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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Dec. 31, 2025
Retirement Benefits [Abstract] |
EMPLOYEE BENEFIT PLANS | 11. EMPLOYEE BENEFIT PLANS Stock Incentive Plans In 2014, we adopted the Coursera, Inc. 2014 Executive Stock Incentive Plan, pursuant to which we granted a combination of incentive and non-statutory stock options and RSUs. The Executive Stock Incentive Plan was terminated in March 2021 in connection with the IPO but continues to govern the terms and conditions of the outstanding awards granted pursuant thereof. No further awards may be granted under the Executive Stock Incentive Plan. In February 2021, we adopted the 2021 Stock Incentive Plan (the “2021 Plan”) and the 2021 Employee Stock Purchase Plan (the “ESPP”), which became effective on March 30, 2021 (collectively, the 2021 Plan, the ESPP, and the Executive Stock Incentive Plan are referred to as the “Plans”). The 2021 Plan provides for the granting of incentive and non-statutory stock options, RSUs, PSUs, and other equity-based awards. Pursuant to the ESPP, eligible employees may purchase shares of common stock through payroll deductions at 85 percent of the lower of the closing market price of our common stock on the date of commencement of the applicable offering period or on the last day of each six-month purchase period. The offering periods start on the first trading day on or after May 11 and November 11 of each year. As of December 31, 2025, 14.8 million shares and 6.0 million shares of our common stock were reserved for future issuance under the 2021 Plan and ESPP. In 2024, we began settling stock option exercises, vesting of RSUs, and ESPP purchases by reissuing shares of our common stock from treasury stock. In September 2025, we reissued all of our remaining treasury stock. Under the ESPP, if the closing market price of our common stock on the purchase date of an ongoing offering falls below the closing market price of our common stock on the offering date of an ongoing offering, the ongoing offering terminates immediately following the settlement of ESPP Rights shares on the purchase date. Participants in the terminated offering are automatically enrolled in the new offering (an “ESPP Rights Reset”), triggering a revaluation of stock-based compensation expense and a modification charge to be recognized ratably over the new offering period if the revalued expense is greater than the original expense. During the years ended December 31, 2025, 2024, and 2023, we had ESPP Rights Resets that resulted in modification charges of $0.1 million, $6.1 million, and $3.1 million, which are being recognized ratably over the new offering periods. Leadership Transitions As described in Note 1, Mr. Hart was appointed on February 3, 2025 (the “Start Date”) as our President, CEO, and a Class III director on our Board. Pursuant to the terms of his offer letter, the Board granted Mr. Hart new hire equity awards consisting of approximately 1.9 million RSUs, 3.7 million service-based stock options, and 1.4 million performance-based stock options. The RSUs are scheduled to vest over four years, with 25% vesting on the first anniversary of the Start Date, 6.25% vesting on February 15, 2026, and the remainder vesting in equal quarterly installments thereafter, subject to Mr. Hart’s continued employment through each vesting date. The service-based stock options have an exercise price of $7.81 per share and are scheduled to vest over four years, with 25% vesting on the first anniversary of the Start Date and the remainder vesting in equal quarterly installments thereafter, subject to continued employment. The performance-based stock options also have an exercise price of $7.81 per share and are scheduled to vest upon satisfaction of both service- and market-based vesting conditions. The service-based vesting condition is consistent with the vesting schedule of the service-based stock options, and the market-based vesting condition is satisfied when the trailing simple moving average closing price of the Company’s common stock over a 60-trading day period equals or exceeds $12.81 per share. We estimated the grant date fair value of the service-based stock options utilizing the Black-Scholes option-pricing model, resulting in a fair value of $4.47 per share. The Black-Scholes model considers several variables and assumptions in estimating the fair value of options, including the exercise price, expected term, risk-free interest rate, and expected stock price volatility over the expected term. The grant date fair value of the performance-based stock options was estimated using a Monte Carlo simulation model, resulting in a fair value of $4.91 per share and a derived service period of 1.8 years. We are recognizing the related stock-based compensation expense using the accelerated attribution method, which recognizes the fair value of each vesting