RESTON, Va., Oct. 28, 2025 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE:LRN), one of the nation's most successful technology-based education companies, today announced its results for the first quarter of fiscal year 2026 ended September 30, 2025.

First Quarter Fiscal 2026 Highlights Compared to 2025

Revenue of $620.9 million, compared with $551.1 million
Income from operations of $69.0 million, compared with $47.3 million
Net income of $68.8 million, compared with $40.9 million
Diluted net income per share of $1.40, compared with $0.94
Adjusted operating income of $81.1 million, compared with $58.4 million (1)
Adjusted EBITDA of $108.4 million, compared with $83.9 million (1)
Adjusted earnings per share of $1.52, compared with $1.09 (1)

First Quarter Fiscal 2026 Summary Financial Metrics

	Three Months Ended September 30,				Change 2025/2024
	2025		2024		$		%
	(In thousands, except percentages and per share data)
Revenues	$	620,884	$	551,084	$	69,800	12.7	%

Income from operations		68,983		47,344		21,639	45.7	%
Adjusted operating income (1)		81,138		58,360		22,778	39.0	%

Net income		68,800		40,882		27,918	68.3	%
Net income per share, diluted		1.40		0.94		0.46	48.9	%
Adjusted earnings per share (1)		1.52		1.09		0.43	39.4	%

EBITDA (1)		98,217		75,478		22,739	30.1	%
Adjusted EBITDA (1)		108,439		83,927		24,512	29.2	%

(1) To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share. Management believes that these additional measures provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.

Revenue Data

	Three Months Ended
	September 30,				Change 2025 / 2024
	2025		2024		$			%
	(In thousands, except percentages)

General Education	$	363,116	$	329,407	$	33,709		10.2	%
Career Learning
Middle - High School		241,500		198,885		42,615		21.4	%
Adult		16,268		22,792		(6,524	)	(28.6	%)
Total Career Learning		257,768		221,677		36,091		16.3	%
Total Revenues	$	620,884	$	551,084	$	69,800		12.7	%

Enrollment and Revenue Per Enrollment Data

First quarter enrollments were 247.7K, up 11.3% compared to 222.6K enrollments in the first quarter of fiscal year 2025. Of the total enrollments, 110.0K were Career Learning enrollments, up 20.0% compared to 91.7K Career Learning enrollments in the first quarter of fiscal 2025.

Enrollments only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, and instructional and support services, inclusive of administrative support and may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollments for our Adult Learning business.

Revenue per enrollment for the first quarter was $2,388, up 3.7% compared to $2,303 in the first quarter of fiscal year 2025. General Education revenue per enrollment was $2,543, up 6.0% compared to the first quarter of fiscal year 2025, and Career Learning revenue per enrollment was $2,196, up 1.4%, compared to the first quarter of fiscal year 2025.

Cash Flow and Capital Allocation

As of September 30, 2025, the Company's cash and cash equivalents and marketable securities totaled $749.6 million, compared with $1,011.4 million reported at June 30, 2025.

Capital expenditures for the three months ended September 30, 2025 were $21.7 million, compared to $14.8 million in three months ended September 30, 2024, and were comprised of $0.3 million of property and equipment, $13.7 million of capitalized software development and $7.7 million of capitalized curriculum development.

Fiscal Year 2026 Outlook

The Company is forecasting the following for the full fiscal year 2026:

Revenue in the range of $2.480 billion to $2.555 billion.
Capital expenditures in the range of $70 million to $80 million. Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows.
Effective tax rate of 24% to 25%.
Adjusted operating income in the range of $475 million to $500 million. (1)

The Company is forecasting the following for the second quarter of fiscal year 2026:

Revenue in the range of $620 million to $640 million.
Capital expenditures in the range of $15 million to $18 million. Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows.
Adjusted operating income in the range of $135 million to $145 million. (1)

(1) In addition to providing an outlook for revenue and capital expenditures, adjusted operating income is provided as a supplemental non-GAAP financial measure as management believes that it provides useful information to our investors. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. Please also see Special Note on Forward-Looking Statements below.

Conference Call

The Company will discuss its first quarter of fiscal year 2026 financial results during a conference call scheduled for Tuesday, October 28, 2025 at 5:00 p.m. eastern time (ET).

A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call.

A replay of the call will be posted at investors.stridelearning.com/events-and-presentations as soon as it is available.

About Stride Inc.

Stride Inc. (NYSE:LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.

