Core Insights - Stride, Inc. (LRN) is experiencing significant growth in digital education, with a 17.8% year-over-year revenue increase to $613.4 million in fiscal Q3 2025, driven by a 21% rise in total enrollment [1][9] - The company is addressing the rising demand for non-traditional education options, as evidenced by a Gallup Poll indicating that nearly 90% of parents are exploring non-college career paths for their children [2] - Stride has raised its full-year revenue and operating income guidance for fiscal 2025, indicating strong fundamentals with adjusted operating income up 47% and gross margin expanding to 40.6% [3] Financial Performance - Career learning revenue surged 33% to $223.9 million, supported by a 34% growth in enrollment within that segment [1][9] - The company is on track to exceed its 2028 CAGR targets by three years, showcasing its robust growth trajectory [3] Competitive Landscape - Competitors like Chegg and Coursera are also evolving in the digital education space, with Chegg focusing on AI-driven learning support and Coursera expanding into online credentialing and dual-enrollment programs [5][6] - Stride must continue to differentiate its offerings to maintain its leadership position in the K-12 education sector [6] Stock Performance - Stride's stock has trended downward by 8.3% over the past three months, underperforming both the Zacks Schools industry and the S&P 500 index [7] Valuation Metrics - Stride's stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 2.17, indicating a discount compared to industry peers [11] Earnings Estimates - Earnings estimates for fiscal 2025 and 2026 remain unchanged at $7.09 and $7.76 per share, respectively, implying year-over-year growth of 51.2% and 9.4% [13]

RESTON, VA, July 24, 2025 (GLOBE NEWSWIRE) -- Road2Teach, an alternative teacher certification preparation program in Indiana and a Stride, Inc. company, is proud to announce it has been approved by the Indiana Department of Education to offer its Special Education Transition to Teaching program. This milestone marks a significant step forward in addressing Indiana’s urgent need for qualified special education teachers.  According to the Indiana Department of Education, there are more than 188,000 students ...

RESTON, VA, July 22, 2025 (GLOBE NEWSWIRE) -- Stride Inc. (NYSE: LRN) announced today it plans to 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 t ...

Core Viewpoint - Stride, Inc. is facing challenges due to the termination of a key partnership with Gallup-McKinley County Schools, which is expected to impact its market value and revenue visibility, despite experiencing significant enrollment growth in its K-12 and career learning segments [3][7][15]. Company Performance - Stride's share price has decreased by 9.4% over the past month, underperforming compared to the Zacks Schools industry and the broader market [1]. - The company has reported a 20% overall enrollment growth in fiscal 2025, with General Education and Career Learning segments growing by 12.8% and 32%, respectively [15]. Partnership and Regulatory Challenges - The termination of the partnership with GMCS, effective June 30, 2025, was due to Stride's failure to meet legal and academic requirements, which poses risks to its growth and profitability [6][7]. - Stride's business model heavily relies on contracts with educational institutions, making it vulnerable to compliance issues that could lead to contract terminations [6]. Market and Economic Conditions - Stride is experiencing macroeconomic pressures, including inflation and tariff concerns, which could indirectly affect its top-line growth through strained government budgets [9]. - The company is facing increased operational costs, with instructional costs and SG&A expenses rising by 12.5% and 0.6% year-over-year, respectively [9]. Financial Position - Stride maintains a strong liquidity position with cash and cash equivalents of $528.5 million, up from $500.6 million at the end of fiscal 2024, while long-term debt has slightly increased to $415.9 million [18]. - The stock is trading at a forward P/E ratio of 16.98, indicating a premium compared to industry peers, which reflects its growth potential [10]. Growth Prospects - The shift in demand towards tech-based and career-focused educational programs is expected to enhance Stride's revenue visibility and profitability in the long term [5][21]. - The company is strategically expanding its online education offerings, which aligns with the growing trend of digital learning [12][16].

