Coursera (COUR) investor relations material

Executive summary

• Q1 2026 revenue reached $196 million, up 9% year-over-year, with Consumer segment revenue growing 10% for the fourth consecutive quarter of double-digit growth.

• Added a record 7.6 million new registered learners, bringing the total to 205 million.

• Non-GAAP gross margin expanded to 57%, the highest in three years, reflecting structural improvements and stronger unit economics.

• Net loss widened to $20.5 million from $7.8 million a year ago; non-GAAP net income was $12.4 million.

• Integration planning is underway for the expected combination with Udemy, following shareholder and board approvals, with regulatory clearance pending.

Financial highlights

• Gross profit was $111 million, up 11% year-over-year, with a gross margin of 57%.

• Net income was $12 million (6.3% of revenue); adjusted EBITDA was nearly $14 million (6.9% of revenue).

• Free cash flow was $3 million, impacted by $11 million in one-time M&A transaction costs; excluding these, free cash flow would have been $14 million.

• Cash and cash equivalents stood at $789.8 million as of March 31, 2026, with no debt.

• Net cash provided by operating activities was $14.6 million, down from $33.5 million year-over-year.

Outlook and guidance

• Q2 2026 revenue expected between $196 million and $200 million, representing 5%-7% year-over-year growth.

• Adjusted EBITDA for Q2 projected at $12 million-$16 million; free cash flow to be impacted by $13 million in transaction-related payments.

• Full-year 2026 revenue guidance reaffirmed at $805 million-$815 million (6%-8% growth); adjusted EBITDA margin target of ~9%.

• Expects to realize $115 million in annual run-rate cost synergies within 24 months of closing the Udemy transaction, with a significant majority in the first year.

• Management expects continued growth in registered learners and enterprise customers.