LRN · Stride, Inc.

Stride's Q3 FY2026 results showed modest top-line growth of 2.7% to $629.9 million, driven primarily by robust expansion in the Career Learning segment, where revenue surged 12.3% to $272.4 million, including 15.9% growth in Middle-High School to $259.5 million. This offset a 3.6% decline in General Education revenue to $357.5 million. Enrollments increased 1.8% to 244.5K, with Career Learning enrollments jumping 11.6% to 110.1K, and revenue per enrollment rose across segments, up 2.9% overall to $2,485. Despite revenue gains, GAAP operating income dipped 1.3% to $129.1 million due to higher instructional costs and services, which increased to $398.3 million from $364.1 million, pressuring gross margin. Adjusted operating income fell slightly 0.9% to $140.4 million, while adjusted EBITDA improved 1.8% to $171.3 million. Net income declined 10.9% to $88.5 million, with diluted EPS at $1.93 versus $2.02 year-over-year, reflecting higher other expenses and taxes. For the nine-month period, performance strengthened with 7.4% revenue growth to $1.882 billion and 13.7% operating income growth to $344.9 million. Balance sheet remains solid with $856 million in cash and equivalents, though down from $1,011.4 million at fiscal year-end, supporting $18.5 million in Q3 capex focused on software and curriculum. Management narrowed FY2026 guidance to revenue of $2.490-$2.520 billion and adjusted operating income of $490-$500 million, signaling confidence amid enrollment momentum in high-growth Career Learning while navigating segment shifts.