Market Overview - The three major U.S. stock indexes closed lower last week, with the Dow Jones Industrial Average down 1%, the S&P 500 down 0.3%, and the Nasdaq Composite down 0.1% [1] - The market pullback was influenced by renewed U.S. tariff threats, particularly higher levies on Canada and the European Union, raising concerns about economic growth and inflation [2] Earnings Performance - Despite tariff concerns, many investors focused on strong earnings reports from airlines and consumer stocks, indicating a resilient economy [2] - The second-quarter earnings season is critical for assessing the impact of tariffs on corporate profits [3] Zacks Research Performance - Mogo Inc. shares surged 81.8% since being upgraded to Zacks Rank 2 (Buy) on May 8, significantly outperforming the S&P 500's 11.1% increase [4] - ATI Inc. also saw a 32.6% return since its upgrade to Zacks Rank 2 on May 6, compared to the S&P 500's 10.7% increase [5] - A hypothetical portfolio of Zacks Rank 1 (Strong Buy) stocks returned +6.51% in May 2025, outperforming the S&P 500's +4.47% [5] Zacks Recommendations - Amarin Corporation and European Wax Center shares increased by 62.6% and 49.9%, respectively, after being upgraded to Outperform on May 12, against the S&P 500's 10.5% rise [8] - The Zacks Focus List portfolio returned 8.84% in 2025 (through June 30) compared to the S&P 500's +6.21% [12] Portfolio Performance - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, outperforming the S&P 500's -4.30% decline [16] - The Zacks Earnings Certain Dividend Portfolio (ECDP) returned +5.74% in Q1 2025, compared to the S&P 500's -2.41% [20] - The Zacks Top 10 Stocks portfolio delivered +11.8% year-to-date through June 2025, outperforming the S&P 500's +6.2% [22] Long-term Performance - Since 2004, the Zacks Focus List portfolio has produced an annualized return of +11.60%, compared to +10.22% for the S&P 500 [15] - The Top 10 portfolio has generated a cumulative return of +2,246.8% since 2012, significantly outperforming the S&P 500's +502.3% [24]

Core Insights - Stride, Inc. (LRN) has experienced a 20% year-over-year growth in enrollment, reaching approximately 233,500 students during the first nine months of fiscal 2025, driven by positive market sentiment for online education and diversified program offerings [1][8] - The company is strategically focusing on enhancing brand visibility through innovative marketing strategies while managing to reduce selling, general, and administrative expenses as a percentage of total revenues [2][4][3] Enrollment and Market Trends - Enrollment trends have continued to rise despite limitations on marketing spend, indicating strong demand for Stride's diverse offerings, which include K-12 and career-learning programs [2][8] - The favorable market backdrop and ongoing regulatory reforms in the U.S. education sector suggest a bright outlook for Stride's enrollment prospects [4] Financial Performance - Stride's selling, general, and administrative expenses decreased by 360 basis points year-over-year to 22.9% of total revenues, reflecting improved operational efficiency [4][8] - The stock has shown a price increase of 31.1% year-to-date, outperforming the Zacks Schools industry and the broader market [5][8] Competitive Positioning - Stride's stock is currently trading at a forward price-to-sales (P/S) ratio of 2.29, which is considered a discount compared to peers like Chegg (0.36) and Grand Canyon Education (4.44) [10][11] - Earnings estimates for fiscal 2025 and 2026 remain unchanged at $7.09 and $7.76 per share, respectively, indicating expected year-over-year growth of 51.2% and 9.4% [12]

Key Takeaways Stride raised FY25 revenue guidance to up to $2.385B on 32% growth in Career Learning enrollment. LOPE launched 48 new programs since 2023 and expects EPS to grow up to 12.5% in 2025. Stride trades below LOPE on a forward P/S basis, offering a more attractive valuation for investors.The demand for digital educational alternatives is continuously growing as parents and students are increasingly focused on seamless and hassle-free ways to earn degrees. Over the past few years, this shift seems ...

