K12 Demand Remains Strong

RESTON, Va., Jan. 27, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE:LRN), one of the nation's most successful technology-based education companies, today announced its results for the second quarter of fiscal year 2026 ended December 31, 2025.

Second Quarter Fiscal 2026 Highlights Compared to 2025

• Revenue of $631.3 million, compared with $587.2 million
• Income from operations of $146.9 million, compared with $125.1 million
• Net income of $99.5 million, compared with $96.4 million
• Diluted net income per share of $2.12, compared with $2.03
• Adjusted operating income of $159.0 million, compared with $135.6 million (1)
• Adjusted EBITDA of $188.1 million, compared with $160.4 million (1)
• Adjusted earnings per share of $2.50, compared with $2.37 (1)
• Core platform issues stabilized; enhancements ongoing
  
  
  
  

Second Quarter Fiscal 2026 Summary Financial Metrics
		Three Months Ended December 31,								Change 2025/2024
		2025				2024				$				%
		(In thousands, except percentages and per share data)
Revenues		$	631,261				587,211			$	44,050			7.5	%
Income from operations			146,852				125,100				21,752			17.4	%
Adjusted operating income (1)			158,997				135,570				23,427			17.3	%
Net income			99,477				96,393				3,084			3.2	%
Net income per share, diluted			2.12				2.03				0.09			4.4	%
Adjusted earnings per share (1)			2.50				2.37				0.13			5.5	%
EBITDA (1)			177,805				152,495				25,310			16.6	%
Adjusted EBITDA (1)			188,072				160,420				27,652			17.2	%
(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.

Six Month Fiscal 2026 Highlights Compared to 2025

• Revenue of $1,252.1 million, compared with $1,138.3 million
• Income from operations of $215.8 million, compared with $172.4 million
• Net income of $168.3 million, compared with $137.3 million
• Diluted net income per share of $3.49, compared with $2.93
• Adjusted operating income of $240.1 million, compared with $193.9 million (1)
• Adjusted EBITDA of $296.5 million, compared with $244.3 million (1)
• Adjusted earnings per share of $3.95, compared with $3.50 (1)
  
  
  
  

Six Month Fiscal 2026 Summary Financial Metrics
		Six Months Ended December 31,							Change 2025/2024
		2025				2024			$			%
		(In thousands, except percentages and per share data)
Revenues		$	1,252,145			1,138,295			113,850			10.0	%
Income from operations			215,835			172,444			43,391			25.2	%
Adjusted operating income (1)			240,135			193,930			46,205			23.8	%
Net income			168,277			137,275			31,002			22.6	%
Net income per share, diluted			3.49			2.93			0.56			19.1	%
Adjusted earnings per share (1)			3.95			3.50			0.45			12.9	%
EBITDA (1)			276,022			227,973			48,049			21.1	%
Adjusted EBITDA (1)			296,511			244,347			52,164			21.3	%

Revenue Data
		Three Months Ended															Six Months Ended
		December 31,								Change 2025 / 2024							December 31,								Change 2025 / 2024
		2025				2024				$				%			2025				2024				$				%
		(In thousands, except percentages)
General Education		$	341,397			$	354,315			$	(12,918	)		(3.6	%)		$	704,513				683,722			$	20,791			3.0	%
Career Learning
Middle – High School			275,590				213,079				62,511			29.3	%			517,090				411,965				105,125			25.5	%
Adult			14,274				19,817				(5,543	)		(28.0	%)			30,542				42,608				(12,066	)		(28.3	%)
Total Career Learning			289,864				232,896				56,968			24.5	%			547,632				454,573				93,059			20.5	%
Total Revenues		$	631,261			$	587,211			$	44,050			7.5	%		$	1,252,145				1,138,295			$	113,850			10.0	%

Enrollment and Revenue Per Enrollment Data

Second quarter enrollments were 248.5K, up 7.8% compared to 230.6K enrollments in the second quarter of fiscal year 2025. Of the total enrollments, 111.5K were Career Learning enrollments, up 17.6% compared to 94.8K Career Learning enrollments in the second 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 second quarter was $2,437, up 1.8% compared to $2,395 in the second quarter of fiscal year 2025. General Education revenue per enrollment was $2,407, down 3.6% compared to the second quarter of fiscal year 2025, and Career Learning revenue per enrollment was $2,473, up 10.0%, compared to the second quarter of fiscal year 2025.

Cash Flow and Capital Allocation

As of December 31, 2025, the Company's cash and cash equivalents and marketable securities totaled $676.0 million, compared with $1,011.4 million reported at June 30, 2025.

