What does Stride do and what are its main business segments?

What were the key takeaways from Stride's earnings call?

What is the revenue and EPS growth rate for Stride year over year?

What were the key takeaways from Stride’s earnings call?

What factors drove the changes in Stride's revenue and profit?

What is Stride's latest dividend and current dividend yield?

What is the market's earnings forecast for Stride next quarter?

Did Stride beat or miss consensus estimates last quarter?

- **Stabilization Success**: Withdrawal rates normalized, platform issues resolved, and enrollments stable at 248,500 (7.8% YoY growth).
- **Revenue Growth**: Q2 revenue $631.3M (+8% YoY), driven by 29% Career Learning revenue surge. Gross margin 41.1% (+30bps YoY) due to one-time gain.
- **FY26 Guidance**: Revenue $2.48B-$2.555B, operating income $485M-$505M, with cautious growth approach to ensure long-term success.
- **Cost Efficiency**: SG&A down 2% YoY, free cash flow positive, and $500M share buyback authorization.

**【CEO Summary Section】**
- Platform issues resolved, with customer support call volumes dropping over 90% week-over-week after addressing login issues. Withdrawal rates for the second semester are within historical norms.
- Total enrollments of 248,500 (up 7.8% YoY) remained stable sequentially, driven by strong demand and in-year enrollment backfilling attrition. Career Learning enrollments grew 17.6% YoY, while General Education enrollments were flat.
- Company prioritizes stability over growth in FY26, with cautious approach to enrollment growth to ensure long-term success and maintain partner trust.

**【CFO Financial Commentary】**
- Q2 revenue of $631.3 million (+8% YoY), adjusted operating income of $159 million (+17% YoY), and adjusted EPS of $2.50 (+5% YoY). Career Learning revenue grew 29% YoY to $275.6 million, offsetting 3.6% decline in General Education revenue.
- Gross margin improved to 41.1% (up 30bps YoY) due to a one-time gain from exiting a non-core business lease. Full-year gross margin expected to align with FY2024 levels.
- FY26 guidance: Revenue $2.48 billion-$2.555 billion, adjusted operating income $485 million-$505 million, and capital expenditures $70 million-$80 million.

**【Q&A Highlights】**
- **Enrollment Growth**: Despite strong demand, FY26 focus on stability limits sequential growth. Third-quarter average enrollment expected similar to Q1/Q2, with typical seasonal decline in Q4.
- **Platform Resilience**: Families' resilience and teachers' support mitigated platform issues, with no lasting negative word-of-mouth impact on demand.
- **Cost Management**: SG&A expenses down 2% YoY due to adult learning business rightsizing and reduced marketing spend. Free cash flow expected positive for the remainder of FY26.
- **Share Repurchases**: $500 million authorized through October 2026, with $88.6 million repurchased in Q2.

Stride, Inc. (LRN) Q2 2026 Earnings Call Transcript

- **Enrollment shortfall**: Q1 enrollment growth of 11.3% fell short of internal targets by 10,000-15,000 due to platform implementation delays and strategic enrollment limits.
- **Financial resilience**: Despite challenges, Q1 revenue rose 13% to $620.9M, with adjusted operating income up 39% to $81.1M.
- **Platform recovery**: CEO expects critical platform issues resolved by year-end, enabling resumption of in-year enrollment growth in 2026.
- **Competitive strength**: Maintained raw enrollment growth margin over largest competitor despite industry-wide expansion.

**【CEO Summary Section】**
- **Enrollment shortfall**: Q1 enrollment grew 11.3% YoY to 247,700 students, but 10,000-15,000 below internal targets due to platform implementation issues and enrollment growth limits.
- **Platform challenges**: Customer experience was negatively impacted by delays in rolling out new learning and administrative platforms, leading to higher withdrawal rates.
- **Long-term vision**: Despite short-term disruptions, CEO reaffirmed bullish outlook for online education demand, citing ongoing family need for alternatives to traditional schools.
- **Investment in quality**: Decision to limit enrollment growth temporarily to ensure high-quality program execution and platform stabilization.

**【CFO Financial Commentary】**
- **Revenue growth**: Q1 revenue $620.9M (+13% YoY), driven by 20% Career Learning growth and 5.2% Gen Ed expansion.
- **Profitability**: Adjusted operating income $81.1M (+39% YoY), EBITDA $108.4M (+29% YoY), EPS $1.52 (+39% YoY).
- **Gross margin pressure**: 39% gross margin (-20bps YoY) due to platform implementation costs and investments.
- **Guidance**: Full-year revenue $2.48B-$2.555B, operating income $475M-$500M, with expectations for improved platform performance in Q4.