tranche over the longer of the derived service period and contractual vesting period. In connection with the CEO transition, we entered into separation and advisory agreements with our former CEO. The advisory agreement was effective through August 15, 2025. During the advisory period, he continued to vest in his stock awards, and the exercise period of his outstanding vested stock options was extended through August 3, 2026. The modification of his stock-based awards, coupled with a non-substantive service period, resulted in the recognition of $4.1 million of stock-based compensation expense during the year ended December 31, 2025. The separation agreement also included other benefits, which are not considered material. Effective October 29, 2025, our Senior Vice President, Chief Financial Officer, and Treasurer resigned from these positions. Under the retention agreement entered into on January 29, 2025, his resignation qualified him for enhanced severance benefits. In connection with his departure, on October 30, 2025, we entered into a separation agreement and a one-year advisory agreement, which included a general release of claims. During the advisory period, his outstanding equity awards will continue to vest according to their original terms, and the exercise period for his vested stock options will be extended through October 29, 2027. As a result of the modification of his equity awards and our determination that the advisory period constitutes a non-substantive service period, we recognized $2.4 million of stock-based compensation expense during the year ended December 31, 2025. Other benefits provided under the separation and advisory agreements are not considered material. Stock Options We grant stock options at prices equal to the grant date fair value. Typically, these stock options expire ten years from the grant date and vest ratably over a four-year service period. Stock option activity for the year ended December 31, 2025 was as follows:
| Number of Shares |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term (in Years) |  | Aggregate Intrinsic Value
Balance—December 31, 2024 | 9.1 |  | $ | 7.64 |  |  | 4.97 |  | $ | 25.3 |
Granted | 5.2 |  | 7.81 |  |  |  |  |
Exercised | (3.0) |  | 3.41 |  |  |  |  |
Canceled | (0.2) |  | 18.07 |  |  |  |  |
Balance—December 31, 2025 | 11.1 |  | $ | 8.63 |  |  | 6.54 |  | $ | 6.1 |
Options vested | 5.3 |  | $ | 9.24 |  |  | 3.86 |  | $ | 6.1 |
Aggregate intrinsic value represents the difference between the exercise price of the stock options and the fair value of our common stock. The aggregate intrinsic value of stock options exercised was $19.9 million, $21.4 million, and $72.6 million for the years ended December 31, 2025, 2024, and 2023. The weighted-average grant date fair value of options granted for the years ended December 31, 2025, 2024, and 2023 was $4.59, $4.39, and $8.41. RSUs and PSUs RSUs have a service-based vesting condition, which is satisfied generally either (i) over four years with a 25% cliff vesting period after one year and 6.25% vesting each quarter thereafter for new hires, or (ii) over four years with 6.25% vesting each quarter for new grants to existing employees. The related stock-based compensation expense is recognized on a straight-line basis over the requisite service period. In 2024 and 2025, we granted PSUs to certain executives under the 2021 Plan. PSU grants have both performance and service-based vesting conditions. The ultimate number of units that will vest is determined based on the achievement of annual revenue against a pre-established target (with defined threshold and maximum amounts ranging from 50% to 150% of target). If annual revenue is below the threshold amount, none of the PSUs will vest. If annual revenue is equal to or exceeds the threshold amount, 25% of the PSUs ultimately granted will vest after one year, and 6.25% of the remaining PSUs will vest quarterly over the subsequent three years. The fair value of each unit is determined on the grant date, and the related stock-based compensation expense is recognized using the accelerated attribution method. We evaluate the vesting conditions on a quarterly basis and recognize stock-based compensation expense if the achievement of the performance condition is probable. RSU and PSU activity for the year ended December 31, 2025 was as follows:
| RSUs |  | PSUs
| Number of Units |  | Weighted-Average Grant Date Fair Value |  | Aggregate Intrinsic Value |  | Number of Units |  | Weighted-Average Grant Date Fair Value |  | Aggregate Intrinsic Value
Unvested balance—December 31, 2024 | 16.1 |  | $ | 12.82 |  |  | $ | 136.7 |  |  | 0.3 |  | $ | 14.36 |  |  | $ | 2.2 |
Granted(1) | 12.2 |  | 8.10 |  |  |  |  | 0.5 |  | 7.94 |  |  |
Vested(2) | (7.0) |  | 13.21 |  |  |  |  | (0.1) |  | 14.36 |  |  |
Forfeited(3) | (4.1) |  | 11.75 |  |  |  |  | (0.1) |  | 9.70 |  |  |
