Coursera, Inc.

Ladies and gentlemen, thank you for standing by and welcome to Coursera's fourth quarter and full year 2025 earnings call. All participants are in listen-only mode and this call is being recorded. Following the prepared remarks, we will hold a question and answer session. To ask a question, please click the raise hand button and be prepared to unmute your line when prompted. I would now like to turn the call over to Cam Carey, Vice President of Investor Relations. Mr. Carey, you may begin.

Good afternoon. Thank you for joining us for Coursera's Q4 and full year 2025 earnings conference call. Today, I'm joined by Greg Hart, our President and Chief Executive Officer, and Mike Foley, our Chief Financial Officer. Following their prepared remarks, we will open the call for questions. Our earnings press release was issued after market close, and it is available on our investor relations website at investor.coursera.com, where this call is being webcast live and where versions of today's materials, including our quarterly shareholder letter, have been published. During this call... we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP measures to the most directly comparable GAAP measure can be found in today's earnings press release and supplemental materials. Please note that all growth percentages discussed refer to year-over-year change unless otherwise specified. All statements made during this call relating to future results and events are forward-looking statements based on current expectations and beliefs. Actual results and events could differ materially from those expressed or implied in these forward-looking statements due to a number of risks and uncertainties. Please refer to today's earnings press release, shareholder letter, and SEC filings for more details on our forward-looking statements. With that, I'll turn it over to Greg.

