Telsey Advisory Group reaffirmed its Outperform rating on Coursera Inc (NYSE:COUR) and kept a $14.00 price target after the company released its fourth-quarter 2025 financial results.
Coursera reported fourth-quarter revenue of $197 million, representing 10% year-over-year growth and surpassing Telsey’s $192 million projection. Adjusted EBITDA for the quarter rose roughly 18% to about $11 million, also beating Telsey’s estimate of $9 million.
For fiscal 2026, Coursera gave guidance calling for revenue in the range of $805 million to $815 million. That outlook is above Telsey’s $791 million target and the FactSet consensus of $798 million. The company forecast adjusted EBITDA of $70 million to $76 million, which corresponds to roughly a 9.0% margin.
Management attributed the results in part to continued expansion in the Consumer segment, driven by global growth and early traction for new GenAI content. The company said approximately 1,100+ GenAI courses reached an enrollment rate of 15 enrollments per minute in 2025, compared with 8 enrollments per minute in 2024. Demand for Coursera Plus subscriptions remained healthy across the period.
Platform improvements also supported performance. Coursera highlighted localized discovery, pricing, and payment-plan capabilities, along with enhanced translation that expanded 10,000+ courses into up to 26 languages. The company also implemented AI dubbing for more than 1,000 popular courses in five languages.
On an earnings-per-share basis, Coursera reported EPS of $0.06 for the quarter, matching analysts’ expectations. Revenue of $197 million modestly exceeded the projected $191.79 million noted by analysts.
Broker responses to the results varied. Needham reiterated a Buy rating on Coursera and maintained a $10.00 price target, highlighting the company’s better-than-expected performance and noting that the fiscal 2026 outlook indicates faster-than-expected growth, albeit with trade-offs for profitability. BMO Capital Markets adjusted its price target down to $8.00 from $11.00 but continued to carry an Outperform rating; the firm pointed to the company’s margin outlook as a key factor despite Coursera beating market expectations for revenue and adjusted EBITDA.
Coursera also announced a formal 15% platform fee, which the company expects will support consumer gross margins in the second half of 2026. Taken together, the analyst commentary and company disclosures present a mixed picture: top-line acceleration and product momentum paired with ongoing margin considerations.
Bottom line - Telsey’s reaffirmation of an Outperform rating rests on revenue and adjusted EBITDA results that outpaced its forecasts and on 2026 guidance that exceeded both Telsey and consensus estimates. Other sell-side firms acknowledged the stronger growth trajectory while calling attention to margin dynamics and profitability trade-offs.