Capital expenditures for the three months ended December 31, 2025 were $16.0 million, compared to $14.8 million in the three months ended December 31, 2024, and were comprised of ($0.2) million of property and equipment, $11.0 million of capitalized software development and $5.2 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 $485 million to $505 million. (1)
  
  
  
  

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

• Revenue in the range of $615 million to $645 million.
• Capital expenditures in the range of $16 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 $130 million to $140 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 second quarter of fiscal year 2026 financial results during a conference call scheduled for Tuesday, January 27, 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 (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.

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 [email protected]

Media Contact [email protected]

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, including FY 2026 outlook. We have tried, whenever possible, to identify these forward-looking statements using words such as "outlook," "forecasts," "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 and six months ended December 31, 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 and six months ended December 31, 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								Six Months Ended
		December 31,								December 31,
		2025				2024				2025				2024
		(In thousands except share and per share data)
Revenues		$	631,261			$	587,211			$	1,252,145			$	1,138,295
Instructional costs and services			371,630				347,353				750,391				682,584
Gross margin			259,631				239,858				501,754				455,711
Selling, general, and administrative expenses			112,779				114,758				285,919				283,267
Income from operations			146,852				125,100				215,835				172,444
Interest expense, net			(2,814	)			(2,670	)			(5,888	)			(5,023	)
Other income (expense), net			(10,764	)			7,330				6,148				16,108
Income before income taxes and income (loss) from equity method investments			133,274				129,760				216,095				183,529
Income tax expense			(33,966	)			(33,361	)			(48,388	)			(44,638	)
Income (loss) from equity method investments			169				(6	)			570				(1,616	)
Net income attributable to common stockholders		$	99,477			$	96,393			$	168,277			$	137,275
Net income attributable to common stockholders per share:
Basic		$	2.31			$	2.24			$	3.89			$	3.20
Diluted		$	2.12			$	2.03			$	3.49			$	2.93
Weighted average shares used in computing per share amounts:
Basic			43,074,993				43,017,190				43,223,473				42,942,750
Diluted			46,863,391				47,462,688				48,265,257				46,905,355

STRIDE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
		December 31,				June 30,
		2025				2025
						(audited)
		(In thousands except share and per share data)
ASSETS
Current assets
Cash and cash equivalents		$	497,098			$	782,497
Accounts receivable, net of allowance of $31,507 and $31,124			868,964				559,646
Inventories, net			17,942				37,570
Prepaid expenses			74,384				35,579
Marketable securities			128,615				202,769
Other current assets			13,314				14,673
Total current assets			1,600,317				1,632,734
Property and equipment, net			110,580				78,582
Capitalized software, net			79,084				75,314
Capitalized curriculum development costs, net			61,066				58,584
Intangible assets, net			14,416				18,227
Goodwill			246,676				246,676
Deferred tax asset			—				26,377
Deposits and other assets			194,411				157,465
Total assets		$	2,306,550			$	2,293,959
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable		$	45,739			$	43,962
Accrued liabilities			63,369				103,276
Accrued compensation and benefits			43,409				74,939
Deferred revenue			5,084				26,995
Current portion of finance lease liability			58,459				42,316
Current portion of operating lease liability			4,073				11,391
Total current liabilities			220,133				302,879
Long-term finance lease liability			65,986				44,567
Long-term operating lease liability			10,566				35,164
Long-term debt			417,182				416,322
Deferred tax liability			26,533				—
Other long-term liabilities			18,309				15,408
Total liabilities			758,709				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; 49,194,315 and 48,852,419 shares issued; and 42,586,782 and 43,517,676 shares outstanding, respectively			4				4
Additional paid-in capital			724,366				735,711
Accumulated other comprehensive loss			(63	)			(67	)
Retained earnings			1,014,730				846,453
Treasury stock of 6,607,533 and 5,334,743 shares at cost, respectively			(191,196	)			(102,482	)
Total stockholders' equity			1,547,841				1,479,619
Total liabilities and stockholders' equity		$	2,306,550			$	2,293,959