Investor Contact Timothy Casey Vice President, Investor Relations Stride, Inc. ir@k12.com	Media Contact press@k12.com

Special Note on Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements. We have tried, whenever possible, to identify these forward-looking statements using words such as "outlook," "anticipates," "believes," "estimates," "continues," "likely," "may," "opportunity," "potential," "projects," "will," "will be," "expects," "plans," "intends," "should," "would" and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model or meet guidance; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve, our vendors, or us to comply with our contracts, or federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, contractual remedies, or actions or proceedings against us; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve, including due to the evolution of curriculum standards, testing programs and state accountability metrics; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school which we operate legal and regulatory challenges from opponents of virtual public education or for-profit education companies; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction or termination in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies (including artificial intelligence) and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud systems and facilities, resulting from cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems; problems in the implementation of new IT systems and technology; failure by us or third parties to maintain and support information technology systems, including addressing quality issues and timely delivering new products and enhancements; risks related to artificial intelligence; and other risks and uncertainties associated with our business described in the risk factors discussed in the Company's Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequently filed Quarterly Reports on Form 10-Q or the Company's other filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this press release is as of today's date, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

Financial Statements

The financial statements set forth below are not the complete set of Stride, Inc.'s financial statements for the three months ended September 30, 2025 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.'s Quarterly Report on Form 10-Q for the three months ended September 30, 2025, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC's website at www.sec.gov or from Stride Inc.'s Investor Relations website at investors.stridelearning.com.

STRIDE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended
	September 30,
	2025			2024
	(In thousands except share and per share data)
Revenues	$	620,884		$	551,084
Instructional costs and services		378,761			335,231
Gross margin		242,123			215,853
Selling, general, and administrative expenses		173,140			168,509
Income from operations		68,983			47,344
Interest expense, net		(3,075	)		(2,353	)
Other income, net		16,914			8,778
Income before income taxes and income (loss) from equity method investments		82,822			53,769
Income tax expense		(14,423	)		(11,277	)
Income (loss) from equity method investments		401			(1,610	)
Net income attributable to common stockholders	$	68,800		$	40,882
Net income attributable to common stockholders per share:
Basic	$	1.59		$	0.95
Diluted	$	1.40		$	0.94
Weighted average shares used in computing per share amounts:
Basic		43,371,952			42,868,310
Diluted		49,222,851			43,708,967

STRIDE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,			June 30,
		2025			2025
					(audited)
	(In thousands except share and per share data)
ASSETS
Current assets
Cash and cash equivalents	$	518,439		$	782,497
Accounts receivable, net of allowance of $31,401 and $31,124		809,302			559,646
Inventories, net		19,814			37,570
Prepaid expenses		91,261			35,579
Marketable securities		196,659			202,769
Other current assets		14,634			14,673
Total current assets		1,650,109			1,632,734
Property and equipment, net		112,993			78,582
Capitalized software, net		76,156			75,314
Capitalized curriculum development costs, net		59,642			58,584
Intangible assets, net		16,294			18,227
Goodwill		246,676			246,676
Deferred tax asset		—			26,377
Deposits and other assets		171,245			157,465
Total assets	$	2,333,115		$	2,293,959
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	55,596		$	43,962
Accrued liabilities		59,468			103,276
Accrued compensation and benefits		43,870			74,939
Deferred revenue		18,820			26,995
Current portion of finance lease liability		55,278			42,316
Current portion of operating lease liability		10,528			11,391
Total current liabilities		243,560			302,879
Long-term finance lease liability		69,735			44,567
Long-term operating lease liability		35,743			35,164
Long-term debt		416,751			416,322
Deferred tax liability		21,570			—
Other long-term liabilities		18,348			15,408
Total liabilities		805,707			814,340
Commitments and contingencies
Stockholders' equity
Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding		—			—
Common stock, par value $0.0001; 100,000,000 shares authorized; 49,194,821 and 48,852,419 shares issued; and 43,860,078 and 43,517,676 shares outstanding, respectively		4			4
Additional paid-in capital		714,697			735,711
Accumulated other comprehensive loss		(64	)		(67	)
Retained earnings		915,253			846,453
Treasury stock of 5,334,743 shares at cost		(102,482	)		(102,482	)
Total stockholders' equity		1,527,408			1,479,619
Total liabilities and stockholders' equity	$	2,333,115		$	2,293,959

STRIDE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended
	September 30,
	2025			2024
	(In thousands)
Cash flows from operating activities
Net income	$	68,800		$	40,882
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization expense		29,234			28,134
Stock-based compensation expense		10,222			8,449
Deferred income taxes		49,472			10,851
Provision for credit losses		3,377			7,053
Amortization of fees on debt		429			423
Noncash operating lease expense		2,661			3,176
Other		(3,989	)		2,328
Changes in assets and liabilities:
Accounts receivable		(253,026	)		(210,028	)
Inventories, prepaid expenses, deposits and other current and long-term assets		(36,322	)		(9,310	)
Accounts payable		15,716			10,792
Accrued liabilities		(45,356	)		(6,142	)
Accrued compensation and benefits		(30,882	)		(24,341	)
Operating lease liability		(879	)		(3,259	)
Deferred revenue and other liabilities		(5,237	)		(1,012	)
Net cash used in operating activities		(195,780	)		(142,004	)
Cash flows from investing activities
Purchase of property and equipment		(306	)		(669	)
Capitalized software development costs		(13,713	)		(8,793	)
Capitalized curriculum development costs		(7,677	)		(5,323	)
Other acquisitions, loans and investments, net of distributions		(2,574	)		(347	)
Proceeds from the maturity of marketable securities		61,767			54,400
Purchases of marketable securities		(62,220	)		(60,162	)
Net cash used in investing activities		(24,723	)		(20,894	)
Cash flows from financing activities
Repayments on finance lease obligations		(11,961	)		(8,747	)
Repurchase of restricted stock for income tax withholding		(31,594	)		(11,204	)
Net cash used in financing activities		(43,555	)		(19,951	)
Net change in cash, cash equivalents and restricted cash		(264,058	)		(182,849	)
Cash, cash equivalents and restricted cash, beginning of period		782,497			500,614
Cash, cash equivalents and restricted cash, end of period	$	518,439		$	317,765

