Stride's Q4 2025 Earnings Call: Navigating Contradictions in Enrollment, Funding, and Margins

Enrollment growth and demand trends, funding environment and impact on the company, demand and enrollment trends, funding environment and federal exposure, gross margin expansion are the key contradictions discussed in Stride's latest 2025Q4 earnings call.



Revenue Growth and Market Demands:
- Stride, Inc. reported full year revenue of $2.4 billion, up 18% from last year.
- The growth was driven by strong demand and the continued momentum in the school choice market.

Enrollment and Demand Trends:
- Career Learning and middle and high school revenues were $876.3 million, up 35%, with full-year enrollments totaling 96,300, up 33%.
- The increase is attributed to positive macro trends around core business and demand for school choice.

Gross Margin and Investments:
- Gross margin for the year was 39.2%, up 180 basis points.
- The improvement was due to a balance between investing in business and enhancing gross margin, with plans for slower growth in future.

Impact of AI Integration:
- Stride is proceeding with a cautious and ambitious approach to AI integration in its programs, aiming for responsible and impactful use.
- This reflects a strategic focus on leveraging AI for better customer outcomes and experiences.