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Stride vs. Coursera: Which Online Education Stock is the Better Buy?
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Key Takeaways
LRN is benefiting from hybrid K-12 and career programs, with Career Learning revenues up 16.3% YoY.
Stride faced enrollment losses after platform glitches, causing 10K-15K fewer enrollments than expected.
COUR is driven by subscriptions and AI tools, with Consumer segment revenues rising 9% YTD in 2025.
The online education and E-learning market is booming thanks to the increased adoption across K-12, higher education, workforce training and corporate learning. The shifting demands of students and parents for a more hybrid learning model, away from traditional classroom learning, are supporting this trend. Companies like Stride, Inc. (LRN - Free Report) and Coursera, Inc. (COUR - Free Report) are gaining immensely from this market shift, as they operate in the online education sector, offering digital learning solutions.
Moreover, the increased government initiatives in supporting workforce training, skill development, higher research education and AI-integrated solutions are acting as a catalyst amid the favorable market trends.
Stride’s operations mainly focus on the United States market, offering K-12 virtual schooling and career learning programs. On the other hand, Coursera’s market spans the globe with offerings, including Massive Open Online Courses (MOOCs), certificate programs and degree programs in collaboration with universities and corporations.
Let’s decode and closely compare the fundamentals of the two education stocks to determine which one is the better investment now.
The Case for Stride Stock
Stride is gaining from a hybrid education model that combines online and blended solutions, merging digital flexibility with in-person engagement. As the market is shifting from traditional school choices to more virtual and career-oriented options, the diversified offerings by Stride fit perfectly into the puzzle. This Virginia-based education company offers K-12 online school programs alongside hybrid and in-person options through a career learning platform for areas like healthcare, IT, and advanced manufacturing.
In the first quarter of fiscal 2026, its Career Learning segment’s revenues grew 16.3% year over year to $257.8 million, with enrollments growing 20%. This segment’s revenues outpaced the revenue growth for the General Education segment, which was 10.2% year over year in the fiscal first quarter.
Apart from offering diversified programs, LRN’s investments in affordable learning offerings are encouraging. Recently, the company highlighted the launch of a free and live one-on-one tutoring program, ELA (English Language Arts) tutoring, for every second and third grader in its serving community. Introduced ahead of the 2025-2026 school year, the initiative is already demonstrating strong traction, a clear indication that families view this support as both valuable and timely. Stride’s hybrid innovation also benefits from state-level funding flexibility, enabling partnerships with school districts that seek scalable, cost-effective solutions.
However, Stride’s fiscal 2026 start was unsatisfactory due to the technical glitches witnessed after the rollout of two technology platforms, including a front-end learning platform and a back-office platform. At the start of August 2025, it started to witness withdrawals due to poor platform performance, such as login issues, leading to low conversion rates. The new upgrade did not go as planned, leading to approximately 10,000-15,000 fewer enrollments, which could have been achieved otherwise. This scenario is expected to pull back near-term prospects for Stride.
The Case for Coursera Stock
This California-based digital education company is benefiting from a strong business model supported by subscriptions, deep AI integration, continuous platform enhancement and highly favorable long-term market trends. Its Coursera Plus subscription offering determines continuous strength, contributing about half of the Consumer segment’s revenues as of the third quarter of 2025. During the first nine months of 2025, the Consumer segment revenues grew 9% year over year to $370.7 million. The management emphasized strong global top-of-funnel momentum, with millions of new learners added each quarter and rising paid conversion rates supported by localized pricing, promotions and bundled subscription offerings that resonate particularly well in international markets.
Coursera’s efforts in enhancing the digital platform are boding well. New offerings such as Skills Tracks and AI-powered Course Builder strengthen the company’s value proposition for both individuals and enterprises by linking learning directly to role-based competencies and measurable outcomes. Notably, Coursera Coach, COUR’s AI-powered tutor, is now embedded across nearly the entire course catalog and has demonstrated measurable improvements in learner outcomes, engagement and completion rates. Besides this, embedding Coursera directly within ChatGPT positions the platform at the forefront of AI-native learning discovery.
Accelerating demand for reskilling, particularly in generative AI and digital roles, continues to drive record enrollments, rapid catalog expansion and growing enterprise adoption. With a scalable subscription model, strong free cash flow generation and a balance sheet with no debt, COUR appears well-positioned to capitalize on the structural shift toward lifelong, technology-driven learning.