STRIDE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		Six Months Ended
		December 31,
		2025				2024
		(Inthousands)
Cash flows from operating activities
Net income		$	168,277			$	137,275
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization expense			60,187				55,529
Stock-based compensation expense			20,489				16,374
Deferred income taxes			54,448				9,289
Provision for credit losses			8,318				9,624
Amortization of fees on debt			859				847
Noncash operating lease expense			3,998				6,222
Other			(623	)			1,869
Changes in assets and liabilities:
Accounts receivable			(317,628	)			(119,416	)
Inventories, prepaid expenses, deposits and other current and long-term assets			(549	)			(4,084	)
Accounts payable			3,804				(8,983	)
Accrued liabilities			(41,737	)			20,248
Accrued compensation and benefits			(31,315	)			(20,303	)
Operating lease liability			(13,466	)			(6,437	)
Deferred revenue and other liabilities			(19,006	)			(16,694	)
Net cash provided by (used in) operating activities			(103,944	)			81,360
Cash flows from investing activities
Purchase of property and equipment			(52	)			(1,153	)
Capitalized software development costs			(24,691	)			(18,601	)
Capitalized curriculum development costs			(12,924	)			(9,841	)
Other acquisitions, loans and investments, net of distributions			(50,294	)			(950	)
Proceeds from the maturity of marketable securities			183,426				140,740
Purchases of marketable securities			(130,138	)			(145,865	)
Net cash used in investing activities			(34,673	)			(35,670	)
Cash flows from financing activities
Repayments on finance lease obligations			(25,939	)			(16,714	)
Purchase of treasury stock			(88,645	)			—
Repurchase of restricted stock for income tax withholding			(32,198	)			(11,963	)
Net cash used in financing activities			(146,782	)			(28,677	)
Net change in cash, cash equivalents and restricted cash			(285,399	)			17,013
Cash, cash equivalents and restricted cash, beginning of period			782,497				500,614
Cash, cash equivalents and restricted cash, end of period		$	497,098			$	517,627
Reconciliation of cash, cash equivalents and restricted cash to balance sheet as of December 31st:
Cash and cash equivalents		$	497,098				515,049
Deposits and other assets (restricted cash)			—				2,578
Total cash, cash equivalents and restricted cash		$	497,098				517,627

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.

Second Quarter Fiscal Year 2026 Reconciliation of Income from Operations to Adjusted Operating Income
		Three Months Ended								Six Months Ended
		December 31,								December 31,
			2025				2024				2025				2024
		(In thousands)
Income from operations		$	146,852			$	125,100			$	215,835			$	172,444
Amortization of intangible assets			1,878				2,545				3,811				5,112
Stock-based compensation expense			10,267				7,925				20,489				16,374
Adjusted operating income		$	158,997			$	135,570			$	240,135			$	193,930

Reconciliation of Net Income to EBITDA and Adjusted EBITDA
		Three Months Ended December 31,								Six Months Ended December 31,
			2025				2024				2025				2024
		(In thousands)
Net income		$	99,477			$	96,393			$	168,277			$	137,275
Interest expense, net			2,814				2,670				5,888				5,023
Other (income) expense, net			10,764				(7,330	)			(6,148	)			(16,108	)
Income tax expense			33,966				33,361				48,388				44,638
(Income) loss from equity method investments			(169	)			6				(570	)			1,616
Depreciation and amortization			30,953				27,395				60,187				55,529
EBITDA			177,805				152,495				276,022				227,973
Stock-based compensation expense			10,267				7,925				20,489				16,374
Adjusted EBITDA		$	188,072			$	160,420			$	296,511			$	244,347

Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share
		Three Months Ended								Six Months Ended
		December 31,								December 31,
			2025				2024				2025				2024
		(In thousands)
Net income attributable to common stockholders		$	99,477			$	96,393			$	168,277			$	137,275
Amortization of intangible assets			1,878				2,545				3,811				5,112
Stock-based compensation expense			10,267				7,925				20,489				16,374
Income tax effect from adjustments above			(1,838	)			(1,143	)			(10,807	)			(5,515	)
Adjusted net income attributable to common stockholders		$	109,784			$	105,720			$	181,770			$	153,246
Share computation:
Weighted average common shares – diluted			46,863,391				47,462,688				48,265,257				46,905,355
Effect of capped call transactions			(2,912,026	)			(2,779,544	)			(2,227,565	)			(3,067,060	)
Adjusted weighted average common shares – diluted			43,951,365				44,683,144				46,037,692				43,838,295
Adjusted earnings per share		$	2.50			$	2.37			$	3.95			$	3.50
		Three Months Ended								Six Months Ended
		December 31,								December 31,
			2025				2024				2025				2024
		(per share)
Diluted net income per share		$	2.12			$	2.03			$	3.49			$	2.93
Amortization of intangible assets			0.04				0.05				0.08				0.11
Stock-based compensation expense			0.22				0.17				0.42				0.35
Income tax effect from adjustments above			(0.04	)			(0.02	)			(0.22	)			(0.12	)
Effect of capped call transactions			0.16				0.14				0.18				0.23
Adjusted earnings per share		$	2.50			$	2.37			$	3.95			$	3.50

Fiscal Year 2026 Outlook Reconciliation of Income from Operations to Adjusted Operating Income (unaudited)
		Three Months Ended March 31, 2026								Year Ended June 30, 2026
		Low				High				Low				High
		(In millions)
Income from operations		$	118.5			$	127.0			$	437.0			$	454.0
Stock-based compensation expense			10.0				11.0				41.0				43.0
Amortization of intangible assets			1.5				2.0				7.0				8.0
Adjusted operating income		$	130.0			$	140.0			$	485.0			$	505.0