Online learning platform Coursera (NYSE:COUR) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 10.3% year on year to $194.2 million. Guidance for next quarter’s revenue was better than expected at $191 million at the midpoint, 1.8% above analysts’ estimates. Its non-GAAP profit of $0.10 per share was 19.6% above analysts’ consensus estimates.
Is now the time to buy Coursera? Find out by accessing our full research report, it’s free for active Edge members.
Coursera (COUR) Q3 CY2025 Highlights:
- Revenue: $194.2 million vs analyst estimates of $190.3 million (10.3% year-on-year growth, 2.1% beat)
- Adjusted EPS: $0.10 vs analyst estimates of $0.08 (19.6% beat)
- Adjusted EBITDA: $15.6 million vs analyst estimates of $12.98 million (8% margin, 20.2% beat)
- Revenue Guidance for Q4 CY2025 is $191 million at the midpoint, above analyst estimates of $187.6 million
- EBITDA guidance for Q4 CY2025 is $8.5 million at the midpoint, below analyst estimates of $10.17 million
- Operating Margin: -8%, up from -12.4% in the same quarter last year
- Free Cash Flow Margin: 13.7%, down from 15.3% in the previous quarter
- Paying Users : 191 million, up 28.9 million year on year
- Market Capitalization: $1.71 billion
“We delivered a strong third quarter, driven by 13% year-over-year revenue growth in our Consumer segment. As individuals increasingly seek the skills necessary to adapt and thrive in today’s evolving job market, we are strengthening Coursera’s position as the world’s trusted source for verified learning,” said Coursera CEO Greg Hart.
Company Overview
Founded by two Stanford University computer science professors, Coursera (NYSE:COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Coursera’s sales grew at a solid 14.2% compounded annual growth rate over the last three years. Its growth beat the average consumer internet company and shows its offerings resonate with customers.
This quarter, Coursera reported year-on-year revenue growth of 10.3%, and its $194.2 million of revenue exceeded Wall Street’s estimates by 2.1%. Company management is currently guiding for a 6.6% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 4.5% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and indicates its products and services will see some demand headwinds.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Paying Users
Customer Growth
As a subscription-based app, Coursera generates revenue growth by expanding both its subscriber base and the amount each subscriber spends over time.
Over the last two years, Coursera’s paying users
, a key performance metric for the company, increased by 19% annually to 191 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. 
In Q3, Coursera added 28.9 million paying users , leading to 17.8% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t accelerating customer growth just yet.
Revenue Per Customer
Average revenue per customer (ARPC) is a critical metric to track because it measures how much the average customer spends. ARPC is also a key indicator of how valuable its customers are (and can be over time).
Coursera’s ARPC fell over the last two years, averaging 7.3% annual declines. This isn’t great, but the increase in paying users
is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Coursera tries boosting ARPC by taking a more aggressive approach to monetization, it’s unclear whether customers can continue growing at the current pace. 
This quarter, Coursera’s ARPC clocked in at $1.02. It declined 6.4% year on year, worse than the change in its paying users .
Key Takeaways from Coursera’s Q3 Results
We were impressed by how significantly Coursera blew past analysts’ EBITDA expectations this quarter. We were also glad it expanded its number of customers. On the other hand, its EBITDA guidance for next quarter missed. Overall, this print was mixed. The market seemed to be hoping for more convincing guidance, and the stock traded down 3.7% to $10.14 immediately after reporting.
Is Coursera an attractive investment opportunity right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.