What were the key takeaways from Strategic Education's earnings call?

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

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

What does Strategic Education do and what are its main business segments?

What guidance did Strategic Education's management provide for the next earnings period?

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

What is Strategic Education's gross profit margin?

What is Strategic Education's latest dividend and current dividend yield?

- **Revenue Growth**: 5% YoY (adjusted CC) driven by 46% ETS revenue surge and 3% U.S. Higher Ed expansion.
- **Margin Expansion**: 400bp operating margin improvement to 13.4%, with U.S. Higher Ed margin up 520bps.
- **Restructuring Costs**: $12.5M Q3 impact, but $30M annual savings already realized, targeting $100M+ by 2027.
- **Employer Growth**: Employer-affiliated enrollment now 33% of U.S. Higher Ed (vs. 4% in 2020), with healthcare programs driving 40% of employer partnerships.
- **ANZ Challenges**: 2% YoY revenue decline but 3% intl cap increase for 2026 offers hope for new student growth starting Q1 2026.

**【CEO Opening Remarks】**
- Q3 revenue grew 5% YoY (adjusted constant currency), driven by strong performance in Education Technology & Services (ETS) and Sophia Learning.
- Operating income rose 39% YoY, with a 400bp margin expansion to 13.4%.
- Restructuring costs of $12.5M impacted GAAP results; adjusted EPS was $1.64 vs. $1.16 prior year (+41%).
- ETS segment revenue surged 46% YoY to $38M, with operating margin at 41.7% despite 44% expense growth.
- U.S. Higher Ed revenue +3% YoY due to fewer student drops, higher course load, and reduced discounting.
- Employer-affiliated enrollment now 33% of U.S. Higher Ed (up 290bps YoY), with healthcare programs driving 40% of employer partnerships.
- ANZ segment faced 2% YoY revenue decline due to intl student caps, but domestic enrollment growth and 3% cap increase for 2026 provide hope.
- $34M in share buybacks this quarter, $94M YTD, with $134M remaining under current authorization.

**【CFO Financial Commentary】**
- U.S. Higher Ed operating expenses decreased $6M YoY, driving 520bp margin expansion to 12.4%.
- ETS operating income grew 48% YoY to $16M, now 1/3 of consolidated operating income.
- ANZ operating income declined 13% YoY to $13M due to intl student cap restrictions.
- Full-year restructuring savings expected to reach $30M, with additional $70M+ savings targeted by 2027 through AI-driven productivity initiatives.

**【Q&A Highlights】**
- **Revenue Per Student Growth**: Driven by lower drops (+12%), higher course load (+8%), and reduced discounting. Expect continued upside in 2025H2.
- **Expense Reductions**: $100M+ operating expense savings target by 2027 via AI/automation, with $30M already realized in 2025. Savings will be reinvested 50/50 in growth and margin expansion.
- **Segment Performance**: Capella growing mid-single digits vs. Strayer's decline, reflecting more efficient marketing spend allocation.
- **ANZ Outlook**: 3% intl student cap increase for 2026 could enable new student growth starting Q1 2026, but total enrollment growth may take until 2027.
- **Government Shutdown Impact**: Minimal exposure to military/veteran students (98% of U.S. Higher Ed students are civilians). Employer partners like CVS, Best Buy, Dollar General unaffected.

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