Coursera downgraded to neutral as Q1 shows enterprise weakness despite strong consumer growth.

Coursera's Q1 results revealed challenges in its enterprise segment with declining adjusted EBITDA margins due to increased investments in product and sales. While the consumer segment continues to grow strongly, driven by AI content and more registered learners, losses in enterprise seats and shifting market sentiment have raised concerns. Despite a strong cash position and a merger with Udemy providing financial flexibility, these operational risks have led to a downgrade to neutral. Investors should watch for further developments in enterprise demand and overall market conditions.