LRN
Stride, Inc.65.82
+1.91+2.99%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
No growth despite strong demand
Q&A doubled down on this year's no-growth priority despite normalized early-Q3 withdrawals and demand matching last year's record—despite lighter marketing—emphasizing signals to partners and staff post-platform woes. Partners voiced frustration but backed Stride at a record summit; potential partners shrugged off issues. Families showed grit through glitches. No word-of-mouth overhang evident. Management's tone: confident on FY2027 growth return. Watch partner retention, organic demand durability.
Key Stats
Market Cap
2.89BP/E (TTM)
10.27Basic EPS (TTM)
6.41Dividend Yield
0%Recent Filings
10-Q
Q2 FY2026 results
Stride posted Q2 FY2026 revenue of $631.3M, up 7.5% y/y, driven by Career Learning's 24.5% surge to $289.9M on 17.6% enrollment growth, offsetting a 3.6% General Education dip. Gross margin hit 41.1% (up from 40.8%), fueling operating income to $146.9M (+17.4% y/y) while SG&A eased to 17.9% of sales. Diluted EPS of $2.12 reflects convertible debt dilution. Cash sits at $497.1M with $417.2M long-term debt; $88.7M buybacks signal confidence. Strong enrollments fuel momentum. Yet state funding audits pose variability risks.
8-K
Q2 revenue beats, Career Learning booms
8-K
Stockholders approve equity plans
Stride stockholders approved amending the 2016 Equity Incentive Plan, adding 740,000 shares and extending it to 2035, plus a new ESPP authorizing 4 million shares, at the December 4, 2025 annual meeting. Both passed handily, with the ESPP earning overwhelming support. Stockholders re-elected all eight directors. This bolsters talent retention tools.
8-K
Approves $500M buyback
10-Q
Q1 FY2026 results
Stride kicked off fiscal 2026 with revenues climbing 12.7% year-over-year to $620.9 million for the quarter ended September 30, 2025, fueled by 11.3% enrollment growth to 247.7 thousand students, while gross margin held steady at 39.0%. Operating income surged 45.9% to $69.0 million, lifting diluted EPS to $1.40 from $0.94, with the jump tied to higher Career Learning enrollments up 20.0% and school mix shifts. Cash dipped to $518.4 million after seasonal outflows, yet liquidity stays robust with $416.8 million in long-term debt due 2027 at 1.125% and ample working capital. No material M&A or regulatory hits noted. Still, funding audits could trim revenues by up to 2% if estimates miss.
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