Coursera, Inc.

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•market acceptance and demand for our platform;

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•market acceptance and demand for our platform and offerings;

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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 source new content creators and expand program offerings with existing content creators;

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•our ability to successfully defend, settle, or otherwise resolve any current or future legal proceedings brought against us;

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•our ability to successfully defend, settle, or otherwise resolve any current or future legal proceedings;

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•the amount of time for which we expect our cash balances and other available financial resources to be sufficient to fund our operations;

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•our expectations regarding the sufficiency of our cash and financial resources to fund our operations over time;

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Key Financial Results for Second Quarter 2025

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Key Financial Results for Third Quarter 2025

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•Total revenue was $187.1 million, up 10% from $170.3 million a year ago.

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•Total revenue was $194.2 million, up 10% from $176.1 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 was $(8.6) million, compared to $(13.7) million a year ago. Non-GAAP net income was $16.7 million, compared to $16.6 million 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 loss per share was $(0.05), compared to $(0.09) a year ago. Non-GAAP net income per share was $0.10, compared to $0.10 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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•Net cash provided by operating activities was $33.9 million, compared to $27.8 million a year ago. Free Cash Flow was $26.6 million, compared to $16.7 million a year ago.

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Effective February 3, 2025, our Board of Directors (the “Board”) appointed Gregory Hart as our President, Chief Executive Officer (“CEO”), and a Class III director on our Board. Refer to Note 1, Basis of Presentation and Description of Business, and Note 11, Employee Benefit Plans, included in Part I, Item 1 of this Form 10-Q for additional information.

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Effective February 3, 2025, our Board of Directors (the “Board”) appointed Gregory Hart as our President, Chief Executive Officer (“CEO”), and a Class III director on our Board. Effective October 29, 2025, Kenneth Hahn resigned from his positions as Senior Vice President, Chief Financial Officer, and Treasurer, and transitioned to an advisory role for a one-year period. On October 30, 2025, our Board appointed Mr. Hart to also serve as our principal financial officer, which is expected to be on an interim basis. For additional information, refer to Note 1, Basis of Presentation and Description of Business, and Note 11, Employee Benefit Plans, both included in Part I, Item 1 of this Form 10-Q and Item 5, Other Information, included in Part II of this Form 10-Q.

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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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Our chief operating decision maker (“CODM”) is our CEO. In connection with Mr. Hart’s appointment as our CEO, we simplified our business model and conduct our operations 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. Prior-period segment information has been recast to conform to the current presentation. For additional information, refer to Note 13, Segment and Geographic Information, included in Part I, Item 1 of this Form 10-Q.

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During 2024 and the first quarter of 2025, in alignment with our efforts to refine our business strategy and hone our focus, we reduced our expenses and prioritized investments in key initiatives that are expected to drive long-term, sustainable growth.

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During 2024 and the first quarter of 2025, in alignment with our efforts to refine our business strategy and hone our focus, we reduced our expenses and prioritized investments in key initiatives expected to drive long-term, sustainable growth.

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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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In January 2024, we implemented a plan to restructure our Enterprise segment sales force. Related cash payments approximated the expense amount for the period and are reflected as cash used in operating activities within our Condensed Consolidated Statements of Cash Flows. 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.

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We believe our business growth and future success depend on many factors. While each present significant opportunities for us, these factors also pose challenges that we must successfully address in order to sustain the growth of our business and enhance our results of operations.

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Our business growth and future success depend on many factors. While these factors present opportunities for us, they also pose challenges that we must address to sustain growth and improve our results of operations.

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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 innovate our products. Central to our strategy is the continued innovation of our products. We aim to expand access to in-demand skills and high-quality education that supports career advancement by focusing on enhancing our platform’s capabilities. This includes accelerating product development cycles, leveraging data-driven insights, and applying AI tools to improve the experience for learners, customers, and content creators across our platform.

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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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Ability to source in-demand content. We believe learners and customers are attracted to Coursera due to the quality, trust, and job-relevance of our wide selection of educational content provided by our content creators. We intend to accelerate our content development efforts, continuing to source and produce in-demand content and credentials to attract, convert, and retain learners and grow our revenue over time. These efforts are designed to address evolving skill requirements and support workforce development at scale in collaboration with our content creators.

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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 attract and retain trusted content creators. We believe our reach, scale, and reputation position us as a valuable partner for leading organizations and institutions seeking to develop and distribute content and credentials to a global audience. To remain a preferred platform for trusted content creators, we continue to invest in growing and engaging our learner base, enhancing the learning and authoring experience through AI-powered product innovations (e.g., Coach, AI translations, and Course Builder), and providing a suite of academic integrity features to verify skills mastery (e.g., identity verification and anti-plagiarism detection). Additionally, we are focused on providing personalized discovery, career guidance, and recommendations, increasing conversion into paid offerings through efficient marketing, and enhancing data-driven insights and tools for learners, content creators, organizations, and institutions.

