Coursera, Inc.
For the period ended Mar 31, 2026. Filed Apr 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 30, 2026
COUR$3.74-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001651562-25-000061
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001651562-26-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 177 previous paragraphs and 167 current paragraphs.
116 unchanged; 32 reworded; 18 added; 26 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 20 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
•the expected timing and benefits of our proposed merger with Udemy, Inc. (“Udemy”);
Current report
•our ability to deliver tools that content creators can use to align with evolving workforce needs;
Current report
•our ability to maintain an effective pricing structure;
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Recent Developments
Current report
Transaction with Udemy
Current report
On December 17, 2025, Coursera and Udemy, Inc. entered into a definitive merger agreement (the “Merger Agreement”) pursuant to which Coursera will combine with Udemy in an all-stock transaction (the “Merger”). Under the terms of the Merger Agreement, each issued and outstanding share of Udemy common stock would be converted into the right to receive 0.800 shares of our common stock. The transaction has been unanimously approved by the Boards of Directors of both Coursera and Udemy.
Current report
On April 9, 2026, the transaction was approved by Coursera and Udemy stockholders. The transaction remains subject to the remaining regulatory approval processes and customary closing conditions.
Current report
•Total revenue was $195.7 million, up 9% from $179.3 million a year ago.
Current report
•Gross profit was $108.6 million, compared to $97.9 million a year ago. Non-GAAP gross profit was $110.8 million, compared to $100.1 million a year ago.
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•Adjusted EBITDA was $13.5 million, compared to $18.7 million a year ago.
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CFO Appointment
Current report
On November 13, 2025, the Board appointed Michael Foley to serve as Senior Vice President, Chief Financial Officer and Treasurer, and principal financial officer on an interim basis. Effective January 3, 2026, the Board designated Mr. Foley to also serve as our principal accounting officer. Effective March 16, 2026, our Board appointed Michael Foley to serve in these roles on a permanent basis.
Current report
Total operating expenses for thethree months ended March 31, 2026 were $133.9 million compared to $112.3 million for the prior year quarter.
Current report
Research and development expenses for the three months ended March 31, 2026 were $31.3 million compared to $29.5 million for the prior-year quarter. This increase was primarily due to higher software-related expenses of $2.0 million, partially offset by a decrease of $1.0 million in stock-based compensation expense.
Current report
General and administrative expenses for the three months ended March 31, 2026 were $33.3 million compared to $26.9 million for the prior-year quarter. This increase was primarily driven by an increase of $6.2 million and $3.8 million in expenses related to M&A transaction costs and integration related costs, respectively, associated with the merger with Udemy, partially offset by a decrease of $4.5 million in stock-based compensation expense primarily related to our CEO leadership transition in the prior-year quarter.
Current report
For the three months ended March 31, 2026, net cash provided by operating activities was $14.6 million, primarily resulting from a net loss of $20.5 million adjusted for non-cash charges of $28.3 million and improved working capital driven by (i) deferred revenue growth, partially offset by (ii) the payout of annual and commission-based incentive compensation.
Current report
Cash provided by operating activities decreased by $18.9 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to M&A transaction costs and integration related costs, associated with the merger with Udemy, including $11.1 million in cash payments of M&A transaction costs made during the three months ended March 31, 2026.
Current report
(1) Net cash provided by operating activities includes restructuring related cash payments made during the three months ended March 31, 2026 and 2025 of $0 and $5.2 million and cash payments of M&A transaction costs of $11.1 million and $0.
Removed paragraphs (26)
Previous report
•Total revenue was $194.2 million, up 10% from $176.1 million a year ago.
Previous report
•Gross profit was $106.0 million, compared to $96.2 million a year ago. Non-GAAP gross profit was $108.0 million, compared to $98.1 million a year ago.
Previous report
•Adjusted EBITDA was $15.6 million, compared to $13.3 million a year ago.
Previous report
Leadership Transitions
Previous report
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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Reporting Segments
Previous report
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.
Previous report
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.
