Stride Achieves Another Record Year

Stride Achieves Another Record Year August 5, 2025 Demand Trends Support Continued Momentum into FY26 RESTON, Va., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the fourth quarter and full fiscal year ended June 30, 2025. Fiscal 2025 Highlights Compared to 2024 Revenue of $2,405.3 million, compared with $2,040.1 millionIncome from operations of $360.1 million, compared with $249.6 millionNet income of $287.9 million, compared with $204.2 millionDiluted net income per share of $5.95, compared with $4.69Adjusted operating income of $466.2 million, compared with $293.9 million (1)Adjusted EBITDA of $571.0 million, compared with $390.7 million (1)Adjusted earnings per share of $8.10, compared with $5.49 (1) During the quarter ended June 30, 2025, the Company incurred one-time charges totaling $59.5 million, related to an impairment expense for our Galvanize business; these charges are excluded from adjusted operating income, adjusted EBITDA, and adjusted earnings per share. Fiscal 2025 Summary Financial Metrics Year Ended June 30, Change 2025/2024 2025 2024 $ % (In thousands, except percentages and per share data) Revenues$2,405,317 2,040,069 365,248 17.9% Income from operations 360,094 249,600 110,494 44.3%Adjusted operating income (1) 466,233 293,940 172,293 58.6% Net income 287,941 204,183 83,758 41.0%Net income per share, diluted 5.95 4.69 1.26 26.9%Adjusted earnings per share (1) 8.10 5.49 2.61 47.5% EBITDA (1) 474,763 359,283 115,480 32.1%Adjusted EBITDA (1) 571,035 390,745 180,290 46.1%  (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. Fourth Quarter Fiscal 2025 Highlights Compared to 2024 Revenue of $653.6 million, compared with $534.2 millionIncome from operations of $56.9 million, compared with $73.7 millionNet income of $51.3 million, compared with $62.8 millionDiluted net income per share of $1.03, compared with $1.42Adjusted operating income of $130.6 million, compared with $87.9 millionAdjusted EBITDA of $158.4 million, compared with $112.1 millionAdjusted earnings per share of $2.29, compared with $1.68 Fourth Quarter Fiscal 2025 Summary Financial Metrics Three Months Ended June 30, Change 2025/2024 2025 2024 $ % (In thousands, except percentages and per share data)Revenues$653,647 534,183 119,464 22.4% Income from operations 56,864 73,678 (16,814) (22.8%)Adjusted operating income 130,558 87,896 42,662 48.5% Net income 51,320 62,782 (11,462) (18.3%)Net income per share, diluted 1.03 1.42 (0.39) (27.5%)Adjusted earnings per share 2.29 1.68 0.61 36.3% EBITDA 87,063 101,897 (14,834) (14.6%)Adjusted EBITDA 158,413 112,087 46,326 41.3% Revenue Data Three Months Ended Year Ended June 30, Change 2025 / 2024 June 30, Change 2025 / 2024 2025 2024 $ % 2025 2024 $ % (In thousands, except percentages) General Education$394,134 347,058 $47,076 13.6% $1,448,676 1,289,193 $159,483 12.4%Career Learning Middle - High School 240,455 167,219 73,236 43.8% 876,287 651,191 225,096 34.6%Adult 19,058 19,906 (848) (4.3%) 80,354 99,685 (19,331) (19.4%)Total Career Learning 259,513 187,125 72,388 38.7% 956,641 750,876 205,765 27.4%Total Revenues$653,647 534,183 $119,464 22.4% $2,405,317 2,040,069 $365,248 17.9% Enrollment and Revenue Per Enrollment Data Full year enrollments averaged 234.0K, up 20.4% compared to 194.3K enrollments in fiscal year 2024. Of the total average enrollments, 96.3K were Career Learning enrollments, up 32.5% compared to 72.7K Career Learning enrollments in fiscal year 2024. Fourth quarter enrollments averaged 235.3K, up 21.7% compared to 193.4K enrollments in the fourth quarter of fiscal year 2024. Of the total average enrollments, 97.0K were Career Learning enrollments, up 33.2% compared to 72.8K Career Learning enrollments in the fourth quarter of fiscal year 2024. 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 fourth quarter was $2,630, up 2.4% compared to $2,569 in the fourth quarter of fiscal year 2024. General Education revenue per enrollment was $2,736, flat compared to the fourth quarter of fiscal year 2024, and Career Learning revenue per enrollment was $2,479, up 8.1%, compared to the fourth quarter of fiscal year 2024. Revenue per enrollment for the full fiscal year 2025 was $9,677, up 0.6% compared to $9,623 in fiscal year 2024. General Education revenue per enrollment was $10,077, up 0.5%, and Career Learning revenue per enrollment was $9,104, up 1.8%, compared to fiscal year 2024. If the mix of enrollments changes, our revenues will be impacted to the extent the average revenues per enrollments are significantly different. Cash Flow and Capital Allocation As of June 30, 2025, the Company’s cash and cash equivalents and marketable securities totaled $1,011.4 million, compared with $714.2 million reported at June 30, 2024. Capital expenditures for the fiscal year ended June 30, 2025 were $60.0 million, compared to $61.6 million in fiscal year 2024, and were comprised of $1.8 million of property and equipment, $36.4 million of capitalized software development and $21.8 million of capitalized curriculum development. Conference Call The Company will discuss its fourth quarter and full fiscal year 2025 financial results during a conference call scheduled for Tuesday, August 5, 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. 