets | (5.8) | (4.1) | |||||||||
| Less: purchases of property, equipment, and software | (0.2) | (0.5) | |||||||||
| Free Cash Flow | $ | 3.0 | $ | 25.3 | |||||||
(3) Net cash provided by operating activities includes restructuring related cash payments made during the three months ended March 31, 2026 and 2025 of $0 and $5.2 million and cash payments of M&A transaction costs of $11.1 million and $0.
10
Shareholder Letter Q1 2026
Results Summary Coursera results for the three months ended March 31, 2026. Figures may be rounded for presentation purposes. Segment gross profit is defined as segment revenue less content costs in our unaudited condensed consolidated financial statements. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix. 1. Includes $6.2 million of merger and acquisition related transaction costs and $3.8 million of integration related costs recorded in the three months ended March 31, 2026. 2. Net cash provided by operating activities includes restructuring related cash payments made during the three months ended March 31, 2026 and 2025 of $0 and $5.2 million, respectively, and cash payments of M&A transaction costs of $11.1 million and $0, respectively. Q1 2026 Shareholder Letter 2 Q1 2026 Key Financial Measures Revenue $195.7M ↑ 9% Y/Y Net income (loss) 1 $(20.5)M ↓ (163)% Y/Y (10.5)% Net loss margin, ↓ (610) bps Y/Y Adjusted EBITDA $13.5M ↓ (28)% Y/Y 6.9% Adjusted EBITDA Margin, ↓ (350) bps Y/Y Net cash provided by operating activities 2 $14.6M ↓ (56)% Y/Y Free Cash Flow 2 $3.0M ↓ (88)% Y/Y Operating Segment Performance Consumer revenue $129.5M ↑ 10% Y/Y Consumer gross profit $81.8M ↑ 13% Y/Y 63% gross profit margin, ↑ 160 bps Y/Y Enterprise revenue $66.2M ↑ 7% Y/Y Enterprise gross profit $46.9M ↑ 9% Y/Y 71% gross profit margin, ↑ 80 bps Y/Y
Coursera delivered a strong start to 2026, reflecting continued execution across our core growth priorities. We generated revenue of $195.7 million, up 9% year over year, driven by sustained momentum in our Consumer segment. Consumer revenue grew 10% year over year, marking its fourth consecutive quarter of double-digit growth. Performance was driven by strong adoption of our Coursera Plus subscription offering, as well as the addition of 7.6 million new registered learners, a first quarter record. We delivered this growth while expanding our gross profit margin to the highest level in three years, reflecting stronger unit economics and structural improvements in our business model, driven by the early benefits of the platform fee introduced at the start of the year and increased engagement with Coursera-produced content. Our performance reflects both the strength of our platform and a broader shift in the labor market, as skills requirements continue to evolve rapidly and individuals and organizations increasingly require continuous upskilling. Generative AI remains the clearest example of this shift. Demand for AI courses continued to accelerate, with more than 20 enrollments per minute in Q1, up from 15 in 2025 and 8 in 2024. Our leading partners play an essential role in meeting this demand, including recent launches from Google and Microsoft designed to deliver practical, job-ready skills aligned to evolving workforce needs. At the same time, we are investing in building a more comprehensive and adaptive skills delivery system, combining AI- powered learning experiences, verified assessments, and data-driven insights to deliver more personalized and contextual skills development solutions. This includes the recent launch of the first learning agent built for Microsoft 365 Copilot, bringing Coursera’s content directly into the flow of work to support real-time application of skills. Given our solid execution in Q1, we are reaffirming our full year 2026 guidance. We continue to expect revenue in the range of $805 million to $815 million, with growth driven by our Consumer segment. For Adjusted EBITDA, we are pacing confidently to our annual Adjusted EBITDA Margin target of approximately 9%, expecting to deliver in the range of $70 million to $76 million as we balance operating discipline with targeted investments to support long-term growth.1 Our growth priorities include: As we approach the close of the proposed Udemy transaction, which remains subject to regulatory approval and the satisfaction of other customary closing conditions, we look forward to providing clarity on our integration plans, synergy realization timing, capital allocation priorities, and a consolidated outlook for the combined company. In the meantime, we are focused on delivering new AI-native experiences across our platform, where learning is not only personalized, but increasingly proactive, contextual, and embedded directly into how individuals and organizations operate. We believe our planned combination with Udemy will further accelerate this strategy as we evolve beyond a content catalog into a more dynamic system for skills delivery — one that supports the full talent lifecycle, from individual career growth to workforce transformation at scale, positioning us to capture the significant global skilling opportunity ahead. To our shareholders, Q1 2026 Shareholder Letter 3 Coursera results for the three months ended March 31, 2026. Numbers are rounded for presentation purposes. Refer to the Outlook section for a complete discussion of Q2 and full year 2026 guidance. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix. Reconciliations are not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. 1. Outlook reflects Coursera’s financial guidance on a standalone basis and does not include any anticipated impact from the proposed transaction with Udemy. Greg Hart President and Chief Executive Officer Mike Foley Chief Financial Officer
Expansive global reach to Learners & customers 205M Registered Learners ↑ 17% Y/Y 1,729 Paid Enterprise Customers ↑ 5% Y/Y Ecosystem expansion Q1 2026 Shareholder Letter 4 Our growing base of learners and Enterprise customers continues to attract trusted content creators, ranging from world-class universities to industry leaders. These creators are valued by learners for their academic rigor, industry expertise, and real-world relevance. As demand for career-aligned education grows, we believe top universities and industry partners will increasingly view Coursera as a strategic platform to extend their reach and impact. Coursera ecosystem Coursera data as of March 31, 2026. Trusted creators Branded content Global reach Platform innovation Learners come to Coursera to discover and master in- demand skills taught by world-class instructors trusted for their academic rigor, industry expertise, and career relevance Coursera’s platform spans practical skills application to verified, job-relevant credentials, enabling us to serve both upskilling and reskilling use cases Our product offerings attract learners and organizations from around the world, making Coursera one of the largest and most globally distributed learning platforms We continue to make strong progress in developing new products and capabilities that enhance and personalize the learning experience across our unified platform, leveraging advancements in technology as well as the scale advantages of our global reach and data-driven insights Platform Reach + Data + Tech Comprehensive product offerings to deliver Skills development & verification 16,000+ courses World-class ecosystem of Expert instructors 375+ universities and industry leaders
