COUR — Coursera, Inc.

Summary of Coursera's Q4 and Full Year 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 Revenue: $197 million, up 10% year-over-year.
• Full Year Revenue: $757 million, a 9% increase, exceeding initial guidance of 4% growth.
• Gross Profit: $109 million in Q4, representing a 55% gross margin, up 90 basis points year-over-year.
• Free Cash Flow: Record $78 million for the year, a 32% increase from the previous year.
• Net Income: $11 million in Q4 (5.6% of revenue); Full Year Net Income: $67 million (8.8% of revenue).
• Adjusted EBITDA: $11 million in Q4 (5.7% of revenue); Full Year Adjusted EBITDA: $64 million (8.4% margin).
• Cumulative Learners: Over 29 million new registered learners added in 2025, totaling a 17% year-over-year increase.

2. Strategic Updates and Business Highlights

• AI Integration: Continued focus on embedding AI in product innovation and enhancing user experience.
• Partnership with Udemy: Announced a merger to combine complementary platforms, enhancing investment capacity and innovation potential.
• Course Offerings: Expanded catalog to over 13,500 courses, a 45% increase year-over-year, with a focus on AI-related skills.
• Product Enhancements: Launched features like geo-pricing, natural language search, and improved enterprise admin tools to enhance user engagement and conversion.
• International Growth: Notable increase in international learner traffic, supported by AI-driven translations and geo-based pricing strategies.

3. Forward Guidance and Outlook

• Q1 2026 Revenue Guidance: Expected between $193 million to $197 million (8% to 10% year-over-year growth).
• Full Year 2026 Revenue Guidance: Anticipated between $805 million to $815 million (6% to 8% growth).
• Adjusted EBITDA for 2026: Expected to be between $70 million to $76 million, with a margin of approximately 9%.
• Platform Fee Implementation: A new 15% platform fee for new sales starting January 2026, anticipated to gradually enhance gross margins.

4. Bad News, Challenges, or Points of Concern

• Enterprise Segment Growth: Enterprise revenue grew only 5%, with a net retention rate of 93%, indicating room for improvement.
• Degrees Product Category: Anticipated headwind of 100 basis points in 2026 due to integration of degree results into the consumer segment.
• Cautious Outlook: General macroeconomic uncertainty affecting enterprise spending and growth visibility.
• Net New Enterprise Accounts: A decline in net new enterprise accounts compared to previous quarters, attributed to macro trends and deal timing.

5. Notable Q&A Insights

• Platform Fee: Clarified that the platform fee is an ongoing fee applied to new revenue, not a one-time charge, with no changes to existing pricing structures.
• Investment Focus: Increased investments in R&D and sales/marketing to drive growth and efficiency.
• International Strategy: Continued expansion of translated courses and geo-based pricing to cater to diverse learner demographics.
• Feedback on Udemy Merger: Positive anticipation from partners regarding the merger, with a focus on creating a cohesive content experience post-integration.

Overall, Coursera demonstrated solid financial performance in 2025 while outlining strategic initiatives aimed at long-term growth and innovation, despite facing challenges in the enterprise segment and macroeconomic uncertainties.