Stride, Inc 10-Q for FY2027 Q1

Stride, Inc. (LRN)

10-Q 2026-10-21 For: 2026-09-30

Added on October 21, 2026

About this 10-Q

Stride, Inc filed this 10-Q on October 21, 2026, covering the quarter ended September 30, 2026 (FY2027 Q1).

Stride reported revenue of $639.4 million, up 3.0%, and operating income of $84.3 million, up 22.2%, for the three months ended September 30, 2026; James Rhyu resigned as CEO and Board Chair effective July 29, 2026. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $639.38M; up 3.0% from $620.88M a year earlier
Net income: $64.92M; down 5.6% from net income of $68.8M a year earlier
Diluted EPS: $1.45; up 3.6% from $1.40 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware		95-4774688
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

11720 Plaza America Drive, 9^th Floor
Reston, VA 20190		(703) 483-7000
(Address of Principal Executive Offices, including Zip Code)		(Registrant’s telephone number, including area code)


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.0001 par value	LRN	New York Stock Exchange (NYSE)

		Page
		Number

PART I.	Financial Information
Item 1.	Financial Statements (Unaudited)	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	38

PART II.	Other Information
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3.	Defaults Upon Senior Securities	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibits	40

Signatures		41


		September 30,		June 30,
		2026		2026
					(audited)
		(In thousands except share and per share data)
ASSETS
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


		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. Stockholders' Equity
(In thousands except share data)	Common Stock					Additional Paid-in			Accumulated Other Comprehensive			Retained		Treasury Stock
	Shares		Amount			Capital			Income (Loss)			Earnings		Shares		Amount			Total

Balance, June 30, 2026	49,126,917		$	4		$	739,829		$	(59)		$	1,184,645	(7,649,687)		$	(292,090)		$	1,632,329
Net income	—			—			—			—			64,919	—			—			64,919
Foreign currency translation adjustment	—			—			—			(1)			—	—			—			(1)
Stock-based compensation expense	—			—			(7,392)			—			—	—			—			(7,392)
Issuance of shares under employee stock purchase plan	20,793			—			1,419			—			—	—			—			1,419
Vesting of performance share units, net of tax withholding	260,079			—			—			—			—	—			—			—
Issuance of restricted stock awards	397,139			—			—			—			—	—			—			—
Forfeiture of restricted stock awards	(76,645)			—			—			—			—	—			—			—
Repurchase of restricted stock for tax withholding	(46,758)			—			(19,509)			—			—	—			—			(19,509)
Balance, September 30, 2026	49,681,525		$	4		$	714,347		$	(60)		$	1,249,564	(7,649,687)		$	(292,090)		$	1,671,765


				Allowance for		Net Carrying		Gross Unrealized
		Amortized Cost		Credit Losses		Amount		Gains (Losses)		Fair Value
Corporate Bonds	$	145,275	$	(202)	$	145,073	$	(902)	$	144,171
U.S. Treasury Notes		191,458		(70)		191,388		(573)		190,815
Total	$	336,733	$	(272)	$	336,461	$	(1,475)	$	334,986


		Useful Life
Computer hardware		3 - 5 years
Computer software		3 - 5 years
Financed computers and printers		3 years
Web site development		3 - 5 years
Office equipment		3 years
Furniture and fixtures		5 - 7 years
Leasehold improvements		Shorter of useful life or term of the lease


		September 30, 2026									June 30, 2026
($ in millions)		Gross Carrying Amount			Accumulated Amortization and Impairment			Net Carrying Value			Gross Carrying Amount			Accumulated Amortization and Impairment			Net Carrying Value
Trade names		$	70.6		$	(64.7)		$	5.9		$	70.6		$	(63.8)		$	6.8
Customer and distributor relationships			37.1			(36.3)			0.8			37.1			(35.8)			1.3
Developed technology			21.7			(19.5)			2.2			21.7			(19.1)			2.6
Other			1.4			(1.2)			0.2			1.4			(1.2)			0.2
Total		$	130.8		$	(121.7)		$	9.1		$	130.8		$	(119.9)		$	10.9


	September 30, 2026		June 30, 2026

	(in thousands)
Convertible Senior Notes due 2027	$	420,000	$	420,000
Less: unamortized debt issuance costs		(1,569)		(2,005)
Total debt		418,431		417,995
Less: current portion of debt		(418,431)		—
Long-term debt	$	—	$	417,995


				Weighted
				Average
				Grant-Date
		Shares		Fair Value
Nonvested, June 30, 2026		401,198		$	101.11
Granted		397,139			81.81
Vested		(125,059)			71.94
Canceled		(76,645)			113.91
Nonvested, September 30, 2026		596,633		$	92.74


	Three Months Ended
	September 30,				2026 / 2025
	2026		2025		Change		Change %

	(In thousands, except percentages)
General Education (1)		129.2		137.7		(8.5)	(6.2%)
Career Learning (1) (2)		112.2		110.0		2.2	2.0%
Total Enrollment		241.4		247.7		(6.3)	(2.5%)


	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%


Number		Description

10.1*		Separation Agreement and Release of All Claims with James J. Rhyu, dated September 17, 2026.
10.2*		Employment Agreement of Robert E. Knowling, Jr., dated August 14, 2026.
31.1		Certification of Principal Executive Officer Required Under Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
31.2		Certification of Principal Financial Officer Required Under Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
32.1**		Certification of Principal Executive Officer Required Under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350.
32.2**		Certification of Principal Financial Officer Required Under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350.
101		The following financial statements and footnotes from the Stride, Inc. Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2026, formatted in Inline XBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets (unaudited), (ii) Condensed Consolidated Statements of Operations (unaudited), (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statement of Stockholders’ Equity (unaudited), (v) Condensed Consolidated Statements of Cash Flows (unaudited), and (vi) Notes to Condensed Consolidated Financial Statements (unaudited).
104		The cover page from this Quarterly Report on Form 10-Q, formatted in Inline XBRL (contained in Exhibit 101).

		Stride, Inc.

		/s/ DONNA M. BLACKMAN
	Name:	Donna M. Blackman
	Title:	Chief Financial Officer, Principal Accounting Officer and Authorized Signatory


				Allowance for		Net Carrying		Gross Unrealized
		Amortized Cost		Credit Losses		Amount		Gains (Losses)		Fair Value
Corporate Bonds	$	112,160	$	(160)	$	112,000	$	(269)	$	111,731
U.S. Treasury Notes		141,689		(50)		141,639		(259)		141,380
Commercial Paper		25,956		(12)		25,944		-		25,944
Total	$	279,805	$	(222)	$	279,583	$	(528)	$	279,055


Employee			Stride, Inc.

By:

By:	James Rhyu			Greerson G. McMullen, Sr.
				Executive Vice President, General Counsel & Secretary


Date:	September 11, 2026		Date:


/s/ ROBERT E. KNOWLING, JR.
Robert E. Knowling, Jr.
Chief Executive Officer
(Principal Executive Officer)


/s/ DONNA M. BLACKMAN
Donna M. Blackman
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)