Stride Beats Analyst Estimates In Q2: Here's A Look At The Numbers

Stride, Inc. (NYSE: LRN), a leading technology-based education company, reported strong financial results for the second fiscal quarter ended December 31, 2024, surpassing analyst estimates. The company's revenue increased by 16.3% to $587.2 million, while net income grew by 44.2% to $96.4 million. Diluted earnings per share (EPS) reached $2.03, up from $1.54 year-over-year. Here's a closer look at the numbers:



* Revenue: $587.2 million (up 16.3% YoY)
* Income from operations: $125.1 million (up 48.4% YoY)
* Net income: $96.4 million (up 44.2% YoY)
* Diluted EPS: $2.03 (up 31.8% YoY)
* Adjusted operating income: $135.6 million (up 42.9% YoY)
* Adjusted EBITDA: $160.4 million (up 35.5% YoY)

Stride's strong performance can be attributed to several factors:

1. Enrollment growth: The company's enrollment numbers surged by 19.4% to an average of 230.6K students in the second quarter of fiscal year 2025. This growth was driven by a 30.9% increase in Career Learning enrollments, which reached 94.8K students.
2. Stable revenue per enrollment: Despite the rapid expansion, Stride maintained a stable revenue per enrollment of $2,395, indicating pricing power and the ability to attract and retain students without significantly increasing or decreasing prices.
3. Operational efficiency: Stride's operating margins expanded from 16.7% to 21.3%, reflecting strong operational leverage and effective cost management.
4. Market demand: The growing demand for online learning and career-focused education, particularly in high-growth and in-demand industries, has driven enrollment growth and contributed to Stride's financial success.

Looking ahead, Stride raised its full-year 2025 guidance, projecting revenue between $2.320 billion and $2.355 billion, and adjusted operating income of $430 million to $450 million. The company also expects third-quarter 2025 revenue to be in the range of $585 million to $600 million.



In conclusion, Stride's strong Q2 performance reflects the overall growth and demand for education technology services, particularly in the K-12 and career learning sectors. The company's robust enrollment growth, stable revenue per enrollment, and operational efficiency have contributed to its financial success. As Stride continues to invest in its platform and expand its reach, it is well-positioned to capitalize on the growing demand for online learning and career-focused education.