Global reach Coursera’s global scale continues to expand, reaching 205 million cumulative registered learners. This included the addition of 7.6 million new registered learners, a first quarter record. We also grew our Paid Enterprise Customers by 5% year over year, ending the period with 1,729 customers spanning businesses, campuses, and governments. At this scale, the value of our ecosystem extends beyond distribution, creating a compounding data advantage with a broader, more real-time view into how skills are learned, how they evolve, and how organizations develop talent. These insights help fuel a faster, more agile content engine and inform how we build learning experiences and product capabilities to deliver skills aligned with constantly evolving workforce needs. Q1 2026 Shareholder Letter 5 Paid Enterprise Customers % Y/Y change Registered Learners in millions % Y/Y change Coursera data for the periods reported April 1, 2024 through March 31, 2026. Numbers are rounded for presentation purposes and percentages refer to year-over-year change. Refer to the Key Business Metrics page for definitions and more information.
Generative AI skills Generative AI remains the clearest example of how skills demand is rapidly evolving. Our platform offers more than 1,300 AI courses, nearly double from a year ago. Demand for these skills has continued to accelerate, with more than 20 enrollments per minute in Q1, up from 15 last year and 8 in 2024. To meet this demand, we continue to deepen our partnership with technology leaders like Google. In February, Google launched its first AI Professional Certificate on Coursera, expanding an AI portfolio that has already attracted more than 3 million enrollments. This program is designed to build AI proficiency by helping learners apply practical skills in job- relevant workflows and broadening access Google’s latest models and tools. Content engine Coursera content announcements, developments, and figures may include information up to the date of the Q1 2026 earnings report on April 23, 2026. Numbers are rounded for presentation purposes. Content and credential figures reflect catalog counts as of March 31, 2026 and exclude suspended partner content that is not currently discoverable or available on our platform. The number of degrees reflects master’s, bachelor’s, and postgraduate diploma programs with multiple tracks as a single count. Q1 2026 Shareholder Letter 6 Industry micro-credentials As demand for career-aligned education grows, we continue to expand access to industry-recognized credentials that provide verifiable proof of skills proficiency. Increasingly, these credentials are eligible for academic credit, enhancing their value for learners while providing institutions with a trusted way to integrate industry-aligned content into their curriculum while maintaining academic rigor. A growing selection of our industry micro-credentials are eligible for credit, including more than 50 with recommendations from the American Council on Education (ACE) in the U.S. and over 40 with recognition under the European Credit Transfer and Accumulation System (ECTS). In March, we tripled the number of certificates aligned to India’s National Skills Qualifications Framework (NSQF) to 30, including top programs from Google, IBM, and Microsoft, further expanding access to skills-first, for-credit learning. Our content engine is built on partnerships with world-class universities and industry leaders, delivering career- relevant learning at global scale. In an environment where content is abundant and increasingly commoditized, learners and organizations are looking for trusted pathways that translate skills into real-world capability. As skills requirements continue to evolve rapidly, this creates a growing need for continuous upskilling and more effective ways to develop and validate skills aligned with the future needs of the workforce. We remain focused on building a faster, more agile content engine and expanding our partnerships. We are also equipping our content creators with new authoring capabilities that deliver more personalized, interactive, and contextual learning experiences to ensure skills development on Coursera remains closely aligned with the global labor market. These experiences enable learners to build practical skills and earn industry-recognized credentials that deliver career outcomes, while helping organizations assess and transform their workforce at scale.
Platform innovation Coursera product announcements, developments, and figures may include information up to the date of the Q1 2026 earnings report on April 23, 2026. Q1 2026 Shareholder Letter 7 We believe our next phase of growth will be driven by product innovation. Our global scale provides a unique view into how skills are learned, how they evolve, and how organizations develop talent, enabling us to build more adaptive and contextual learning experiences. In 2026, we are focused on translating these insights into differentiated product experiences that improve how learners and organizations discover, assess, and verify skills proficiency, spanning just-in-time skills in the flow of work to trusted, verified credentials. Skills demand is evolving rapidly as AI reshapes how work gets done and the requirements of nearly every role, yet adoption within organizations remains uneven. We believe closing the gap between AI capability and application requires more adaptive, contextual learning experiences built on an enterprise-grade, AI-native platform that can help diagnose skills gaps, deliver personalized guidance, and accelerate workforce readiness at scale. Our product efforts are focused on strengthening engagement, improving career and workforce outcomes, and creating more valuable customer experiences that can drive durable, long-term growth for our business. Learning in the Flow of Work Role Play We are embedding learning directly into the tools and workflows where work takes place. In Q1, we launched the first learning agent built for Microsoft 365 Copilot, bringing Coursera’s content into the applications employees use every day. As users build models, prepare presentations, or design AI-powered workflows, the agent surfaces relevant learning in real time, enabling skills development in the context of day- to-day work and accelerating time to proficiency through immediate application. As organizations seek to better align learning with business outcomes, we are also investing in deeper enterprise integrations that connect skills development to systems of record for talent, performance, and workforce planning. These efforts move us toward a more connected skills infrastructure, enabling organizations to better understand skill gaps, personalize development pathways, and measure the impact of workforce skilling investments at scale. We continue to expand how learners build and apply skills through more interactive and immersive learning experiences. We recently launched the next iteration of our Role Play experience, introducing real-time, voice- to-voice simulations that allow learners to practice course concepts in realistic scenarios using a more natural format. These experiences provide immediate, actionable feedback and enable learners to apply skills in context across a wide range of use cases. Role Play builds on a broader foundation of AI-powered features across tutoring, authoring, and translation. As we continue to invest in product innovation, we are accelerating our transition from AI-enabled features to more fully AI-native experiences, where learning is increasingly personalized, proactive, and embedded directly into how individuals and organizations operate.
