$LRN earnings report

Stride reported first-quarter fiscal 2027 revenue of $639.4 million, up 3.0% from $620.9 million. The growth profile was led by Career Learning Middle - High School revenue, which increased 12.7% to $ 272,098 (In thousands), while Total Career Learning revenue increased 9.7% to $ 282,772 (In thousands). That strength was partly offset by a 1.8% decline in General Education revenue to $ 356,606 (In thousands) and a 34.4% decline in Adult revenue to $ 10,674 (In thousands).

Enrollment and pricing data show a divergent mix. First-quarter enrollments averaged 241.4K, down 2.5%, while Career Learning enrollments increased 2.0% to 112.2K. Revenue per enrollment increased 7.0% to $2,556. General Education revenue per enrollment was $2,670, up 5.0%, and Career Learning revenue per enrollment was $2,425, up 10.4%. The reported data therefore show revenue growth despite lower overall enrollment, with the company highlighting higher revenue per enrollment and Career Learning enrollment growth.

Profitability was mixed across reported measures. Gross margin was $ 241,117 (In thousands), compared with $ 242,123 (In thousands), while selling, general, and administrative expenses declined to $ 156,849 (In thousands) from $ 173,140 (In thousands). GAAP income from operations increased 22.2% to $84.3 million and EBITDA increased 21.4% to $119.2 million. In contrast, adjusted operating income declined 3.1% to $78.6 million, adjusted EBITDA increased 3.1% to $111.8 million, net income declined 5.6% to $64.9 million, and adjusted earnings per share declined 9.9% to $1.37.

Cash flow remained negative in the first quarter, although net cash used in operating activities was $ (124,787 ) (In thousands), compared with $ (195,780 ) (In thousands). Capital expenditures were $24.5 million, including $17.9 million of capitalized software development and $6.6 million of capitalized curriculum development. Cash and cash equivalents and marketable securities totaled $884.2 million at September 30, 2026, compared with $1,034.1 million at June 30, 2026. The balance sheet reported $ 418,431 (In thousands) of current portion of debt and no long-term debt at September 30, 2026.

For fiscal year 2027, Stride forecast revenue of $2.530 billion to $2.610 billion, capital expenditures of $70 million to $80 million, an effective tax rate of 24% to 26%, and adjusted operating income of $500 million to $530 million. For the second quarter, it forecast revenue of $625 million to $645 million, capital expenditures of $19 million to $21 million, and adjusted operating income of $135 million to $145 million. The principal reported items to monitor are the trajectory of overall enrollment, General Education and Adult revenue, the durability of Career Learning growth, and the distinction between the higher GAAP operating-income result and lower adjusted operating income and adjusted EPS.

Stride reported fiscal 2026 revenues of $ 2,518,081, up 4.7 % from fiscal 2025. Income from operations increased 25.2 % to 450,767, net income increased 17.5 % to 338,192, and diluted net income per share increased 20.0 % to 7.14. Adjusted operating income increased 6.9 % to 498,373, while adjusted EBITDA increased 8.2 % to 617,584 and adjusted earnings per share increased 2.8 % to 8.33.

Career Learning was the reported revenue growth area for the full year. Total Career Learning revenue was 1,100,296, up 15.0 %, led by Career Learning Middle - High School revenue of 1,043,726, up 19.1 %. This contrasted with General Education revenue of $ 1,417,785, down (2.1 %), and Adult revenue of 56,570, down (29.6 %). Average Career Learning enrollments rose 13.9% to 109.7K, while Career Learning revenue per enrollment rose 4.5% to $9,512.

The fourth quarter showed a different top-line and adjusted-profit profile. Revenues were $ 636,064, down (2.7 %) year over year, as General Education revenue declined (9.7 %) to $ 355,809 and Adult revenue declined (31.1 %) to 13,139. Career Learning Middle - High School revenue increased 11.1 % to 267,116, and Total Career Learning revenue increased 8.0 % to 280,255. GAAP income from operations increased 86.1 % to 105,852 and net income increased 58.6 % to 81,388, but adjusted operating income, adjusted EBITDA and adjusted earnings per share each declined from the prior-year quarter.

Enrollment and pricing indicators were mixed in the quarter. Average enrollments were 234.2K, down (0.5)%, while Career Learning average enrollments rose 9.7% to 106.4K. Total fourth-quarter revenue per enrollment was $2,620, down (0.4)%, with General Education revenue per enrollment down (1.0)% to $2,710 and Career Learning revenue per enrollment up 1.3% to $2,511.

Capital allocation included approximately $188.7 million of common-stock repurchases during fiscal 2026, including approximately $100 million in the fourth quarter. Cash and cash equivalents and marketable securities totaled $1,034.1 million as of June 30, 2026, and approximately $311.3 million remained available under the current authorization. Fiscal 2026 capital expenditures were $78.8 million, including $61.6 million of capitalized software development and $16.6 million of capitalized curriculum development. The release did not provide forward financial guidance.

Stride released select preliminary fiscal year 2026 results alongside a CEO succession announcement. Total revenue is expected to be $2,518.1 million, compared to $2,405.3 million during the prior year. The release does not provide segment revenue, enrollment data, pricing, or a quantified explanation of the revenue movement, but management stated that demand for alternative education solutions remains strong.

Profit measures were also reported above prior-year amounts. Income from operations is expected to be $450.8 million compared to $360.1 million, while net income is expected to be $338.2 million compared to $287.9 million. The release does not report gross margin, operating margin, expenses, tax rate, diluted share count, or EPS, so the filing does not provide the detail needed to assess the sources of the change in profitability.

On a non-GAAP basis, adjusted operating income is expected to be $498.4 million compared to $466.2 million, and adjusted EBITDA is expected to be $617.6 million compared to $571.0 million. The company defines adjusted operating income as income from operations adjusted for amortization of intangible assets, stock-based compensation, and other one-time charges or gains. Adjusted EBITDA is defined as income from operations adjusted for depreciation and amortization, stock-based compensation, and other one-time charges or gains.

Capital allocation, liquidity, debt, operating cash flow, free cash flow, dividends, and repurchases were not provided in this release. The absence of balance-sheet and cash-flow disclosures limits assessment of the company’s financial flexibility and capital deployment during fiscal year 2026.

The principal strategic development is the appointment of Robert Knowling as CEO effective July 29, 2026, succeeding James Rhyu, who ceased serving as CEO and as a member and Chair of the Board. Steven Fink was appointed Chair of the Board, and Brian Shepherd was appointed to the Board effective July 29, 2026. Stride plans to report fourth-quarter and full-year results and file its Form 10-K for the year ended June 30, 2026, on August 4, 2026, which is the next expected source of final financial detail and any outlook.