Thank you, Cam, and good afternoon, everyone. We appreciate you joining us. Coursera delivered a strong fourth quarter. Over the past year, we've been focused on a clear set of priorities to build a more durable foundation for long-term growth. Sharpening our execution, refining how we operate, and embedding faster AI-native product innovation and data-driven decision-making across the business. 2025 marked the early phase of this work. As the year progressed, we began to demonstrate tangible progress reflected in our results. For the full year, we grew revenue to $757 million, an increase of 9% year over year and more than double the 4% growth rate we shared in our initial April outlook. We generated record-free cash flow of $78 million, up 32% from the prior year. And we extended our track record of delivering growth with increased financial leverage, expanding annual adjusted EBITDA margin by 240 basis points year over year to 8.4%, while continuing to invest in the next generation of product experiences. Our results reflect a more focused, disciplined company, one that's translating strategy into faster execution. I'm proud of the early progress our team has made, and I'm equally clear that we must and will continue to move faster. In December, we announced an agreement to combine with Udemy, a company and team we have long admired. This transaction is an important step in accelerating our strategy. By bringing together two highly complementary platforms, operating models, and cultures, we meaningfully increase our collective ability to invest, innovate and execute at scale just as importantly this combination reinforces the direction we have been taking all year building a more agile more focused and more capable company and evolving beyond a content catalog into a leading technology platform for skills more broadly the environment around us continues to underscore why this moment matters Skill requirements are changing quickly across nearly every industry. Organizations are under pressure to reskill and upskill their workforces at scale, and individuals around the world are increasingly seeking learning that is more personalized, job relevant, and clearly connected to advancing their career goals. Together, we believe we can execute at greater scale and speed, share product and data investments to accelerate our roadmap, and be better positioned to address the global skilling and talent transformation opportunity. Our companies are progressing through the regulatory and shareholder approval processes, and we look forward to providing updates in the coming months as our integration planning advances. In the meantime, we are not slowing down. Coursera's ecosystem and the infrastructure that powers it continues to expand and evolve to better serve our learners, customers, and instructors. Throughout 2025, we strengthened Coursera's position as a trusted platform for career relevant learning, supported by a growing and increasingly differentiated global ecosystem. At the center of that ecosystem are our learners. Over the year, we added more than 29 million new registered learners, growing our total cumulative learner base by 17% year over year. In Q4, we welcomed a record 6.8 million new learners, the highest fourth quarter additions in Coursera's history. Learners come to Coursera with a clear purpose, to build skills that help them advance their careers and adapt in a rapidly evolving labor market. Our platform combines data and product innovation with a broad selection of branded credentials and curated career pathways, taught by more than 375 universities and industry leaders, These world class instructors enable us to deliver a wide range of learning needs from foundational, technical and human skills to job relevant credentials that span every stage of career progression. By year end, our platform offered more than 13,500 courses, expanding our catalog by over 45% year over year, the fastest pace in the past five years. As job requirements continue to evolve rapidly, demand for career-focused learning remains strong, including the accelerated demand for AI-related skills. In 2025, learners enrolled in our generative AI catalog at a rate of 15 enrollments per minute, up from eight enrollments per minute in 2024. Many of our most popular courses and certificates are created by leading technology companies, including long-time partners such as Google, deeplearning.ai, AWS, Microsoft, Meta, and IBM. In November, we launched our first courses with one of our new partners, Anthropic, designed to give learners hands-on experience with Claude while building the skills needed to collaborate effectively with AI. Coursera is now collaborating closely with many of the leading AI companies, serving not only as a platform of choice for distributing high-quality content, but also as a partner on product innovation, including new approaches to search, discovery, and learning in the flow of work. We also see that demand for these essential skills extends well beyond technical roles. Earlier this week, we announced new AI courses encompassing an increasingly broad range of careers, from nursing and healthcare to business, legal, and communications roles. Many of these new skills are being taught by leading universities, including Vanderbilt, the University of Colorado Boulder, and Macquarie University in Australia, as well as organizations with deep expertise in a specific industry or field, including healthcare. In January, we welcomed Cleveland Clinic, one of the world's largest health systems, to Coursera. Their initial launch includes courses focused on applying AI in clinical settings and using machine learning techniques to analyze medical images. It's one example of how our expanding ecosystem continues to strengthen Coursera's role as a critical platform for skills development as AI reshapes how we live, learn, and work across industries worldwide. Now let's turn to our product updates. First, we continue to refine the learner journey on Coursera, making focused improvements across search, discovery, and merchandising designed to better attract and convert learners. The scale and data of our platform create powerful opportunities for more personalized and contextual guidance allowing us to tailor content, language, and recommended pathways to support the career needs of learners across regions, roles, and levels of mastery. Over the past several months, we've made continuous enhancements. We redesigned our homepage to make it easier for learners to get started and navigate Coursera. We also launched new geo pricing, marketing, and promotional capabilities to better serve our growing international learner base. resulting in early gains in paid conversion and Coursera Plus adoption. In Q4, we continued experimenting with features like natural language search, AI-powered discovery, and learner motivation, using rapid testing and iteration to improve relevance and drive stronger engagement over time. While much of our product innovation starts with a learner experience, it's equally important that we continue to strengthen the value and choice we provide to enterprise customers who manage workforce learning at scale. We are focused on delivering a more intuitive, data-driven enterprise experience that helps customers assess skills, drive engagement, and translate learning investments into more measurable workforce outcomes. A key area of progress this quarter has been the redesign of our enterprise admin home. Admins rely on this view as their primary interaction with Coursera and customers want it to be more actionable, role based and clearly connected to outcomes. In pilot deployments, the redesigned home delivered improvements in admin-led engagement, reinforcing our belief that clearer insights, targeted nudges, and contextual assignments can influence learner behavior and skill development at scale. Based on these early results, we began rolling it out more broadly in January. Beyond the admin home, we continue to invest in enterprise integrations and workflow improvements designed to embed Coursera more deeply into customers' existing technology ecosystems, positioning learning closer to the flow of work where skills can be applied, measured, and reinforced. For example, our product priorities for 2026 include verified skill pathways, MCP-based discovery capabilities, and deeper integrations with HR and LMS platforms, as well as an expanding set of AI and collaboration tools. These initiatives reflect a broader shift toward making Coursera not just a catalog for learning, but a central system of record for skills development, helping organizations engage learners more proactively, benchmark talent, and enable workforce transformation at scale in an increasingly dynamic labor market. Now, turning to today's final product update. Over the past several years, we have been investing in building a faster, more agile content model, one that preserves the value of our trusted brands while evolving beyond a static catalog into a skilling platform designed to keep pace with real-time learner and business needs. To support this evolution, we've introduced a platform fee designed to establish a more sustainable model to fund ongoing investment in Coursera's AI native platform capabilities. As Mike will discuss, we expect the financial impact of this change to be gradual. Effective January 1st, the platform fee will apply to eligible new sales across our consumer subscriptions and courses, as well as our enterprise offerings. The fee is not retroactive and pricing for learners and customers remains unchanged. While we expect this to provide a structural benefit to gross margin over time, our primary objective is to support continued investment in our AI native capabilities and enhance the value of our platform for all users. For learners, this enables more personalized and adaptive experiences, from AI-powered role-play simulations to coaching and career guidance. For customers, it allows us to expand our skills infrastructure and tools to better measure talent and align learning to business outcomes. And for instructors, it provides access to AI enhanced tools and new authoring capabilities that help them create, augment, and deliver more impactful learning experiences at a global scale. When I stepped into my role a year ago, I was clear that product-led growth would be central to our strategy and the foundation for Coursera's next chapter. As we look to 2026, we intend to push further. Our goals extend beyond simply keeping pace with technology. We are innovating on behalf of learners, customers, and instructors to build a more dynamic AI-enabled skilling platform that is designed to help them succeed in a rapidly evolving skills landscape. With that, I'll turn it over to Mike to walk through our financial performance and provide more detail on our initial outlook for 2026. Mike, please go ahead.