Cognia accreditation review highlights K12’s commitment to student success through its online public schoolsRESTON, Va., July 02, 2025 (GLOBE NEWSWIRE) -- K12, a portfolio brand of Stride, Inc. has been recognized for its steadfast commitment to quality education. In a recent review by Cognia, a global nonprofit that accredits schools, K12 earned an impressive Index of Education Quality (IEQ) score of 327, well above the global average of 296. Cognia praised K12 for creating supportive environments where st ...

Core Insights - Stride, Inc.'s (LRN) career learning portfolio is well-positioned for growth due to increasing demand for non-college degrees and online education options [1][2] - The company's focus on career learning and adult certification programs is yielding positive results, with significant enrollment and revenue growth [2][8] Enrollment and Revenue Growth - Stride's Career Learning segment experienced a 33.7% year-over-year enrollment growth in Q3 of fiscal 2025, with revenues increasing by 26.4% to $242.6 million [2][8] - For the first nine months of fiscal 2025, enrollment in the Career Learning segment grew by 32% year over year [2] Market Demand and Competitive Advantage - Stride offers career-focused programs in high-demand industries such as information technology, healthcare, and general business, providing a competitive edge in the education sector [3] - The shift in demand towards career-focused and tech-based alternatives is driving the company's strategic expansion [2] Funding Environment and Strategic Investments - Early indicators suggest a long-term positive funding environment due to ongoing state budget processes [4] - Stride's investments in diversifying offerings and personalizing the learning model are expected to support long-term growth [4] Stock Performance and Valuation - Stride's shares have increased by 36.2% year-to-date, outperforming peers in the education sector [5][8] - The stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 19.95X, indicating strong market potential despite being at a premium compared to industry peers [10] Earnings Estimates - Earnings estimates for fiscal 2025 and 2026 remain unchanged at $7.09 and $7.76 per share, respectively, implying year-over-year growth of 51.2% and 9.4% [12]

Core Insights - Stride, Inc. (LRN) reported a strong performance in Q3 fiscal 2025, with adjusted EBITDA increasing by 40% year over year to a record $168.3 million, significantly outpacing the 17.8% revenue growth, indicating effective operating leverage [1] - The gross margin for the quarter improved by 190 basis points to 40.6%, with management projecting a 200-basis-point improvement for the full year, driven by a 21% year-over-year enrollment growth and a focus on cost discipline [2] - Stride achieved enrollment growth without significant increases in marketing spend, indicating favorable unit economics and lower customer acquisition costs [3] - The company is balancing margin expansion with reinvestment in technology platforms, teacher support tools, and student socialization initiatives, which are essential for sustaining growth [4] - Stride's rising EBITDA margin reflects real operating leverage, improved efficiency, and strategic resource allocation, positioning the company for structural profitability over time [5] Competitive Landscape - Stride's expanding EBITDA margin places it ahead of peers like Adtalem Global Education (ATGE) and Strategic Education, Inc. (STRA), both of which face their own efficiency and profitability challenges [6] - Adtalem has made strategic acquisitions in healthcare education but has seen gradual margin expansion due to integration costs and restructuring charges, with its adjusted EBITDA growth rate trailing Stride's [7] - Strategic Education emphasizes flexible learning models but has experienced uneven growth, with flat to modest revenue growth and stalled operating leverage due to enrollment headwinds and pricing pressures [8] Financial Performance - LRN's shares have surged by 104.6% over the past year, compared to the industry's rise of 14.8% [9] - The company's Q3 adjusted EBITDA reached a record $168.3 million, with a 21% enrollment growth contributing to a gross margin increase to 40.6% [11] - LRN stock is currently trading at a forward 12-month price-to-earnings multiple of 18.26X, above the industry average of 16.46X, with fiscal 2025 earnings per share estimates increasing to $7.09 from $6.96 in the past 60 days [12]