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SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended
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Dec. 31, 2025
Segment Reporting [Abstract] |
SEGMENT AND GEOGRAPHIC INFORMATION | 13. SEGMENT AND GEOGRAPHIC INFORMATION Segment Information As disclosed in Note 1, our CODM is our CEO. Under our CEO’s leadership, we have simplified our business model to better reflect our focus on serving adult learners at every stage. This includes a broad set of offerings that span from standalone courses to university degrees. These changes aim to ensure that our investments effectively serve a broad audience of learners. Beginning in fiscal year 2025, due to the simplification of our business model and the change in how our CODM assesses performance and allocates resources, we have identified two reporting segments: Consumer and Enterprise. This is also consistent with how we disaggregate revenue. As a result of this change, our degree product has been incorporated into our Consumer segment as another product category that supports our learners. The segment reporting change does not impact our Enterprise segment or consolidated results. Prior-period segment information has been recast to conform to the current presentation. The Consumer segment targets individual learners seeking to obtain hands-on learning, gain valuable job skills, receive professional-level certifications or degrees, and otherwise increase their knowledge to start or advance their careers. The Enterprise segment is focused on serving businesses, government organizations, and academic institutions by providing an online platform with access to job-relevant educational content enabling them to train, upskill, and reskill their employees, citizens, and students. The CODM measures the performance of each segment primarily based on its revenue and gross profit. Our CODM primarily measures each segment’s performance based on revenue and gross profit. Segment gross profit, as presented below, is defined as segment revenue less segment content costs within cost of revenue. These costs are considered significant segment expenses that are regularly reviewed by our CODM. Other costs of revenue, including platform operation and maintenance costs, amortization of internal-use software and intangible assets, and stock-based compensation expense, are managed on an enterprise-wide basis and not reported by segment. In addition, we do not report operating expenses, other income (expense), net, or income tax expense (benefit) by segment because our CODM reviews this financial information on a consolidated basis. Our CODM does not use segment-level asset information to assess performance or allocate resources. Therefore, we do not track our long-lived assets by segment. The geographic identification of these assets is provided below. Financial information for each reportable segment was as follows:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
| Consumer |  | Enterprise |  | Consolidated |  | Consumer |  | Enterprise |  | Consolidated |  | Consumer |  | Enterprise |  | Consolidated
Revenue | $ | 502.2 |  |  | $ | 255.3 |  |  | $ | 757.5 |  |  | $ | 455.8 |  |  | $ | 238.9 |  |  | $ | 694.7 |  |  | $ | 416.2 |  |  | $ | 219.6 |  |  | $ | 635.8 |
Segment content costs | 193.9 |  |  | 77.2 |  |  | 271.1 |  |  | 183.8 |  |  | 75.0 |  |  | 258.8 |  |  | 172.2 |  |  | 69.2 |  |  | 241.4 |
Segment gross profit | $ | 308.3 |  |  | $ | 178.1 |  |  | $ | 486.4 |  |  | $ | 272.0 |  |  | $ | 163.9 |  |  | $ | 435.9 |  |  | $ | 244.0 |  |  | $ | 150.4 |  |  | $ | 394.4 |
Segment gross profit margin | 61.4 | % |  | 69.8 | % |  | 64.2 | % |  | 59.7 | % |  | 68.6 | % |  | 62.7 | % |  | 58.6 | % |  | 68.5 | % |  | 62.0 | %
Other costs of revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Platform operation and maintenance costs |  |  |  |  | 42.7 |  |  |  |  |  |  | 38.5 |  |  |  |  |  |  | 42.1 |
Amortization of internal-use software |  |  |  |  | 18.5 |  |  |  |  |  |  | 17.8 |  |  |  |  |  |  | 16.9 |
Amortization of intangible assets |  |  |  |  | 9.3 |  |  |  |  |  |  | 5.5 |  |  |  |  |  |  | 3.0 |
Stock-based compensation expense |  |  |  |  | 2.5 |  |  |  |  |  |  | 2.7 |  |  |  |  |  |  | 2.6 |
Cost of revenue |  |  |  |  | $ | 344.1 |  |  |  |  |  |  | $ | 323.3 |  |  |  |  |  |  | $ | 306.0 |
Gross profit |  |  |  |  | $ | 413.4 |  |  |  |  |  |  | $ | 371.4 |  |  |  |  |  |  | $ | 329.8 |
Gross profit margin |  |  |  |  | 54.6 | % |  |  |  |  |  | 53.5 | % |  |  |  |  |  | 51.9 | %
Geographic Information Revenue The following table summarizes the revenue by region based on the billing address of our customers:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
United States | $ | 384.7 |  |  | $ | 368.6 |  |  | $ | 340.7 |
Europe, Middle East, and Africa | 185.9 |  |  | 166.3 |  |  | 153.1 |
Asia Pacific | 108.9 |  |  | 89.7 |  |  | 82.3 |
Other | 78.0 |  |  | 70.1 |  |  | 59.7 |
Total | $ | 757.5 |  |  | $ | 694.7 |  |  | $ | 635.8 |
No single country other than the United States represented 10% or more of our total revenue during the years ended December 31, 2025, 2024, and 2023. Long-lived Assets The following table presents our long-lived assets, consisting of property, equipment, and software, net of depreciation and amortization, and operating lease ROU assets, by geographic region:
| December 31, 2025 |  | December 31, 2024
United States | $ | 45.2 |  |  | $ | 39.0 |
Rest of World | 2.7 |  |  | 0.9 |
Total | $ | 47.9 |  |  | $ | 39.9 |

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- Definition The entire disclosure for reporting segments including data and tables. 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