Coursera (COUR) investor relations material

Executive summary

• Q3 revenue was $376.7M, up 94% YoY as reported; normalized revenue declined ~3%. Adjusted EBITDA was $61.5M, or 16.3% of revenue.

• Annualized gross cost savings exceeded $150M, putting the $115M annual run-rate net synergy target on track eight months after close versus 24 months planned.

• Project Helix, an AI-native skills platform, is targeted for broad Enterprise availability in H1 2027.

Financial highlights

• As-reported Q3 revenue rose 94% YoY to $376.7M, reflecting Udemy results after the May 11 transaction close; normalized revenue declined ~3%.

• Q3 non-GAAP gross profit was $240M at 64% margin; GAAP gross profit was $220.1M at 58.4% margin, up 380 bps YoY.

• Non-GAAP net income was $57.1M, or $0.21 per diluted share; Adjusted EBITDA was $61.5M, versus $15.6M a year earlier.

• GAAP net loss was $25.6M, or $0.10 per share, versus a $8.6M loss and $0.05 loss per share a year earlier.

• Free cash flow was $4.6M, including merger and integration costs; operating cash flow was $15.5M.

Outlook and guidance

• Q4 revenue guidance is $358M–$366M and Adjusted EBITDA guidance is $55M–$59M, consistent with a 16% margin target; Enterprise growth is expected to be ~flat and Consumer to decelerate further.

• FY26 as-reported revenue guidance is $1.229B–$1.237B; normalized revenue outlook is $1.503B–$1.511B, with an Adjusted EBITDA margin target of ~14%.

• 2027 baseline: Enterprise revenue approximately flat to modestly down and Consumer revenue down low double digits YoY, with no assumed material Helix contribution or cross-sell benefit.

• Free cash flow is expected to be below Adjusted EBITDA but remain significantly cash generative in 2027; merger costs are expected to continue at least through H1.

• Guidance includes Udemy results from the May 11 close; only a portion of annual synergy benefits is expected in FY26 results.