Non-GAAP Financial Measures

To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share, which are not presented in accordance with GAAP.

Adjusted operating income (loss) is defined as income (loss) from operations as adjusted for amortization of intangible assets, stock-based compensation, and other one-time charges or gains.
EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization.
Adjusted EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization, stock-based compensation, and other one-time charges or gains.
Adjusted earnings per share (adjusted EPS) is defined as net income (loss) attributable to common stockholders as adjusted for the amortization of intangible assets, stock-based compensation, and other one-time charges or gains net of tax impact divided by the diluted weighted average number of common shares outstanding less the shares expected to be received for the capped call transaction related to Stride's convertible senior notes.

Adjusted operating income (loss), adjusted EBITDA, and adjusted EPS exclude stock-based compensation, which consists of expenses for restricted stock, restricted stock units, and performance stock units.

Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss), adjusted EBITDA and adjusted EPS remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. Adjusted operating income (loss), adjusted EBITDA and adjusted earnings per share remove one-time charges or gains which are not related to core operating activities and are not indicative of our ongoing operating performance. Additionally, adjusted EPS includes the impact from shares expected to be received by the Company to offset potential dilution from the convertible senior notes. EBITDA and adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired.

Management uses these non-GAAP financial measures:

as additional measures of operating performance because they assist in comparing the Company's performance on a consistent basis; and
in presentations to the members of the Company's Board of Directors to enable the Board to review the same measures used by management to compare the Company's current operating results with corresponding prior periods.

Other companies may define these non-GAAP financial measures differently and, as a result, these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although these non-GAAP financial measures are used to assess the performance of the business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items included and/or not included in the most directly comparable GAAP financial measure.

These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and diluted net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures.

Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below.

First Quarter Fiscal Year 2026

Reconciliation of Income from Operations to Adjusted Operating Income

	Three Months Ended
	September 30,
		2025		2024
	(In thousands)
Income from operations	$	68,983	$	47,344
Amortization of intangible assets		1,933		2,567
Stock-based compensation expense		10,222		8,449
Adjusted operating income	$	81,138	$	58,360

Reconciliation of Net Income to EBITDA and Adjusted EBITDA


	Three Months Ended September 30,
		2025			2024
					(In thousands)
Net income	$	68,800		$	40,882
Interest expense, net		3,075			2,353
Other income, net		(16,914	)		(8,778	)
Income tax expense		14,423			11,277
(Income) loss from equity method investments		(401	)		1,610
Depreciation and amortization		29,234			28,134
EBITDA		98,217			75,478
Stock-based compensation expense		10,222			8,449
Adjusted EBITDA	$	108,439		$	83,927

Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share

	Three Months Ended
	September 30,
		2025			2024
	(In thousands)
Net income attributable to common stockholders	$	68,800		$	40,882
Amortization of intangible assets		1,933			2,567
Stock-based compensation expense		10,222			8,449
Income tax effect from adjustments above		(8,969	)		(4,372	)
Adjusted net income attributable to common stockholders	$	71,986		$	47,526

Share computation:
Weighted average common shares — diluted		49,222,851			43,708,967
Effect of capped call transactions		(1,803,506	)		-
Adjusted weighted average common shares — diluted		47,419,345			43,708,967
Adjusted earnings per share	$	1.52		$	1.09

	Three Months Ended
	September 30,
		2025			2024
	(per share)
Diluted net income per share	$	1.40		$	0.94
Amortization of intangible assets		0.04			0.06
Stock-based compensation expense		0.20			0.19
Income tax effect from adjustments above		(0.18	)		(0.10	)
Effect of capped call transactions		0.06			-
Adjusted earnings per share	$	1.52		$	1.09

Fiscal Year 2026 Outlook

Reconciliation of Income from Operations to Adjusted Operating Income (unaudited)

	Three Months Ended December 31, 2025				Year Ended June 30, 2026
	Low		High		Low		High
	(In millions)
Income from operations	$	122.7	$	131.5	$	427.0	$	448.0
Stock-based compensation expense		10.5		11.5		41.0		44.0
Amortization of intangible assets		1.8		2.0		7.0		8.0
Adjusted operating income	$	135.0	$	145.0	$	475.0	$	500.0