Coursera (COUR) investor relations material

Executive summary

• Q3 revenue was $376.7M, up 94% YoY, largely reflecting Udemy results after the May 11 close; normalized revenue declined ~3%.

• Non-GAAP net income was $57.1M and Adjusted EBITDA was $61.5M; GAAP net loss widened to $25.6M.

• Integration is ahead of plan, with annualized gross cost savings expected to exceed $150M by year-end against a $115M annual run-rate net synergy target.

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

Financial highlights

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

• Non-GAAP net income was $57.1M, or $0.21 per diluted share, versus $16.7M; GAAP net loss was $25.6M versus $8.6M.

• Adjusted EBITDA was $61.5M, or 16.3% of revenue, versus $15.6M and 8.0% a year earlier.

• GAAP operating expenses were $249.0M, including $30.8M in merger, integration and restructuring costs; non-GAAP operating expenses were $186M, or 49% of revenue.

• Free cash flow was $4.6M versus $26.6M; 9M free cash flow was negative $25.0M versus positive $80.5M.

Outlook and guidance

• Q4 revenue guidance is $358M–$366M and Adjusted EBITDA guidance is $55M–$59M; Enterprise growth is expected to be ~flat and Consumer is expected to decelerate further.

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

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

• 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.

• Remaining performance obligations were $865.0M at September 30, with 73% expected to be recognized as revenue over the next 12 months.