Coursera (COUR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $179.3 million, up 6% year-over-year, with over 7 million new learners joining and total registered learners rising to 175.3 million.

• Free cash flow grew 40% year-over-year to $25.3 million, with net cash from operating activities at $34 million.

• Net loss narrowed to $7.8 million from $21.3 million year-over-year; non-GAAP net income was $19.7 million.

• Gregory Hart was appointed CEO in February 2025, and the business model was simplified to two segments: Consumer and Enterprise, with Degrees integrated into Consumer.

• Continued focus on innovation, content expansion, and AI-driven learner experience improvements.

Financial highlights

• Gross profit was $100.1 million (non-GAAP), up 9% year-over-year, with a gross margin of 56%.

• Adjusted EBITDA more than doubled to $18.7 million, with margin up to 10.4%.

• Free cash flow reached $25.3 million, and cash and cash equivalents totaled $748 million as of March 31, 2025, with no debt.

• Operating expenses decreased 6% year-over-year to $112.3 million, reflecting restructuring and lower personnel costs.

• Net income was $20 million (11% of revenue); adjusted EBITDA was $19 million (10.4% of revenue).

Outlook and guidance

• Q2 2025 revenue expected between $179 million and $183 million; adjusted EBITDA forecasted at $11–$15 million.

• Full-year 2025 revenue guidance raised to $720–$730 million, with adjusted EBITDA margin targeted to improve by 100 basis points to 7%.

• Management expects existing cash and cash equivalents, along with operating cash flows, to be sufficient for at least the next 12 months.

• Consumer and Enterprise segments expected to grow single digits, with more weighting toward Consumer.

• Degrees product expected to decline as focus shifts to broader opportunities.