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” 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; 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 or us to comply with our contracts, federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, or contractual remedies; change in law, governmental policy and/or regulations; 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 as curriculum standards, testing programs and state accountability metrics evolve; 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 in 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 in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies 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; risks related to artificial intelligence; and other risks and uncertainties associated with our business described in the Company’s 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 and year ended June 30, 2025 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Annual Report on Form 10-K for the year ended June 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. CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Year Ended June 30, June 30, 2025 2024 2025 2024 (In thousands except share and per share data)Revenues $653,647 534,183 2,405,317 2,040,069 Instructional costs and services 414,728 345,971 1,461,398 1,276,466 Gross margin 238,919 188,212 943,919 763,603 Selling, general, and administrative expenses 122,577 114,534 524,347 514,003 Impairment of long-lived assets 59,478 — 59,478 — Income from operations 56,864 73,678 360,094 249,600 Interest expense, net (2,693) (2,318) (10,504) (8,812)Other income, net 10,160 7,519 33,629 26,900 Income before income taxes and income (loss) from equity method investments 64,331 78,879 383,219 267,688 Income tax expense (12,919) (16,099) (93,007) (64,482)Income (loss) from equity method investments (92) 2 (2,271) 977 Net income attributable to common stockholders$51,320 62,782 287,941 204,183 Net income attributable to common stockholders per share: Basic$1.19 1.47 6.69 4.79 Diluted$1.03 1.42 5.95 4.69 Weighted average shares used in computing per share amounts: Basic 43,186,913 42,760,745 43,041,274 42,626,588 Diluted 49,767,056 44,248,689 48,413,717 43,535,441 STRIDE, INC. CONSOLIDATED BALANCE SHEETS June 30, 2025 2024 (In thousands except share and per share data)ASSETS Current assets Cash and cash equivalents$782,497 500,614 Accounts receivable, net of allowance of $31,124 and $31,298 559,646 472,754 Inventories, net 37,570 36,748 Prepaid expenses 35,579 29,164 Marketable securities 202,769 191,672 Other current assets 14,673 14,494 Total current assets 1,632,734 1,245,446 Operating lease right-of-use assets, net 15,960 54,503 Property and equipment, net 78,582 50,856 Capitalized software, net 75,314 81,952 Capitalized curriculum development costs, net 58,584 53,232 Intangible assets, net 18,227 60,282 Goodwill 246,676 246,676 Deferred tax asset 26,377 7,200 Deposits and other assets 141,505 120,318 Total assets $2,293,959 1,920,465 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable$43,962 40,970 Accrued liabilities 103,276 60,796 Accrued compensation and benefits 74,939 64,878 Deferred revenue 26,995 35,742 Current portion of finance lease liability 42,316 29,146 Current portion of operating lease liability 11,391 12,748 Total current liabilities 302,879 244,280 Long-term finance lease liability 44,567 26,452 Long-term operating lease liability 35,164 45,192 Long-term debt 416,322 414,675 Other long-term liabilities 15,408 13,841 Total liabilities 814,340 744,440 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; 48,852,419 and 48,576,164 shares issued; and 43,517,676 and 43,241,421 shares outstanding, respectively 4 4 Additional paid-in capital 735,711 720,033 Accumulated other comprehensive loss (67) (42)Retained earnings 846,453 558,512 Treasury stock of 5,334,743 shares at cost (102,482) (102,482)Total stockholders’ equity 1,479,619 