Coursera, Inc. (COUR) | Investment Case

1. Company Snapshot

1.a. Company Description

Coursera, Inc.operates an online educational content platform that connects learners, educators, organizations, and institutions.It offers online courses that include data science, business, computer science, information technology, health, social sciences, logic, project management, and digital marketing services; campus student plans; degree courses; and certification education.

Coursera, Inc.was formerly known as Dkandu, Inc.and changed its name to Coursera, Inc.

in April 2012.The company was incorporated in 2011 and is headquartered in Mountain View, California.

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1.b. Last Insights on COUR

Coursera's recent performance was driven by strong Q2 earnings, exceeding market expectations with GAAP revenue of $187.1 million versus the $180.52 million estimate, and non-GAAP earnings per share of $0.12, surpassing the $0.09 prediction. The company's accelerated revenue growth across both consumer and enterprise segments, as well as its strategic shift towards faster-growing enterprise and B2B partnerships, contributed to its success. Additionally, Coursera's focus on high-quality, in-demand AI and tech content, combined with its global reach, positions it for sustained long-term growth.

1.c. Company Highlights

Last Price	8.44
Change Percentage	0.84%
Open	8.4
Previous Close	8.37
Market Cap ( Millions)	1365
Volume	1704670
Year High	13.56
Year Low	5.76
M A 50	9.21
M A 200	9.13

FCF Yield	8.52%
Dividend Yield	0.00%
ROE	-7.41%
Debt / Equity	0.00%
Net Debt / EBIDTA	3109.82%
Price To Book	2.17
Price Earnings Ratio	-30.33
Price To FCF	11.74
Price To sales	1.85
EV / EBITDA	-22.12

2. Coursera's Q3 2025 Earnings: A Strong Performance

Coursera reported revenue of $194 million, up 10% year-over-year, with a gross margin of 56%. The company's net income was $17 million, and adjusted EBITDA was $16 million. Earnings per share (EPS) came in at $0.1, beating estimates of $0.09. The company's Consumer segment revenue grew 13% year-over-year to $130 million, driven by 7.7 million new registered learners and strength in Coursera Plus. Free cash flow was $27 million, up 59% from the prior year, with a total of over $80 million delivered year-to-date.

Publication Date: Oct -28

                                    📋 Highlights
                                    Revenue Growth::
                                                $194 million in revenue, up 10% YoY; Consumer segment revenue rose 13% to $130 million.
Free Cash Flow Surge::
                                                $27 million in free cash flow, a 59% YoY increase, with $80 million generated year-to-date (55% growth).
Content Expansion::
                                                Catalog grew 44% YoY to 12,000+ courses; 100+ professional certificates and 14 AI course enrollments per minute.
Enterprise Performance::
                                                6% YoY revenue growth with 1,724 paid Enterprise customers; net retention rate (NRR) recovered to 89%.
Full-Year Guidance::
                                                Raised to $750–754 million (8–9% growth); Q4 revenue outlook at $189–193 million (5–8% YoY growth).

                                

Segment Performance

The Consumer segment was a key driver of growth, with revenue increasing 13% year-over-year. Coursera Plus now accounts for over half of the Consumer segment revenue, providing a predictable recurring revenue stream. The Enterprise segment revenue grew 6% year-over-year, driven by the campus and business verticals, with a total of 1,724 paid Enterprise customers. The company's gross margin expansion was driven by both Coursera-produced content and a mix change to newer content with lower revenue share rates.

Guidance and Outlook

Coursera raised its full-year revenue expectations to $750 million to $754 million, representing 8% to 9% growth. For Q4, the company anticipates revenue of $189 million to $193 million, representing 5% to 8% year-over-year growth. The company expects adjusted EBITDA of $7 million to $10 million. Analysts estimate next year's revenue growth at 6.0%, indicating a slight slowdown in growth.

Valuation

Coursera's current valuation metrics indicate a price-to-sales ratio of 2.03 and an EV/EBITDA ratio of -27.36. The company's return on equity (ROE) is -7.41%, and its return on invested capital (ROIC) is -11.91%. With a free cash flow yield of 7.76%, the company's valuation appears reasonable, considering its growth prospects. However, the negative ROE and ROIC indicate that the company still has room for improvement in terms of profitability.

Growth Initiatives

Coursera is investing in content production, with over 12,000 courses available, up 44% year-over-year. The company is also expanding its ecosystem with new product updates, including Coursera Coach, AI translations, and Course Builder. The introduction of Skills Tracks addresses the need for structured and interactive skill development, and the company is expected to continue innovating in product, packaging, and go-to-market strategies to drive stronger growth in the Enterprise business.

3. NewsRoom

Coursera, Inc. $COUR Holdings Lowered by Capital Fund Management S.A.

Dec -06

Source: defenseworld.net

Caledonia (Private) Investments Doubles Down on Coursera Stock: Is it Time to Buy?