Unvested balance—December 31, 2025 | 17.2 |  | $ | 9.56 |  |  | $ | 126.3 |  |  | 0.6 |  | $ | 9.17 |  |  | $ | 4.4 |
(1) For PSUs, the amount presented as the number of units granted is based on the performance condition being achieved at the target level. Once the performance period is complete, the number of units that will vest may range from 0% to 150% of the target amount based on actual performance. As of December 31, 2025, based on attainment against the pre-established annual revenue target, 0.6 million units, or 110.66%. of the PSUs granted in 2025 are expected to vest in February 2026, subject to the performance attainment being certified following the filing of this Annual Report on Form 10-K. (2) Includes the service-based vesting in the year ended December 31, 2025 of the 0.2 million units or 83.85% of PSUs granted in March 2024, certified as vested by our Human Resources and Compensation Committee in February 2025 based on attainment against the pre-established annual revenue target. (3) Forfeited PSUs include awards forfeited due to the failure to meet service-based vesting conditions and those that did not satisfy the performance-based vesting condition. The latter represents the difference between the PSUs granted in March 2024 at target and the number of units vested based on the attainment against the pre-established annual revenue target. The aggregate fair value of RSUs that vested was $67.4 million, $80.1 million, and $130.9 million for the years ended December 31, 2025, 2024, and 2023. Stock-Based Compensation Expense A summary of the weighted-average assumptions we utilized to record stock-based compensation expense for stock options granted is as follows:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Fair value of common stock | $ | 7.81 |  |  | $ | 7.81 |  |  | $ | 14.72 |
Risk-free interest rate | 4.4 | % |  | 3.5 | % |  | 3.7 | %
Expected term (in years) | 7.1 |  | 6.1 |  | 6.1
Expected volatility | 55.4 | % |  | 56.2 | % |  | 57.3 | %
Dividend yield | — | % |  | — | % |  | — | %
The following table summarizes the assumptions used in estimating the fair value of ESPP Rights:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Risk-free interest rate | 3.6% - 4.2% |  | 4.2% - 5.4% |  | 3.9% - 5.5%
Expected term (in years) | 0.5 - 2.0 |  | 0.5 - 2.0 |  | 0.5 - 2.0
Expected volatility | 53.6% - 64.2% |  | 40.2% - 72.3% |  | 39.2% - 61.0%
Dividend yield | —% |  | —% |  | —%
Stock-based compensation expense is classified in the Consolidated Statements of Operations as follows:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Cost of revenue | $ | 2.5 |  |  | $ | 2.7 |  |  | $ | 2.6 |
Research and development | 34.8 |  |  | 41.8 |  |  | 49.9 |
Sales and marketing | 20.8 |  |  | 28.1 |  |  | 31.3 |
General and administrative | 38.6 |  |  | 35.5 |  |  | 31.4 |
Restructuring related charges | (1.6) |  |  | — |  |  | (5.6) |
Total | $ | 95.1 |  |  | $ | 108.1 |  |  | $ | 109.6 |
We capitalized $7.7 million, $7.7 million, and $7.1 million of stock-based compensation related to our internal-use software during the years ended December 31, 2025, 2024, and 2023. The table below presents unrecognized employee compensation cost related to unvested shares and the weighted-average period over which it is expected to be recognized as of December 31, 2025:
| December 31, 2025
| Unrecognized employee compensation cost related to unvested shares | Weighted-average period over which the compensation is expected to be recognized (in years)
RSUs | $ | 140.4 |  | 2.6
Common stock options | 20.6 |  | 2.9
ESPP Rights | 3.2 |  | 0.8
PSUs | 2.5 |  | 3.2
Income tax benefits recognized from stock-based compensation expense for the years ended December 31, 2025, 2024, and 2023 were $0.5 million, $0.7 million, and $0.8 million due to cumulative losses and valuation allowances. For the years ended December 31, 2025, 2024, and 2023, income tax benefits realized related to stock-based awards vested and exercised were $0.4 million, $0.6 million, and $1.3 million due to cumulative losses and valuation allowances. Common Stock Reserved for Issuance The following table presents total shares of our common stock reserved for future issuance:
| December 31, 2025 |  | December 31, 2024
RSUs outstanding | 17.2 |  | 16.1
Stock options outstanding | 11.1 |  | 9.1
PSUs outstanding | 0.6 |  | 0.3
Shares available for future grants | 20.8 |  | 22.5
Total shares of common stock reserved | 49.7 |  | 48.0
401(k) Plan We have a 401(k) savings plan (the “401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer-matching contribution. We made matching contributions of $1.5 million, $1.6 million, and $1.7 million to the 401(k) Plan for the years ended December 31, 2025, 2024, and 2023.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/712/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/710/tableOfContent Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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