second quarter 2026
Filed Jul 29, 2026Coursera Reports Second Quarter 2026 Financial Results
Revenue, gross-margin expansion, non-GAAP profitability and adjusted EBITDA improved sharply, but the company reported a larger GAAP net loss and negative operating cash flow and free cash flow. Results incorporate Udemy from May 11, 2026, while enterprise net retention declined.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $298.6 million | – | 60% |
| Gross profitGAAP | $173.4 million | – | 69% |
| Gross profit marginGAAP | 58.1% | – | 320 bps |
| Net lossGAAP | $(80.4) million | – | (931)% |
| Net loss per shareGAAP | $(0.34) | – | (580)% |
| Net loss marginGAAP | (26.9)% | – | (2270) bps |
| Net cash (used in) provided by operating activitiesGAAP | $(19.8) million | – | (156)% |
| Gross profitnon-GAAP | $185.8 million | – | 77% |
| Gross profit marginnon-GAAP | 62.2% | – | 620 bps |
| Net incomenon-GAAP | $40.4 million | – | 109% |
| Net income per sharenon-GAAP | $0.17 | – | 42% |
| Adjusted EBITDAnon-GAAP | $42.7 million | – | 137% |
| Adjusted EBITDA Marginnon-GAAP | 14.3% | – | 470 bps |
| Free Cash Flownon-GAAP | $(32.6) million | – | (214)% |
| Enterprise gross profitother | $111.0 million | – | 148% |
| Enterprise gross profit marginother | 79.3% | – | 960 bps |
| Consumer gross profitother | $103.2 million | – | 37% |
| Consumer gross profit marginother | 65.1% | – | 380 bps |
| Net Retention Rate for Enterprise Customersother | 91% | – | (4)% |
| Enterprise Customersother | 12,107 | – | (2)% |
| Paid Subscribersother | 1,655 thousand | – | 44% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| EnterpriseEnterprise gross profit was $111.0 million and Enterprise gross profit margin was 79.3%. | $140.0 million | – | 118% |
| ConsumerConsumer gross profit was $103.2 million and Consumer gross profit margin was 65.1%. | $158.6 million | – | 29% |
Third quarter 2026 and full year 2026 outlook
- RevenueThird quarter 2026: $364 million to $372 million; Full year 2026: $1.220 billion to $1.245 billion
- NoteThird quarter 2026 Adjusted EBITDA: $52 million to $56 million
- NoteFull year 2026 Adjusted EBITDA Margin target: approximately 14%
- NoteAt least $85 million of annual run-rate net synergies by the end of 2026
Capital returns
- During the second quarter of 2026, Coursera repurchased approximately 16.5 million shares of its common stock for $90.3 million, including commissions, at an average price of $5.45 per share.
- As of July 28, 2026, the Company had repurchased approximately $140 million under the $500 million share repurchase program.
- On July 28, 2026, Coursera announced a $100 million strategic investment in LearnVector.
What drove it
- Coursera completed its all-stock combination with Udemy, Inc. on May 11, 2026, and second-quarter financial results incorporate Udemy's operating results from the date of acquisition.
- Guidance reflects the expected pace of synergy realization during 2026, with only a portion of the annual run-rate benefit expected in reported 2026 results.
- The company now expects to achieve at least $85 million of annual run-rate net synergies by the end of 2026.
- Key Business Metrics represent combined Coursera and Udemy metrics under a unified reporting methodology.
Concerns
- GAAP net loss increased to $(80.4) million from $(7.8) million, and GAAP net loss margin was (26.9)% versus (4.2)%.
- Operating cash flow was $(19.8) million and Free Cash Flow was $(32.6) million, compared with $35.5 million and $28.6 million, respectively.
- Net Retention Rate for Enterprise Customers was 91%, compared with 95%, and Enterprise Customers were 12,107, compared with 12,325.
- The company stated that combined historical key business metrics may not equal the sum of each company's previously reported metrics or be comparable to the financial information in the release.
What to watch
- Execution toward at least $85 million of annual run-rate net synergies by the end of 2026.
- Third-quarter 2026 revenue guidance of $364 million to $372 million and Adjusted EBITDA guidance of $52 million to $56 million.
- Full-year 2026 revenue guidance of $1.220 billion to $1.245 billion and the approximately 14% Adjusted EBITDA Margin target.
- Enterprise customer retention and enterprise customer count following the Udemy combination.
- Commercial collaboration updates involving LearnVector and the company's unified next-generation platform.
Balance sheet and cash flow
- Net cash used in operating activities was $(19.8) million.
- Free Cash Flow was $(32.6) million.
- Net cash used in operating activities included cash payments of merger and integration related costs of $39.1 million and cash payments of merger-related personnel and severance costs of $18.1 million during the three months ended June 30, 2026.
Analysis
Coursera reported second-quarter revenue of $298.6 million, up 60%, with GAAP gross profit increasing 69% to $173.4 million and GAAP gross margin expanding 320 basis points to 58.1%. The quarter includes Udemy operating results from May 11, 2026, the acquisition date. The company also stated that its combined business metrics use a unified reporting methodology and that historical combined metrics may not be comparable to the financial information presented in the release.
Enterprise revenue was $140.0 million, up 118%, while Consumer revenue was $158.6 million, up 29%. Enterprise gross margin was 79.3%, up 960 basis points, and Consumer gross margin was 65.1%, up 380 basis points. Paid Subscribers increased 44% to 1,655 thousand. In contrast, Enterprise Customer net retention declined to 91% from 95%, and Enterprise Customers declined 2% to 12,107.
Non-GAAP profitability strengthened materially. Non-GAAP net income was $40.4 million, up 109%, and Adjusted EBITDA was $42.7 million, up 137%, with Adjusted EBITDA Margin expanding 470 basis points to 14.3%. GAAP results and cash generation moved in the opposite direction: GAAP net loss was $(80.4) million, operating cash flow was $(19.8) million, and Free Cash Flow was $(32.6) million. Operating cash flow included $39.1 million of merger and integration related cash payments and $18.1 million of merger-related personnel and severance cash payments.
Management increased full-year 2026 revenue outlook to $1.220 billion to $1.245 billion and raised its Adjusted EBITDA Margin target to approximately 14%. Third-quarter guidance calls for revenue of $364 million to $372 million and Adjusted EBITDA of $52 million to $56 million. The guide reflects expected 2026 synergy realization, although the company said only a portion of the annual run-rate benefit is expected to be reflected in reported 2026 results.
Capital allocation included $90.3 million spent to repurchase approximately 16.5 million shares during the second quarter, at an average price of $5.45 per share. As of July 28, 2026, Coursera had repurchased approximately $140 million under its $500 million authorization. The company also announced a $100 million strategic investment in LearnVector on July 28, 2026, intended to accelerate its AI strategy and product innovation.
Management, verbatim
Q2 marked an important milestone in Coursera’s next chapter of value creation. We closed the Udemy transaction, began operating as a combined company, and now expect to achieve at least $85 million of annual run-rate net synergies by the end of 2026, positioning us to finish the year with a meaningfully stronger financial profile.
Greg Hart, Coursera CEO
Not in the filing
stated, not guessed- GAAP operating income or loss
- Non-GAAP operating income or loss
- Cash and cash equivalents balance
- Debt balance
- Capital expenditures
- Dividend information
- Prior-quarter comparisons for reported metrics
- Gross margin guidance
- Operating expense guidance
- Tax-rate guidance
- GAAP reconciliation for forward-looking Adjusted EBITDA guidance
- Previous-period outlook for comparison with reported results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.