Online learning platform Coursera (NYSE: COUR) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 59.6% year on year to $298.6 million. The company expects next quarter’s revenue to be around $368 million, close to analysts’ estimates. Its non-GAAP profit of $0.17 per share was 54.5% above analysts’ consensus estimates.
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Coursera (COUR) Q2 CY2026 Highlights:
- Revenue: $298.6 million vs analyst estimates of $293.5 million (59.6% year-on-year growth, 1.7% beat)
- Adjusted EPS: $0.17 vs analyst estimates of $0.11 (54.5% beat)
- Adjusted EBITDA: $42.7 million vs analyst estimates of $32.42 million (14.3% margin, 31.7% beat)
- The company lifted its revenue guidance for the full year to $1.23 billion at the midpoint from $810 million, a 52.2% increase
- EBITDA guidance for Q3 CY2026 is $54 million at the midpoint, below analyst estimates of $54.45 million
- Operating Margin: -28.4%, down from -8.1% in the same quarter last year
- Free Cash Flow was -$32.6 million, down from $3 million in the previous quarter
- Market Capitalization: $1.68 billion
“Q2 marked an important milestone in Coursera’s next chapter of value creation. We closed the Udemy transaction, began operating as a combined company, and now expect to achieve at least $85 million of annual run-rate net synergies by the end of 2026, positioning us to finish the year with a meaningfully stronger financial profile,” said Greg Hart, Coursera CEO.
Company Overview
Founded by two Stanford University computer science professors, Coursera (NYSE: COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Coursera’s sales grew at a solid 15.1% compounded annual growth rate over the last three years. Its growth beat the average consumer internet company and shows its offerings resonate with customers, a helpful starting point for our analysis.
This quarter, Coursera reported magnificent year-on-year revenue growth of 59.6%, and its $298.6 million of revenue beat Wall Street’s estimates by 1.7%. Company management is currently guiding for a 89.5% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 68.2% over the next 12 months, an acceleration versus the last three years. This projection is eye-popping and suggests its newer products and services will fuel better top-line performance.
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Cash Is King
Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
Coursera has shown mediocre cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 4.5%, below what we’d expect for a consumer internet business. The divergence from its good EBITDA margin stems from its capital-intensive business model, which requires Coursera to make large cash investments in working capital (i.e., stocking inventories) and capital expenditures (i.e., building new facilities).
Taking a step back, an encouraging sign is that Coursera’s margin expanded by 2.6 percentage points over the last few years. We have no doubt shareholders would like to continue seeing its cash conversion rise as it gives the company more optionality.
Coursera burned through $32.6 million of cash in Q2, equivalent to a negative 10.9% margin. The company’s cash flow turned negative after being positive in the same quarter last year, but we wouldn’t read too much into the short term because investment needs can be seasonal, causing temporary swings. Long-term trends are more important.
Key Takeaways from Coursera’s Q2 Results
We were impressed by how significantly Coursera blew past analysts’ EBITDA expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its EBITDA guidance for next quarter slightly missed. Overall, this print had some key positives. Investors were likely hoping for more, and shares traded down 3.6% to $5.96 immediately after reporting.
Is Coursera an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
