Coursera, Inc.

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•the potential benefits of our solutions to learners and educator partners;

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•the potential benefits of our solutions to learners and content creators;

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•anticipated launch dates of new educator partner programs;

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•anticipated launch dates of new content creator programs;

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•our ability to acquire new educator partners and expand program offerings with existing educator partners;

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•our ability to acquire new content creators and expand program offerings with existing content creators;

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•our ability to comply with potential changes in laws and regulations applicable to us or our educator partners;

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•our ability to comply with potential changes in laws and regulations applicable to us or our content creators;

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Coursera is one of the world's largest online learning destinations, connecting an ecosystem of learners, content creators, organizations, and institutions through high-quality content, credentials, data, and technology.

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Coursera is one of the world’s largest online learning platforms, connecting an ecosystem of learners, content creators, organizations, and institutions through high-quality content, credentials, data, and technology.

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We partner with over 350 university and industry partners (collectively, our “educator partners” or “content creators”) to create and distribute high-quality, modular, flexible, and affordable content. As of March 31, 2025, we had approximately 175 million Registered Learners on our platform. Our learners engage with a broad catalog of products, from standalone projects and courses to advanced skills development through industry micro-credentials and degree programs.

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We partner with over 350 content creators, such as university and industry partners, to create and distribute high-quality, modular, flexible, and affordable content. As of June 30, 2025, we had approximately 183 million Registered Learners on our platform. Our learners engage with a broad catalog of products, from standalone projects and courses to advanced skills development through industry micro-credentials and degree programs.

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Coursera serves learners directly, as well as through their employers, academic institutions, and government-sponsored programs. We offer a wide range of learning products, including Guided Projects, courses, Specializations, and certificates that can enable career progression or build towards a broader course of study such as a degree. We are focused on creating an integrated learner journey, so that investments in Coursera's platform capabilities, product development, and innovation can serve a broad audience of learners at all stages of career advancement.

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Coursera serves learners directly, as well as through their employers, academic institutions, and government-sponsored programs. We offer a wide range of learning products, including Guided Projects, courses, Specializations, certificates, and degrees that can develop skills or enable career progression. We are focused on creating an integrated learner journey, so that investments in Coursera’s platform capabilities, product development, and innovation can serve a broad audience of learners across all stages of career advancement.

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Our go-to-market strategy centers on attracting learners to our platform through world-class branded content and credentials and efficient marketing channels. We aim to support the career and educational goals of our learners by enhancing our personalized discovery experiences and localizing our recommendations. We also leverage insights derived from our learners to identify potential Enterprise prospects, complemented by our direct sales team, which finds and engages with potential business, academic, government, and other institutional customers.

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Our go-to-market strategy centers on attracting learners to our platform through world-class branded content, trusted creators, and efficient marketing channels. We aim to support the career and educational goals of our learners by enhancing our personalized discovery experiences and localizing our recommendations. We also leverage insights derived from our learners to identify potential Enterprise prospects, complemented by our direct sales team, which finds and engages with potential business, academic, government, and other institutional customers.

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Key Financial Results for First Quarter 2025

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Key Financial Results for Second Quarter 2025

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•Net loss was $(7.8) million, compared to $(21.3) million a year ago. Non-GAAP net income was $19.7 million, compared to $11.9 million a year ago.

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•Net loss was $(7.8) million, compared to $(22.9) million a year ago. Non-GAAP net income was $19.3 million, compared to $13.8 million a year ago.

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•Net loss per share was $(0.05), compared to $(0.14) a year ago. Non-GAAP net income per share was $0.12, compared to $0.07 a year ago.

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•Net loss per share was $(0.05), compared to $(0.15) a year ago. Non-GAAP net income per share was $0.12, compared to $0.09 a year ago.

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•Net cash provided by operating activities was $33.5 million, compared to $24.5 million a year ago. Free Cash Flow was $25.3 million, compared to $18.1 million a year ago.

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•Net cash provided by operating activities was $35.5 million, compared to $23.9 million a year ago. Free Cash Flow was $28.6 million, compared to $17.0 million a year ago.