**【Q&A Highlights】**
- **Platform impact breakdown**: ~70% of shortfall attributed to customer experience issues, ~30% from enrollment growth limits.
- **Fix timeline**: Most critical platform issues to be resolved by end of 2025, with ongoing improvements into 2026.
- **Competitive dynamics**: Despite industry-wide growth, Stride maintained raw enrollment growth margin over largest competitor.
- **Funding environment**: Positive state funding trends expected to continue, though mix shifts may limit revenue per enrollment growth.

Stride, Inc. (LRN) Q1 2026 Earnings Call Transcript

- **Record Growth**: FY25 revenue up 18% to $2.4B, operating income up 60% to $466M, driven by school choice demand.
- **Tutoring Expansion**: New high-dosage tutoring program for 2nd-3rd graders, targeting 100,000+ sessions in FY26.
- **Enrollment Outlook**: 10-15% Q1 FY26 growth, on track for double-digit annual expansion.
- **Margin Management**: Gross margin +180bps to 39.2%, slower expansion in FY26 due to product investments.
- **New Mexico Recovery**: 3,000+ students retained post-contract termination, showcasing operational resilience.
- **AI Focus**: Ethical AI adoption for efficiency, no immediate monetization but long-term opportunity.

**【CEO Summary Section】**
- Celebrated 25th anniversary with record demand for education programs, named one of America's best midsize companies and awarded for AI-driven education solutions.
- Launched new tutoring initiative for 2nd-3rd graders targeting reading skills, serving over 100,000 sessions in FY25.
- Cautious but ambitious AI strategy focused on improving customer outcomes, with partnerships and proprietary investments.
- Projected double-digit enrollment growth for FY26 based on early application trends, despite 50% of enrollment season remaining.
- Expanded career platform and programs, emphasizing practical career trajectories for students.

**【CFO Financial Commentary】**
- FY25 revenue: $2.4B (+18% YoY), adjusted operating income: $466.2M (+60% YoY), adjusted EBITDA: $571M (+46% YoY).
- Career Learning revenue: $876.3M (+35% YoY), General Education: $1.45B (+12% YoY).
- Gross margin: 39.2% (+180bps YoY), free cash flow: $372.8M (+155% YoY).
- FY26 guidance: 10-15% Q1 enrollment growth, flat to slightly up revenue per enrollment, slower gross margin expansion due to product investments.
- FY26 capital expenditures: ~$60M, SG&A as % of revenue to decline marginally.

**【Q&A Key Highlights】**
- **Enrollment Growth Drivers**: Strong application volumes (more reliable than inquiries) and word-of-mouth referrals, with 4,000+ students migrating from terminated New Mexico contract to new Destinations Career Academy.
- **Funding Environment**: Positive state funding trends (some flat, some up), no federal impact on revenue per enrollment.
- **Gross Margin Outlook**: Slower expansion due to tutoring and product investments, but no margin contraction expected.
- **New Mexico Contract**: Successfully transitioned 3,000+ students from terminated district to new academy, preserving jobs and enrollment.
- **Adult Learning**: Stabilizing but underperforming, with focus on health care vs. tech markets.
- **AI Strategy**: Balancing efficiency gains with ethical use, no immediate monetization plans.


Stride, Inc. (LRN) Q4 2025 Earnings Call Transcript

- **Revenue & Enrollment Surge**: Q3 revenue up 17.8% YoY to $630.4M, career learning enrollments +34%. FY25 revenue guidance raised to $2.37B-$2.385B.
- **Gross Margin Improvement**: 40.6% in Q3 (+190bps YoY), full-year improvement ~200bps. AOI up 47% to $141.7M.
- **Career Education Momentum**: 27% of parents consider full-time online programs, 90% interested in non-college pathways. Middle/high school programs grow faster than lower grades.
- **Socialization Innovations**: Virtual 'K-12 Zone' and in-person meetups see record engagement, addressing key family concern.
- **Funding Outlook**: FY26 state funding favorable, <5% revenue from federal sources. Free cash flow expected to rise in Q4.

**【CEO Summary Section】**
- **Enrollment Growth**: Q3 enrollment up 21% YoY, with career learning programs growing 34% to 98,700 enrollments. Total enrollments ended the quarter at 141,500, up 14% YoY.
- **Market Trends**: 60% of parents consider alternative schools, with 27% exploring full-time online programs. Demand for career education is driven by dissatisfaction with public education and interest in non-college pathways.
- **Socialization Initiatives**: Launched virtual 'K-12 Zone' for online socialization and pilot 'geographic pods' for in-person meetups, seeing record usage and positive feedback.
- **Constraints**: Despite strong demand (application volumes 4x 4 years ago), enrollment growth is limited by school closures and enrollment window constraints.