1,176,025 Total liabilities and stockholders' equity $2,293,959 1,920,465 STRIDE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended June 30, 2025 2024 (In thousands)Cash flows from operating activities Net income$287,941 204,183 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 114,669 109,683 Stock-based compensation expense 36,794 31,462 Deferred income taxes (17,783) 2,890 Provision for credit losses 15,267 22,844 Amortization of fees on debt 1,647 1,640 Noncash operating lease expense 12,265 14,246 Impairment of long-lived assets 59,478 — Other (596) 849 Changes in assets and liabilities: Accounts receivable (102,188) (32,056)Inventories, prepaid expenses, deposits and other current and long-term assets (6,239) (8,877)Accounts payable 310 (6,844)Accrued liabilities 40,915 (16,556)Accrued compensation and benefits 9,913 7,394 Operating lease liability (12,396) (14,990)Deferred revenue and other liabilities (7,181) (37,071)Net cash provided by operating activities 432,816 278,797 Cash flows from investing activities Purchase of property and equipment (1,781) (2,270)Capitalized software development costs (36,428) (40,653)Capitalized curriculum development costs (21,801) (18,666)Other acquisitions, loans and investments, net of distributions (20,682) (5,196)Proceeds from the maturity of marketable securities 252,930 204,487 Purchases of marketable securities (260,233) (277,573)Net cash used in investing activities (87,995) (139,871)Cash flows from financing activities Repayments on finance lease obligations (41,469) (40,919)Repurchase of restricted stock for income tax withholding (21,469) (8,200)Net cash used in financing activities (62,938) (49,119)Net change in cash, cash equivalents and restricted cash 281,883 89,807 Cash, cash equivalents and restricted cash, beginning of period 500,614 410,807 Cash, cash equivalents and restricted cash, end of period$782,497 500,614  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; andin 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. Fourth Quarter and Full Fiscal Year 2025 Reconciliation of Income from Operations to Adjusted Operating Income Three Months Ended Year Ended June 30, June 30, 2025 2024 2025 2024 (In thousands)Income from operations$ 56,864 $ 73,678 $ 360,094 $ 249,600Amortization of intangible assets2,344 4,028 9,867 12,878Stock-based compensation expense11,872 10,190 36,794 31,462Impairment of long-lived assets59,478 - 59,478 -Adjusted operating income$ 130,558 $ 87,896 $ 466,233 $ 293,940 Reconciliation of Net Income to EBITDA and Adjusted EBITDA Three Months Ended June 30, Year Ended June 30, 2025 2024 2025 2024 (In thousands)Net income$51,320 $62,782 $287,941 $204,183 Interest expense, net2,693 2,318 10,504 8,812 Other income, net(10,160) (7,519) (33,629) (26,900)Income tax expense12,919 16,099 93,007 64,482 (Income) loss from equity method investments92 (2) 2,271 (977)Depreciation and amortization30,199 28,219 114,669 109,683 EBITDA87,063 101,897 474,763 359,283 Stock-based compensation expense11,872 10,190 36,794 31,462 Impairment of long-lived assets59,478 - 59,478 - Adjusted EBITDA$158,413 $112,087 $571,035 $390,745 Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share Three Months Ended Year Ended June 30, June 30, 2025 2024 2025 2024 (In thousands)Net income attributable to common stockholders$ 51,320 $ 62,782 $ 287,941 $ 204,183 Amortization of intangible assets2,344 4,028 9,867 12,878 Stock-based compensation expense11,872 10,190 36,794 31,462 Impairment of long-lived assets59,478 - 59,478 - Income tax effect on adjustment above(15,309) (2,841) (21,442) (9,683)Adjusted net income attributable to common stockholders$ 109,705 $ 74,159 $ 372,638 $ 238,840 Share computation: Weighted average common shares — diluted49,767,056 44,248,689 48,413,717 43,535,441 Effect of capped call transactions(1,827,961) - (2,396,207) - Adjusted weighted average common shares — diluted47,939,095 44,248,689 46,017,510 43,535,441 Adjusted diluted net income per share$ 2.29 $ 1.68 $ 8.10 $ 5.49 Three Months Ended Year Ended June 30, June 30, 2025 2024 2025 2024 (per share)Diluted net income per share$ 1.03 $ 1.42 $ 5.95 $ 4.69 Amortization of intangible assets0.05 0.09 0.20 0.30 Stock-based compensation expense0.24 0.23 0.76 0.72 Impairment of long-lived assets1.20 - 1.23 - Income tax effect on adjustment above(0.31) (0.06) (0.44) (0.22)Effect of capped call transactions0.08 - 0.40 - Adjusted earnings per share$ 2.29 $ 1.68 $ 8.10 $ 5.49 Investor Contact Timothy Casey Vice President, Investor Relations Stride, Inc. [email protected] Media Contact [email protected] Source: Stride, Inc.