Learning Agent for Microsoft 365 Copilot Embedding learning directly into the flow of work Q1 2026 Shareholder Letter 8 Coursera product announcements, developments, and figures may include information up to the date of the Q1 2026 earnings report on April 23, 2026. Product spotlight
Revenue Revenue was $195.7 million, up 9% year over year. Growth was driven by sustained momentum in our Consumer segment, which increased 10% year over year and delivered its fourth consecutive quarter of double-digit growth. Consumer results continue to be fueled by strong adoption of our Coursera Plus subscription offering. Enterprise revenue increased 7% year over year, reflecting a mixed demand environment across customer segments, regions, and use cases. Given our solid execution in the first quarter, we are reaffirming our full year 2026 revenue outlook. Q1 2026 financial results Q1 2026 Shareholder Letter 9 $195.7M Revenue ↑ 9% Y/Y $(20.5)M 1 Net loss ↓ (12.7)M Y/Y 1 (10.5)% Net loss margin 1 ↓(610) bps Y/Y 1 $13.5M Adjusted EBITDA ↓ (28)% Y/Y 6.9% Adjusted EBITDA Margin ↓ (350) bps Y/Y $14.6M 2 Net cash provided by operating activities ↓ (56)% Y/Y 2 $3.0M 2 Free Cash Flow ↓ (88)% Y/Y 2 Coursera results for the periods reported April 1, 2024 through March 31, 2026. Percentages refer to year-over-year change, and figures may be rounded for presentation purposes. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix. 1. Includes $6.2 million of merger and acquisition related transaction costs and $3.8 million of integration related costs recorded in the three months ended March 31, 2026. 2. Net cash provided by operating activities includes restructuring related cash payments made during the three months ended March 31, 2026 and 2025 of $0 and $5.2 million, respectively, and cash payments of M&A transaction costs of $11.1 million and $0, respectively. Consumer segment $ Enterprise segment $ in millions % Y/Y change
Q1 2026 Shareholder Letter 10 Gross profit GAAP gross profit was $108.6 million, up 11% year over year. This represented a 55.5% gross profit margin, up 90 basis points from the prior year period. Non-GAAP gross profit was $110.8 million, up 11% year over year. This represented a non-GAAP gross profit margin of 56.6%, up 80 basis points year over year. This marked the highest gross margin in three years, despite faster growth in our Consumer segment relative to our higher margin Enterprise segment. This structural expansion reflects continued improvements in our Consumer and Enterprise segment margin rates, driven by two initiatives. First, the early benefits from the platform fee introduced at the start of 2026, which is beginning to impact Consumer margin and will gradually ramp as new sales are recognized. Second, higher engagement with Coursera- produced content, which carries more favorable economics. Operating expenses GAAP operating expenses were $133.9 million, or 68.4% of revenue, up 570 basis points year over year.1 Non-GAAP operating expenses were $103.2 million, or 52.7% of revenue, consistent with our plan to invest early in the year to expand our product, data, and go-to-market capabilities. Even as we made these investments, we remained disciplined, focusing resources on areas that support long-term profitable growth. Coursera results for the three months ended March 31, 2026 and 2025. Percentages refer to year-over-year change, unless otherwise specified, and figures may be rounded for presentation purposes. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix. 1. Includes restructuring expense of approximately 1% of revenue recorded in the three months ended March 31, 2025. 2. Includes $6.2 million of M&A related transaction costs and $3.8 million of integration related costs recorded in the three months ended March 31, 2026. Research and development Sales and marketing General and administrative % of revenue Gross profit margin % Gross profit $ in millions % Y/Y change GAAP Non-GAAP GAAP Non-GAAP 21
Net income (loss) GAAP net loss was $(20.5) million, or (10.5)% of revenue, inclusive of M&A related transaction costs, as well as integration related costs recorded during the quarter.2 Non-GAAP net income was $12.4 million, or 6.3% of revenue, reflecting our continued focus on disciplined expense management as we invest in product, data, and go-to-market capabilities to support long-term profitable growth. Q1 2026 Shareholder Letter 11 Coursera results for the periods reported April 1, 2024 through March 31, 2026. Percentages refer to year-over-year change, unless otherwise specified, and figures may be rounded for presentation purposes. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix. 1. Includes $11.9 million of M&A related transaction costs recorded in the three months ended December 31, 2025. 2. Includes $6.2 million of M&A related transaction costs and $3.8 million of integration related costs recorded in the three months ended March 31, 2026. Adjusted EBITDA Adjusted EBITDA was $13.5 million, or 6.9% of revenue. Our 2026 plan builds on last year’s bottom-line improvement, balancing growth investments with consistent annual expansion. First quarter performance was in line with our expectations and keeps us on track to achieve our full year Adjusted EBITDA Margin target of approximately 9%. We manage the business to a full year Adjusted EBITDA Margin framework, rather than optimizing for any single quarter. This approach allows us to balance operating discipline with targeted investments in our most productive growth opportunities, while supporting consistent margin expansion over time. GAAP net loss $ GAAP net loss margin % in millions Adjusted EBITDA $ Adjusted EBITDA Margin % in millions 1 2
Cash flow and balance sheet Net cash provided by operating activities was $14.6 million, and we generated $3.0 million in Free Cash Flow. In Q1, we recognized $(11.1) million of cash payments related to one-time M&A transaction costs. Excluding these transaction- related costs, the performance was consistent with our expectation for Free Cash Flow to largely track with Adjusted EBITDA over time and better reflects the underlying earnings and cash generation potential of the business. Additionally, our Free Cash Flow included $(5.8) million in purchases of content assets, which are treated similarly to other forms of capital expenditures. Q1 2026 Shareholder Letter 12 Coursera results for the periods reported April 1, 2024 through March 31, 2026. Information presented for cash and cash equivalents is as of period end. Figures may be rounded for presentation purposes. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix. 1. The three months ended June 30, 2024 includes $3.2 million in cash payments for M&A related transaction costs. 2. The three months ended December 31, 2025 includes $3.8 million in cash payments for M&A related transaction costs, as well as a $4.7 million of catch-up payments to a content creator partner. 3. The three months ended March 31, 2026 includes $11.1 million in cash payments for M&A related transaction costs. As of March 31, 2026, we had approximately $790 million of unrestricted cash and cash equivalents, with no debt. This strong financial position provides us with the flexibility to invest in growth, remain agile in a dynamic environment, and explore opportunities to create greater returns for our shareholders. As discussed previously, this includes the anticipated announcement of a share repurchase program following the close of the proposed transaction with Udemy, including authorization by the Board of Directors post-close. This is one of several proposed actions, including our efforts to manage dilution, that underscore the value we place on shareholder equity and our confidence in the long-term value creation opportunity ahead. Cash and cash equivalents $ Net cash provided by operating activities $ Free Cash Flow $ in millions 1 2 3
Coursera delivers skills development solutions for individuals and organizations through a unified platform that combines trusted credentials, data-driven insights, and AI-powered learning experiences. As skills requirements continue to evolve rapidly, individuals and organizations increasingly require continuous upskilling to remain competitive in a dynamic labor market. Our platform is designed to translate learning into measurable career and business outcomes, by enabling individuals to build and verify skills and helping organizations develop workforce capabilities at scale. We report our results in two operating segments: Consumer and Enterprise. Operating segments Q1 2026 Shareholder Letter 13 Consumer Enterprise $129.5M Revenue ↑ 10% Y/Y $66.2M Revenue ↑ 7% Y/Y $81.8M Segment gross profit ↑ 13% Y/Y $46.9M Segment gross profit ↑ 9% Y/Y 63.2% Segment gross profit margin ↑ 160 bps Y/Y 70.8% Segment gross profit margin ↑ 80 bps Y/Y 7.6M New Registered Learners ↑ from 7.1M in Q1’25 90% Net Retention Rate (“NRR”) ↓(300) bps Q/Q 205M Total Registered Learners ↑ 17% Y/Y 1,729 Paid Enterprise Customers ↑ 5% Y/Y Coursera results for the three months ended and as of March 31, 2026. Figures may be rounded for presentation purposes. Segment gross profit is defined as segment revenue less content costs in our unaudited condensed consolidated financial statements. Refer to the Key Business Metrics page for definitions and more information.
