Coursera raises 2025 revenue outlook to $750M–$754M while expanding AI-driven learning and partnerships

Earnings Call Insights: Coursera, Inc. (COUR) Q3 2025

MANAGEMENT VIEW

* Gregory Hart, CEO, reported "a strong third quarter," highlighting $194 million in revenue, a 10% year-over-year increase, and 7.7 million new registered learners. Hart announced an increase in Consumer revenue growth to 13% year-over-year, with Coursera Plus now accounting for more than half of Consumer segment revenue. He emphasized, "We are once again raising our expectations for full year revenue. We now expect to deliver revenue in the range of $750 million to $754 million, representing 8% to 9% growth from the prior year."
* Hart announced the appointment of Anthony Salcito as General Manager of the Enterprise segment, citing Salcito's experience in global education transformation at Microsoft. Hart also acknowledged the departure of CFO Ken Hahn, commending his role in guiding Coursera's IPO and financial performance.
* Hart described strategic expansion of the catalog, now with more than 12,000 courses, and nearly 100 professional certificates, including new titles from Microsoft, AAPC, and EC-Council. He highlighted the addition of 12 new content creators, including Pearson and SkillShare, and noted that generative AI enrollments reached 14 per minute, up from 8 last year. He introduced a content partnership with Anthropic and detailed new features like Coursera Coach, AI translations, and the launch of Skills Tracks for targeted skill development.
* Kenneth Hahn, CFO, stated, "In Q3, gross profit was $108 million, up 10% year-over-year. This represented a 56% gross margin, which was consistent with the prior year period." Hahn noted net income of $17 million and adjusted EBITDA of $16 million. He added, "Q3 marked another strong quarter of cash performance, generating $27 million of free cash flow... Year-to-date, we've delivered more than $80 million of free cash flow, representing 55% year-over-year growth and reinforcing our strong financial position."

OUTLOOK

* Hart provided guidance for Q4: "We anticipate revenue in the range of $189 million to $193 million, representing 5% to 8% year-over-year growth, primarily driven by our Consumer segment." He reiterated, "We are raising our full year 2025 revenue outlook to a range of $750 million to $754 million, representing 8% to 9% growth from the prior year." Adjusted EBITDA margin improvement is targeted at approximately 200 basis points to 8% for the year.
* Management maintained a cautious view on Enterprise, stating "our assumptions on the more muted Enterprise environment have not changed."

FINANCIAL RESULTS

* Coursera reported $194 million in revenue for Q3 2025, with Consumer segment revenue at $130 million and Enterprise segment revenue at $64 million.
* Gross profit was $108 million and gross margin was 56%. Consumer segment gross margin expanded to 61%. Enterprise segment gross profit was $45 million, with a 70% segment gross margin.
* Net income reached $17 million; adjusted EBITDA was $16 million. Free cash flow for Q3 was $27 million, and year-to-date free cash flow exceeded $80 million.
* As of September 30, 2025, Coursera held approximately $798 million in unrestricted cash and cash equivalents with no debt.

Q&A

* Josh Baer, Morgan Stanley: Asked about the impact and financial arrangement of the OpenAI embedded app. Hart responded there was no economic arrangement and described it as "a top-of-funnel opportunity" to drive learner engagement. Baer also inquired about sales and marketing priorities. Hart explained, "Sales and marketing have been a very efficient and effective tool for us... when we find marketing channels that are effective at driving [Coursera Plus], we will continue to invest in that."
* Bryan Smilek, JPMorgan: Questioned durability of Consumer growth and seasonality in Q4. Hart noted seasonality and stated, "Q4 is not as large a quarter as Q3 is."
* Stephen Sheldon, William Blair: Asked about Consumer acceleration and international pricing strategy. Hart detailed, "We lowered our pricing substantially in those markets, up to 60% in different geographies... and we've been pleased with the results so far."
* Sheldon also asked about Enterprise NRR trends. Hart admitted, "We're not pleased with 89% NRR," and discussed mixed trends across business verticals, with campus outperforming and government more challenged.
* Ryan MacDonald, Needham: Probed fourth quarter EBITDA margin and AI upskilling initiatives. Hart reiterated the annual margin improvement framework and noted continued investment in marketing efficiency and product innovation.
* Rishi Jaluria, RBC: Asked about AI certifications and search. Hart stated, "That's absolutely an opportunity for us," and described the shift toward verified credentials and investments in onboarding to guide learners to the right content.
* Claire Gerdes, UBS: Sought clarity on Q4 revenue guidance. Hart confirmed expectations remain unchanged for Enterprise and highlighted visibility in Consumer revenue from Coursera Plus.
* Nafeesa Gupta, BofA: Inquired about drivers behind Coursera Plus growth. Hart attributed it to GenAI demand, improved funnel management, pricing changes, and an expanded catalog.
* Ryan Griffin, BMO: Asked about changes to Enterprise sales motion. Hart cited the new Skills Tracks offering and anticipated further innovation under new leadership.

