Coursera, Inc. (COUR): A Bull Case Theory 

We came across a bullish thesis on Coursera, Inc. on Saadiyat Capital’s Substack by Shehroz Babar. In this article, we will summarize the bulls’ thesis on COUR. Coursera, Inc.’s share was trading at $10.49 as of September 10th. COUR’s forward P/E was 24.15 according to Yahoo Finance.

Coursera (NYSE: COUR) has emerged as a leading global E-learning platform, connecting over 168 million registered learners with 350+ universities and corporate partners, including Yale, Google, and the University of London. The platform spans Consumer and Enterprise segments, offering everything from short courses and professional certificates to full degrees, now consolidated under Consumer for reporting clarity.

Coursera’s Consumer segment continues to drive growth, posting $123 million in revenue in Q2 2025—up 10% year-over-year—with 7.5 million new learners, while gross margins rose to 61% due to favorable content agreements and localization strategies. Enterprise revenue also grew, reaching $64 million with a 70% margin, supported by government, corporate, and campus clients, and engagement with AI-driven tools like Coursera Coach.

Financially, Coursera is debt-free, holding $775 million in cash and equivalents, with manageable liabilities tied to operations and deferred revenue. Operating losses are narrowing, with Q2 2025 net loss down to $7.8 million, highlighting improving unit economics, cost efficiencies, and operational leverage. Free cash flow is accelerating, hitting $29 million in Q2, while stock-based compensation is declining, mitigating dilution risks. The platform benefits from upfront subscription and enterprise payments, giving flexibility to invest in AI, content, and product improvements.

The broader online learning market remains large and growing, with corporate e-learning alone exceeding $100 billion globally. While competition from Udemy, LinkedIn Learning, and DataCamp is meaningful, Coursera’s mix of university-backed content, global reach, and career-aligned offerings creates differentiation.

With improving margins, a debt-free balance sheet, and robust free cash flow, the company is positioned for profitability, offering upside potential as AI adoption and enterprise expansion continue. Key risks include pricing pressure, partner revenue-share adjustments, and potential dilution, but the setup presents a disciplined, risk-adjusted opportunity for investors over the next 12–24 months.

Previously we covered a bullish thesis on Coursera, Inc. (COUR) by Unemployed Value Degen in November 2024, which highlighted its high-margin platform, strong user growth, AI-driven credentials, and robust cash position. The company’s stock price has appreciated approximately 32% since our coverage. The thesis still stands as Coursera continues scaling and strengthening AI initiatives. Shehroz Babar shares a similar perspective but emphasizes updated financials, segment consolidation, and rising free cash flow in 2025.

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Disclosure: None.