Coursera, Inc. (COUR): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Coursera, Inc.'s business segments as of late 2025, and the BCG Matrix is defintely the right tool to map their capital allocation strategy. We've mapped their core offerings: the Consumer segment is a clear Star, fueled by 191 million learners and 13% growth, while the Enterprise arm acts as a reliable Cash Cow with a 69.6% gross margin. Still, the Degrees offering is being strategically de-emphasized as a Dog, while the massive 195% surge in Generative AI enrollments throws new, high-stakes Question Marks into the mix. Dive in to see exactly where your capital allocation focus should be right now.

Background of Coursera, Inc. (COUR)

You're looking at Coursera, Inc. (COUR) as of late 2025, and the story is one of solid, if somewhat uneven, growth following a leadership transition earlier in the year. The company, founded by two Stanford University computer science professors, remains a major player in global online learning, reporting its third-quarter results for 2025 on October 23rd.

For the full year 2025, Coursera, Inc. has raised its revenue outlook, now expecting to land in the range of $750 to $754 million in total revenue. This reflects a strong performance in the third quarter, where total revenue hit $194 million, marking a 10% increase year-over-year. Honestly, that Q3 beat expectations, which is always a good sign for operational execution.

The growth engine is clearly the Consumer segment. In Q3 2025, this segment delivered $130.3 million in revenue, accelerating to a 13% year-over-year growth rate. A key driver here is the Coursera Plus subscription offering, which now accounts for more than half of the Consumer segment's revenue, giving management more predictable streams to work with. As of September 30, 2025, the platform boasted 191 million registered learners globally.

Now, the Enterprise side is showing some strain. The Enterprise segment revenue grew by 6% year-over-year to $63.9 million in the third quarter. While paid enterprise customers did tick up 10% to 1,724, the Net Revenue Retention (NRR) softened to 89%, suggesting corporate spend remains muted in certain areas. To counter this, Coursera, Inc. has introduced new offerings like Skills Tracks to better demonstrate return on investment for businesses.

We need to talk about the Degrees segment, too. Despite being the fastest-growing segment in prior quarters based on enrollment, management has signaled a strategic pivot, expecting the Degrees revenue to actually decline in 2025. The focus has shifted more toward the Coursera for Campus (C4C) initiative, which integrates content into existing university curricula, rather than solely pushing new degree programs.

From a cash perspective, the company is definitely improving its discipline. In Q3 2025, Coursera, Inc. generated $27 million in Free Cash Flow, a significant 59% jump from the prior year. Plus, they ended the quarter with approximately $798 million in unrestricted cash and, importantly, no debt. The full-year Adjusted EBITDA Margin target is set at 8.0%, which represents a 200 basis point improvement for the year.

Finance: draft the 13-week cash flow view by Friday, focusing on the Enterprise NRR trend.

Coursera, Inc. (COUR) - BCG Matrix: Stars

The Stars quadrant in the Boston Consulting Group (BCG) Matrix represents business units or products operating in a high-growth market and maintaining a high relative market share. For Coursera, Inc. (COUR), the Consumer Segment, anchored by high-adoption offerings like Coursera Plus, clearly fits this profile, demanding significant investment to maintain its leadership position.

You're looking at the engine driving top-line acceleration for Coursera, Inc. (COUR). The Consumer Segment is the largest revenue contributor, and its momentum in the third quarter of 2025 is undeniable. This segment posted a 13% year-over-year revenue growth in Q3 2025, reaching $130.3 million in revenue for the quarter. This growth outpaced the overall company revenue increase of 10% year-over-year, which totaled $194.2 million for Q3 2025.

The key driver within this high-growth segment is the subscription model, Coursera Plus. This offering now represents a significant, predictable revenue stream, which is exactly what you want to see in a Star. Its scale indicates strong market adoption and a high relative share within the consumer business.