**【CFO Financial Commentary】**
- **Q3 Results**: Total revenue $630.4M (+17.8% YoY), Adjusted Operating Income (AOI) $141.7M (+47%), Adjusted EBITDA $168.3M (+40%).
- **Gross Margin**: 40.6% (up 190bps YoY), with full-year improvement expected ~200bps.
- **Guidance Update**: FY25 revenue raised to $2.37B-$2.385B (prev $2.32B-$2.355B), AOI to $455M-$465M (prev $430M-$450M).
- **Funding Environment**: FY26 state funding outlook favorable, with <5% revenue from federal sources.
- **Free Cash Flow**: Q3 $37.3M, expected to rise in Q4 due to timing of cash receipts.

**【Q&A Key Highlights】**
- **Career Learning Growth**: Driven by same funnel as general education, with incremental testing for standalone funnel. Middle/high school programs outperform lower grades, with plans to invest in low-grade tutoring.
- **Marketing Strategy**: Maintain consistent spend, focus on testing efficiency (e.g., social media, local campaigns). FY25 growth achieved without increased marketing spend.
- **Federal Impact**: DOE's pro-choice stance aligns with state-level business, reducing administrative overhead and empowering families.
- **Gross Margin Expansion**: Long-term targets unchanged, but efficiency efforts (e.g., teacher support tools) drive flow-through. FY25 RPE decline <1% vs. prior 1-2% guidance.
- **Application Trends**: Fall 2026 applications just beginning, but Q3 demand suggests strong start. FY25 ends with >21% YoY growth, setting up for FY26 momentum.


Stride (LRN)-29 Apr 25-2025 Q3 Earnings call transcript

- **Record Enrollment Growth**: 230,000 students enrolled, up 19.4% YoY, with three straight years of demand acceleration.
- **Revenue Beat and Margin Expansion**: $587.2M revenue (+16% YoY), 40.8% gross margin (+100bps YoY), and $208.6M free cash flow.
- **Strategic Initiatives Paying Off**: K-12 tutoring platform gains traction, AI-driven features show promise, and career learning segment grows 29% YoY.
- **Guidance Uptick**: Full-year revenue raised to $2.320-$2.355B, operating income to $430-$450M.
- **Challenges in Adult Learning**: 32% YoY decline as MedCerts transitions to B2B model, but long-term structural improvements expected.
- **Minimal Federal Risk**: <5% revenue tied to federal programs, with state-level focus mitigating policy risks.

**【CEO Summary Section】**
- Stride reported record enrollments of 230,000 students, marking the third consecutive year of year-over-year growth in demand. CEO James Rhyu highlighted the company's ability to execute effectively amid strong macro demand for career training and school choice options.
- The company is investing in strategic initiatives, including AI-driven enhancements to its core programs and the rollout of a nationwide K-12 tutoring platform. Early feedback on the tutoring platform has been positive, though it remains immaterial to near-term financials.
- Despite challenges in the incremental career funnel, the career learning segment grew 31% YoY, driven by enrollment growth in adjacent markets. Retention rates remain stable, with long-term structural improvements underway to enhance student engagement.

**【CFO Financial Commentary】**
- Q2 FY2025 revenue reached $587.2 million, up 16% YoY, with adjusted operating income of $135.6 million (43% YoY growth). Career learning revenue surged 29% YoY, while general education revenue increased 13% YoY.
- Gross margins improved 100 basis points to 40.8%, with expectations for 100-200 basis point full-year expansion. The company raised full-year revenue guidance to $2.320-$2.355 billion and adjusted operating income to $430-$450 million.
- Free cash flow was $208.6 million, up 48% YoY, reflecting strong cash generation despite incremental investments in growth initiatives.

**【Q&A Key Highlights】**
- **Enrollment Momentum**: CEO Rhyu noted broad-based strength across all programs, with career learning outperforming expectations despite ongoing challenges in the incremental funnel. Retention rates remain stable, with long-term investments in student engagement platforms (e.g., virtual socialization zones) expected to drive future improvements.
- **K-12 Tutoring Rollout**: The nationwide tutoring platform, leveraging Stride's educator network, is strategically significant but immaterial to near-term financials. Early AI-driven features like summary generation have received positive feedback.
- **Adult Learning Softness**: The segment declined 32% YoY due to a deliberate pivot to a B2B model for MedCerts. While the transition is causing short-term pain, the business is structurally more attractive long-term.
- **Federal Funding Exposure**: <5% of revenue is tied to federal programs, with minimal direct exposure to recent policy changes. The company remains focused on state-level partnerships.
- **School Choice and Expansion**: CEO Rhyu emphasized state-level execution as the primary driver of growth, though the administration's pro-school choice stance may provide a positive halo effect.
- **Skilled Trades Pilot Programs**: Early tests in plumbers and HVAC repair programs show promise, with cautious expansion plans to avoid overcommitment.
- **Enrollment Caps**: The company successfully negotiates enrollment cap increases when demand outstrips capacity, leveraging data on underserved student populations.

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