RESTON, Va., Oct. 20, 2026 (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 2027 ended September 30, 2026.
First Quarter Fiscal 2027 Highlights Compared to 2026
-
Revenue of $639.4 million, compared with $620.9 million
-
Income from operations of $84.3 million, compared with $69.0 million
-
Net income of $64.9 million, compared with $68.8 million
-
Diluted net income per share of $1.45, compared with $1.40
-
Adjusted operating income of $78.6 million, compared with $81.1 million (1)
-
Adjusted EBITDA of $111.8 million, compared with $108.4 million (1)
-
Adjusted earnings per share of $1.37, compared with $1.52 (1)
First Quarter Fiscal 2027 Summary Financial Metrics
Three Months Ended September 30,
Change 2026/2025
2026
2025
$
%
(In thousands, except percentages and per share data)
Revenues
$
639,378
$
620,884
$
18,494
3.0%
Income from operations
84,268
68,983
15,285
22.2%
Adjusted operating income (1)
78,646
81,138
(2,492)
(3.1)%
Net income
64,919
68,800
(3,881)
(5.6)%
Net income per share, diluted
1.45
1.40
0.05
3.6%
Adjusted earnings per share (1)
1.37
1.52
(0.15)
(9.9)%
EBITDA (1)
119,202
98,217
20,985
21.4%
Adjusted EBITDA (1)
111,810
108,439
3,371
3.1%
(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 2026/2025
2026
2025
$
%
(In thousands, except percentages)
General Education
$
356,606
$
363,116
$
(6,510)
(1.8)%
Career Learning
Middle - High School
272,098
241,500
30,598
12.7%
Adult
10,674
16,268
(5,594)
(34.4)%
Total Career Learning
282,772
257,768
25,004
9.7%
Total Revenues
639,378
620,884
18,494
3.0%
Enrollment and Revenue Per Enrollment Data
First quarter enrollments averaged 241.4K, down (2.5)% compared to 247.7K enrollments in the first quarter of fiscal year 2026. Of the total enrollments, 112.2K were Career Learning enrollments, up 2.0% compared to 110.0K Career Learning enrollments in the first quarter of fiscal 2026.
Enrollments 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 $2,556, up 7.0% compared to $2,388 in the first quarter of fiscal year 2026. General Education revenue per enrollment was $2,670, up 5.0%, and Career Learning revenue per enrollment was $2,425, up 10.4%, compared to fiscal year 2026. If the mix of enrollments changes, our revenues will be impacted to the extent the average revenues per enrollment are significantly different.
Cash Flow and Capital Allocation
As of September 30, 2026, the Company's cash and cash equivalents and marketable securities totaled $884.2 million, compared with $1,034.1 million reported at June 30, 2026.
Capital expenditures for the three months ended September 30, 2026 were $24.5 million, compared to $21.7 million in the three months ended September 30, 2025, and were comprised of $17.9 million of capitalized software development and $6.6 million of capitalized curriculum development.
Fiscal Year 2027 Outlook
The Company is forecasting the following for the full fiscal year 2027:
-
Revenue in the range of $2.530 billion to $2.610 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 26%
-
Adjusted operating income in the range of $500 million to $530 million (2)
The Company is forecasting the following for the second quarter of fiscal year 2027:
-
Revenue in the range of $625 million to $645 million
-
Capital expenditures in the range of $19 million to $21 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 (2)
(2) 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 fiscal year 2027 financial results during a conference call scheduled for Tuesday, October 20, 2026 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 (833) 461-5787 (domestic) or +1 (585) 542-9983 (international) and provide the conference ID number 305 592 627. 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 .
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 .