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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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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. Learners are central to our ecosystem, as their participation helps attract content creators who value our global reach. To increase engagement and retention, we are investing in platform capabilities that serve a broad audience. We aim to create a more unified and integrated experience through personalized recommendations, localized discovery, and clear value propositions that support learners’ educational and career goals and help customers develop their workforces at scale.

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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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Impact of mix shift over time. The mix of our business between our Consumer and Enterprise segments shifts periodically, which can affect our financial performance. We typically incur content costs in the form of fees paid to our content creators, calculated as a percentage of net revenue generated from their content. In 2025, we began compensating our content creators based on learner engagement rather than enrollment rates. We expect this change to incentivize the development of more engaging content, support innovation in learning formats, and better align incentives across the diverse content types offered on our platform.

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Ability to convert free learners to paid learners. New learners typically start by engaging with free courses on our platform, which serve as a funnel to grow our total learner base and drive referrals to our other products, including our paid offerings. We engage our free learners through both our on-platform and off-platform marketing efforts, highlighting premium features that encourage conversion to our paid offerings, such as subscriptions. These efforts include campaigns targeting existing learners, personalized recommendations, and performance marketing on the internet.

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Ability to convert free learners to paid learners. New learners often begin with free courses on our platform, which serve as a funnel to grow our learner base and generate referrals to paid offerings. We engage these learners through targeted marketing, personalized recommendations, and performance campaigns to highlight premium features and encourage conversion.

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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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Ability to grow in international markets. We see significant opportunity to grow our learner base, particularly in 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 international growth and grow our global customer and learner base. We have adapted the front-end experience for Consumer learners, tailoring our pricing and checkout options, including offering local currency transactions in select markets. Our results will depend on our ability to effectively price and package our Consumer products to meet local demand and manage foreign currency risks.

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Ability to retain and expand our Enterprise customer relationships. Our business and results of operations will depend, in part, on our ability to retain and expand platform usage within our existing customer base and to attract new Enterprise customers. The Enterprise market is highly competitive and subject to rapid changes driven by evolving customer needs, technological advancements, and shifting labor market needs. While new technologies, such as artificial intelligence, may create opportunities for workforce training and upskilling, the extent to which these trends will drive demand for our platform is uncertain. Our ability to compete effectively will depend on the strength of our product offerings, our capacity to innovate, and our ability to demonstrate value to customers.

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Ability to retain and expand our Enterprise customer relationships. Retaining and expanding usage within our existing Enterprise customer base, as well as attracting new customers, are critical drivers of our performance. The Enterprise market is highly competitive and subject to rapid changes driven by evolving customer needs, technological advancements, and shifting labor market dynamics. Emerging and evolving technologies, such as AI, may create opportunities for workforce training and upskilling, though the extent of their impact on demand for our platform remains uncertain. Our competitive position will be influenced by the strength of our product offerings, our pace of innovation, and our ability to deliver measurable outcomes for customers.

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

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Comparison of the Three and Nine Months Ended September 30, 2025 and 2024

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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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Revenue for the three months ended September 30, 2025 was $194.2 million, an increase of $18.1 million, or 10%, compared to $176.1 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 10% 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 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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Consumer revenue for the three months ended September 30, 2025 increased by $14.6 million, or 13%, 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 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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Enterprise revenue for the three months ended September 30, 2025 increased by $3.5 million, or 6%, 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 $5.6 million decrease due to contraction of existing customer spend.

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Revenue for the six months ended June 30, 2025 was $366.4 million, an increase of $27.0 million, or 8%, compared to $339.4 million for the six months ended June 30, 2024. Revenue growth was primarily driven by an 18% increase in the average total number of Registered Learners, resulting in more paid learners, and a 15% 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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Revenue for the nine months ended September 30, 2025 was $560.6 million, an increase of $45.1 million, or 9%, compared to $515.5 million for the nine months ended September 30, 2024. Revenue growth was primarily driven by an 18% increase in the average total number of Registered Learners, resulting in more paid learners, and a 14% 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 six months ended June 30, 2025 increased by $17.2 million, or 8%, compared to the six months ended June 30, 2024. 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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Consumer revenue for the nine months ended September 30, 2025 increased by $31.8 million, or 9%, compared to the nine months ended September 30, 2024. 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 six months ended June 30, 2025 increased by $9.8 million, or 8%, compared to the six months ended June 30, 2024, attributable to an increase in new customers. Acquisitions of new customers drove an increase of $16.1 million, offset by a $6.3 million decrease due to contraction of existing customer spend.

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Enterprise revenue for the nine months ended September 30, 2025 increased by $13.3 million, or 8%, compared to the nine months ended September 30, 2024, primarily attributable to an increase in new customers. Acquisitions of new customers drove an increase of $19.1 million, partially offset by a $5.8 million decrease due to contraction of existing customer spend.

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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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Cost of revenue for the three months ended September 30, 2025 was $88.2 million compared to $79.9 million for the prior-year quarter. The primary driver of the increase was revenue growth, which resulted in an increase of $4.8 million in content-related costs and higher support services expenses and credit card processing fees of $2.3 million.

