Coursera Expects Fourth-Quarter 2026 Revenue of Up to $366 Million
Key Facts
Coursera expects fourth-quarter 2026 revenue of $358 million to $366 million and adjusted EBITDA of $55 million to $59 million, according to its third-quarter earnings release. For the full year, the company narrowed its revenue outlook to $1.229 billion to $1.237 billion, while targeting an adjusted EBITDA margin of about 14%. The company issued the outlook alongside quarterly results showing revenue of $376.7 million. Reported revenue rose 94% year over year, but fell about 3% on a pro forma basis that includes Udemy's results before the acquisition. The divergence reflects the inclusion of Udemy's business in reported figures, while the pro forma comparison places performance in a different context.
Coursera completed its acquisition of Udemy on May 11, 2026, and has included the acquired company's results in its financial statements since then. Coursera's forward guidance therefore includes Udemy's results from the acquisition date, while the reported year-over-year comparison covers a period in which those results were not fully included. In the third quarter, enterprise revenue was $200.9 million, up 214% year over year, compared with $175.8 million for consumer revenue, up 35%. In the second quarter, enterprise revenue was $140 million, up 118% year over year, while consumer revenue was $158.6 million, up 29%. The figures show growth in both segments continued between the quarters, with reported growth in enterprise and consumer revenue accelerating from second-quarter rates.
On profitability, Coursera posted a third-quarter net loss of $25.6 million, while adjusted EBITDA was $61.5 million, for a 16.3% margin. Second-quarter revenue was $298.6 million, up 60% year over year, while adjusted EBITDA was $42.7 million, up 137% year over year. The company is targeting an adjusted EBITDA margin of about 14% for 2026, alongside its annual revenue outlook. Free cash flow was $4.6 million in the third quarter, down 83% from the same period a year earlier. The company also recorded $30.8 million in merger, integration and restructuring costs in quarterly expenses, and paid $6.7 million in cash for merger costs and $21 million for merger-related employee costs and compensation.
Management said consumer subscription growth continued, but pressure on one-time purchases and transaction-based offers outweighed that growth, while early indicators in the conversion funnel weakened. This comes as reported consumer revenue rose to $175.8 million in the third quarter from $158.6 million in the second quarter, with year-over-year growth of 35% and 29%, respectively. Enterprise revenue, meanwhile, was $200.9 million in the third quarter, compared with $140 million in the second quarter, with year-over-year growth of 214% and 118%, respectively. The company ties part of its financial plan to integrating Udemy's business and realizing savings from the combination. Coursera said it expects to have more than $150 million in annual gross cost savings in place by the end of 2026; the savings are measured on an annualized basis and are not a total cash amount realized during the year.
The company said it is on track to achieve $115 million in annual net synergies by the end of 2026, eight months after completing the deal, compared with an original plan spanning 24 months. Chief Executive Greg Hart said the company is “on track to deliver the original 24-month synergy plan in eight months.” He added that the progress creates greater capacity to invest in innovation. According to the company's release, the target of more than $150 million in annual gross savings is linked to the $115 million annual net synergy target; the two are separate measures in the plan. The integration and restructuring costs recorded in the third quarter, along with related cash payments, also show that the integration process was accompanied by reported expenses during the period.
On product development, Coursera said its AI-powered “Project Helix” platform, designed to connect trusted learning with skills validation, is expected to become broadly available to enterprise customers in the first half of 2027. The availability timeline follows the company's announcement of its savings and synergy targets and its annual revenue and profitability outlook. The company's shares closed at $5.08 on October 23, then at $4.97 on October 26 and $4.75 on October 27. The closing price fell to $4.70 on October 28, then to $4.66 on October 29. Coursera said its third-quarter earnings call was held on October 29, 2026, at 2:00 p.m. Pacific Time, corresponding to 5:00 p.m. Eastern Time.
Quarterly results came in above analysts' estimates cited in a Reuters-sourced report: adjusted earnings were $0.21 per share versus an estimate of $0.18, and revenue was $376.7 million compared with expectations of $368.56 million. Even so, the stock fell 5.79% in after-hours trading to $4.39, according to the report. The shares had ended the October 29 session at $4.66, down 0.96% from the previous session's close of $4.70. Available closing-price data show a consecutive decline from $5.08 on October 23 to $4.66 on October 29. The next operational milestone set by the company for broad availability of “Project Helix” to enterprise customers remains the first half of 2027.