Dec -05

Source: fool.com

Coursera, Inc. $COUR Shares Purchased by Geode Capital Management LLC

Nov -29

Source: defenseworld.net

Coursera, Inc. (COUR) Discusses Business Outlook and Product Strategy in Education Technology Transcript

Nov -25

Source: seekingalpha.com

Coursera Partners with Anthropic and Launches New AI Content to Drive Responsible AI Innovation and Workforce Transformation at Scale

Nov -18

Source: businesswire.com

AWIT Launches Real-World AI For Everyone Specialization on Coursera, Sponsored by Anthropic and 1Password

Nov -18

Source: businesswire.com

Coursera Announces Appointment of Interim CFO

Nov -17

Source: businesswire.com

Advisors Capital Management LLC Invests $147,000 in Coursera, Inc. $COUR

Nov -17

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.61%)

6. Segments

Consumer

Expected Growth: 10%

Coursera's 10% growth in the Consumer segment is driven by increasing demand for online learning, expansion into new markets, and strategic partnerships with top universities. Additionally, the platform's user-friendly interface, mobile optimization, and personalized learning experiences contribute to its growing popularity among consumers.

Enterprise

Expected Growth: 12%

Coursera's 12% enterprise growth is driven by increasing demand for online learning, expansion into new markets, and strategic partnerships with top universities. Additionally, the company's focus on emerging technologies like AI, cloud computing, and data science has attracted a large customer base. Its platform's scalability, flexibility, and cost-effectiveness have also contributed to its growth.

Degrees

Expected Growth: 9%

Coursera's 9x growth driven by increasing demand for online learning, strategic partnerships with top universities, and expansion into new markets. Growing need for upskilling and reskilling in a rapidly changing job market, coupled with Coursera's user-friendly platform and affordable pricing, have contributed to its rapid growth.

7. Detailed Products

Coursera for Business

A corporate learning platform that provides access to a vast library of courses and certifications from top universities and organizations, helping companies upskill and reskill their employees.

Coursera for Campus

A platform that provides universities and colleges with a range of tools and resources to support online learning, including course creation, student engagement, and faculty support.

MasterTrack Certificates

A series of online certificates that provide specialized skills training in areas like data science, digital marketing, and cybersecurity, from top universities like University of Michigan and University of Illinois.

Specializations

A series of online courses that provide in-depth training in a specific skill or subject area, often featuring hands-on projects and peer feedback.

Online Degrees

Fully online bachelor's and master's degrees from top universities like University of London and University of Michigan, providing flexible and affordable education.

Professional Certificates

A series of online certificates that provide specialized training in areas like IT, healthcare, and finance, from industry leaders like Google and IBM.

8. Coursera, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Coursera's courses are highly specialized and unique, making it difficult for substitutes to emerge. However, the rise of alternative online learning platforms and MOOCs (Massive Open Online Courses) poses a moderate threat.

Bargaining Power Of Customers

Coursera's customers are individual learners who have limited bargaining power. The company's business model is designed to cater to a large number of customers, making it difficult for individual customers to negotiate prices or terms.

Bargaining Power Of Suppliers

Coursera partners with top universities and organizations to offer courses, giving it significant bargaining power over its suppliers. The company can negotiate favorable terms and prices with its suppliers.

Threat Of New Entrants

The online learning market is highly competitive, and new entrants can easily enter the market. Coursera faces a high threat from new entrants, including startups and established companies, that can offer similar courses and services.

Intensity Of Rivalry

The online learning market is highly competitive, with many established players and new entrants vying for market share. Coursera faces intense rivalry from companies like Udemy, edX, and Pluralsight, which can lead to pricing pressures and marketing wars.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	1.06%
Debt Cost	3.95%
Equity Weight	98.94%
Equity Cost	11.84%
WACC	11.75%
Leverage	1.07%

11. Quality Control: Coursera, Inc. passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

American Public Education

A-Score: 4.9/10

Value: 4.9

Growth: 5.4

Quality: 5.7

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

Universal Technical Institute

A-Score: 4.9/10

Value: 3.3

Growth: 6.3

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

Lincoln Educational Services

A-Score: 4.5/10

Value: 4.1

Growth: 5.0

Quality: 4.0

Yield: 0.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

Coursera

A-Score: 4.4/10

Value: 6.9

Growth: 6.0

Quality: 3.1

Yield: 0.0

Momentum: 8.5

Volatility: 2.0

1-Year Total Return ->

Udemy

A-Score: 3.9/10

Value: 6.4

Growth: 5.8

Quality: 4.1

Yield: 0.0

Momentum: 3.5

Volatility: 3.3

1-Year Total Return ->

Chegg

A-Score: 3.7/10

Value: 9.6

Growth: 2.9

Quality: 3.4

Yield: 0.0

Momentum: 5.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.05%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.75%

Coursera, Inc. - US22266M1045

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on COUR

1.c. Company Highlights

Lower Quality

Average Yield

Average Growth

Earnings Beats

Revenues Beats

Weak Momentum

More Volatile

Revenues Miss

Higher Growth

Average Quality

Medium Volatility

Stable Momentum

Strong Momentum

Lower Yield

2. Coursera's Q3 2025 Earnings: A Strong Performance

Segment Performance

Guidance and Outlook

Valuation

Growth Initiatives

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.61%)

6. Segments

Consumer

Expected Growth: 10%

Enterprise

Expected Growth: 12%

Degrees

Expected Growth: 9%

7. Detailed Products

Coursera for Business

Coursera for Campus

MasterTrack Certificates

Specializations

Online Degrees

Professional Certificates

8. Coursera, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Coursera, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.44$

Current Price

8.44$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA