Coursera's Q2 2025 Results: Revenue Surge and AI-Driven Innovations Boost Outlook

Coursera Q2 Revenue Jumps 10 Percent

Coursera (COUR 25.11%), the online education platform known for its partnerships with leading universities and companies, released its second quarter results for fiscal 2025 on July 24, 2025. The company exceeded analyst expectations with GAAP revenue of $187.1 million versus the $180.52 million estimate, and posted non-GAAP earnings per share of $0.12, surpassing the $0.09 prediction. Management raised its full-year 2025 revenue and adjusted EBITDA guidance, reflecting improved optimism about business trends. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. About Coursera and Its Recent Business Focus Coursera provides online courses, professional certificates, and degree programs in partnership with over 350 universities and leading industry partners. It aims to make top-tier education accessible globally through a wide-ranging course catalog. The company's business revolves around its broad content offerings, delivered through a proprietary technology platform that supports scalable, personalized learning. Recently, Coursera has concentrated on three core areas: expanding its network of educator partners, technological innovation, and global market penetration. Partnerships ensure a steady supply of high-quality courses. Technological upgrades, such as AI-powered content production and personalized learning experiences, enhance engagement and retention. The company's reach now spans 183 million registered learners worldwide as of June 30, 2025. Balancing growth, regulatory compliance, and competitive positioning remains key for long-term success. Quarterly Developments and Key Performance Drivers GAAP revenue rose 10% year over year in Q2 2025, outpacing estimates by nearly $6.6 million. Non-GAAP net income increased 40% to $19.3 million, and adjusted EBITDA grew 73% to $18.0 million. The net loss on a GAAP basis narrowed sharply, with the margin improving to (4.2) % from (13.4) % the prior year. The company also demonstrated strong free cash flow, up 68% to $28.6 million. Operating cash flow reached $35.5 million for the three months ended June 30, 2025, reflecting improved operational leverage and disciplined cost management. Segment results showed the Consumer segment -- now incorporating the Degrees product (university degree programs) -- delivered $122.8 million in revenue, a 10% increase in Q2 2025. Degrees revenue, now a smaller share, is expected to decline in FY2025. The Enterprise segment, which targets businesses and academic institutions, generated $64.3 million in GAAP revenue (up 10%) in Q2 2025, and saw a stable net retention rate of 93% for paid enterprise customers. The company added 7.5 million new registered learners in the quarter. Product development remained a priority. Coursera expanded its catalog to nearly 10,000 courses, up 37% year over year as of Q1 2025, with nearly 700 courses focused on artificial intelligence (AI) and related skills. The company introduced AI-powered features, such as content translation and Coursera Coach, to help personalize the user experience. AI-driven course dubbing was rolled out in multiple languages to increase accessibility and engagement. These innovations have improved learner conversion rates and are part of ongoing efforts to link course content with career outcomes. Management also highlighted the company's robust balance sheet, with $775.1 million in cash and equivalents and no debt as of June 30, 2025. The leadership specifically noted the company's ability to generate cash even as it invests in new product and go-to-market initiatives. Business Context, Risks, and Notable Events Coursera remains one of the largest global platforms for online learning, with its network of university and industry partnerships central to its strategy. The company pointed to partnerships with institutions such as Adobe and DeepLearning.AI to maintain its relevance in high-demand fields. Microcredentials and credit-eligible certificates continue to expand, with more than 30 certificates now earning credit recommendations in the US, Europe, and India. Technological innovation was another focal point. AI-powered content production and personalization aim to make learning experiences more engaging and accessible. Coursera launched features like Coursera Coach, which guides learners interactively. Internally produced courses were highlighted as both economically favorable and strategic for the company. International growth remains a strength, with nearly half of revenue generated outside the US and 183 million registered learners worldwide as of June 30, 2025. Paid enterprise customers rose to 1,686, a 12% increase year over year. Management acknowledged ongoing regulatory risks, particularly as the US Department of Education increases scrutiny of online education providers. The company sees value in supporting academic partners facing funding challenges, but compliance costs and regulatory complexity could rise. Competitive pressures also remain, reflecting a fragmented online learning market. Outlook and Investor Considerations Management raised its full-year revenue outlook for FY2025. The revised guidance calls for revenue of $738-$746 million for full year 2025, up from the earlier range of $720-$730 million. Adjusted EBITDA margin is now targeted at 8.0% for the full year, representing a planned margin improvement of 200 basis points. For Q3 2025, management expects GAAP revenue between $188 million and $192 million. No dividend was declared or announced, consistent with past periods. Looking ahead, leadership emphasized continued investment in go-to-market initiatives and product development, especially in AI-enabled features, microcredentials, and platform enhancements. Regulatory risks, macro factors influencing enterprise customer budgets, and trends in Degrees revenue remain areas for ongoing monitoring. Coursera does not currently pay a dividend. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Coursera raises 2025 revenue outlook to $746M amid accelerated consumer growth and AI-driven platform enhancements (NYSE:COUR)

CEO Gregory M. Hart reported "Coursera delivered a strong second quarter. We are executing at a renewed and rapid pace, delivering revenue of $187 million and increasing our growth to 10% year-over-year." Hart announced, "We are raising our expectations Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.