Third quarter 2026
Filed Oct 29, 2026Coursera reported third-quarter revenue of $376.7 million, up 94%, with non-GAAP net income of $57.1 million and Adjusted EBITDA of $61.5 million, while narrowing full-year 2026 revenue outlook to $1.229 billion to $1.237 billion.
Revenue grew 94%, Enterprise revenue grew 214%, and non-GAAP gross profit margin, non-GAAP net income, and Adjusted EBITDA rose materially. GAAP net loss widened and operating cash flow and free cash flow declined year over year amid merger, integration, and restructuring costs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $376.7M | – | 94% |
| Gross profit, three months ended September 30, 2026GAAP | $220.1M | – | 108% |
| Gross profit margin, three months ended September 30, 2026GAAP | 58.4% | – | 380 bps |
| Total operating expenses, three months ended September 30, 2026GAAP | $249M | – | – |
| Research and development expense, three months ended September 30, 2026GAAP | $52.1M | – | – |
| Sales and marketing expense, three months ended September 30, 2026GAAP | $129.5M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $36.6M | – | – |
| Merger, integration, and restructuring related costs, three months ended September 30, 2026GAAP | $30.8M | – | – |
| Loss from operations, three months ended September 30, 2026GAAP | −$28.9M | – | – |
| Interest income, net, three months ended September 30, 2026GAAP | $6.8M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $2.6M | – | – |
| Net loss, three months ended September 30, 2026GAAP | −$25.6M | – | (198)% |
| Net loss per share, basic and diluted, three months ended September 30, 2026GAAP | $(0.10) | – | (100)% |
| Net loss margin, three months ended September 30, 2026GAAP | (6.8)% | – | (240) bps |
| Non-GAAP gross profit, three months ended September 30, 2026non-GAAP | $240M | – | 122% |
| Non-GAAP gross profit margin, three months ended September 30, 2026non-GAAP | 63.7% | – | 810 bps |
| Non-GAAP net income, three months ended September 30, 2026non-GAAP | $57.1M | – | 242% |
| Non-GAAP net income per share, diluted, three months ended September 30, 2026non-GAAP | $0.21 | – | 110% |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $61.5M | – | 294% |
| Adjusted EBITDA Margin, three months ended September 30, 2026non-GAAP | 16.3% | – | 830 bps |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $15.5M | – | (54)% |
| Free Cash Flow, three months ended September 30, 2026non-GAAP | $4.6M | – | (83)% |
| Revenue, nine months ended September 30, 2026GAAP | $871M | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $502.1M | – | – |
| Gross profit margin, nine months ended September 30, 2026GAAP | 57.6% | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $641M | – | – |
| Loss from operations, nine months ended September 30, 2026GAAP | −$138.9M | – | – |
| Net loss, nine months ended September 30, 2026GAAP | −$126.5M | – | – |
| Net loss per share, basic and diluted, nine months ended September 30, 2026GAAP | $(0.57) | – | – |
| Non-GAAP gross profit, nine months ended September 30, 2026non-GAAP | $536.6M | – | – |
| Non-GAAP gross profit margin, nine months ended September 30, 2026non-GAAP | 61.6% | – | – |
| Non-GAAP net income, nine months ended September 30, 2026non-GAAP | $109.9M | – | – |
| Non-GAAP net income per share, diluted, nine months ended September 30, 2026non-GAAP | $0.48 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $117.7M | – | – |
| Adjusted EBITDA Margin, nine months ended September 30, 2026non-GAAP | 13.5% | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $10.3M | – | – |
| Free Cash Flow, nine months ended September 30, 2026non-GAAP | −$25M | – | – |
| Enterprise gross profit, three months ended September 30, 2026other | $163.4M | – | 267% |
| Enterprise gross profit margin, three months ended September 30, 2026other | 81.3% | – | 1170 bps |
| Consumer gross profit, three months ended September 30, 2026other | $115.5M | – | 45% |
| Consumer gross profit margin, three months ended September 30, 2026other | 65.7% | – | 450 bps |
