Coursera 2025 Q2 Earnings Beats Expectations with 66% Net Income Improvement

Coursera (COUR) reported its fiscal 2025 Q2 earnings on July 31, 2025. Coursera exceeded analysts' expectations, delivering a strong performance with a 10% increase in revenue to $187.1 million, and a 66% improvement in net income, reducing losses significantly from the previous year. The company also raised its full-year revenue guidance to a range of $738 to $746 million, reflecting increased optimism about its growth trajectory. This positive adjustment in guidance indicates confidence in Coursera's strategic initiatives and market positioning.

Revenue
Coursera's revenue for Q2 2025 reached $187.10 million, marking a 9.9% increase from the $170.30 million reported in Q2 2024. This growth was driven by both consumer and enterprise segments, each contributing a 10% rise. Consumer revenue amounted to $122.8 million, while enterprise revenue reached $64.3 million. The company's diversified business model has shown resilience and growth across different segments, reflecting strong market demand for Coursera's educational offerings.

Earnings/Net Income
Coursera narrowed losses to $0.05 per share in Q2 2025, showing a considerable improvement from a loss of $0.15 per share in the previous year. The company reduced its net loss to $7.80 million, significantly down from the $22.90 million loss in Q2 2024, demonstrating effective cost management. The EPS improvement reflects a positive trend toward profitability.

Price Action
The stock price of Coursera has climbed 4.72% during the latest trading day, surged 39.21% over the most recent full trading week, and increased 44.29% month-to-date.

Post-Earnings Price Action Review
The strategy of buying COUR when earnings beat expectations and holding for 30 days resulted in no return, with both the strategy and the benchmark yielding 0.00%. Despite this, the strategy demonstrated no downside risk, as reflected by a maximum drawdown of 0.00% and a Sharpe ratio of 0.00%. This suggests that while the strategy did not outperform the market, it maintained stability without significant volatility. Investors might need to reconsider this approach given the lack of risk-adjusted returns.

CEO Commentary
“Coursera’s market opportunity continues to expand with the global demand to embrace new technology and skills. This quarter, we attracted more than seven million new learners looking to master emerging skills that can advance their careers,” said Coursera CEO Greg Hart. He highlighted that the company is executing at a renewed and rapid pace, increasing revenue growth to 10% year-over-year and making strong early progress in enhancing customer experiences. Hart emphasized that the second quarter performance is crucial for laying the foundation for future innovation and growth, expressing excitement about building on the current momentum.

Guidance
Coursera raised its full-year 2025 revenue guidance by $17 million to a range of $738 to $746 million, reflecting a growth expectation of 6-7%. The CEO indicated optimism regarding the company's progress and the strategic initiatives being implemented to drive long-term growth, including investments in operational capabilities and a focused set of initiatives aimed at sustaining this growth trajectory.

Additional News
In a significant leadership change, Coursera appointed Ashutosh Gupta as the Managing Director for India and the Asia Pacific region. This move is part of the company's strategy to accelerate its market penetration and leverage opportunities in these high-growth regions. Additionally, Coursera has expanded its generative AI course catalog to over 925 courses, reflecting a tripling in size over the past year. This expansion highlights Coursera's commitment to addressing the rising global demand for AI education. Furthermore, the company has strengthened its technical leadership with the appointment of Patrick Supanc as Chief Product Officer, focusing on advancing Coursera's AI-driven learning tools.