SENTIMENT ANALYSIS

* Analysts focused on sustainability of Consumer growth, Enterprise segment challenges, AI-driven initiatives, and international expansion. The tone was slightly positive, with questions probing areas of strength and seeking details on evolving strategies.
* Management was confident and consistently highlighted operational discipline, product innovation, and financial strength. Hart frequently referenced "early days" for new initiatives and responded directly to analyst concerns, while admitting areas needing improvement such as NRR.
* Compared to the previous quarter, management maintained a steady level of confidence, with slightly more emphasis on recent product launches and leadership changes. Analysts remained cautiously optimistic, pressing for more detail on growth drivers and the Enterprise outlook.

QUARTER-OVER-QUARTER COMPARISON

* Coursera increased its full-year revenue outlook from $738 million–$746 million last quarter to $750 million–$754 million, doubling projected growth from 4% to 8%.
* Consumer segment revenue growth accelerated from 10% to 13% year-over-year, while Enterprise revenue growth decelerated from 10% to 6%.
* The catalog expansion accelerated, now over 12,000 courses (up from 10,500), and GenAI enrollments increased from 12 to 14 per minute.
* New partnerships were announced, including Anthropic and OpenAI, and a new GM for Enterprise was appointed.
* Management tone remained confident, with increased focus on AI-driven innovation and international pricing strategies. Analysts continued to focus on growth sustainability and Enterprise headwinds, similar to the previous quarter.

RISKS AND CONCERNS

* Management acknowledged ongoing challenges in the Enterprise segment, with a muted environment and NRR at 89%.
* The company continues to monitor corporate spending trends and does not expect near-term improvement in government verticals.
* Seasonality impacts Q4 revenue, and management remains cautious about forecasting significant changes in Enterprise performance.
* Analysts questioned sustainability of Consumer growth and visibility into margin expansion, particularly amid increased investment in marketing and content.

FINAL TAKEAWAY

Coursera emphasized its strengthened financial outlook and expanding AI-driven product innovations as key drivers behind its upwardly revised full-year revenue guidance. Management pointed to robust Consumer segment growth, a fast-growing catalog, and new partnerships with leaders in AI technology, positioning the company to capitalize on evolving workforce needs. While Enterprise growth remains subdued, the company is investing in tailored solutions and product innovation to capture future opportunities, underscoring confidence in sustained long-term expansion.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/cour/earnings/transcripts]

MORE ON COURSERA

* Coursera, Inc. (COUR) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4832838-coursera-inc-cour-q3-2025-earnings-call-transcript]
* Coursera: Revenue Reacceleration Underway With More To Come [https://seekingalpha.com/article/4822734-coursera-revenue-reacceleration-underway-with-more-to-come]
* Coursera, Inc. (COUR) Coursera Product Strategy: A Conversation With CEO Greg Hart And CPO Patrick Supanc Call (Transcript) [https://seekingalpha.com/article/4821632-coursera-inc-cour-coursera-product-strategy-a-conversation-with-ceo-greg-hart-and-cpo-patrick-supanc-call-transcript]
* Coursera Non-GAAP EPS of $0.10 beats by $0.02, revenue of $194.2M beats by $3.88M [https://seekingalpha.com/news/4507864-coursera-non-gaap-eps-of-0_10-beats-by-0_02-revenue-of-194_2m-beats-by-3_88m]
* Coursera Q3 2025 Earnings Preview [https://seekingalpha.com/news/4506914-coursera-q3-2025-earnings-preview]