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Our chief operating decision maker (“CODM”) is our CEO. In connection with Mr. Hart’s appointment as our CEO, we have simplified our business model and determined that our operations are conducted through two reporting segments: Consumer and Enterprise, which reflects how our CODM assesses performance and allocates resources. This updated structure enhances our CODM’s ability to allocate resources effectively and enables our CODM to make informed decisions that align with our strategic priorities, drive learner and customer satisfaction, and ultimately support business growth. This segment reporting change does not impact our Enterprise segment or consolidated results. We have recast all prior-period segment information to align with our current segment presentation. Refer to Note 13, Segment and Geographic Information, included in Part I, Item 1 of this Form 10-Q for additional information.

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Our chief operating decision maker (“CODM”) is our CEO. In connection with Mr. Hart’s appointment as our CEO, we have simplified our business model and determined that our operations are conducted through two reporting segments: Consumer and Enterprise. This updated structure reflects how our CODM assesses performance and allocates resources to support our strategic and operational priorities. This segment reporting change does not impact our Enterprise segment or consolidated results. We have recast all prior-period segment information to align with our current segment presentation. Refer to Note 13, Segment and Geographic Information, included in Part I, Item 1 of this Form 10-Q for additional information.

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In January 2024, we implemented a plan to restructure our Enterprise segment sales force and recognized restructuring related charges of $2.1 million during the three months ended March 31, 2024. Related cash payments of $1.8 million were made during the same period and reflected as cash used in operating activities within our Condensed Consolidated Statements of Cash Flows.

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In January 2024, we implemented a plan to restructure our Enterprise segment sales force and recognized an immaterial amount of restructuring related charges during the three months ended June 30, 2024 and $2.1 million during the six months ended June 30, 2024. Related cash payments approximated the expense amounts for each period and are reflected as cash used in operating activities within our Condensed Consolidated Statements of Cash Flows.

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In October 2024, we announced a commitment to further reduce overall expenses, focus our efforts, and prioritize future investments in key initiatives that we expect will drive long-term, sustainable growth. This initiative resulted in a reduction of our global workforce by approximately 9%, creating capacity for targeted investments, as well as incremental profitability. In the fourth quarter of 2024, we recognized restructuring related charges of $6.8 million, mainly consisting of personnel expenses such as severance and benefits, and paid $2.7 million. During the three months ended March 31, 2025, we recognized incremental charges of $0.7 million, made cash payments of $5.2 million, and also recognized a reversal of stock-based compensation expense of $1.6 million due to the forfeiture of RSUs and stock options. As of March 31, 2025, an insignificant amount remained unpaid.

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In October 2024, we announced a commitment to further reduce overall expenses, focus our efforts, and prioritize future investments in key initiatives that we expect will drive long-term, sustainable growth. This initiative resulted in a reduction of our global workforce by approximately 9%, creating capacity for targeted investments, as well as incremental profitability. In the fourth quarter of 2024, we recognized restructuring related charges of $6.8 million, mainly consisting of personnel expenses such as severance and benefits, and paid $2.7 million. During the six months ended June 30, 2025, we recognized incremental charges of $0.7 million, made cash payments of $5.2 million, and also recognized a reversal of stock-based compensation expense of $1.6 million due to the forfeiture of RSUs and stock options.

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Ability to innovate our products. Central to our strategy is the continued innovation of our products. We aim to expand access to world-class education and career opportunities by focusing on improvements in our learner experience, accelerating product development cycles, leveraging advanced AI technology and tools, and utilizing data-driven insights to continuously enhance the capabilities of our platform.

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Ability to innovate our products. Central to our strategy is the continued innovation of our products. We aim to expand access to in-demand skills and world-class education that advances careers by focusing on enhancing our platform’s capabilities. This includes accelerating product development cycles, leveraging more data-driven insights, and applying AI technology and tools to improve the learner experience across our platform.

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Ability to source in-demand content from our content creators. We believe that learners and enterprises are attracted to Coursera largely due to the quality, trust, and job-relevance of our wide selection of educational products provided by our content creators. We intend to accelerate our content engine, continuing to source and produce in-demand content and credentials in order to attract, convert, and retain learners and grow our revenue over time. By rapidly expanding our catalog of high-quality, job-relevant courses in collaboration with leading content creators, we aim to meet the evolving skill requirements of learners looking to transform their careers and support companies seeking to transform their businesses through their most crucial asset—their people.

