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Sep 30
Coursera Q3 2025 Earnings Report
Coursera reported strong third quarter 2025 financial results, with revenue growth driven by its Consumer segment and an increased full-year revenue outlook.
Key Takeaways
Coursera delivered a strong third quarter, with total revenue reaching $194.2 million, a 10% increase year-over-year. This growth was primarily fueled by a 13% year-over-year increase in the Consumer segment revenue. The company also reported a non-GAAP net income of $16.7 million and a free cash flow of $26.6 million, demonstrating solid operational performance. Coursera raised its full-year 2025 revenue outlook to a range of $750 million to $754 million.
Third quarter revenue reached $194.2 million, marking a 10% increase compared to the same period last year.
The Consumer segment was a primary growth driver, with its revenue increasing by 13% year-over-year to $130.3 million.
Non-GAAP net income was $16.7 million, with non-GAAP EPS at $0.10, consistent with the previous year.
Free Cash Flow significantly improved to $26.6 million, a 59% increase year-over-year.
Coursera
Coursera
Coursera Revenue by Segment
Revenue by Segment
Consumer Revenue
CapyFin.comEnterprise Revenue
CapyFin.com Forward Guidance
Coursera has raised its full-year 2025 revenue outlook and provided guidance for the fourth quarter of 2025, anticipating continued growth and improved Adjusted EBITDA Margin.
Positive Outlook
- Raised full year 2025 revenue outlook by $10 million to a range of $750 million to $754 million.
- Anticipates annual Adjusted EBITDA Margin improvement of 200 basis points to 8.0% for full year 2025.
- Fourth quarter 2025 revenue is projected to be in the range of $189 million to $193 million.
- Fourth quarter 2025 Adjusted EBITDA is expected to be in the range of $7 million to $10 million.
- Commitment to creating more personalized, engaging, and AI-native learning experiences, including integrations with OpenAI's ChatGPT and a content partnership with Anthropic.
Challenges Ahead
- A reconciliation of non-GAAP guidance measures to GAAP is not available on a forward-looking basis without unreasonable effort due to the uncertainty of future expenses.
- Stock-based compensation expense-related charges are difficult to predict and subject to constant change.
- Actual results may differ materially from the financial outlook due to various risks and uncertainties.
- Risks related to the nascency of online learning solutions and generative AI.
- Potential adverse impacts on business and financial condition due to macroeconomic or market conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income