| Net Retention Rate for Enterprise Customers, three months ended September 30, 2026other | 93% | – | 0 bps |
| Enterprise Customers, September 30, 2026other | 11,897 | – | (4)% |
| Paid Subscribers, September 30, 2026other | 1.69M | – | 30% |
| Enterprise subscription revenue, three months ended September 30, 2026other | $199.8M | – | – |
| Enterprise other revenue, three months ended September 30, 2026other | $1.1M | – | – |
| Consumer subscription revenue, three months ended September 30, 2026other | $130.6M | – | – |
| Consumer transactional and other revenue, three months ended September 30, 2026other | $32.8M | – | – |
| Consumer degrees revenue, three months ended September 30, 2026other | $12.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| EnterpriseEnterprise subscription revenue was $199.8 million and Enterprise other revenue was $1.1 million. | $200.9M | – | 214% |
| ConsumerConsumer subscription revenue was $130.6 million, Consumer transactional and other revenue was $32.8 million, and Consumer degrees revenue was $12.4 million. | $175.8M | – | 35% |
Fourth quarter 2026 and full year 2026 outlook
- RevenueFourth quarter 2026: $358 million to $366 million; Full year 2026: $1.229 billion to $1.237 billion
- NoteFourth quarter 2026 Adjusted EBITDA: $55 million to $59 million
- NoteFull year 2026 Adjusted EBITDA Margin target: approximately 14%
Capital returns
- During the third quarter of 2026, Coursera repurchased approximately 18.1 million shares of its common stock for $102 million, including commissions.
- During the nine months ended September 30, 2026, Coursera repurchased approximately 34.6 million shares of its common stock for $192 million, including commissions.
- Including purchases after quarter-end, as of October 28, 2026, the Company had repurchased more than $215 million of its common stock since the program was announced in May 2026, with significant remaining capacity under its $500 million authorization.
What drove it
- The Udemy transaction was completed on May 11, 2026, and reported results incorporate Udemy operating results from the acquisition date.
- Actions representing more than $150 million of annualized gross cost savings support early delivery of the full $115 million annual run-rate net synergy target.
- The company stated it is on track to deliver its original 24-month synergy plan in eight months.
- Project Helix is expected to be broadly available to Enterprise Customers in the first half of 2027.
- Paid Subscribers increased 30% to 1,687 thousand.
Concerns
- GAAP net loss widened to $(25.6) million from $(8.6) million.
- Net cash provided by operating activities declined to $15.5 million from $33.9 million and Free Cash Flow declined to $4.6 million from $26.6 million.
- Net Retention Rate for Enterprise Customers was unchanged at 93%, while Enterprise Customers declined 4% to 11,897.
- Merger, integration, and restructuring related costs were $30.8 million in the third quarter and $120.6 million for the nine months ended September 30, 2026.
- Consumer degrees revenue was $12.4 million, compared with $14.3 million.
What to watch
- Fourth-quarter revenue guidance of $358 million to $366 million.
- Fourth-quarter Adjusted EBITDA guidance of $55 million to $59 million.
- Full-year revenue outlook of $1.229 billion to $1.237 billion and Adjusted EBITDA Margin target of approximately 14%.
- Pace of 2026 synergy realization and delivery of the $115 million annual run-rate net synergy target.
- Broad availability and market adoption of Project Helix in the first half of 2027.
- Enterprise customer count and Net Retention Rate for Enterprise Customers.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $670.6 million.
- Marketable securities as of September 30, 2026: $104.9 million.
- Strategic investments as of September 30, 2026: $110.0 million.
- Total assets as of September 30, 2026: $1,805.4 million.
- Total liabilities as of September 30, 2026: $748.1 million.
- Total stockholders’ equity as of September 30, 2026: $1,057.3 million.
