Stride's Q2 2025: Navigating Enrollment Momentum, Retention Trends, and Funding Challenges

These are the key contradictions discussed in Stride's latest 2025 Q2 earnings call, specifically including: Enrollment Momentum and Career Learning Funnel, Retention Improvements, Enrollment and Retention Trends, and the Impact of State-level Funding:



Record Enrollment and Continued Growth:
- Stride reported record enrollments of 230,000 students in Q2 2025, marking an increase of 19.4% from the previous year.
- The growth is attributed to strong demand for Stride's programs driven by the macro environment and ongoing market conditions pushing families to seek education alternatives.

Revenue and Profitability Increase:
- Stride's revenue for Q2 2025 was $587.2 million, representing a 16% increase from the same period last year.
- The increase in revenue was driven by growth in both career learning and general education programs, as well as improved gross margins.

Career Learning Enrollment Growth:
- Career learning program enrollment grew by 30.9% year-over-year, contributing to a 29% increase in revenue for this segment.
- The growth in career learning enrollment is due to strong demand for career-ready programs and industry support for career training.

Retention Stability and Long-term Improvements:
- Stride maintained stable retention rates, with no significant year-over-year changes.
- The company is investing in structural improvements to enhance retention, such as increased socialization opportunities for students through platforms like the K-12 zone.

Adult Learning Segment Challenges:
- The Adult Learning segment reported a decline in revenue, finishing the quarter at $19.8 million, down $6.1 million from the previous year.
- The softness in this segment is attributed to a restructuring of the MedCerts business from B2C to a more stable B2B model, which is expected to yield long-term benefits.