Q2 2026 Coursera Inc Earnings Call Transcript
Key Points
- Coursera Inc (COUR) completed its Udemy acquisition, driving a 60% year-over-year revenue increase to $299 million in Q2 2026.
- The company raised its full-year 2026 adjusted EBITDA margin target to approximately 14%, reflecting strong cost discipline and faster synergy realization.
- Paid subscribers surged 44% year-over-year to over 1.6 million, with more than 85% of total revenue now coming from recurring subscription streams.
- Coursera Inc (COUR) is accelerating AI-native innovation through a $100 million strategic investment in LearnVector, led by AI expert Andrew Ng.
- The company is on track to achieve at least $85 million in annual run-rate net synergies by the end of 2026, ahead of its original timeline.
- On a normalized basis (including Udemy pre-close results), total revenue declined 1% year-over-year, indicating underlying pressure.
- Enterprise net revenue retention (NRR) fell to 91%, reflecting a mixed demand environment and ongoing pressure on L&D budgets.
- Consumer segment revenue declined 5% on a normalized basis, driven by weakness in transactional offerings and disciplined paid marketing.
- Free cash flow was a use of $33 million in Q2, impacted by $39 million in merger and integration-related costs.
- The company faces execution risks as it integrates two enterprise sales teams and navigates a rapidly changing skills landscape without a unified platform until early 2027.
Ladies and gentlemen, thank you for standing by and welcome to Coursera's second quarter 2026 earnings call. All participants are in a listen-only mode and this call is being recorded. Following the prepared remarks, we will hold a question-and-answer session. To ask a question, please click the raise hand button and be prepared to unmute your line when prompted. I would now like to turn the call over to Cam Carey, Vice President of Investor Relations. Mr. Carey, you may begin.
Good afternoon.
Thank you for joining us for Coursera's Q2 2026 earnings conference call. Today, I'm joined by Greg Hart, our President and Chief Executive Officer, and Mike Foley, our Chief Financial Officer.
Today's prepared remarks will also include brief comments from Andrew A, CEO of LearnVector and Chairman and Co-Founder of Coursera.
Following the prepared remarks, we will open the call for questions with Greg and Mike.
Our earnings press release was issued after market close. It is
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