However, macro uncertainties in corporate spending are pulling back Coursera’s revenue visibility and growth prospects despite improving momentum and resilience across campus and government verticals. The company highlighted that the enterprise net retention remains below 100%, signaling ongoing budget scrutiny, slower expansions and elongated sales cycles that could persist if economic conditions remain volatile. Moreover, execution risks associated with AI investments are concerning for the near-term growth. Overall, the company’s challenges center on enterprise softness, seasonality and the balance between innovation-driven growth and sustainable monetization.
Stock Performance & Valuation
As witnessed from the chart below, in the past six months, Coursera’s share price performance stands well above Stride’s, even though both stocks reflect a declining trend.
Image Source: Zacks Investment Research
Considering valuation, over the last five years, Stride is trading below Coursera on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Overall, from these technical indicators, it can be deduced that COUR stock offers a diminishing growth trend with a premium valuation, while LRN stock offers a declining growth trend with a discounted valuation.
Comparing EPS Estimate Trends: LRN vs. COUR
LRN’s earnings estimates for fiscal 2026 and fiscal 2027 have moved south over the past 60 days. Nonetheless, the revised figures for fiscal 2026 and 2027 imply year-over-year improvements of 2% and 7.8%, respectively.
LRN EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for COUR’s 2025 and 2026 earnings has remained unchanged over the past 60 days. However, the estimated figures for 2025 and 2026 reflect 14.7% and 16.1% year-over-year growth, respectively.
COUR EPS Trend
Image Source: Zacks Investment Research
Should You Include LRN Stock or COUR Stock in Your Portfolio Now?
As discussed above, the online education market continues to expand, supported by hybrid learning adoption, workforce reskilling needs and favorable government initiatives. Stride’s strength lies in its U.S.-focused K-12 and career learning model, which aligns well with the growing preference for hybrid and job-oriented education. However, recent technology platform issues and disrupted enrollments cloud near-term visibility, leading to downward estimate revisions despite modest expected earnings growth over the next two years.
Conversely, Coursera offers a globally diversified, subscription-driven model with deep AI integration and a strong balance sheet. Continued learner growth, expanding AI-enabled offerings and rising demand for digital skills support its longer-term growth narrative. However, enterprise spending caution, net retention below 100% and monetization risks around AI investments temper near-term optimism.
LRN stock currently trades at a discount but faces execution challenges, while COUR stock commands a premium despite slowing momentum. Although both stocks currently carry a Zacks Rank #3 (Hold), based on the discussion and trends in technical indicators, COUR stock offers a more compelling investment proposition now compared to LRN stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stride vs. Coursera: Which Online Education Stock is the Better Buy?
Key Takeaways
The online education and E-learning market is booming thanks to the increased adoption across K-12, higher education, workforce training and corporate learning. The shifting demands of students and parents for a more hybrid learning model, away from traditional classroom learning, are supporting this trend. Companies like Stride, Inc. (LRN - Free Report) and Coursera, Inc. (COUR - Free Report) are gaining immensely from this market shift, as they operate in the online education sector, offering digital learning solutions.
Moreover, the increased government initiatives in supporting workforce training, skill development, higher research education and AI-integrated solutions are acting as a catalyst amid the favorable market trends.
Stride’s operations mainly focus on the United States market, offering K-12 virtual schooling and career learning programs. On the other hand, Coursera’s market spans the globe with offerings, including Massive Open Online Courses (MOOCs), certificate programs and degree programs in collaboration with universities and corporations.
Let’s decode and closely compare the fundamentals of the two education stocks to determine which one is the better investment now.
The Case for Stride Stock
Stride is gaining from a hybrid education model that combines online and blended solutions, merging digital flexibility with in-person engagement. As the market is shifting from traditional school choices to more virtual and career-oriented options, the diversified offerings by Stride fit perfectly into the puzzle. This Virginia-based education company offers K-12 online school programs alongside hybrid and in-person options through a career learning platform for areas like healthcare, IT, and advanced manufacturing.
In the first quarter of fiscal 2026, its Career Learning segment’s revenues grew 16.3% year over year to $257.8 million, with enrollments growing 20%. This segment’s revenues outpaced the revenue growth for the General Education segment, which was 10.2% year over year in the fiscal first quarter.
Apart from offering diversified programs, LRN’s investments in affordable learning offerings are encouraging. Recently, the company highlighted the launch of a free and live one-on-one tutoring program, ELA (English Language Arts) tutoring, for every second and third grader in its serving community. Introduced ahead of the 2025-2026 school year, the initiative is already demonstrating strong traction, a clear indication that families view this support as both valuable and timely. Stride’s hybrid innovation also benefits from state-level funding flexibility, enabling partnerships with school districts that seek scalable, cost-effective solutions.
However, Stride’s fiscal 2026 start was unsatisfactory due to the technical glitches witnessed after the rollout of two technology platforms, including a front-end learning platform and a back-office platform. At the start of August 2025, it started to witness withdrawals due to poor platform performance, such as login issues, leading to low conversion rates. The new upgrade did not go as planned, leading to approximately 10,000-15,000 fewer enrollments, which could have been achieved otherwise. This scenario is expected to pull back near-term prospects for Stride.
The Case for Coursera Stock
This California-based digital education company is benefiting from a strong business model supported by subscriptions, deep AI integration, continuous platform enhancement and highly favorable long-term market trends. Its Coursera Plus subscription offering determines continuous strength, contributing about half of the Consumer segment’s revenues as of the third quarter of 2025. During the first nine months of 2025, the Consumer segment revenues grew 9% year over year to $370.7 million. The management emphasized strong global top-of-funnel momentum, with millions of new learners added each quarter and rising paid conversion rates supported by localized pricing, promotions and bundled subscription offerings that resonate particularly well in international markets.
Coursera’s efforts in enhancing the digital platform are boding well. New offerings such as Skills Tracks and AI-powered Course Builder strengthen the company’s value proposition for both individuals and enterprises by linking learning directly to role-based competencies and measurable outcomes. Notably, Coursera Coach, COUR’s AI-powered tutor, is now embedded across nearly the entire course catalog and has demonstrated measurable improvements in learner outcomes, engagement and completion rates. Besides this, embedding Coursera directly within ChatGPT positions the platform at the forefront of AI-native learning discovery.
Accelerating demand for reskilling, particularly in generative AI and digital roles, continues to drive record enrollments, rapid catalog expansion and growing enterprise adoption. With a scalable subscription model, strong free cash flow generation and a balance sheet with no debt, COUR appears well-positioned to capitalize on the structural shift toward lifelong, technology-driven learning.
However, macro uncertainties in corporate spending are pulling back Coursera’s revenue visibility and growth prospects despite improving momentum and resilience across campus and government verticals. The company highlighted that the enterprise net retention remains below 100%, signaling ongoing budget scrutiny, slower expansions and elongated sales cycles that could persist if economic conditions remain volatile. Moreover, execution risks associated with AI investments are concerning for the near-term growth. Overall, the company’s challenges center on enterprise softness, seasonality and the balance between innovation-driven growth and sustainable monetization.
Stock Performance & Valuation
As witnessed from the chart below, in the past six months, Coursera’s share price performance stands well above Stride’s, even though both stocks reflect a declining trend.
Image Source: Zacks Investment Research
Considering valuation, over the last five years, Stride is trading below Coursera on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Overall, from these technical indicators, it can be deduced that COUR stock offers a diminishing growth trend with a premium valuation, while LRN stock offers a declining growth trend with a discounted valuation.
Comparing EPS Estimate Trends: LRN vs. COUR
LRN’s earnings estimates for fiscal 2026 and fiscal 2027 have moved south over the past 60 days. Nonetheless, the revised figures for fiscal 2026 and 2027 imply year-over-year improvements of 2% and 7.8%, respectively.
LRN EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for COUR’s 2025 and 2026 earnings has remained unchanged over the past 60 days. However, the estimated figures for 2025 and 2026 reflect 14.7% and 16.1% year-over-year growth, respectively.
COUR EPS Trend
Image Source: Zacks Investment Research
Should You Include LRN Stock or COUR Stock in Your Portfolio Now?
As discussed above, the online education market continues to expand, supported by hybrid learning adoption, workforce reskilling needs and favorable government initiatives. Stride’s strength lies in its U.S.-focused K-12 and career learning model, which aligns well with the growing preference for hybrid and job-oriented education. However, recent technology platform issues and disrupted enrollments cloud near-term visibility, leading to downward estimate revisions despite modest expected earnings growth over the next two years.
Conversely, Coursera offers a globally diversified, subscription-driven model with deep AI integration and a strong balance sheet. Continued learner growth, expanding AI-enabled offerings and rising demand for digital skills support its longer-term growth narrative. However, enterprise spending caution, net retention below 100% and monetization risks around AI investments temper near-term optimism.
LRN stock currently trades at a discount but faces execution challenges, while COUR stock commands a premium despite slowing momentum. Although both stocks currently carry a Zacks Rank #3 (Hold), based on the discussion and trends in technical indicators, COUR stock offers a more compelling investment proposition now compared to LRN stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.