Coursera entered this Q3 2026 print already under pressure, with the stock down sharply over the past month and another 25% knocked off in the latest session. The company is still loss making, yet the headline this quarter is about operating muscle, not red ink. Revenue reached about US$377m and adjusted earnings before interest, tax, depreciation and amortisation climbed to roughly US$62m, translating into a mid‑teens margin for a large scale online education platform. That contrast between a sliding share price and improving profitability is what short term traders and long term holders now have to reconcile.
Love Coursera's improving operating margin but worried about the stock slide and ongoing losses? See how that trade off compares with companies in our list of solid balance sheet and fundamentals stocks (25 results)
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs Q3 2025):US$376.7m vs. US$194.2m (reported top line more than 90% higher year on year, aided by Udemy consolidation)
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Net Loss (Q3 2026 vs Q3 2025):loss of US$25.6m vs. loss of US$8.6m (loss widened in absolute dollar terms)
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Basic EPS (Q3 2026 vs Q3 2025):loss of US$0.10 per share vs. loss of US$0.05 per share (per share loss increased)
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Adjusted EBITDA Margin (Q3 2026 vs Q3 2025):16.3% vs. roughly half that level a year ago (margin roughly doubled year on year)
Tired of scrolling through paragraphs of commentary and raw figures on Coursera without seeing the full picture clearly? Get a clear visual view of the business, with a focus on its latest valuation context, in the full company report for Coursera.
Coursera's AI Margin Story Meets Early Proof Points
Supporters argue Coursera's AI led skills push and Udemy scale should harden margins over time.
"Bullish analysts expect Coursera to turn its AI-native platform, large recurring subscriber base, and scaled Coursera – Udemy content into higher margins and a more defensible skills and credentials ecosystem over time."
Q3 gives that view some footing. Adjusted EBITDA margin reached 16.3% with a target of about 14% for 2026, and Q4 guided around 16%. Gross margin sat at 64%, with enterprise at roughly 81%. Management reports the full US$115m net synergy run rate already achieved, and about 90% of revenue now comes from subscriptions, which supports the higher margin, recurring model the thesis leans on.
Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there .
Coursera Bear Case: Mix Concerns Get Fresh Ammunition
Bearish investors worry Coursera's scale story masks a weaker mix, where new users cluster in cheaper plans or free tiers.
"Bearish analysts expect Coursera's revenue and long-term profitability to come under pressure as some learners shift to cheaper or free alternatives and transactional consumer demand remains soft."
Q3 numbers lean toward that concern. Normalized revenue slipped about 3%, even as paid subscribers climbed roughly 30%. Consumer on a comparable basis fell 9%, and management is modeling low double digit Consumer declines and flat to slightly weaker Enterprise in 2027. That combination indicates mix and pricing are not yet solving for durable top line expansion.
Hunt For Mispriced Earnings Stories
Coursera reports a mix of margin progress and share price pressure during earnings season. The real opportunity sits in spotting stocks that could be undervalued before the crowd catches up.
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Company 1 - 19% below our estimate - expands a teahouse network where rising overseas GMV reshapes franchise and company-owned store economics.
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Company 2 - 31% below our estimate - supplies critical chips and software that large customers use to move, connect, and secure data.
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Company 3 - 22% below our estimate - wires massive data center builds where backlog growth ties directly to demand for new power and communications infrastructure.
That is three of the list. See the full list of 29 companies trading below our fair value estimates →
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include COUR .
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