Q1 2026 Shareholder Letter 14 Enterprise performance Enterprise revenue of $66.2 million was up 7% year over year, reflecting a mixed demand environment across customer segments, regions, and use cases. Growth was driven by our Campus vertical and a meaningful contribution from a large Government expansion. Segment gross profit was $46.9 million, up 9% year over year. This represented a 70.8% gross profit margin, an improvement of 80 basis points year over year and consistent with the engagement trends and structural improvements benefiting our Consumer segment. Consumer performance Consumer revenue of $129.5 million increased 10% year over year, marking our fourth consecutive quarter of double-digit growth. Performance was driven by sustained momentum in our Coursera Plus subscription offering, as well as 7.6 million new registered learners, a first quarter record. Segment gross profit was $81.8 million, up 13% year over year. This represented a 63.2% gross profit margin, up 160 basis points from the prior year. The margin expansion reflects the early benefits from the platform fee introduced at the start of the year, as well as increased learner engagement with Coursera-produced content, which carries more favorable economics. Coursera results for the periods reported April 1, 2024 through March 31, 2026. Percentages refer to year-over-year change. Numbers are rounded for presentation purposes. Segment gross profit is defined as segment revenue less content costs in our unaudited condensed consolidated financial statements. Enterprise revenue $ Enterprise gross profit margin % in millions Consumer revenue $ Consumer gross profit margin % in millions
Q2 and full year 2026 guidance In Q2, we expect revenue to be in the range of $196 million to $200 million. This outlook reflects continued strength in Consumer, offset by a slower trajectory in Enterprise, consistent with our full year, segment-level growth expectations provided last quarter. We expect Q2 Adjusted EBITDA to be in the range of $12 million to $16 million as we balance continued operating discipline with investments in our most productive growth opportunities early in the year. Given the solid execution in Q1, we are reaffirming our full year 2026 guidance and continue to expect revenue in the range of $805 million to $815 million. For full year 2026 Adjusted EBITDA, we are pacing confidently to our annual Adjusted EBITDA Margin target of approximately 9%, expecting to deliver in the range of $70 million to $76 million. Absent the proposed combination with Udemy and related transaction and integration impacts, Free Cash Flow is expected to largely track at or above Adjusted EBITDA. For Q2, Free Cash Flow is expected to be impacted by approximately $13 million of M&A related cash payments, reflecting transaction fees and pre-close planning costs. This excludes additional contingent expenses that may be incurred upon closing or during integration. Outlook Actual results may differ materially from Coursera’s financial outlook as a result of, among other things, the factors described under “Forward-looking statements” below. Please refer to section “Non- GAAP financial measures” for definitions of our non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix. Reconciliations are not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. Q1 2026 Shareholder Letter 15 Q2 2026 Full year 2026 $196M to $200M Revenue ↑ 5% to 7% Y/Y $805M to $815M Revenue ↑ 6% to 8% Y/Y $12M to $16M Adjusted EBITDA $70M to $76M Adjusted EBITDA 9.0% Adjusted EBITDA Margin at the midpoint of the ranges Weighted average share count Basic: 170 million Diluted: 175 million Weighted average share count Basic: 171 million Diluted: 177 million Transaction with Udemy The Q2 and full year 2026 outlook reflects Coursera’s standalone operations. It does not include any meaningful impact from the proposed Udemy transaction, which remains subject to regulatory approval. As we look ahead to the proposed combination, we are highly confident in our ability to realize approximately $115 million of annual run-rate cost synergies within 24 months of closing, primarily driven by go-to-market optimization and G&A efficiencies. Over the past several months, we have made strong progress on integration planning and expect to realize a significant majority of these synergies within the first year following close. We are also being thoughtful in managing potential revenue dis-synergies, which are factored into our synergies expectations. In advance of our first quarterly earnings report following the close, we look forward to hosting a call to provide more detailed expectations on our integration plans, synergy realization timing, capital allocation priorities, and a consolidated outlook for the future combined company.
Conference call details Q1 2026 Shareholder Letter 16 As previously announced, Coursera will hold a conference call to discuss its first quarter 2026 performance today, April 23, 2026, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live, audio-only webcast of the conference call and earnings release materials will be available to the public on our investor relations page at investor.coursera.com. For those unable to listen to the broadcast live, an archived replay will be accessible in the same location for one year. Disclosure information In compliance with disclosure obligations under Regulation FD, Coursera announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission (“SEC”), press releases, company blog posts, public conference calls, and webcasts, as well as Coursera’s investor relations website. About Coursera Coursera was launched in 2012 by Andrew Ng and Daphne Koller with a mission to provide universal access to world- class learning. Today, it is one of the largest online learning platforms in the world, with 205 million registered learners as of March 31, 2026. Coursera partners with over 375 leading university and industry partners to offer a broad catalog of content and credentials, including courses, Specializations, Professional Certificates, and degrees. Coursera’s platform innovations — including generative AI-powered features like Coach, Role Play, and Course Builder, and role-based solutions like Skills Tracks — enable instructors, partners, and companies to deliver scalable, personalized, and verified learning. Institutions worldwide rely on Coursera to upskill and reskill their employees, students, and citizens in high-demand fields such as GenAI, data science, technology, and business, while learners globally turn to Coursera to master the skills they need to advance their careers. Coursera is a Delaware public benefit corporation and a B Corp. Contacts Investor Relations Cam Carey, VP of Investor Relations ir@coursera.org Media Arunav Sinha, VP of Global Communications press@coursera.org
