Coursera Inc (NYSE:COUR) Reports Mixed Q3 2025 Results with EPS Beat and Muted Market Reaction

Coursera Inc (NYSE:COUR) reported financial results for the third quarter of 2025 that narrowly surpassed analyst expectations on the top line and delivered a solid beat on profitability. The online learning platform's performance, coupled with a raised full-year revenue outlook, presents a mixed picture that was reflected in subdued after-market trading.

Earnings and Revenue Versus Estimates

The company’s third-quarter performance demonstrated modest strength, particularly in its bottom-line profitability.

• Revenue: Coursera reported revenue of $194.2 million, slightly edging out the analyst consensus estimate of $194.1 million.
• Earnings Per Share (Non-GAAP): The company posted non-GAAP EPS of $0.10, which came in above the estimated $0.0852, representing a beat of approximately 17%.

While the revenue beat was marginal, the more substantial outperformance on EPS suggests improved cost management and operational efficiency during the quarter. This profitability was achieved even as the company continues to invest in growth initiatives, particularly in artificial intelligence.

Market Reaction and Price Action

The market's immediate reaction to the earnings report was muted. Following the release, the stock experienced a slight decline in after-hours trading. This tepid response could be attributed to the very narrow revenue beat, which may have fallen short of some investors' hopes for a more decisive outperformance. It indicates that while the results were solid, they may not have been strong enough to catalyze significant new buying momentum in the short term, with investors potentially awaiting further evidence of accelerating growth.

Key Takeaways from the Press Release

Beyond the headline numbers, Coursera's earnings report highlighted several positive operational trends and strategic developments.

The company’s Consumer segment was a primary growth driver, with revenue increasing 13% year-over-year to $130.3 million. CEO Greg Hart attributed this strength to individuals seeking skills to adapt to the evolving job market. Strategically, Coursera is deepening its integration with AI, citing its "leading integration with OpenAI's ChatGPT app ecosystem" and a new content partnership with Anthropic.

From a financial health perspective, the company significantly improved its free cash flow, which grew 59% year-over-year to $26.6 million. Furthermore, Coursera raised its full-year 2025 revenue outlook, now expecting to deliver more than $750 million, up from previous guidance and aligning closely with the analyst consensus of $759.32 million. The company also forecasts an annual Adjusted EBITDA margin of 8.0%, representing a 200-basis-point improvement.

Forward Outlook and Analyst Comparisons

The raised guidance provides a constructive view of the upcoming quarter and the full year.

• Q4 2025 Outlook: Coursera provided Q4 revenue guidance in the range of $189 to $193 million. The midpoint of this range, $191 million, sits slightly above the analyst estimate of $191.6 million.
• Full-Year 2025 Outlook: The company's updated full-year revenue outlook of "more than $750 million" establishes a new floor that is above its previous expectations and is directionally positive against the full-year analyst sales estimate of $759.32 million.

This upward revision in guidance likely serves to counterbalance any disappointment from the slim Q3 revenue beat, signaling management's confidence in the company's trajectory for the remainder of the year.

For a detailed breakdown of future earnings estimates and historical performance, you can review the data on the Coursera earnings and estimates page.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author holds no position in COUR stock. All investment decisions involve risk, and readers should conduct their own research before making any financial decisions.