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Content costs for the Consumer segment were $92.7 million and $90.0 million for the six months ended June 30, 2025 and 2024, with content costs as a percentage of revenue of 38.6% and 40.3% for the same periods. Content costs for the Enterprise segment were $38.0 million and $37.2 million for the six months ended June 30, 2025 and 2024, with content costs as a percentage of revenue of 30.2% 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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Content costs for the Consumer segment were $50.6 million and $47.0 million for the three months ended September 30, 2025 and 2024, with content costs as a percentage of revenue of 38.8% and 40.6% for the same periods. Content costs as a percentage of revenue for the Consumer segment decreased due to higher learner engagement in content created under production arrangements with lower revenue share. Content costs for the Enterprise segment were $19.4 million and $18.1 million for the three months ended September 30, 2025 and 2024, with content costs as a percentage of revenue of 30.4% and 30.0% for the same periods. Content costs as a percentage of revenue for the Enterprise segment increased due to a one-time benefit from a significant contract that was enrolled in lower-cost content during the three months ended September 30, 2024.

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Cost of revenue for the six months ended June 30, 2025 was $165.8 million compared to $159.7 million for the six months ended June 30, 2024. The primary drivers of the increase were revenue growth, which resulted in an increase of $3.5 million in content-related costs and a $2.4 million increase in amortization expense of content assets.

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Cost of revenue for the nine months ended September 30, 2025 was $254.0 million compared to $239.6 million for the nine months ended September 30, 2024. The primary driver of the increase was revenue growth, which resulted in an increase of $8.3 million in content-related costs. Additionally, amortization expense of content assets increased by $3.8 million.

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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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Content costs for the Consumer segment were $143.3 million and $137.0 million for the nine months ended September 30, 2025 and 2024, with content costs as a percentage of revenue of 38.7% and 40.4% for the same periods. Content costs for the Enterprise segment were $57.4 million and $55.3 million for the nine months ended September 30, 2025 and 2024, with content costs as a percentage of revenue of 30.2% and 31.3% 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 54.7% for the six months ended June 30, 2025, an increase from 52.9% for the six months ended June 30, 2024. 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 54.7% for the nine months ended September 30, 2025, an increase from 53.5% for the nine months ended September 30, 2024. The increase in gross margin was driven by lower content cost rates in both our Consumer and Enterprise segments.

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Total operating expenses for thethree and six months ended June 30, 2025 were $117.8 million and $230.1 million compared to $121.4 million and $240.7 million for thethree and six months ended June 30, 2024.

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Total operating expenses for thethree and nine months ended September 30, 2025 were $121.6 million and $351.7 million compared to $117.9 million and $358.6 million for thethree and nine months ended September 30, 2024.

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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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Research and development expenses for the three months ended September 30, 2025 were $30.0 million compared to $31.6 million for the prior-year quarter. This decrease was primarily due to lower personnel-related expenses of $2.6 million, including $1.7 million in stock-based compensation expense, resulting from our October 2024 expense reduction initiative and shifting resources to lower-cost regions.

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Research and development expenses for the six months ended June 30, 2025 were $58.8 million compared to $68.3 million for the six months ended June 30, 2024. This decrease was primarily due to lower personnel-related expenses of $8.8 million, including $4.6 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 nine months ended September 30, 2025 were $88.8 million compared to $99.9 million for the nine months ended September 30, 2024. This decrease was primarily due to lower personnel-related expenses of $11.4 million, including $6.0 million in stock-based compensation expense, resulting from our October 2024 expense reduction initiative and shifting resources to lower-cost regions.

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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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Sales and marketing expenses for the three months ended September 30, 2025 were $67.4 million compared to $59.0 million for the prior-year quarter. This increase was primarily due to an increase in performance marketing and advertising expenses of $9.4 million.

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Sales and marketing expenses for the six months ended June 30, 2025 were $120.4 million compared to $115.7 million for the six months ended June 30, 2024. This increase was primarily due to an increase in marketing and advertising expenses of $13.5 million, partially offset by lower personnel-related expenses of $9.5 million, including $6.4 million in stock-based compensation expense, resulting from our 2024 expense reduction initiatives and a decrease in consulting services expenses of $1.6 million.

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Sales and marketing expenses for the nine months ended September 30, 2025 were $187.8 million compared to $174.7 million for the nine months ended September 30, 2024. This increase was primarily driven by higher performance marketing and advertising expenses of $22.9 million. The increase was partially offset by lower personnel-related expenses of $9.7 million, including $6.5 million in stock-based compensation expense, resulting from our 2024 expense reduction initiatives, and a $2.0 million decrease in consulting services expenses.

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General and administrative expenses for the three months ended June 30, 2025 were $24.9 million compared to $29.6 million for the prior year quarter. This decrease was primarily driven by a decrease of $3.4 million related to third party advisory, legal, and other professional fees associated with evaluating a merger and acquisition (“M&A”) transaction in the prior year quarter.

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General and administrative expenses for the three months ended September 30, 2025 were $24.2 million compared to $27.3 million for the prior-year quarter. This decrease was primarily due to a $3.1 million loss contingency recorded in the prior-year quarter related to certain significant and non-recurring legal matters.