Stride Achieves Another Record Year Demand Trends Support Continued Momentum into FY26
GlobeNewswire August 05, 2025
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 million
Income from operations of $360.1 million, compared with $249.6 million
Net income of $287.9 million, compared with $204.2 million
Diluted net income per share of $5.95, compared with $4.69
Adjusted 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 million
Income from operations of $56.9 million, compared with $73.7 million
Net income of $51.3 million, compared with $62.8 million
Diluted net income per share of $1.03, compared with $1.42
Adjusted operating income of $130.6 million, compared with $87.9 million
Adjusted EBITDA of $158.4 million, compared with $112.1 million
Adjusted earnings per share of $2.29, compared with $1.68
(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.
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
(Inthousands)
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; 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.
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
$
249,600
Amortization of intangible assets
2,344
4,028
9,867
12,878
Stock-based compensation expense
11,872
10,190
36,794
31,462
Impairment of long-lived assets
59,478
–
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, net
2,693
2,318
10,504
8,812
Other income, net
(10,160
)
(7,519
)
(33,629
)
(26,900
)
Income tax expense
12,919
16,099
93,007
64,482
(Income) loss from equity method investments
92
(2
)
2,271
(977
)
Depreciation and amortization
30,199
28,219
114,669
109,683
EBITDA
87,063
101,897
474,763
359,283
Stock-based compensation expense
11,872
10,190
36,794
31,462
Impairment of long-lived assets
59,478
–
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 assets
2,344
4,028
9,867
12,878
Stock-based compensation expense
11,872
10,190
36,794
31,462
Impairment of long-lived assets
59,478
–
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 — diluted
49,767,056
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 — diluted
47,939,095
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 assets
0.05
0.09
0.20
0.30
Stock-based compensation expense
0.24
0.23
0.76
0.72
Impairment of long-lived assets
1.20
–
1.23
–
Income tax effect on adjustment above
(0.31
)
(0.06
)
(0.44
)
(0.22
)
Effect of capped call transactions
0.08
–
0.40
–
Adjusted earnings per share
$
2.29
$
1.68
$
8.10
$
5.49
Investor Contact
Timothy Casey
Vice President, Investor Relations
Stride, Inc.
ir@k12.com
Media Contact
press@k12.com
