An online learning platform that brings together courses, certificates, and degrees from universities and companies like Google and IBM for learners around the world. It was founded in 2012 by two Stanford computer science professors, Andrew Ng and Daphne Koller, after one of their machine-learning classes unexpectedly drew over a hundred thousand students. Amusingly, the company was first incorporated as "Dkandu" before settling on its now-familiar name.
Udemy merger closes, doubling Coursera's revenue but pushing GAAP net loss to $80.4M on merger costs.
Coursera absorbed Udemy this quarter, and the combined company looks different from anything in its past. rose 60% to $298.6 million and widened 3.2 points to 58.1%, but a of $80.4 million reflects $79.8 million in merger, integration, and restructuring charges. The merger resets the scale of the business, while the path to profitability now runs through the cost savings and platform integration that lie ahead.
Key takeaways
The Udemy merger closed, contributing $103.8 million to and transforming the quarter; organic revenue grew 4% on higher Coursera Plus adoption.
widened to $80.4 million from $7.8 million a year ago, driven by $79.8 million in merger, integration, and restructuring costs, while rose to $40.4 million.
widened 3.2 points to 58.1%, which management attributed to lower content cost rates in both segments and the introduction of a platform maintenance fee.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 60% to $298.6M driven by Udemy merger; GAAP net loss widened to $(80.4)M on merger costs, while non-GAAP net income grew to $40.4M.
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Total increased 60% to $298.6M, including $103.8M from the Udemy merger; organic revenue grew 4% on higher Coursera Plus adoption.
Enterprise surged 118% to $140.0M, and Consumer revenue grew 29% to $158.6M, both primarily due to the inclusion of Udemy.
turned negative at negative $19.8 million for the quarter, as $50.3 million in merger-related cash payments were made during the first half of the year.
The company announced a $500 million program, bought back $90.3 million in stock during the quarter, and committed to a workforce reduction plan expected to cost $9 million to $11 million.
Total assets nearly doubled to $1.95 billion and rose 86% to $1.17 billion, reflecting the all-stock nature of the Udemy transaction.
What changed
The Enterprise , flagged repeatedly as it fell from 98% to 87% over the prior two years, was not disclosed this quarter; the company now reports under a simplified two- structure that combines Udemy and Coursera results, making the prior metric less comparable.
The engagement-based educator partner compensation model and new 2026 platform fee, which earlier filings noted had caused partner opposition, contributed to expansion this quarter as content cost rates fell in both segments.
The $9.5 million increase in marketing spend flagged in Q1 FY2026 continued, with sales and marketing expense rising as a percentage of the now-larger base, though the merger makes quarter-over-quarter comparisons less meaningful.
The Degrees , whose trajectory and potential strategic exit were questioned in every prior filing, is no longer reported separately under the new two-segment structure, signaling its reduced prominence within the combined company.
What to watch
Whether the $500 million program is executed at the pace of the initial $90.3 million buyback, and whether it signals management's view of the stock's value post-merger.
The size and duration of remaining merger and integration costs, and whether the $9 million to $11 million workforce reduction plan captures the full extent of the restructuring.
Whether the combined company's holds above 58% as the platform maintenance fee and engagement-based compensation model are applied across the Udemy content base.
The trajectory of organic growth, which was 4% this quarter excluding Udemy, and whether it accelerates as cross-platform synergies materialize or decelerates if integration disrupts sales.
expanded to 58.1% from 54.9%, driven by lower content cost rates in both segments and the introduction of a platform maintenance fee.
net loss widened to $(80.4)M from $(7.8)M, weighed by $79.8M in merger, integration, and restructuring costs.
turned negative at $(19.8)M for the quarter, as $50.3M in merger-related cash payments were made during the first half of the year.
The company announced a $500M program, bought back $90.3M in stock, and committed to a workforce reduction plan expected to cost $9M-$11M.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate and foreign-currency exposures are not material; the company holds no FX hedges and reports a $8.8M annualized interest-income sensitivity.
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A hypothetical 100 rate change would move annualized interest income by $8.8 million based on June 30, 2026 cash-equivalent and marketable-securities balances.
The same 100 shift would not materially affect the fair value of the investment portfolio, with any impact realized only if securities are sold before maturity.
The company does not use foreign-currency hedging arrangements or derivatives but may do so in the future.
A hypothetical 10% move in average foreign-exchange rates versus the U.S. dollar would not have a material impact on pre-tax loss for the three months ended June 30, 2026 or 2025.
A convertible note investment in a private company is carried at fair value ($8.5 million) and is exposed to interest-rate and equity-market volatility.
See discussion of legal proceedings in Note 10, Commitments and Contingencies, in Item 1 of Part I of this Quarterly Report on Form 10-Q (“Form 10-Q”), which is incorporated by reference into this Item 1 of Part II.
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See discussion of legal proceedings in Note 10, Commitments and Contingencies, in Item 1 of Part I of this Quarterly Report on Form 10-Q (“Form 10-Q”), which is incorporated by reference into this Item 1 of Part II.
Coursera's Q2 FY2026 risks center on integrating Udemy, uncertain AI-driven demand, and macroeconomic pressures on growth.
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The recently completed Udemy merger presents material integration risks, including potential failure to realize cost , content creator attrition from both platforms, and customer due to pricing or contract harmonization.
Macroeconomic conditions, including inflation and geopolitical tensions, may reduce discretionary spending by learners and customers, negatively impacting growth and increasing operating costs.
The company's growth strategy is heavily dependent on the successful development and scaling of AI-enabled features, which exposes it to risks of technical failure, biased outputs, regulatory non-compliance, and new competitive threats from AI tools.
A July 2026 restructuring initiative and a $100 million strategic investment in LearnVector, an AI-native company, introduce execution risks and potential for material charges.
Changes to content creator compensation, including a new engagement-based share and a platform fee, have caused and may continue to cause partner opposition and attrition.
Reliance on the 'Dear Colleague' Letter for degree program -sharing models creates regulatory uncertainty, as this guidance could be changed or invalidated, particularly following the Loper Bright Supreme Court decision.