Earnings Overview#
Coursera Inc. has released its earnings report for the first quarter of 2026, showing a mixed performance. The company reported earnings per share (EPS) of $0.07, which was below the expected $0.08. This shortfall represents a 12.5% negative surprise. On a positive note, Coursera's revenue reached $196 million, slightly surpassing the forecast of $195.17 million.
Key Financial Metrics#
- EPS: $0.07, missing the forecast by $0.01.
- Revenue: $196 million, marking a 9% increase compared to the same period last year.
- Gross Margin: 57%, the highest in three years.
- Net Income: $12 million, which is 6.3% of total revenue.
- Adjusted EBITDA: $14 million, or 6.9% of revenue.
The growth in revenue was primarily driven by a strong performance in the Consumer segment, which saw a 10% increase year-over-year. The Enterprise segment also contributed positively with a 7% increase.
Market Reaction#
Following the earnings announcement, Coursera's stock fell by 3.4% in after-hours trading, closing at $6.12. This decline reflects investor concerns about the EPS miss, despite the revenue beat. The stock is now closer to its 52-week low of $5.22, having dropped 43% over the past six months from a high of $13.56.
Future Outlook#
Looking ahead, Coursera is optimistic about its performance. The company projects an EPS of $0.11 for the second quarter of 2026 and $0.45 for the full year. Revenue expectations for the upcoming quarters suggest continued growth, with a target of $201 million in Q2 2026. However, it's worth noting that 11 analysts have recently lowered their earnings estimates for the near future. Coursera currently holds more cash than debt, which may provide some financial stability as it navigates these challenges.