Here's a quick look at the scale and subscription strength:

• Consumer Segment Revenue (Q3 2025): $130.3 million
• Consumer Segment YoY Growth (Q3 2025): 13%
• Coursera Plus Share of Consumer Revenue: More than half
• Total Company Revenue (Q3 2025): $194.2 million

The sheer scale of the user base reinforces Coursera, Inc.'s market leadership, which is a prerequisite for Star status. The platform continues to attract new learners at a rapid pace, reflecting high market interest in their offerings, especially in in-demand skills.

Furthermore, the focus on job-focused micro-credentials, specifically Professional Certificates, shows the company is investing in the high-demand areas of the market. This is where the high-growth market aspect of the Star quadrant is most evident, as learners seek direct career outcomes. The company is actively expanding this area, which is crucial for maintaining market share against emerging competitors.

The investment in this content is substantial, as you'd expect for a Star. The overall catalog growth reflects this commitment to keeping the offering fresh and relevant to current job market needs. If this segment sustains its success as the overall market growth rate eventually moderates, it will transition into a Cash Cow, but for now, it requires heavy investment to keep that market share.

• Professional Certificates offered: Nearly 100 titles
• Content Catalog Growth YoY: 44% increase
• Total Courses in Catalog: More than 12,000
• AI-related Content Enrollments: 14 per minute (Year-to-date 2025 average)

Coursera, Inc. (COUR) - BCG Matrix: Cash Cows

You're looking at the segment of Coursera, Inc. that reliably funds the rest of the portfolio-the engine room, if you will. These are the established businesses operating in mature, albeit still growing, markets where market share is hard-won and defensible. For Coursera, Inc., the Enterprise Segment acts as this anchor.

The Enterprise Segment (Coursera for Business/Government) shows the characteristics of a classic Cash Cow. It commands a high gross margin, which is the hallmark of a segment that has achieved competitive advantage and can generate substantial cash flow without needing massive reinvestment in market share acquisition.

Here's a quick look at the key performance indicators for this segment as of the third quarter of 2025, which defintely paints the picture of a high-margin cash generator:

The growth profile here is more modest compared to the high-growth Stars, but it is dependable. The 6% year-over-year revenue increase in the Enterprise Segment for the third quarter of 2025 shows this stability. This segment is not about explosive expansion; it's about milking the existing customer base efficiently.

Client stickiness is high, which supports the high-margin story. You see this in the Net Retention Rate (NRR) for paid enterprise customers, which stood at 89% as of September 30, 2025. While management has expressed a desire to see this number above 100%, an 89% NRR still indicates strong retention and upsell/cross-sell activity within the existing, high-value customer base.

The overall financial health reinforces this Cash Cow status. The full-year 2025 revenue outlook is set in the range of $750 million to $754 million. More importantly for cash generation, the company is targeting an annual Adjusted EBITDA Margin of 8.0% for the full year 2025. This margin, combined with the strong cash conversion seen in Q3 2025, shows the business unit consumes less than it generates.

The cash generation capability is evident in the operating metrics from the third quarter of 2025:

• Net cash provided by operating activities reached $33.9 million.
• Free Cash Flow for the quarter was $26.6 million.

These figures are the lifeblood that supports the rest of Coursera, Inc.'s portfolio, funding the development of Question Marks and maintaining the Stars.

Coursera, Inc. (COUR) - BCG Matrix: Dogs

You're looking at the part of Coursera, Inc.'s portfolio that management has clearly decided to manage down, not build up. This is the classic BCG Dog quadrant: low market share growth and low relative market share, tying up capital that could be better used elsewhere. For Coursera, Inc., this is the Degrees segment.

Degrees Segment: Revenue is expected to decline in 2025 as the company shifts investment focus.

The expectation for the Degrees segment in 2025 is a clear signal of its positioning as a Dog. Management explicitly stated they expect revenue from this area to decline for the full year 2025, despite the segment showing growth in prior periods. This anticipated contraction contrasts sharply with the growth expected in the Consumer and Enterprise segments.

Here's a look at the segment's recent performance leading up to this strategic pivot:

Strategic De-emphasis: Management is explicitly reducing investment in this area to prioritize other growth engines.

