Company Overview - Coursera, Inc. is a leading global E-learning platform with over 168 million registered learners and partnerships with more than 350 universities and corporate partners, including Yale, Google, and the University of London [2] - The platform offers a range of educational products, including short courses, professional certificates, and full degrees, now consolidated under the Consumer segment for reporting clarity [2] Financial Performance - In Q2 2025, Coursera's Consumer segment generated $123 million in revenue, reflecting a 10% year-over-year growth, with 7.5 million new learners [3] - Gross margins improved to 61% due to favorable content agreements and localization strategies [3] - Enterprise revenue reached $64 million with a 70% margin, supported by various clients and engagement with AI-driven tools like Coursera Coach [3] - The company is debt-free, holding $775 million in cash and equivalents, with manageable liabilities [4] - Operating losses are narrowing, with a net loss of $7.8 million in Q2 2025, indicating improving unit economics and cost efficiencies [4] - Free cash flow accelerated to $29 million in Q2 2025, while stock-based compensation is declining, reducing dilution risks [4] Market Position and Growth Potential - The online learning market is large and growing, with corporate e-learning exceeding $100 billion globally [5] - Despite competition from platforms like Udemy and LinkedIn Learning, Coursera differentiates itself through university-backed content, global reach, and career-aligned offerings [5] - With improving margins, a debt-free balance sheet, and robust free cash flow, the company is well-positioned for profitability as AI adoption and enterprise expansion continue [6] Investment Thesis - The setup presents a disciplined, risk-adjusted opportunity for investors over the next 12–24 months, despite key risks such as pricing pressure and potential dilution [6] - The stock price has appreciated approximately 32% since previous coverage, with ongoing scaling and strengthening of AI initiatives [7] - Updated financials, segment consolidation, and rising free cash flow in 2025 support a bullish outlook for the company [7]