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Ability to source in-demand content from our content creators. We believe that learners and customers are attracted to Coursera largely due to the quality, trust, and job-relevance of our wide selection of educational products provided by our content creators. We intend to accelerate our content engine, continuing to source and produce in-demand content and credentials in order to attract, convert, and retain learners and grow our revenue over time. By rapidly expanding our catalog of high-quality, job-relevant courses in collaboration with leading content creators, we aim to meet the evolving skill requirements of learners looking to transform their careers and support companies seeking to upskill their workforce and drive productivity improvements.

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We believe that our reach, scale, and reputation offer an attractive value proposition for leading organizations and institutions to partner with Coursera to develop and distribute content and credentials. To be the platform of choice for trusted content creators, we continue to invest in increasing the size and engagement of our learner base, enhancing the learning and authoring experience with AI-powered product innovations (e.g., Course Builder and Coach), and providing a suite of academic integrity features (e.g., identity verification and anti-plagiarism detection). Additionally, we are focused on improving our ability to provide personalized discovery, career guidance, and recommendations, driving higher conversion into paid offerings through efficient marketing efforts, and enhancing data-driven insights and tools available to learners, content creators, organizations, and institutions.

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We believe that our reach, scale, and reputation offer an attractive value proposition for leading organizations and institutions to partner with Coursera to develop and distribute content and credentials. To be the platform of choice for trusted content creators, we continue to invest in increasing the size and engagement of our learner base, enhancing the learning and authoring experience with AI-powered product innovations (e.g., Coach, AI translations, and Course Builder), and providing a suite of academic integrity features (e.g., identity verification and anti-plagiarism detection). Additionally, we are focused on improving our ability to provide personalized discovery, career guidance, and recommendations, driving higher conversion into paid offerings through efficient marketing efforts, and enhancing data-driven insights and tools available to learners, content creators, organizations, and institutions.

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Ability to enhance our go-to-market capabilities. In order to grow our business, we must efficiently attract learners and Enterprise customers, offer a compelling value proposition, and increase engagement and retention on our platform over time. Our Consumer learners are vital to growing and maintaining our overall ecosystem, as they generate interest from content creators who value our global reach. To increase engagement and retention, we are focused on investing in platform capabilities that serve a broad audience. We aim to guide individual learners more effectively through personalized recommendations, localized discovery, and outcome-focused value propositions that can support the career and educational goals of our learners, as well as the workforce and skilling needs of our Enterprise customers.

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Ability to enhance our go-to-market capabilities. To grow our business, we must efficiently attract learners and customers, offer a compelling value proposition, and increase engagement and retention on our platform over time. Our learners are vital to growing and maintaining our overall ecosystem, as they generate interest from content creators who value our global reach. To increase engagement and retention, we are focused on investing in platform capabilities that serve a broad audience. We aim to create a more unified and integrated experience across our platform that enables more personalized and engaging recommendations, localized discovery, and outcome-focused value propositions. We believe these capabilities will support the educational and career goals of our learners and help our customers upskill their workforces.

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Impact of mix shift over time. The mix of our business amongst our Consumer and Enterprise segments shifts from time to time, and these shifts have and will continue to affect our financial performance. We typically incur content costs in the form of a fee paid to our educator partners, determined as a percentage of total revenue generated from their content. In 2025, we began compensating our educator partners based on the level of learner engagement their content generates, rather than learner enrollment rates. We believe this change will improve learner outcomes by incentivizing our educator partners to produce highly engaging content, drive adoption of learning innovation, and account for the varied types of content we offer beyond courses.

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Impact of mix shift over time. The mix of our business amongst our Consumer and Enterprise segments shifts periodically, affecting our financial performance. We typically incur content costs in the form of a fee paid to our content creators, determined as a percentage of total revenue generated from their content. In 2025, we began compensating our content creators based on the level of learner engagement rather than the enrollment rates. We believe this change will improve learner outcomes by incentivizing our content creators to produce highly engaging content, drive adoption of learning innovation, and provide for the varied types of content we offer beyond courses.