Key business metrics Q1 2026 Shareholder Letter 17 Definitions Registered Learners We count the total number of registered learners at the end of each period. For purposes of determining our registered learner count, we treat each customer account that registers with a unique email as a registered learner and adjust for any spam, test accounts, and cancellations. Our registered learner count is not intended as a measure of active engagement. New registered learners are individuals that register in a particular period. Paid Enterprise Customers We count the total number of Paid Enterprise Customers that are active on our platform at the end of each period. For purposes of determining our customer count, we treat each customer account that has a corresponding contract as a unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers. We define a “Paid Enterprise Customer” as a customer who purchases Coursera via our direct sales force. For purposes of determining our Paid Enterprise Customer count, we exclude our Enterprise customers who do not purchase Coursera via our direct sales force, including organizations engaging on our platform through our Coursera for Teams offering or through our channel partners. Net Retention Rate (“NRR”) for Paid Enterprise Customers We calculate annual recurring revenue (“ARR”) by annualizing each customer’s monthly recurring revenue (“MRR”) for the most recent month at period end. We calculate “Net Retention Rate” for a period by starting with the ARR from all Paid Enterprise Customers as of the 12 months prior to such period end, or Prior Period ARR. We then calculate the ARR from these same Paid Enterprise Customers as of the current period end, or “Current Period ARR”. Current Period ARR includes expansion within Paid Enterprise Customers and is net of contraction or attrition over the trailing 12 months but excludes revenue from new Paid Enterprise Customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at our Net Retention Rate for Paid Enterprise Customers. Three Months Ended March 31, 2026 2025 New Registered Learners 7.6 million 7.1 million Net Retention Rate 90 % 91 % March 31, 2026 2025 Total Registered Learners 205 million 175 million Paid Enterprise Customers 1,729 1,651
Non-GAAP financial measures Q1 2026 Shareholder Letter 18 We believe the presentation of these adjusted operating results provides useful supplemental information to investors and facilitates the analysis and comparison of our operating results across reporting periods. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix. In addition to financial information presented in accordance with GAAP, this shareholder letter includes non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP net income, non-GAAP net income per share, non-GAAP operating expenses, Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow, each of which is a non-GAAP financial measure. These are key measures used by our management to help us analyze our financial results, establish budgets and operational goals for managing our business, evaluate our performance, and make strategic decisions. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, we believe these measures are useful for period-to-period comparisons of our business. We also believe that the presentation of these non-GAAP financial measures provides an additional tool for investors to use in comparing our core business and results of operations over multiple periods with other companies in our industry, many of which present similar non-GAAP financial measures to investors, and to analyze our cash performance. However, the non- GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. These non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered as a substitute for or in isolation from financial information presented in accordance with GAAP. These non-GAAP financial measures have limitations as analytical tools. Definitions Non-GAAP Gross Profit, Non-GAAP Gross Profit Margin, Non-GAAP Net Income, and Non-GAAP Net Income Per Share We define non-GAAP gross profit and non-GAAP net income as GAAP gross profit and GAAP net loss excluding: (1) stock- based compensation expense; (2) amortization of stock-based compensation expense capitalized as internal-use software costs; (3) payroll tax expense related to stock-based compensation; (4) merger and acquisition (“M&A”) related transaction costs; (5) integration related costs; (6) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries; and (7) restructuring related charges. Non- GAAP gross profit margin reflects non-GAAP gross profit as a percentage of revenue. Non-GAAP net income per share is calculated by dividing non-GAAP net income by the diluted weighted average shares of common stock outstanding. Non-GAAP Operating Expenses We define non-GAAP operating expenses as GAAP operating expenses excluding: (1) stock-based compensation expense; (2) payroll tax expense related to stock-based compensation; (3) M&A related transaction costs; (4) integration related costs; and (5) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries. Adjusted EBITDA and Adjusted EBITDA Margin We define Adjusted EBITDA as our GAAP net loss excluding: (1) depreciation and amortization; (2) interest income, net; (3) income tax expense; (4) other expense (income), net; (5) stock-based compensation expense; (6) payroll tax expense related to stock-based compensation; (7) M&A related transaction costs; (8) integration related costs; (9) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries; and (10) restructuring related charges. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. Free Cash Flow We define Free Cash Flow as net cash provided by operating activities, less capitalized internal-use software costs, purchases of content assets, and purchases of property, equipment, and software as we consider these capital expenditures necessary to support our ongoing operations.