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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, such as any statements that look to future events and include, among other things, our expectations regarding: mix of enrollment, revenue per enrollment, future financial and other trends, forecasts, assumptions and guidance, and future share repurchases. We have tried, whenever possible, to identify these forward-looking statements using words such as "outlook," "forecasts," "anticipates," "trends," "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. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, 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 to meet financial or operational 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; potential violation of laws and regulations relating to privacy and data protection, including such laws and regulations as may apply to children's data; 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 ("AI")) 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 infrastructure, systems and facilities, including as a result of cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems or our data; problems in the implementation of new information technology 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 the use, implementation and regulation of AI and other emerging technologies, including in the education of children, and their use by third-party vendors; risks related to our stock repurchase program; the extent to which we acquire businesses or change our capital allocation strategy or the implementation thereof; changes in our effective tax rate and additional liabilities; 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, 2026 and any subsequently filed Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or the Company's other filings with the Securities and Exchange Commission. Forward-looking statements reflect our management's expectations or predictions of future conditions, events or results based on various assumptions and estimates. They are not guarantees of future performance. Our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements in this press release or that we make from time to time, and to consider carefully the factors discussed above. All information in this press release is as of today's date, and the Company undertakes no obligation to update any forward-looking statement as a result of new information, future events or otherwise, except where we are expressly required to do so by law.
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, 2026 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, 2026, 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 CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
September 30,
2026
2025
(In thousands except share and per share data)
Revenues
$
639,378
$
620,884
Instructional costs and services
398,261
378,761
Gross margin
241,117
242,123
Selling, general, and administrative expenses
156,849
173,140
Income from operations
84,268
68,983
Interest expense, net
(2,906
)
(3,075
)
Other income, net
1,477
16,914
Income before income taxes and income (loss) from equity method investments
82,839
82,822
Income tax expense
(17,840
)
(14,423
)
Income (loss) from equity method investments
(80
)
401
Net income attributable to common stockholders
$
64,919
$
68,800
Net income attributable to common stockholders per share:
Basic
$
1.57
$
1.59
Diluted
$
1.45
$
1.40
Weighted average shares used in computing per share amounts:
Basic
41,479,826
43,371,952
Diluted
44,828,092
49,222,851
STRIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
September 30,
June 30,
2026
2026
(audited)
ASSETS
(In thousands except share and per share data)
Current assets
Cash and cash equivalents
$
547,750
$
754,501
Accounts receivable, net of allowance of $31,751 and $31,302
854,808
664,788
Inventories, net
22,665
38,250
Prepaid expenses
75,345
43,052
Marketable securities
241,425
203,499
Other current assets
12,414
12,033
Total current assets
1,754,407
1,716,123
Property and equipment, net
172,974
102,042
Capitalized software, net
101,916
95,002
Capitalized curriculum development costs, net
59,963
56,895
Intangible assets, net
9,106
10,876
Goodwill
246,676
246,676
Deposits and other assets
185,914
207,938
Total assets
$
2,530,956
$
2,435,552
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
75,884
$
46,742
Accrued liabilities
68,400
95,446
Accrued compensation and benefits
28,220
62,896
Deferred revenue
6,817
20,553
Current portion of finance lease liability
85,463
60,477
Current portion of operating lease liability
2,374
2,737
Current portion of debt
418,431
-
Total current liabilities
685,589
288,851
Long-term finance lease liability
104,661
56,455
Long-term operating lease liability
8,106
8,316
Long-term debt
—
417,995
Deferred tax liability