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Ability to expand our international footprint. We see a significant opportunity to expand into regions with large, underserved adult learning populations. As part of our growth strategy, we have invested and plan to continue investing in marketing, localized discovery, and translation efforts to support our international expansion and grow our customer and learner base. We have also been improving the front-end experience for our Consumer learners and tailoring our pricing and check-out options, including selling our offerings in foreign currency, in select markets. Our business results and operations will depend on our ability to effectively price and package our Consumer products to meet demand and manage foreign currency risk.

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Ability to expand our international footprint. We see a significant opportunity to expand into regions with large, underserved adult learning populations. As part of our growth strategy, we have invested and plan to continue investing in marketing, localized discovery, and translation efforts to support our international expansion and grow our customer and learner base. We have also been improving the front-end experience for our Consumer learners and tailoring our pricing and check-out options, including selling our offerings in local currency in select markets. Our business results and operations will depend on our ability to effectively price and package our Consumer products to meet demand and manage foreign currency risks.

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Comparison of the Three Months Ended March 31, 2025 and 2024

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Comparison of the Three and Six Months Ended June 30, 2025 and 2024

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Revenue for the three months ended March 31, 2025 was $179.3 million, an increase of $10.2 million, or 6%, compared to $169.1 million for the prior year quarter. Revenue growth was primarily driven by an 18% increase in the average total number of Registered Learners, resulting in more paid learners, and a 12% increase in the average total number of Paid Enterprise Customers. This growth was partially offset by lower paid learner and customer retention in our Consumer and Enterprise segments globally.

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Revenue for the three months ended June 30, 2025 was $187.1 million, an increase of $16.8 million, or 10%, compared to $170.3 million for the prior year quarter. Revenue growth was primarily driven by 18% increase in the average total number of Registered Learners, resulting in more paid learners, and a 12% increase in the average total number of Paid Enterprise Customers. This growth was partially offset by lower retention of paid learners and customers in both our Consumer and Enterprise segments globally.

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Consumer revenue for the three months ended March 31, 2025 increased by $6.0 million, or 5%, compared to the prior year quarter. This increase was primarily driven by an increase in subscriptions to Coursera Plus.

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Consumer revenue for the three months ended June 30, 2025 increased by $11.2 million, or 10%, compared to the prior year quarter. This increase was primarily driven by growth in subscription revenue from Coursera Plus, partially offset by a decline in direct purchases of Specializations.

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Enterprise revenue for the three months ended March 31, 2025 increased by $4.2 million, or 7%, compared to the prior year quarter, attributable to an increase in new customers. Acquisitions of new customers drove an increase of $9.1 million, offset by a $4.9 million decrease due to contraction of existing customer spend.

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Enterprise revenue for the three months ended June 30, 2025 increased by $5.6 million, or 10%, compared to the prior year quarter, attributable to an increase in new customers. Acquisitions of new customers drove an increase of $9.3 million, offset by a $3.7 million decrease due to contraction of existing customer spend.

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Cost of revenue for the three months ended March 31, 2025 was $81.4 million compared to $79.6 million for the prior year quarter. The primary driver of the increase was content costs, including a $1.0 million increase in amortization expense for content assets.

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Cost of revenue for the three months ended June 30, 2025 was $84.4 million compared to $80.1 million for the prior year quarter. The primary drivers of the increase were revenue growth, which resulted in an increase of $3.2 million in content-related costs and a $1.4 million increase in amortization expense of content assets.

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Content costs for the Consumer segment were $45.2 million and $45.0 million for the three months ended March 31, 2025 and 2024, with content costs as a percentage of revenue of 38.4% and 40.3% for the same periods. Content costs for the Enterprise segment were $18.5 million and $18.4 million for the three months ended March 31, 2025 and 2024, with content costs as a percentage of revenue of 30.0% and 31.9% for the same periods. Content costs as a percentage of revenue for both segments decreased due to higher learner engagement in content created under production arrangements with lower revenue share.

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Content costs for the Consumer segment were $47.5 million and $45.0 million for the three months ended June 30, 2025 and 2024, with content costs as a percentage of revenue of 38.7% and 40.3% for the same periods. Content costs for the Enterprise segment were $19.5 million and $18.8 million for the three months ended June 30, 2025 and 2024, with content costs as a percentage of revenue of 30.3% and 32.0% for the same periods. Content costs as a percentage of revenue for both segments decreased due to higher learner engagement in content created under production arrangements with lower revenue share.