The strategic move is not subtle; it's a deliberate reduction in capital allocation. Management is actively shifting investment away from the Degrees business to focus on areas like Coursera for Campus (C4C), which is viewed as a more scalable growth engine. This reduction in focus means the segment will not receive the necessary capital to fight for market share, cementing its low-share status in the matrix. Frankly, if you aren't feeding it, it's going to shrink. This is a conscious choice to starve the Dog.

• Prioritizing wider reach over deeper investment in degree programs.
• Shifting resources to Coursera for Campus and Enterprise offerings.
• The segment is no longer a standalone reporting unit.

Low Scalability: The traditional online degree model has proven less scalable and capital-efficient than other offerings.

The financial data from 2024 illustrates the capital inefficiency. While Degree enrollments grew by 20%, the corresponding revenue only increased by 13%. This gap suggests that the cost structure or revenue-sharing model associated with these high-commitment programs does not scale as efficiently as the high-volume, lower-price-point Consumer or Enterprise offerings. The model requires significant upfront and ongoing support relative to the revenue it generates, making it capital-inefficient compared to the company's other priorities.

Reporting Integration: The segment is now integrated into Consumer reporting, signaling a diminished strategic focus.

The structural change in reporting, effective in the first quarter of 2025, is the final confirmation of this de-emphasis. Coursera, Inc. eliminated the Degrees segment as a standalone unit, folding its results into the Consumer segment. The Q1 2025 standalone revenue for Degrees was $15.5 million. While the CFO framed this as creating a more unified consumer experience, it effectively removes the segment's performance from the primary spotlight, making it harder to track its specific struggles. The number of Degrees students is no longer reported separately, as the metric is deemed not to provide a meaningful indication for the overall Consumer segment performance.

Coursera, Inc. (COUR) - BCG Matrix: Question Marks

QUESTION MARKS (high growth products (brands), low market share): These units operate in markets expanding quickly, but Coursera, Inc. has not yet secured a dominant position. They are cash consumers, requiring significant capital to build market share before they can generate substantial returns. The strategy here is clear: invest heavily to convert these into Stars or divest if the path to market leadership is unclear.

Generative AI Content: The market for Generative AI skills is experiencing explosive demand, positioning this area as a prime Question Mark. Enrollments in AI-related courses are surging, with the global average year-over-year growth rate cited at 195% in 2025. As of July 2025, Coursera, Inc. announced more than 10 million total enrollments in its Generative AI courses. Specifically, India, a key growth market, saw a 107% year-over-year surge in GenAI course enrollments, reaching 2.6 million enrollments to date. However, the overall market share remains nascent, necessitating heavy investment to capture this high-growth wave.

The pace of adoption for new AI content is rapid:

• Generative AI enrollments reached 14 per minute in Q3 2025.
• India leads globally with 2.6 million GenAI enrollments.
• Latin America showed the highest global growth in GenAI enrollments at 425% year-over-year.

Coursera for Campus (C4C): Within the Enterprise segment, Coursera for Campus is explicitly targeted as the highest growth area for 2025, despite the overall Enterprise segment showing more muted performance. The Enterprise segment revenue for Q3 2025 was $63.9 million, representing a 6% year-over-year increase. To capture the university market share, heavy investment is required in C4C, even as the company focuses on stabilizing the broader Enterprise segment. The total number of paid enterprise customers stood at 1,724 as of Q3 2025, a 10% increase.

New AI-Native Features: Products like Coursera Coach and AI translations represent new, high-potential investments where returns are still being proven. These features consume cash for development and infrastructure but are crucial for driving engagement and market differentiation. The platform is actively rolling out these tools to personalize learning experiences.

Here is a snapshot of the adoption for these new features:

International Expansion: Rapid learner growth in key international markets demands capital for localization and content development to solidify market share, fitting the Question Mark profile. India is a major driver, with its learner base exceeding 31 million as of August 2025. Latin America is also a focus area, with enrollment growth in that region increasing by 23% in a prior period. These regions require ongoing capital deployment to convert high growth into sustained, profitable market share.