Previous report
As a result of these actions, we recognized restructuring related charges of $2.1 million during the nine months ended September 30, 2024. There were no restructuring related charges during the three months ended September 30, 2024. 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. During the nine months ended September 30, 2025, we recognized 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. There were no restructuring related charges during the three months ended September 30, 2025.
Previous report
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.
Previous report
Gross margin was 54.6% for both the three months ended September 30, 2025 and 2024.
Previous report
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.
Previous report
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.
Previous report
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.
Previous report
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.
Previous report
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.
Previous report
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.
Previous report
General and administrative expenses for the nine months ended September 30, 2025 were $76.0 million compared to $81.9 million for the nine months ended September 30, 2024. This decrease was primarily due to non-recurring expenses recorded in the prior-year period, including $3.4 million in loss contingencies related to certain significant legal matters and $3.4 million third-party advisory, legal, and other professional fees associated with evaluating a significant M&A transaction. The decrease also reflects lower attributed facilities costs of $1.7 million. These reductions were partially offset by an increase in personnel-related expenses of $2.8 million, largely related to our CEO transition, including $2.1 million in stock-based compensation expense.
Previous report
Share Repurchase Program
Previous report
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.
Previous report
During the nine months ended September 30, 2024, we repurchased an aggregate of approximately 3.1 million shares of our common stock for $36.7 million under the aforementioned program.
Previous report
For the nine months ended September 30, 2025, net cash provided by operating activities was $102.9 million, primarily resulting from improved operating leverage and working capital driven by (i) deferred revenue growth and (ii) an increase in accounts payable and accrued expenses resulting from invoice and payment timing.
Previous report
Cash provided by operating activities increased by $26.7 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily resulting from improved operating leverage.
Previous report
For the nine months ended September 30, 2024, net cash provided by investing activities was $41.7 million, due to (i) proceeds from maturities of marketable securities, partially offset by (ii) capitalized internal-use software costs, (iii) purchases of content assets, and (iv) purchases of property, equipment, and software.
Previous report
For the nine months ended September 30, 2024, net cash used in financing activities was $54.3 million, primarily driven by (i) payments related to repurchases of common stock under the Repurchase Program and (ii) payments for tax withholdings on vesting of RSUs, partially offset by (iii) proceeds from the exercise of stock options, and (iv) proceeds from our employee stock purchase plan.
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Table of Contents
Reworded paragraphs (32)
Previous wording
•trends and expectations for growth in the higher education and online education markets;
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•trends and expectations for growth in the global learning ecosystem;
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We partner with over 375 content creators, including universities and industry organizations, to develop and distribute educational content that is modular, flexible, and affordable. As of September 30, 2025, the platform had approximately 191 million cumulative Registered Learners.
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We partner with over 375 content creators, including universities and industry organizations, to develop and distribute educational content that is modular, flexible, and affordable. As of March 31, 2026, the platform had approximately 205 million cumulative Registered Learners.
Previous wording
Coursera offers a range of learning products to meet diverse educational and professional development needs, including Guided Projects, industry micro-credentials, and accredited degree programs. We continue to invest in platform capabilities to enhance and scale the delivery of online education. Recent innovations include generative AI-powered features such as Coach, Role Play, and Course Builder, as well as role-based solutions like Skills Tracks. These tools enable content creators and institutions to deliver targeted learning aligned with evolving workforce needs. Organizations across the public and private sectors use Coursera to upskill and reskill employees, students, and citizens in fields such as generative AI, data science, technology, and business.
Current wording
Coursera offers a range of learning products to meet diverse educational and professional development needs, from hands-on labs to build practical skills to industry micro-credentials and accredited degree programs that can advance a career. We continue to invest in platform capabilities to enhance and personalize the delivery of skills at global scale. Recent innovations include generative AI-powered features for tutoring, translations, interactive role play, and custom course authoring, as well as role-based solutions like Skills Tracks. These tools enable content creators and institutions to deliver targeted learning aligned with evolving workforce needs. Organizations across the public and private sectors use Coursera to upskill and reskill employees, students, and citizens in fields such as generative AI, data science, technology, and business.