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Gross margin was 54.6% for the three months ended March 31, 2025, an increase from 52.9% for the prior year quarter. The increase in gross margin was driven by lower content cost rates in both our Consumer and Enterprise segments.

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Gross margin was 54.9% for the three months ended June 30, 2025, an increase from 53.0% for the prior year quarter. The increase in gross margin was driven by lower content cost rates in both our Consumer and Enterprise segments.

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Research and development expenses for the three months ended March 31, 2025 were $29.5 million compared to $34.6 million for the prior year quarter. This decrease was primarily due to lower personnel-related expenses of $5.0 million, including $2.7 million in stock-based compensation expense, resulting from our October 2024 expense reduction initiative and from shifting resources to lower-cost regions.

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Research and development expenses for the three months ended June 30, 2025 were $29.3 million compared to $33.7 million for the prior year quarter. This decrease was primarily due to lower personnel-related expenses of $3.9 million, including $1.9 million in stock-based compensation expense, resulting from our October 2024 expense reduction initiative and from shifting resources to lower-cost regions.

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Sales and marketing expenses for the three months ended March 31, 2025 were $56.8 million compared to $57.6 million for the prior year quarter. This decrease was primarily due to lower personnel-related expenses of $5.1 million, including $3.3 million in stock-based compensation expense, resulting from our 2024 expense reduction initiatives, and was largely offset by an increase in marketing and advertising expenses in our Consumer segment of $4.3 million.

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Sales and marketing expenses for the three months ended June 30, 2025 were $63.6 million compared to $58.1 million for the prior year quarter. This increase was primarily due to an increase in marketing and advertising expenses of $9.3 million, partially offset by lower personnel-related expenses of $4.5 million, including $3.1 million in stock-based compensation expense, resulting from our 2024 expense reduction initiatives.

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General and administrative expenses for the three months ended March 31, 2025 were $26.9 million compared to $25.0 million for the prior year quarter. This increase was primarily due to an increase in personnel-related expenses of $4.0 million largely related to our CEO transition, including $3.1 million in stock-based compensation expense, and was partially offset by a decrease in office lease expenses of $1.1 million.

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General and administrative expenses for the six months ended June 30, 2025 were $51.8 million compared to $54.6 million for the six months ended June 30, 2024. This decrease was primarily driven by a decrease of $3.4 million in costs related to third party advisory, legal, and other professional fees associated with evaluating an M&A transaction in the prior year and lower attributed facilities costs of $1.3 million, partially offset by an increase in personnel-related expenses of $4.1 million largely related to our CEO transition, including $3.2 million in stock-based compensation expense.

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Restructuring related charges for the three months ended March 31, 2025, were $(0.9) million, primarily consisting of the reversal of stock-based compensation expense for the forfeitures of RSUs and stock options, mostly offset by personnel expenses, such as employee severance and benefits costs, related to our expense reduction initiative initiated in October 2024, compared to $2.1 million for the prior year quarter, primarily consisting of personnel expenses, such as employee severance and benefits costs, related to our expense reduction initiative initiated in January 2024. Refer to Note 14, Restructuring Related Charges, included in Part I, Item 1 of this Form 10-Q for further information.

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Restructuring related charges for the six months ended June 30, 2025 were $(0.9) million, primarily consisting of the reversal of stock-based compensation expense for the forfeitures of RSUs and stock options, mostly offset by personnel expenses, such as employee severance and benefits costs, related to our expense reduction initiative initiated in October 2024, compared to $2.1 million for the six months ended June 30, 2024, primarily consisting of personnel expenses, such as employee severance and benefits costs, related to our expense reduction initiative initiated in January 2024. Refer to Note 14, “Restructuring Related Charges,” in the notes to our Condensed Consolidated Financial Statements (Unaudited) included in Part I, Item 1 of this Form 10-Q for further information.

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Total other income, net for the three months ended March 31, 2025 was primarily comprised of interest income earned on cash and cash equivalents. Interest income, net decreased during the three months ended March 31, 2025 compared to the prior year quarter due to lower interest rates and our average rate of return on investments in U.S. Treasury securities. Other income (expense), net for the three months ended March 31, 2025 and 2024 were primarily comprised of unrealized foreign exchange gains and losses. Our foreign subsidiaries’ operating costs are typically denominated in the local currencies for each country and are subject to foreign currency fluctuations. We also maintain foreign-currency cash and cash equivalents in our foreign subsidiaries to support their ongoing operations.

