Coursera, Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. The reporting period is defined by the completion of the all-stock merger with Udemy, Inc. on May 11, 2026. Coursera operates two reporting segments: Enterprise and Consumer. The financial results include Udemy's operations prospectively from the closing date. As of July 29, 2026, the company had 264.4 million shares of common stock outstanding.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Revenue | $298.6M | $187.1M | $494.3M | $366.4M |
| Gross Profit | $173.4M | $102.7M | $282.0M | $200.6M |
| Gross Margin | 58.1% | 54.9% | 57.1% | 54.7% |
| Net Loss | $(80.4)M | $(7.8)M | $(100.9)M | $(15.6)M |
| Non-GAAP Net Income | $40.4M | $19.3M | $52.8M | $39.0M |
| Adjusted EBITDA | $42.7M | $18.0M | $56.2M | $37.6M |
| Cash & Equivalents | $871.7M | $792.6M | As of June 30, 2026 | |
| Operating Cash Flow (YTD) | $(5.2)M | $69.0M | Six Months Ended |
Material Changes vs. Prior Period
- Revenue Growth: Q2 2026 revenue increased 60% year-over-year. Approximately $103.8 million of this increase is attributable to the inclusion of Udemy revenue post-merger. Excluding the merger, organic revenue grew 4%.
- Segment Performance: Enterprise revenue surged 118% to $140.0M, while Consumer revenue grew 29% to $158.6M. Both increases were significantly driven by the Udemy acquisition.
- Operating Expenses: Total operating expenses rose 119% to $258.1M. This includes $79.8M in "Merger, integration, and restructuring related costs," which were not present in the prior year period.
- Profitability: While GAAP Net Loss widened significantly due to merger costs and stock-based compensation, Non-GAAP Net Income improved to $40.4M from $19.3M in the prior year quarter.
- Liquidity: Cash and cash equivalents increased to $871.7M, bolstered by $213.6M in cash acquired from the Udemy merger, partially offset by $90.3M in share repurchases and merger-related cash outflows.
Guidance, Outlook, and Risks
- Merger Integration: Management expects the combined company's trends to differ materially from pre-merger results. The company is focused on integrating Udemy's technology and content to realize operational synergies.
- Restructuring: On July 6, 2026 (subsequent to the period end), the company announced a workforce reduction plan expected to incur $9M to $11M in expenses, primarily in Q3 and Q4 2026.
- Strategic Investment: In July 2026, Coursera invested $100 million for a 33.33% stake in LearnVector, an AI-native learning company founded by Chairman Andrew Ng.
- Share Repurchases: The Board authorized a $500M repurchase program in May 2026. As of June 30, $90.3M had been utilized, with $409.9M remaining. Additional repurchases of $60.1M occurred in July 2026.
- Risks: Key risks include the successful integration of Udemy, potential impairment of goodwill ($182.7M recorded), regulatory changes regarding online education and AI, and the ability to convert free learners to paid subscribers.
Investor Verification Checklist
- Merger Synergies: Verify the timeline and cost-benefit analysis for integrating Udemy's platform and Udemy's content creator ecosystem.
- Goodwill Impairment: Monitor the $182.7M goodwill recorded from the Udemy acquisition for potential impairment triggers in future quarters.
- Organic Growth: Distinguish between merger-driven revenue growth and organic growth in the Consumer segment, specifically Coursera Plus adoption.
- Restructuring Costs: Track the execution of the July 2026 workforce reduction plan and its impact on future operating expenses.
- LearnVector Investment: Assess the strategic rationale and potential financial impact of the $100M investment in LearnVector.
- Share Repurchase Impact: Evaluate the remaining $409.9M repurchase authorization and its effect on cash reserves and earnings per share.