Coursera,(US:COUR)2026-02-23 21:25Financial Performance - Total revenue for 2025 was $757.5 million, representing a 9% increase from $694.7 million in 2024[336] - Gross profit for 2025 was $413.4 million, compared to $371.4 million in the previous year, with non-GAAP gross profit at $421.6 million[336] - Net loss for 2025 was $(51.0) million, an improvement from $(79.5) million in 2024, while non-GAAP net income was $66.8 million[336] - Adjusted EBITDA for 2025 was $63.5 million, up from $41.5 million in 2024[336] - Free Cash Flow for 2025 reached $78.5 million, an increase from $59.3 million in 2024, demonstrating enhanced liquidity[417] - Non-GAAP net income for 2025 was $66.8 million, compared to $55.6 million in 2024, reflecting a growth of 20.0%[411] - Adjusted EBITDA Margin improved to 8.4% in 2025, up from 6.0% in 2024, indicating better cost management[414] - Net cash provided by operating activities was $108.7 million, compared to $95.4 million in the previous year[336] - Total operating expenses for 2025 were $490.8 million, a slight increase of $6.2 million, or 1%, compared to $484.6 million for 2024[371] - Income tax expense for 2025 was $5.1 million, a significant increase of 410% compared to $1.0 million for 2024[377] Revenue Breakdown - Consumer revenue for the year ended December 31, 2025, was $502.2 million, with a year-over-year growth of 10%[406] - Enterprise revenue for the year ended December 31, 2025, was $255.3 million, reflecting a year-over-year growth of 7%[406] - Consumer revenue increased by $46.4 million, or 10%, driven by growth in subscription revenue from Coursera Plus[367] - Enterprise revenue increased by $16.4 million, or 7%, attributed to an increase in new customers[367] Learner Engagement - The platform had approximately 197 million cumulative Registered Learners as of December 31, 2025[328] - The number of total Registered Learners increased to 197.3 million as of December 31, 2025, representing a year-over-year growth of 17%[398] - Paid Enterprise Customers grew to 1,730 as of December 31, 2025, marking a year-over-year increase of 7%[400] - The Net Retention Rate for Paid Enterprise Customers improved to 93% for the year ended December 31, 2025, up from 87% in the prior year[403][404] Operational Changes - The company reduced its global workforce by approximately 9% to prioritize investments in key initiatives for sustainable growth[339] - Research and development expenses decreased by $10.5 million, or 8%, to $121.6 million in 2025[372] - Sales and marketing expenses increased by $20.8 million, or 9%, to $255.7 million in 2025[373] Cash and Liquidity - As of December 31, 2025, cash and cash equivalents totaled $792.6 million, serving as the principal source of liquidity[378] - The company expects its existing cash and cash equivalents, along with anticipated cash flows from operations, to meet cash needs for at least the next 12 months[380] - As of December 31, 2025, the company has long-term operating lease obligations of $5.7 million and total operating lease obligations of approximately $6.5 million[382][381] Mergers and Acquisitions - Coursera entered into a merger agreement with Udemy, with each share of Udemy common stock converting into 0.800 shares of Coursera common stock[332] Stock and Compensation - The company approved a share repurchase program to buy back up to $95.0 million of its common stock, completing the purchase authorization on May 7, 2024[384] - Stock-based compensation expense for 2025 was $96.7 million, down from $108.1 million in 2024, reflecting a decrease in related costs[414] Market Sensitivity - A hypothetical 100 basis point change in interest rates would have impacted annualized interest income by $7.9 million in 2025[426] - A 10% change in foreign exchange rates would have affected loss before income taxes by $0.5 million in 2025[429]