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Key Financial Results for Third Quarter 2025
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Key Financial Results for First Quarter 2026
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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.
Current wording
•Net loss was $(20.5) million, compared to $(7.8) million a year ago. Non-GAAP net income was $12.4 million, compared to $19.7 million 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.
Current wording
•Net loss per share was $(0.12), compared to $(0.05) a year ago. Non-GAAP net income per share was $0.07, compared to $0.12 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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•Net cash provided by operating activities was $14.6 million, compared to $33.5 million a year ago. Free Cash Flow was $3.0 million, compared to $25.3 million a year ago.
Previous wording
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.
Current wording
In October 2024, we announced a commitment to reducing 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. As a result, we recognized restructuring related charges of $0.7 million, made cash payments of $5.2 million, and also recognized a reversal of stock-based compensation of $1.6 million due to the forfeiture of RSUs and stock options during the three months ended March 31, 2025.
Previous wording
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.
Current wording
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. This change incentivizes the development of more engaging content, supports innovation in learning formats, and better aligns incentives across the diverse content types offered on our platform.
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Comparison of the Three and Nine Months Ended September 30, 2025 and 2024
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Comparison of the Three Months Ended March 31, 2026 and 2025
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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.
Current wording
Revenue for the three months ended March 31, 2026 was $195.7 million, an increase of $16.4 million, or 9%, compared to $179.3 million for the prior-year quarter. Revenue growth was primarily driven by a 17% increase in the average total number of Registered Learners, resulting in more paid learners, and a 5% increase in the average total number of Paid Enterprise Customers with growth supported by increased Coursera Plus subscription adoption, ongoing platform improvements, and localized pricing, payment, and promotional capabilities.
Previous wording
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.
Current wording
Consumer revenue for the three months ended March 31, 2026 increased by $11.9 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.
Previous wording
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.
Current wording
Enterprise revenue for the three months ended March 31, 2026 increased by $4.5 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, partially offset by a $4.6 million decrease due to contraction of existing customer spend.
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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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Cost of revenue for the three months ended March 31, 2026 was $87.1 million compared to $81.4 million for the prior-year quarter. The primary driver of the increase was revenue growth, which resulted in an increase of $3.3 million in content-related costs and a $1.1 million increase in platform costs.
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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.
Current wording
Content costs for the Consumer segment were $47.7 million and $45.2 million for the three months ended March 31, 2026 and 2025, with content costs as a percentage of revenue of 36.8% and 38.4% for the same periods. Content costs for the Enterprise segment were $19.3 million and $18.5 million for the three months ended March 31, 2026 and 2025, with content costs as a percentage of revenue of 29.2% and 30.0% 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, and from the introduction of the platform maintenance fee in January 2026.
Previous wording
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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Gross margin was 55.5% for the three months ended March 31, 2026, an increase from 54.6% 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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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.
Current wording
Sales and marketing expenses for the three months ended March 31, 2026 were $69.3 million compared to $56.8 million for the prior-year quarter. The increase was primarily due to an increase in marketing and advertising expenses of $9.5 million and personnel-related expenses of $1.6 million.
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Restructuring related charges for the nine months ended September 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. This compares to $2.1 million for the nine months ended September 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, included in Part I, Item 1 of this Form 10-Q for further information.
Current wording
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 October 2024 expense reduction initiative. Refer to Note 13, Restructuring Related Charges, included in Part I, Item 1 of this Form 10-Q for further information.
Previous wording
Total other income, net for the three and nine months ended September 30, 2025 was primarily comprised of interest income earned on cash and cash equivalents. Interest income, net decreased during both periods compared to the prior-year periods, primarily due to lower interest rates and a reduced average rate of return on investments in U.S. Treasury securities. Other income (expense), net for the three and nine months ended September 30, 2025 and 2024 were primarily comprised of unrealized foreign exchange gains and losses. Our foreign subsidiaries’ operating costs are typically denominated in local currencies 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.
