Coursera, Inc. (COUR) | Investment Case

1. Company Snapshot

1.a. Company Description

Coursera, Inc.operates an online educational content platform that connects learners, educators, organizations, and institutions.It offers online courses that include data science, business, computer science, information technology, health, social sciences, logic, project management, and digital marketing services; campus student plans; degree courses; and certification education.

Coursera, Inc.was formerly known as Dkandu, Inc.and changed its name to Coursera, Inc.

in April 2012.The company was incorporated in 2011 and is headquartered in Mountain View, California.

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1.b. Last Insights on COUR

Coursera's recent performance was driven by strong Q2 earnings, exceeding market expectations with GAAP revenue of $187.1 million versus the $180.52 million estimate, and non-GAAP earnings per share of $0.12, surpassing the $0.09 prediction. The company's accelerated revenue growth across both consumer and enterprise segments, as well as its strategic shift towards faster-growing enterprise and B2B partnerships, contributed to its success. Additionally, Coursera's focus on high-quality, in-demand AI and tech content, combined with its global reach, positions it for sustained long-term growth.

1.c. Company Highlights

Last Price	6.18
Change Percentage	-2.68%
Open	6.36
Previous Close	6.35
Market Cap ( Millions)	1046
Volume	7580969
Year High	13.56
Year Low	5.22
M A 50	6.03
M A 200	8.45

FCF Yield	9.79%
Dividend Yield	0.00%
ROE	-8.12%
Debt / Equity	0.00%
Net Debt / EBIDTA	3036.78%
Price To Book	1.63
Price Earnings Ratio	-20.26
Price To FCF	10.22
Price To sales	1.38
EV / EBITDA	-9.72

2. Coursera's Q4 2025 Earnings: A Strong Finish to a Year of Growth

Coursera delivered a robust Q4 2025, with total revenue reaching $197 million, up 10% year-over-year, driven by growth across both the Consumer and Enterprise segments. The company's gross profit was $109 million, up 12% year-over-year, representing a 55% gross margin. For the full year 2025, Coursera grew revenue to $757 million, a 9% increase year-over-year, and generated a record $78 million of free cash flow. Earnings per share (EPS) came in at $0.06, slightly below estimates of $0.06009.

Publication Date: Mar -04

                                    📋 Highlights
                                    Revenue Growth::
                                                2025 revenue reached $757 million, a 9% increase year-over-year.
Free Cash Flow::
                                                Generated record $78 million in free cash flow with adjusted EBITDA margin expansion to 8.4% (240 bps improvement).
Learner Expansion::
                                                Added 29 million new registered learners, growing total cumulative learners by 17% YoY.
Course Catalog Growth::
                                                Offered 13,500 courses, a 45% increase YoY, driven by AI-native product innovation.
Enterprise Performance::
                                                Enterprise segment gross profit grew to $46 million (7% YoY), with a 93% net retention rate despite slower account additions.

                                

Financial Performance Highlights

The company's adjusted EBITDA margin expanded by 240 basis points to 8.4% in 2025, driven by its focus on building a more durable foundation for long-term growth and sharpening execution. Coursera ended the year with approximately $793 million of unrestricted cash and cash equivalents, with no debt, providing a strong financial position to invest in growth and create additional opportunities for shareholder returns.

Segment Performance

The Consumer segment continued to drive growth, with subscriptions and courses being the fastest-growing piece. The Enterprise segment saw a 7% year-over-year growth in segment gross profit, reaching $46 million, driven by content engagement trends. The company's net retention rate (NRR) for the Enterprise segment increased to 93%, but management is not satisfied with this number and aims to improve it through operational changes.

Guidance and Outlook

Coursera expects revenue for the first quarter of 2026 to be in the range of $193 million to $197 million, representing growth of 8% to 10% year-over-year. For adjusted EBITDA, the company expects a range of $11 million to $15 million. The company is taking a cautious outlook on the remainder of the year due to macroeconomic uncertainty and the potential impact of the Greece segment. Analysts estimate next year's revenue growth at 6.9%.

Valuation

With a P/S Ratio of 1.38 and an EV/EBITDA of -9.65, Coursera's valuation appears reasonable, considering its growth prospects. The company's Free Cash Flow Yield is 9.8%, indicating a strong ability to generate cash. However, the ROE and ROIC are negative, at -8.12% and -12.05%, respectively, which may be a concern for investors.

3. NewsRoom

Coursera to Announce First Quarter 2026 Financial Results

Apr -20

Source: businesswire.com

Coursera (COUR) Expected to Announce Quarterly Earnings on Thursday

Apr -16

Source: defenseworld.net

The SaaS-Pocalypse’s Biggest Losers: Figma, Duolingo, and Monday.com Suffer Brutal Meltdowns

Apr -09

Source: 247wallst.com

JPMorgan Chase & Co. Lowers Stake in Coursera, Inc. $COUR

Apr -06

Source: defenseworld.net

Coursera's Options Anomaly: A Big Bet on What's Next?

