Coursera (NYSE:COUR) Shares Gap Down on Disappointing Earnings

Key Points

• Coursera shares gapped down after Q1 results—EPS $0.07 vs. ~ $0.08 consensus—opening at $5.19 from $5.97 and trading down roughly 14.7%.
• Revenue of $195.7M was roughly in line and up 9.1% YoY, but the company reported a wider GAAP loss, a negative net margin (-6.73%) and an ~88% drop in free cash flow, raising near‑term profitability and liquidity concerns.
• Management issued FY‑26 revenue guidance (~$805M–$815M) and Q2 guidance (~$196M–$200M) near Street expectations while analysts trimmed price targets (consensus rating: Hold, PT ~$10.31) amid mixed buy/upgrades and downgrades.

Coursera, Inc. (NYSE:COUR - Get Free Report) gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $5.97, but opened at $5.19. Coursera shares last traded at $5.0550, with a volume of 3,410,999 shares trading hands.

The company reported $0.07 earnings per share for the quarter, missing analysts' consensus estimates of $0.08 by ($0.01). The company had revenue of $195.70 million during the quarter, compared to analysts' expectations of $195.17 million. Coursera had a negative net margin of 6.73% and a negative return on equity of 5.17%. The firm's revenue was up 9.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.12 earnings per share.

Key Headlines Impacting Coursera

Here are the key news stories impacting Coursera this week:

• Positive Sentiment: Record learner and consumer growth driven by AI content and new specializations supports long‑term monetization opportunities and offsets some enterprise softness. Coursera Q1 revenue jumps with record learner growth
• Positive Sentiment: Needham reaffirmed a “buy” and set a $10 price target, signaling confidence in recovery potential and implying significant upside from current levels. Benzinga
• Neutral Sentiment: Telsey cut its price target from $14 to $10 but kept an “outperform” rating — a mixed signal that trims upside while still signaling conviction from some analysts.
• Neutral Sentiment: Coursera updated FY‑26 and Q2 revenue guidance (FY: ~$805M–$815M; Q2: ~$196M–$200M) that sits around or slightly below Street expectations, leaving investors focused on execution vs. forecast. Q1 Financial Results press release
• Negative Sentiment: Q1 EPS missed consensus ($0.07 vs. ~$0.08–$0.09) and the company reported a wider GAAP loss plus an ~88% drop in free cash flow, raising near‑term profitability and liquidity concerns. GAAP loss and FCF drop Earnings miss
• Negative Sentiment: Analyst coverage includes warnings about enterprise churn and shrinking adjusted‑EBITDA margins as Coursera increases product and sales spend — a structural risk that prompted at least one downgrade. Enterprise churn and margin concerns

Wall Street Analyst Weigh In

A number of analysts recently commented on COUR shares. Royal Bank Of Canada dropped their price target on shares of Coursera from $11.00 to $8.00 and set an "outperform" rating on the stock in a research note on Friday, February 6th. KeyCorp dropped their price target on shares of Coursera from $12.00 to $10.00 and set an "overweight" rating on the stock in a research note on Friday, February 6th. UBS Group restated a "neutral" rating and set a $7.00 price target on shares of Coursera in a research note on Friday, February 6th. Wall Street Zen upgraded shares of Coursera from a "hold" rating to a "buy" rating in a research note on Saturday, April 11th. Finally, Telsey Advisory Group dropped their price target on shares of Coursera from $14.00 to $10.00 and set an "outperform" rating on the stock in a research note on Friday. Eight research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $10.31.

Insiders Place Their Bets

In related news, SVP Alan B. Cardenas sold 9,710 shares of the company's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $5.92, for a total transaction of $57,483.20. Following the sale, the senior vice president owned 217,876 shares of the company's stock, valued at approximately $1,289,825.92. This represents a 4.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 16.80% of the company's stock.

Institutional Trading of Coursera

A number of hedge funds and other institutional investors have recently bought and sold shares of COUR. Royal Bank of Canada increased its holdings in Coursera by 38.8% during the 1st quarter. Royal Bank of Canada now owns 55,891 shares of the company's stock worth $372,000 after acquiring an additional 15,610 shares during the period. AQR Capital Management LLC increased its holdings in shares of Coursera by 36.8% in the 1st quarter. AQR Capital Management LLC now owns 581,879 shares of the company's stock worth $3,875,000 after buying an additional 156,566 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Coursera by 2.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 104,795 shares of the company's stock worth $698,000 after buying an additional 2,847 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new position in shares of Coursera in the 1st quarter worth $273,000. Finally, American Century Companies Inc. increased its holdings in shares of Coursera by 29.0% in the 2nd quarter. American Century Companies Inc. now owns 277,568 shares of the company's stock worth $2,431,000 after buying an additional 62,371 shares during the last quarter. Institutional investors own 89.55% of the company's stock.

Coursera Trading Down 14.7%

The stock's fifty day moving average price is $6.04 and its 200 day moving average price is $7.24. The stock has a market cap of $862.63 million, a P/E ratio of -16.47 and a beta of 1.35.

Coursera Company Profile

Coursera, Inc NYSE: COUR operates a leading online learning platform that delivers courses, specializations, professional certificates and fully accredited degree programs in collaboration with top universities and industry partners. Founded in 2012 by Stanford University professors Andrew Ng and Daphne Koller, Coursera's mission is to provide universal access to world-class education and bridge skill gaps in a rapidly evolving job market.

The platform features more than 6,000 offerings created by over 275 academic institutions and corporate entities, spanning fields such as data science, business, technology, health care and the arts.

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