Forward-looking statements Q1 2026 Shareholder Letter 19 This shareholder letter contains forward-looking statements that involve substantial risks and uncertainties. Any statements contained in this shareholder letter that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as: “accelerate,” “anticipate,” “believe,” “can,” “continue,” “could,” “demand,” “design,” “estimate,” “expand,” “expect,” “intend,” “may,” “might,” “mission,” “need,” “objective,” “ongoing,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. These forward-looking statements include, but are not limited to, statements regarding the proposed combination with Udemy, including the expected timing and benefits of such business combination and the outlook for Coursera’s and Udemy’s results of operations and financial condition (including potential synergies) following the business combination; the expansion of our market opportunity; the evolving demand for upskilling, including AI-related skills; our progress in our growth initiatives; our investments in building a more comprehensive and adaptive skills platform, combining AI-powered learning experiences, verified assessments, and data-driven insights; our efforts to equip our content creators with new authoring capabilities; our commitment to and investments in creating more personalized, engaging, and AI-native learning experiences, including Role Play; the development of AI tools in conjunction with industry partners, including our first learning agent built for Microsoft 365 Copilot; our initiatives to strengthen our position as a trusted source for verified learning; our mission to provide universal access to world-class learning; the demand for online learning; the strength of our customer and content creator relationships; the demand from learners to use our offerings to master career advancing skills; anticipated features and benefits of our offerings; the anticipated utility of our non-GAAP financial measures; anticipated growth rates; and our financial outlook, future financial and operational performance, and expectations, including our financial outlook for the second quarter of 2026 and full year 2026; among others. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: our ability to attract, engage, and retain learners; our ability to increase sales of our offerings and expand our global scale; our limited operating history; the relative nascency of online learning solutions and generative AI; risks related to market acceptance and demand for our offerings; our ability to maintain and expand our existing content creator relationships and to develop new partnerships with universities, industry leaders, and subject matter experts; our dependence on the supply of content created by our partners; risks related to our AI innovations and AI generally; risks related to the business combination, including the effect of the announcement of the business combination on the ability of Coursera or Udemy to retain and hire key personnel and maintain relationships with customers, vendors and others with whom Coursera or Udemy do business, or on Coursera’s or Udemy’s operating results and business generally; risks that the business combination disrupts current plans and operations and the potential difficulties in attracting and retaining qualified personnel as a result of the business combination; the outcome of any legal proceedings related to the business combination; the ability of the parties to consummate the proposed transaction on a timely basis or at all; the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory approvals on the terms expected, at all or in a timely manner; the ability to successfully integrate Coursera’s and Udemy’s operations and business on a timely basis or otherwise in accordance with the standards and obligations applicable to the combined company as a public benefit corporation and as a B Corp.; Coursera’s and Udemy’s ability to implement our plans, forecasts and other expectations with respect to the combined company’s business after the completion of the transaction and realize expected synergies and other benefits of the combination within the expected timeframe or at all; the amount of the costs, fees, expenses and charges related to the proposed combination; fluctuations in the prices of Coursera or Udemy stock; potential business disruptions following the business combination; our ability to compete effectively; adverse impacts on our business and financial condition due to macroeconomic or market conditions; our ability to manage our growth; regulatory and/or policy matters or changes impacting us or our content creators; risks related to intellectual property; cybersecurity and privacy risks and regulations; potential disruptions to our platform; risks related to operations, regulatory, economic, and geopolitical conditions; current and future legal and regulatory matters; the impact of actions to improve operational efficiencies and operating costs; our history of net losses and ability to achieve or sustain profitability; natural disasters, public health crises, or other catastrophic events; and our status as a certified B Corp, as well as the risks and uncertainties discussed in our most recently filed annual and quarterly reports on Forms 10-K and 10-Q and subsequent filings and as detailed from time to time in our SEC filings. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Such forward-looking statements relate only to events as of the date of this press release. We undertake no obligation to update any forward-looking statements except to the extent required by law.
