Coursera Inc. Reports Q1 2025 Earnings: EPS of -$0.05 Beats Estimates, Revenue Reaches $179 Million

On April 24, 2025, Coursera Inc (COUR, Financial) released its 8-K filing detailing the financial results for the first quarter of 2025. Coursera, a leading online learning platform, reported a revenue of $179 million, exceeding the analyst estimate of $175.40 million. The company also achieved a net cash flow from operating activities of $34 million and a free cash flow of $25 million. Notably, Coursera welcomed a record seven million new registered learners in the first quarter, highlighting the growing demand for online education.

Company Overview

Coursera Inc is an online learning platform that connects learners, educators, and institutions with the goal of providing educational content that is affordable, accessible, and relevant. The company operates through three segments: Consumer, Enterprise, and Degrees, with the Consumer segment being the primary revenue generator. Coursera’s platform offers a range of educational content, from standalone courses to university degrees, catering to individual learners and institutions alike.

Performance and Challenges

Coursera’s first quarter performance reflects a solid start to 2025, with revenue growth of 6% year-over-year. The company’s ability to attract seven million new learners underscores the increasing global demand for job-relevant skills and trusted education. However, Coursera faces challenges such as maintaining its net retention rate for paid enterprise customers, which decreased from 94% to 91%. This decline may indicate potential issues in retaining enterprise clients, which could impact future revenue growth.

Financial Achievements

Coursera’s financial achievements in the first quarter are significant for the online education industry. The company reported a net loss of $7.8 million, a substantial improvement from the $21.3 million loss in the same period last year. The net loss per share was $0.05, better than the estimated loss of $0.10 per share. Coursera’s adjusted EBITDA increased by 125% to $18.7 million, demonstrating the company’s ability to leverage its business model for sustainable growth.

Key Financial Metrics

Analysis and Outlook

Coursera’s strong financial performance in the first quarter of 2025 positions the company well for continued growth. The increase in revenue and improved profitability metrics indicate effective cost management and operational efficiency. The company’s updated full-year revenue expectations to a midpoint of $725 million reflect confidence in its growth trajectory. However, the decline in the net retention rate for enterprise customers suggests a need for strategic initiatives to enhance customer retention and engagement.

“We had a solid start to 2025. Our growth expectations for the full year have improved as we begin to implement new operating capabilities with a focused set of initiatives,” said Ken Hahn, Coursera’s CFO.

Coursera’s ability to innovate and expand its offerings will be crucial in maintaining its competitive edge in the rapidly evolving online education market. The company’s focus on creating valuable and engaging experiences for learners, customers, and partners will be key to sustaining its growth momentum.

Explore the complete 8-K earnings release (here) from Coursera Inc for further details.