- Nine-month net cash provided by operating activities was $10.3 million, compared with $102.9 million.
- Nine-month cash acquired from the Udemy merger was $213.6 million.
- Nine-month purchases of strategic investments were $100.0 million.
- Nine-month payments for repurchases of common stock were $190.7 million.
- Cash, cash equivalents, and restricted cash at September 30, 2026 were $673.1 million, compared with $798.5 million at September 30, 2025.
Analysis
Coursera reported $376.7 million of third-quarter revenue, up 94% from $194.2 million. Enterprise revenue was $200.9 million, up 214%, while Consumer revenue was $175.8 million, up 35%. The release states that results incorporate Udemy operating results from the May 11, 2026 acquisition date. Enterprise subscription revenue was $199.8 million, and Consumer subscription revenue was $130.6 million. Consumer transactional and other revenue was $32.8 million, while Consumer degrees revenue was $12.4 million compared with $14.3 million.
Profitability metrics improved substantially on both reported and adjusted measures. GAAP gross profit margin was 58.4%, up 380 basis points, and non-GAAP gross profit margin was 63.7%, up 810 basis points. Adjusted EBITDA rose to $61.5 million from $15.6 million and Adjusted EBITDA Margin increased to 16.3% from 8.0%. Non-GAAP net income was $57.1 million, or $0.21 per diluted share, compared with $16.7 million, or $0.10 per diluted share.
GAAP earnings and cash generation remain affected by transaction and integration spending. GAAP net loss was $(25.6) million, compared with $(8.6) million, and merger, integration, and restructuring related costs were $30.8 million. Third-quarter operating cash flow was $15.5 million, compared with $33.9 million, while Free Cash Flow was $4.6 million, compared with $26.6 million. The company disclosed $6.7 million of merger and integration related cash payments and $21.0 million of merger-related personnel and severance cash payments during the quarter.
Customer measures were mixed. Net Retention Rate for Enterprise Customers was 93%, unchanged year over year. Enterprise Customers declined 4% to 11,897, while Paid Subscribers increased 30% to 1,687 thousand. Enterprise gross profit margin was 81.3%, up 1170 basis points, and Consumer gross profit margin was 65.7%, up 450 basis points.
Management narrowed full-year 2026 revenue outlook to $1.229 billion to $1.237 billion and retained an Adjusted EBITDA Margin target of approximately 14%. Fourth-quarter guidance calls for revenue of $358 million to $366 million and Adjusted EBITDA of $55 million to $59 million. Coursera repurchased approximately 18.1 million shares for $102 million during the quarter, and stated that it had repurchased more than $215 million since the program was announced in May 2026 as of October 28, 2026. Execution against the stated $115 million annual run-rate net synergy target and the expected first-half 2027 broad availability of Project Helix are central operating milestones.
Management, verbatim
Organizations are investing at extraordinary scale in AI infrastructure, but the return on that investment depends on the people who know how to use it.
Greg Hart, Coursera CEO
Closing that skills gap is the opportunity we are positioning Coursera and Udemy to address, and we are on track to deliver our original 24-month synergy plan in just eight months as we create greater capacity to invest in innovation.
Greg Hart, Coursera CEO
Project Helix brings together the complementary strengths of Coursera and Udemy on an AI-native platform designed to deliver more personalized learning, verified skills pathways, and stronger connections between human capabilities and business outcomes.
Greg Hart, Coursera CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the listed third-quarter metrics.
- Debt was not separately reported in the condensed consolidated balance sheets.
- A GAAP reconciliation for forward-looking Adjusted EBITDA and Adjusted EBITDA Margin guidance was not available.
- Prior guidance was not provided, so no comparison of actual results with prior guidance is available.
- Year-over-year percentage changes were not printed for the nine-month statement-of-operations, cash-flow, and supplemental product-revenue rows.
- Third-quarter income tax rate was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.