Q1 2026 Shareholder Letter 20 Appendix
Condensed Consolidated Statements of Operations Unaudited (in millions, except per share amounts) Q1 2026 Shareholder Letter 21 Three Months Ended March 31, 2026 2025 Revenue $ 195.7 $ 179.3 Cost of revenue(2) 87.1 81.4 Gross profit 108.6 97.9 Operating expenses: Research and development(2) 31.3 29.5 Sales and marketing(2) 69.3 56.8 General and administrative(1)(2) 33.3 26.9 Restructuring related charges(2) — (0.9) Total operating expenses 133.9 112.3 Loss from operations (25.3) (14.4) Other income, net: Interest income, net 7.1 7.8 Other (expense) income, net (0.9) 0.3 Loss before income taxes (19.1) (6.3) Income tax expense 1.4 1.5 Net loss $ (20.5) $ (7.8) Net loss per share—basic and diluted $ (0.12) $ (0.05) Weighted average shares used in computing net loss per share— basic and diluted 168.7 160.7 (1) Includes $6.2 million of merger and acquisition related transaction costs and $3.8 million of integration related costs recorded in the three months ended March 31, 2026. (2) Includes stock-based compensation expense as follows: Three Months Ended March 31, 2026 2025 Cost of revenue $ 0.6 $ 0.7 Research and development 7.6 8.6 Sales and marketing 4.9 4.9 General and administrative 7.2 11.6 Restructuring related charges — (1.6) Total stock-based compensation expense $ 20.3 $ 24.2
Condensed Consolidated Balance Sheets Unaudited (in millions) Q1 2026 Shareholder Letter 22 March 31, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 789.8 $ 792.6 Accounts receivable, net 60.0 65.4 Deferred costs, net 19.0 19.6 Prepaid expenses and other current assets 24.6 20.5 Total current assets 893.4 898.1 Property, equipment, and software, net 45.5 43.4 Intangible assets, net 30.9 27.1 Other assets 30.7 31.4 Total assets $ 1,000.5 $ 1,000.0 Liabilities and Stockholders’ Equity Current liabilities: Content liabilities $ 98.3 $ 100.0 Other accounts payable and accrued expenses 31.0 29.8 Accrued compensation and benefits 21.4 36.7 Deferred revenue, current 200.1 180.9 Other current liabilities 11.6 10.5 Total current liabilities 362.4 357.9 Deferred revenue, non-current 1.5 1.4 Other liabilities 4.8 5.0 Total liabilities 368.7 364.3 Stockholders’ equity: Additional paid-in capital 1,563.5 1,546.9 Accumulated deficit (931.7) (911.2) Total stockholders’ equity 631.8 635.7 Total liabilities and stockholders’ equity $ 1,000.5 $ 1,000.0
Condensed Consolidated Statements of Cash Flows Unaudited (in millions) Q1 2026 Shareholder Letter 23 Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net loss $ (20.5) $ (7.8) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 7.5 7.1 Stock-based compensation expense 20.3 24.2 Other 0.5 0.1 Changes in operating assets and liabilities: Accounts receivable, net 5.4 (0.1) Prepaid expenses and other assets (3.0) 1.0 Accounts payable and accrued expenses (0.7) (4.2) Accrued compensation and other liabilities (14.2) (12.4) Deferred revenue 19.3 25.6 Net cash provided by operating activities 14.6 33.5 Cash flows from investing activities: Purchases of content assets (5.8) (4.1) Capitalized internal-use software costs (5.6) (3.6) Purchases of property, equipment, and software (0.2) (0.5) Net cash used in investing activities (11.6) (8.2) Cash flows from financing activities: Proceeds from exercise of stock options 0.2 1.2 Payments for tax withholding on vesting of restricted stock units (5.9) (6.2) Net cash used in financing activities (5.7) (5.0) Net increase (decrease) in cash, cash equivalents, and restricted cash (2.7) 20.3 Cash, cash equivalents, and restricted cash—beginning of period 793.4 728.4 Cash, cash equivalents, and restricted cash—end of period $ 790.7 $ 748.7
Three Months Ended March 31, 2026 2025 Operating expense - Research and development $ 31.3 $ 29.5 Stock-based compensation expense (7.6) (8.6) Payroll tax expense related to stock-based compensation (0.3) (0.5) Non-GAAP operating expense - Research and development $ 23.4 $ 20.4 Operating expense - Sales and marketing $ 69.3 $ 56.8 Stock-based compensation expense (4.9) (4.9) Payroll tax expense related to stock-based compensation (0.2) (0.2) Non-GAAP operating expense - Sales and marketing $ 64.2 $ 51.7 Operating expense - General and administrative $ 33.3 $ 26.9 Stock-based compensation expense (7.2) (11.6) Payroll tax expense related to stock-based compensation (0.2) (0.2) M&A related transaction costs (6.2) — Integration related costs (3.8) — Significant and non-recurring legal and regulatory matters (0.3) (0.2) Non-GAAP operating expense - General and administrative $ 15.6 $ 14.9 Reconciliation of Non-GAAP Financial Measures Unaudited (dollars in millions) Q1 2026 Shareholder Letter 24 Three Months Ended March 31, 2026 2025 Gross profit $ 108.6 $ 97.9 Stock-based compensation expense 0.6 0.7 Amortization of stock-based compensation capitalized as internal- use software costs 1.6 1.5 Non-GAAP gross profit $ 110.8 $ 100.1 Gross profit margin 55.5 % 54.6 % Non-GAAP gross profit margin 56.6 % 55.8 %