41,137
13,033
Other long-term liabilities
19,698
18,573
Total liabilities
859,191
803,223
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; 49,681,525 and 49,126,917 shares issued; and 42,031,838 and 41,477,230 shares outstanding, respectively
4
4
Additional paid-in capital
714,347
739,829
Accumulated other comprehensive loss
(60
)
(59
)
Retained earnings
1,249,564
1,184,645
Treasury stock of 7,649,687 shares at cost
(292,090
)
(292,090
)
Total stockholders' equity
1,671,765
1,632,329
Total liabilities and stockholders' equity
$
2,530,956
$
2,435,552
STRIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
September 30,
2026
2025
(In thousands)
Cash flows from operating activities
Net income
$
64,919
$
68,800
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization expense
34,934
29,234
Stock-based compensation expense
(7,392
)
10,222
Deferred income taxes
29,425
49,472
Provision for credit losses
2,143
3,377
Amortization of fees on debt
435
429
Noncash operating lease expense
352
2,661
Other
8,092
(3,989
)
Changes in assets and liabilities:
Accounts receivable
(191,894
)
(253,026
)
Inventories, prepaid expenses, deposits and other current and long-term assets
(18,356
)
(36,322
)
Accounts payable
27,881
15,716
Accrued liabilities
(28,566
)
(45,356
)
Accrued compensation and benefits
(33,257
)
(30,882
)
Operating lease liability
(899
)
(879
)
Deferred revenue and other liabilities
(12,604
)
(5,237
)
Net cash used in operating activities
(124,787
)
(195,780
)
Cash flows from investing activities
Purchase of property and equipment
(4
)
(306
)
Capitalized software development costs
(17,911
)
(13,713
)
Capitalized curriculum development costs
(6,567
)
(7,677
)
Sale of other investments
35,110
-
Other acquisitions, loans and investments, net of distributions
(886
)
(2,574
)
Proceeds from the maturity of marketable securities
61,638
61,767
Purchases of marketable securities
(117,295
)
(62,220
)
Net cash used in investing activities
(45,915
)
(24,723
)
Cash flows from financing activities
Repayments on finance lease obligations
(16,540
)
(11,961
)
Repurchase of restricted stock for income tax withholding
(19,509
)
(31,594
)
Net cash used in financing activities
(36,049
)
(43,555
)
Net change in cash, cash equivalents and restricted cash
(206,751
)
(264,058
)
Cash, cash equivalents and restricted cash, beginning of period
754,501
782,497
Cash, cash equivalents and restricted cash, end of period
$
547,750
$
518,439
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.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below.
First Quarter Fiscal Year 2027
Reconciliation of Income from Operations to Adjusted Operating Income
Three Months Ended
September 30,
2026
2025
(In thousands)
Income from operations
$
84,268
$
68,983
Amortization of intangible assets
1,770
1,933
Stock-based compensation expense
(7,392
)
10,222
Adjusted operating income
$
78,646
$
81,138
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Three Months Ended
September 30,
2026
2025
(In thousands)
Net income
$
64,919
$
68,800
Interest expense, net
2,906
3,075
Other income, net
(1,477
)
(16,914
)
Income tax expense
17,840
14,423
(Income) loss from equity method investments
80
(401
)
Depreciation and amortization
34,934
29,234
EBITDA
119,202
98,217
Stock-based compensation expense
(7,392
)
10,222
Adjusted EBITDA
$
111,810
$
108,439
Reconciliation of Net Income Attributable to Common Stockholders and Diluted Net Income Per Share to Adjusted Earnings Per Share
Three Months Ended
September 30,
2026
2025
(In thousands)
Net income attributable to common stockholders
$
64,919
$
68,800
Amortization of intangible assets
1,770
1,933
Stock-based compensation expense
(7,392
)
10,222
Income tax effect from adjustments above
(2,038
)
(8,969
)
Adjusted net income attributable to common stockholders
$
57,259
$
71,986
Share computation:
Weighted average common shares — diluted
44,828,092
49,222,851
Effect of capped call transactions
(2,958,006
)
(1,803,506
)
Adjusted weighted average common shares — diluted
41,870,086
47,419,345
Adjusted earnings per share
$
1.37
$
1.52
Three Months Ended
September 30,
2026
2025
(per share)
Diluted net income per share
$
1.45
$
1.40
Amortization of intangible assets
0.04
0.04
Stock-based compensation expense
(0.16
)
0.20
Income tax effect from adjustments above
(0.05
)
(0.18
)
Effect of capped call transactions
0.09
0.06
Adjusted earnings per share
$
1.37
$
1.52
Fiscal Year 2027 Outlook
Reconciliation of Income from Operations to Adjusted Operating Income (unaudited)
Three Months Ended
Year Ended
December 31, 2026
June 30, 2027
Low
High
Low
High
(In millions)
Income from operations
$
126.0
$
134.5
$
479.5
$
503.5
Amortization of intangible assets
1.5
2.0
5.5
7.5
Stock-based compensation expense
7.5
8.5
15.0
19.0
Adjusted operating income
$
135.0
$
145.0
$
500.0
$
530.0