Current wording
Total other income, net for the three months ended March 31, 2026 was primarily comprised of interest income earned on cash and cash equivalents. Interest income, net decreased during the three months ended March 31, 2026 compared to the prior year quarter, primarily due to lower interest rates and a reduced average rate of return on investments in United States (“U.S.”) Treasury securities. Other (expense) income, net for the three months ended March 31, 2026 and 2025 were primarily comprised of unrealized foreign exchange gains and losses. Our foreign subsidiaries’ operating costs are typically denominated in local currencies 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.
Previous wording
Income tax expense for the three and nine months ended September 30, 2025 and 2024 was primarily related to state and foreign taxes.
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Income tax expense for the three months ended March 31, 2026 and 2025 was primarily related to state and foreign taxes.
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As of September 30, 2025, our principal source of liquidity was cash and cash equivalents totaling $797.7 million.
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As of March 31, 2026, our principal source of liquidity was cash and cash equivalents totaling $789.8 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 and nine months ended September 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.
Current wording
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, 2026 and 2025 include the funding of our business operations, investments in our internal-use software, and purchases of content assets.
Previous wording
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 nine months ended September 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.
Current wording
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, 2026 as compared to those in“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in our Form 10-K.
Previous wording
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.
Current wording
Cash provided by operating activities mainly consists of our net loss adjusted for certain non-cash items, including stock-based compensation expense, depreciation and amortization, and impairment losses, as well as the effect of changes in operating assets and liabilities during each period. Our main source of operating cash is payments received from our customers. Our primary use of cash from operating activities is for personnel-related expenses, content creator fees, marketing and advertising expenses, indirect taxes, and third-party cloud infrastructure expenses.
Previous wording
For the nine months ended September 30, 2024, net cash provided by operating activities was $76.2 million, primarily resulting from improved operating leverage and working capital driven by (i) an increase in accounts receivable collections and (ii) deferred revenue growth.
Current wording
For the three months ended March 31, 2025, net cash provided by operating activities was $33.5 million, primarily resulting from improved operating leverage and working capital driven by (i) deferred revenue growth, partially offset by (ii) the payout of annual and commission-based incentive compensation as well as severance related to our expense reduction initiative.
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For the nine months ended September 30, 2025, net cash used in investing activities was $22.4 million, due to (i) capitalized internal-use software costs, (ii) purchases of content assets, and (iii) purchases of property, equipment, and software.
Current wording
For the three months ended March 31, 2026 and 2025, net cash used in investing activities was $11.6 million and $8.2 million, due to (i) purchases of content assets, (ii) capitalized internal-use software costs, and (iii) purchases of property, equipment, and software.
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For the nine months ended September 30, 2025, net cash used in financing activities was $10.4 million, primarily due to (i) payments for tax withholding on vesting of RSUs, partially offset by (ii) proceeds from the exercise of stock options, and (iii) proceeds from our employee stock purchase plan.
Current wording
For the three months ended March 31, 2026 and 2025, net cash used in financing activities was $5.7 million and $5.0 million, due to (i) payments for tax withholding on vesting of RSUs, partially offset by (ii) proceeds from the exercise of stock options.
Previous wording
For the nine months ended September 30, 2025, approximately 94% of Enterprise revenue was generated from our Paid Enterprise Customers. We believe that the number of Paid Enterprise Customers and our ability to increase this number is an important indicator of the growth of our Enterprise segment and future Enterprise segment revenue trends.
Current wording
For the three months ended March 31, 2026, approximately 94% of Enterprise revenue was generated from our Paid Enterprise Customers. We believe that the number of Paid Enterprise Customers and our ability to increase this number is an important indicator of the growth of our Enterprise segment and future Enterprise segment revenue trends.
Previous wording
Our Net Retention Rate for Paid Enterprise Customers was 89% for the three months ended September 30, 2025 and 2024. Our Net Retention Rate for Paid Enterprise Customers is expected to fluctuate in future periods due to a number of factors, including the growth of our revenue base, the penetration within our Paid Enterprise Customer base, expansion of products and features, and our ability to retain and expand our Paid Enterprise Customers.
