Coursera, Inc. 2026 Q1 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Coursera, Inc. operates a global online learning platform connecting learners, institutions, and content creators. The company operates through two reporting segments: Consumer and Enterprise. As of March 31, 2026, the platform had approximately 205 million cumulative Registered Learners.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $195.7 million | $179.3 million |
| Gross Profit | $108.6 million | $97.9 million |
| Gross Margin | 55.5% | 54.6% |
| Net Loss | $(20.5) million | $(7.8) million |
| Net Loss Per Share (Basic/Diluted) | $(0.12) | $(0.05) |
| Operating Cash Flow | $14.6 million | $33.5 million |
| Free Cash Flow | $3.0 million | $25.3 million |
| Cash and Cash Equivalents | $789.8 million | $792.6 million (Dec 31, 2025) |
| Adjusted EBITDA | $13.5 million | $18.7 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 9% year-over-year, driven by a 17% increase in Registered Learners and a 5% increase in Paid Enterprise Customers.
- Segment Performance: Consumer revenue grew 10% to $129.5 million, while Enterprise revenue grew 7% to $66.2 million.
- Expense Increases: Operating expenses rose 19% to $133.9 million. This was primarily due to a 22% increase in Sales and Marketing expenses and a 24% increase in General and Administrative expenses.
- M&A Costs: General and Administrative expenses included $6.2 million in M&A transaction costs and $3.8 million in integration costs related to the proposed merger with Udemy, Inc.
- Profitability: Net loss widened to $20.5 million from $7.8 million in the prior year, largely due to increased operating expenses and M&A costs, despite improved gross margins.
- Cash Flow: Operating cash flow decreased by $18.9 million, primarily due to $11.1 million in cash payments for M&A transaction costs.
Guidance, Outlook, and Risks
- Merger with Udemy: On December 17, 2025, Coursera entered into a definitive merger agreement to combine with Udemy, Inc. in an all-stock transaction. The deal was approved by stockholders of both companies on April 9, 2026, and remains subject to regulatory approvals and customary closing conditions.
- Leadership Changes: Michael Foley was appointed as Senior Vice President, Chief Financial Officer, and Treasurer on a permanent basis effective March 16, 2026.
- Strategic Focus: Management continues to invest in AI-powered features (tutoring, translations, role play) and platform capabilities to enhance learner engagement and content creation.
- Risks: Key risks include the potential failure to complete the Udemy merger, regulatory challenges regarding online education and AI, competition from generative AI tools, and the ability to convert free learners to paid subscribers.
Investor Verification Checklist
- Verify the status of regulatory approvals for the Coursera-Udemy merger and potential termination fees ($40.5 million) if the deal fails.
- Monitor the impact of M&A transaction costs on future operating expenses and cash flow.
- Assess the sustainability of Free Cash Flow generation given the significant drop from $25.3 million to $3.0 million.
- Review the Net Retention Rate for Paid Enterprise Customers, which declined slightly to 90% from 91% year-over-year.
- Track the adoption of new AI-powered features and their effect on learner engagement and content costs.