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Total other income, net for the three and six months ended June 30, 2025 was primarily comprised of interest income earned on cash and cash equivalents. Interest income, net decreased during the three and six months ended June 30, 2025 compared to the prior year periods due to lower interest rates and our average rate of return on investments in U.S. Treasury securities. Other income (expense), net for the three and six months ended June 30, 2025 and 2024 were primarily comprised of unrealized foreign exchange gains and losses. Our foreign subsidiaries’ operating costs are typically denominated in the local currencies for each country and are subject to foreign currency fluctuations. We also maintain foreign-currency cash and cash equivalents in our foreign subsidiaries to support their ongoing operations.

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Income tax expense for the three months ended March 31, 2025 and 2024 was primarily related to state and foreign taxes.

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Income tax expense for the three and six months ended June 30, 2025 and 2024 was primarily related to state and foreign taxes.

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As of March 31, 2025, our principal source of liquidity was cash and cash equivalents totaling $748.0 million.

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As of June 30, 2025, our principal source of liquidity was cash and cash equivalents totaling $775.1 million.

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Since our inception, we have financed our operations primarily through proceeds from the issuance of redeemable convertible preferred stock, our initial public offering completed in April 2021 (the “IPO”), and cash generated from business operations. Our principal uses of cash in the three months ended March 31, 2025 and 2024 include the funding of our business operations, investments in our internal-use software, purchases of content assets, and repurchases of our common stock.

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Since our inception, we have financed our operations primarily through proceeds from the issuance of redeemable convertible preferred stock, our initial public offering completed in April 2021 (the “IPO”), and cash generated from business operations. Our principal uses of cash in the three and six months ended June 30, 2025 and 2024 include the funding of our business operations, investments in our internal-use software, purchases of content assets, and repurchases of our common stock.

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Except as discussed in Note 6, Leases, and Note 9, Commitments and Contingencies, included in Part I, Item 1 of this Form 10-Q, there were no material changes outside of the ordinary course of business in our commitments and contractual obligations for the three months ended March 31, 2025 as compared to those in“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in our Form 10-K.

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Except as discussed in Note 6, Leases, and Note 9, Commitments and Contingencies, included in Part I, Item 1 of this Form 10-Q, there were no material changes outside of the ordinary course of business in our commitments and contractual obligations for the three and six months ended June 30, 2025 as compared to those in“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in our Form 10-K.

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On April 26, 2023, the Board approved a share repurchase program with autho rization to purchase up to $95 million of our common stock, excluding commissions and fees (the “Repurchase Program”). In May 2024, we completed the purchase authorization under the Repurchase Program, which was funded with our existing cash and cash equivalents.

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On April 26, 2023, the Board approved a share repurchase program with autho rization to purchase up to $95.0 million of our common stock, excluding commissions and fees (the “Repurchase Program”). In May 2024, we completed the purchase authorization under the Repurchase Program, which was funded with our existing cash and cash equivalents.

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During the three months ended March 31, 2024, we repurchased an aggregate of approximately 0.4 million shares of our common stock for $6.0 million under the aforementioned program.

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During the three and six months ended June 30, 2024, we repurchased an aggregate of approximately 2.7 million shares and 3.1 million shares of our common stock for $30.7 million and $36.7 million under the aforementioned program.

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Cash provided by operating activities mainly consists of our net loss adjusted for certain non-cash items, including stock-based compensation expense and depreciation and amortization, as well as the effect of changes in operating assets and liabilities during each period. Operating cash is primarily sourced by customer payments and is primarily used to pay for personnel-related expenses, educator partner fees, marketing and advertising expenses, third-party cloud infrastructure expenses, and indirect taxes.

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Cash provided by operating activities mainly consists of our net loss adjusted for certain non-cash items, including stock-based compensation expense and depreciation and amortization, as well as the effect of changes in operating assets and liabilities during each period. Operating cash is primarily sourced by customer payments and is primarily used to pay for personnel-related expenses, content creator fees, marketing and advertising expenses, third-party cloud infrastructure expenses, and indirect taxes.