Three Months Ended March 31, 2026 2025 Net loss $ (20.5) $ (7.8) Stock-based compensation expense 20.3 25.8 Amortization of stock-based compensation capitalized as internal- use software costs 1.6 1.5 Payroll tax expense related to stock-based compensation 0.7 0.9 M&A related transaction costs 6.2 — Integration related costs 3.8 — Significant and non-recurring legal and regulatory matters 0.3 0.2 Restructuring related charges — (0.9) Non-GAAP net income $ 12.4 $ 19.7 Weighted-average shares used in computing net loss per share— basic 168.7 160.7 Effect of dilutive securities 1.5 4.0 Weighted-average shares used in computing non-GAAP net income per share—diluted 170.2 164.7 Net loss per share—basic and diluted $ (0.12) $ (0.05) Non-GAAP net income per share—diluted $ 0.07 $ 0.12 Reconciliation of Non-GAAP Financial Measures Unaudited (dollars in millions, except per share amounts) Q1 2026 Shareholder Letter 25 Three Months Ended March 31, 2026 2025 Net loss $ (20.5) $ (7.8) Depreciation and amortization 7.5 7.1 Interest income, net (7.1) (7.8) Income tax expense 1.4 1.5 Other expense (income), net 0.9 (0.3) Stock-based compensation expense 20.3 25.8 Payroll tax expense related to stock-based compensation 0.7 0.9 M&A related transaction costs 6.2 — Integration related costs 3.8 — Significant and non-recurring legal and regulatory matters 0.3 0.2 Restructuring related charges — (0.9) Adjusted EBITDA $ 13.5 $ 18.7 Net loss margin (10.5) % (4.4) % Adjusted EBITDA Margin 6.9 % 10.4 %
Reconciliation of Non-GAAP Financial Measures Unaudited (in millions) Q1 2026 Shareholder Letter 26 Three Months Ended March 31, 2026 2025 Net cash provided by operating activities(3) $ 14.6 $ 33.5 Less: capitalized internal-use software costs (5.6) (3.6) Less: purchases of content assets (5.8) (4.1) Less: purchases of property, equipment, and software (0.2) (0.5) Free Cash Flow $ 3.0 $ 25.3 (3) Net cash provided by operating activities includes restructuring related cash payments made during the three months ended March 31, 2026 and 2025 of $0 and $5.2 million and cash payments of M&A transaction costs of $11.1 million and $0.
FAQ
How did Coursera (COUR) perform financially in Q1 2026?
Coursera generated solid revenue growth but lower profitability in Q1 2026. Revenue rose 9% year over year to $195.7 million, led by 10% Consumer growth. However, GAAP net loss widened to $20.5 million and Adjusted EBITDA declined to $13.5 million, a 6.9% margin.
What are Coursera’s (COUR) gross margin trends and key drivers?
Coursera’s gross margin improved meaningfully in Q1 2026. GAAP gross profit increased to $108.6 million, with gross margin rising to 55.5%. Management attributes this expansion to a newly introduced platform fee and higher engagement with Coursera-produced content, which carries more favorable economics.
What guidance did Coursera (COUR) give for 2026 revenue and profitability?
Coursera reaffirmed its full-year 2026 financial outlook. It expects revenue between $805 million and $815 million, implying mid-single-digit to high-single-digit growth. Adjusted EBITDA is projected between $70 million and $76 million, targeting an annual Adjusted EBITDA margin of about 9% at the midpoint.
How strong is Coursera’s (COUR) balance sheet and cash position?
Coursera ended Q1 2026 with a large net cash position. The company reported approximately $790 million of cash and cash equivalents at March 31, 2026 and no debt. Q1 Free Cash Flow was $3.0 million after $11.1 million of merger-related cash payments and ongoing capital investments.
What are the details of Coursera’s planned merger with Udemy?
Coursera plans to combine with Udemy in an all-stock transaction. Boards and shareholders of both companies have approved the deal, which remains subject to regulatory approvals and closing conditions. Coursera expects about $115 million in annual run-rate cost synergies within 24 months after closing.
How is Coursera (COUR) performing across its Consumer and Enterprise segments?
Both segments grew in Q1 2026, with stronger momentum in Consumer. Consumer revenue increased 10% to $129.5 million and segment gross margin reached 63.2%. Enterprise revenue grew 7% to $66.2 million, with a 70.8% segment gross margin, helped by Campus and a large government expansion.