Apr -05

Source: marketbeat.com

Coursera, Inc. (NYSE:COUR) Given Average Recommendation of “Hold” by Brokerages

Mar -31

Source: defenseworld.net

Coursera (NYSE:COUR) and FuelPositive (OTCMKTS:NHHHF) Head to Head Review

Mar -10

Source: defenseworld.net

Traders Buy High Volume of Call Options on Coursera (NYSE:COUR)

Mar -05

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.61%)

6. Segments

Consumer

Expected Growth: 10%

Coursera's 10% growth in the Consumer segment is driven by increasing demand for online learning, expansion into new markets, and strategic partnerships with top universities. Additionally, the platform's user-friendly interface, mobile optimization, and personalized learning experiences contribute to its growing popularity among consumers.

Enterprise

Expected Growth: 12%

Coursera's 12% enterprise growth is driven by increasing demand for online learning, expansion into new markets, and strategic partnerships with top universities. Additionally, the company's focus on emerging technologies like AI, cloud computing, and data science has attracted a large customer base. Its platform's scalability, flexibility, and cost-effectiveness have also contributed to its growth.

Degrees

Expected Growth: 9%

Coursera's 9x growth driven by increasing demand for online learning, strategic partnerships with top universities, and expansion into new markets. Growing need for upskilling and reskilling in a rapidly changing job market, coupled with Coursera's user-friendly platform and affordable pricing, have contributed to its rapid growth.

7. Detailed Products

Coursera for Business

A corporate learning platform that provides access to a vast library of courses and certifications from top universities and organizations, helping companies upskill and reskill their employees.

Coursera for Campus

A platform that provides universities and colleges with a range of tools and resources to support online learning, including course creation, student engagement, and faculty support.

MasterTrack Certificates

A series of online certificates that provide specialized skills training in areas like data science, digital marketing, and cybersecurity, from top universities like University of Michigan and University of Illinois.

Specializations

A series of online courses that provide in-depth training in a specific skill or subject area, often featuring hands-on projects and peer feedback.

Online Degrees

Fully online bachelor's and master's degrees from top universities like University of London and University of Michigan, providing flexible and affordable education.

Professional Certificates

A series of online certificates that provide specialized training in areas like IT, healthcare, and finance, from industry leaders like Google and IBM.

8. Coursera, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Coursera's courses are highly specialized and unique, making it difficult for substitutes to emerge. However, the rise of alternative online learning platforms and MOOCs (Massive Open Online Courses) poses a moderate threat.

Bargaining Power Of Customers

Coursera's customers are individual learners who have limited bargaining power. The company's business model is designed to cater to a large number of customers, making it difficult for individual customers to negotiate prices or terms.

Bargaining Power Of Suppliers

Coursera partners with top universities and organizations to offer courses, giving it significant bargaining power over its suppliers. The company can negotiate favorable terms and prices with its suppliers.

Threat Of New Entrants

The online learning market is highly competitive, and new entrants can easily enter the market. Coursera faces a high threat from new entrants, including startups and established companies, that can offer similar courses and services.

Intensity Of Rivalry

The online learning market is highly competitive, with many established players and new entrants vying for market share. Coursera faces intense rivalry from companies like Udemy, edX, and Pluralsight, which can lead to pricing pressures and marketing wars.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	1.06%
Debt Cost	3.95%
Equity Weight	98.94%
Equity Cost	11.84%
WACC	11.75%
Leverage	1.07%

11. Quality Control: Coursera, Inc. passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

American Public Education

A-Score: 4.9/10

Value: 5.0

Growth: 5.6

Quality: 5.9

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

Universal Technical Institute

A-Score: 4.7/10

Value: 4.1

Growth: 7.0

Quality: 6.2

Yield: 0.0

Momentum: 7.5

Volatility: 3.7

1-Year Total Return ->

Lincoln Educational Services

A-Score: 4.4/10

Value: 4.2

Growth: 5.0

Quality: 4.1

Yield: 0.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

Coursera

A-Score: 4.1/10

Value: 7.5

Growth: 6.0

Quality: 2.9

Yield: 0.0

Momentum: 6.0

Volatility: 2.3

1-Year Total Return ->

Udemy

A-Score: 3.6/10

Value: 5.0

Growth: 5.7

Quality: 5.6

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

Chegg

A-Score: 3.0/10

Value: 10.0

Growth: 2.9

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.73%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.75%

Coursera, Inc. - US22266M1045

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on COUR

1.c. Company Highlights

Lower Quality

Average Yield

Average Growth

Earnings Beats

Revenues Beats

Weak Momentum

More Volatile

Revenues Miss

Higher Growth

Average Quality

Medium Volatility

Stable Momentum

Strong Momentum

Lower Yield

2. Coursera's Q4 2025 Earnings: A Strong Finish to a Year of Growth

Financial Performance Highlights

Segment Performance

Guidance and Outlook

Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.61%)

6. Segments

Consumer

Expected Growth: 10%

Enterprise

Expected Growth: 12%

Degrees

Expected Growth: 9%

7. Detailed Products

Coursera for Business

Coursera for Campus

MasterTrack Certificates

Specializations

Online Degrees

Professional Certificates

8. Coursera, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Coursera, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.18$

Current Price

6.18$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA