Coursera is a global online learning platform that completed its all-stock merger with Udemy on May 11 and began consolidating Udemy's results from the acquisition date. As a result, Q2 revenue reached $298.6 million, up 60% from $187.1 million a year earlier, modestly exceeding the analyst consensus of $294 million. By segment, enterprise revenue came in at $140 million (+118%) and consumer revenue at $158.6 million (+29%), while paid subscribers rose 44% to 1.655 million.

On the profit side, adjusted net income was $40.4 million, or $0.17 per share, comfortably above the $0.11 consensus. Adjusted EBITDA (a metric in the nature of operating income before depreciation/amortization) reached $42.7 million with a 14.3% margin, up from 9.6% a year earlier. Management said integration is running ahead of plan and that it expects to deliver at least $85 million in annualized run-rate synergies by the end of 2026. It raised full-year revenue guidance to $1.22 billion–$1.245 billion and lifted the adjusted EBITDA margin target to roughly 14%. The company also made a $100 million strategic investment in Runway, an AI learning company led by co-founder Andrew Ng, and repurchased roughly $90.3 million of its own stock in Q2 alone, balancing growth investment with capital returns.

Despite the headline "beat," GAAP results swung to a net loss of $80.4 million, or $0.34 per share, a much wider loss than the prior-year period's $0.05 per share. Merger-, integration- and restructuring-related costs alone ran to roughly $79.8 million within operating expenses, and these one-time and execution costs tied to the acquisition weighed heavily on the bottom line. Beginner investors should not compare adjusted earnings and GAAP losses on the same footing, and should note that this quarter's "beat versus consensus" assessment is based on adjusted EPS.

Cash flow was also under pressure. Operating cash flow showed a net outflow of $19.8 million, free cash flow came in at a $32.6 million deficit, and these figures included $39.1 million in cash outflows for merger- and integration-related items and $18.1 million in merger-related severance and personnel costs. The enterprise segment's key metric, net retention rate, slipped to 91% versus a prior-year figure on a Coursera standalone basis (note that a clean year-over-year comparison is difficult given the post-merger basis), and enterprise customer count fell 2% to 12,107, leaving questions about how well the company is retaining and expanding its existing customer base beneath the headline scale-up. Until Q3 revenue guidance ($364 million–$372 million) and the pace of synergy capture are validated in actual numbers, an integration risk premium may remain in the stock.

Management framed Q2 as a milestone marking the "next value-creation phase" in which the Udemy deal has closed and operations have begun as a combined company. The tone leaned more toward confidence than defensiveness. The company set a synergy target of at least $85 million on a run-rate basis by year-end, stressing that integration is moving faster than expected, and raised both the full-year revenue outlook and profitability targets, signaling that it wants to frame the acquisition effect as a strengthening of the financial profile.

At the same time, the strategic investment in Runway was presented as a way to accelerate personalized, adaptive AI-driven learning experiences. That said, the guidance itself made clear that only a portion of the full-year run-rate synergies will be reflected in 2026 results, suggesting management is leaning on integration completion and longer-term platform competitiveness as the selling points rather than the near-term numbers. The market is likely to be tougher on the timing of cost normalization and a recovery in enterprise customer metrics than on the "raised outlook" itself.

Despite the seemingly positive headline results and raised guidance, selling pressure emerged after the close. The main culprits were the merger costs and cash outflows lurking beneath the strong adjusted profits, along with the drop in enterprise customer net retention. Because Udemy's results are only consolidated from mid-May, the year-over-year growth rate looks dramatically inflated, but it is hard to separate organic growth from one-time effects, which the market read as a "sell-the-news" move after expectations had been priced in. The buyback and the Runway investment signal long-term confidence, but in the near term they can also be read as a rising deployment of cash.