Coursera Reports Widened Q1 Loss & Cash Flow Decline; Stockholders Approve Udemy Merger
COUR sits 20% above its 52-week low of $5.
Summary
Coursera's Q1 results show widened GAAP net loss and a substantial drop in cash flow, though revenue saw modest growth. Stockholders have approved the Udemy merger, a key step in the strategic transaction, while the CEO initiated a pre-planned stock sale.
Key Events · Earnings and Guidance · COUR
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Q1 Financial Performance
Revenue grew 9% year-over-year to $195.7 million. However, GAAP net loss widened significantly to $(20.5) million from $(7.8) million in the prior-year quarter. Non-GAAP net income decreased to $12.4 million from $19.7 million.
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Cash Flow Deterioration
Net cash provided by operating activities decreased substantially to $14.6 million from $33.5 million, and Free Cash Flow dropped significantly to $3.0 million from $25.3 million, partly due to $11.1 million in M&A transaction costs.
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Udemy Merger Approved by Stockholders
Stockholders of both Coursera and Udemy approved the all-stock merger on April 9, 2026. This moves the transaction closer to completion, pending required regulatory approvals and other customary closing conditions.
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CEO Initiates 10b5-1 Trading Plan
CEO Gregory M. Hart adopted a Rule 10b5-1 trading arrangement on March 2, 2026, providing for the sale of up to 293,326 shares of common stock by October 1, 2027. This is a pre-planned sale.
Analysis · COUR · Technology
This quarterly report confirms the challenging financial trends previously indicated in the 8-K, showing a significant widening of GAAP net loss and a substantial decline in non-GAAP net income, Adjusted EBITDA, and free cash flow. While revenue grew modestly, the deterioration in profitability and cash generation is a key concern, partly impacted by M&A transaction costs. On a positive note, the shareholder approval of the Udemy merger is a crucial step towards closing this strategic all-stock transaction, which could reshape the company's future. The CEO's pre-planned stock sale, while routine, adds a minor negative signal amidst these mixed developments. Investors should monitor the company's ability to improve profitability and cash flow, especially as it integrates the Udemy merger.
At the time of this filing, COUR was trading at $6.00 on NYSE in the Technology sector, with a market capitalization of approximately $1B. The 52-week trading range was $5.00 to $13.56. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.