Current wording
Our Net Retention Rate for Paid Enterprise Customers was 90% for the three months ended March 31, 2026 compared to 91% for the three months ended March 31, 2025. The decrease was primarily the result of customer attrition within Coursera for Business partially offset by expansion of Coursera for Government customers. Our Net Retention Rate for Paid Enterprise Customers is expected to fluctuate in future periods due to a number of factors, including the growth of our revenue base, the penetration within our Paid Enterprise Customer base, expansion of products and features, and our ability to retain and expand our Paid Enterprise Customers.
Previous wording
Consumer segment gross margin increased to 61.2% and 61.3% for the three and nine months ended September 30, 2025 from 59.4% and 59.6% for the three and nine months ended September 30, 2024. The increases were primarily driven by lower content cost rates in our Consumer segment, resulting from higher learner engagement in content created under new production arrangements with lower revenue share. Enterprise segment gross margin for the three months ended September 30, 2025 and 2024 remained relatively unchanged. Enterprise segment gross margin increased to 69.8% for the nine months ended September 30, 2025 compared to 68.7% for the prior-year period, primarily due to lower content cost rates in our Enterprise segment, also driven by higher learner engagement in content created under new production arrangements with lower revenue share.
Current wording
Consumer segment gross margin increased to 63.2% for the three months ended March 31, 2026 up from 61.6% for the three months ended March 31, 2025. Enterprise segment gross margin increased to 70.8% for the three months ended March 31, 2026 compared to 70.0% for the prior-year period. The improvements in gross margin were primarily the result of lower content cost rates in both our Consumer and Enterprise segments for the three months ended March 31, 2026, due to higher learner engagement in content created under new production arrangements with lower revenue share, as well as from the introduction of the platform maintenance fee in January 2026.
Previous wording
We define non-GAAP gross profit and non-GAAP net income as GAAP gross profit and GAAP net loss excluding: (i) stock-based compensation expense; (ii) amortization of stock-based compensation expense capitalized as internal-use software costs; (iii) payroll tax expense related to stock-based compensation; (iv) M&A related transaction costs; (v) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries; and (vi) restructuring related charges. Non-GAAP net income per share is calculated by dividing non-GAAP net income by the diluted weighted average shares of common stock outstanding. We believe the presentation of these adjusted operating results provides useful supplemental information to investors and facilitates the analysis and comparison of our operating results across reporting periods.
Current wording
We define non-GAAP gross profit and non-GAAP net income as GAAP gross profit and GAAP net loss excluding: (i) stock-based compensation expense; (ii) amortization of stock-based compensation expense capitalized as internal-use software costs; (iii) payroll tax expense related to stock-based compensation; (iv) M&A related transaction costs; (v) integration costs, (vi) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries; and (vii) restructuring related charges. Non-GAAP net income per share is calculated by dividing non-GAAP net income by the diluted weighted average shares of common stock outstanding. We believe the presentation of these adjusted operating results provides useful supplemental information to investors and facilitates the analysis and comparison of our operating results across reporting periods.
Previous wording
We define Adjusted EBITDA as our GAAP net loss excluding: (i) depreciation and amortization; (ii) interest income, net; (iii) income tax expense; (iv) other (income) expense, net; (v) stock-based compensation expense; (vi) payroll tax expense related to stock-based compensation; (vii) M&A related transaction costs; (viii) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries; and (ix) restructuring related charges. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.
Current wording
We define Adjusted EBITDA as our GAAP net loss excluding: (i) depreciation and amortization; (ii) interest income, net; (iii) income tax expense; (iv) other (income) expense, net; (v) stock-based compensation expense; (vi) payroll tax expense related to stock-based compensation; (vii) M&A related transaction costs; (viii) integration costs, (ix) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries; and (x) restructuring related charges. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•our ability to develop industry micro-credentials and accredited degree programs;
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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.