Q1 FY25 Performance Highlights - Total enrollments reached 222600, an increase of 185% year-over-year[7] - Q1 Adjusted Operating Income was $584 million, the largest first-quarter profit ever for the company[7] - Q1 Revenue was $5511 million, up 15% year-over-year[8] - Q1 Adjusted EBITDA was $839 million, up 111% year-over-year[8] Revenue and Enrollment Trends - General Education revenue increased by 101% to $3294 million[9] - Career Learning revenue increased by 226% to $2217 million, with Middle – High School up 317% to $1989 million and Adult down 237% to $228 million[9] - General Education enrollments increased by 113% to 130900[10] - Career Learning enrollments increased by 304% to 91700[10] FY25 Guidance - The company projects FY25 revenue between $2225 billion and $23 billion, representing an 11% year-over-year growth at the midpoint[12] - The company projects FY25 Adjusted Operating Income between $395 million and $425 million, representing a 39% year-over-year growth at the midpoint[12] Financial Position - Cash, Cash Equivalents & Marketable Securities totaled $5394 million as of September 30, 2024[13] - Total Debt Obligations were $5052 million as of September 30, 2024[13] - Leverage ratio is 043x, defined as Net Debt divided by Adjusted EBITDA for the twelve months ended September 30, 2024[13] Long-Term Growth Targets - The company is on track to achieve FY28 targets outlined in the November 2023 Investor Day[7]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) Stride's financial performance for Q1 FY2025 demonstrated significant year-over-year growth across key metrics, reflecting strong operational leverage and demand [First Quarter Fiscal 2025 Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%202025%20Highlights) Stride reported significant year-over-year growth in Q1 FY2025, with revenue up 14.8% and profitability surging over 700% Q1 FY2025 Financial Highlights vs. Q1 FY2024 (In thousands, except per share data) | Metric | Q1 FY2025 | Q1 FY2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $551,084 | $480,181 | $70,903 | 14.8% | | **Income from operations** | $47,344 | $3,320 | $44,024 | 1326.0% | | **Net income** | $40,882 | $4,878 | $36,004 | 738.1% | | **Diluted net income per share** | $0.94 | $0.11 | $0.83 | 754.5% | | **Adjusted operating income** | $58,360 | $14,761 | $43,599 | 295.4% | | **Adjusted EBITDA** | $83,927 | $39,763 | $44,164 | 111.1% | [Key Operational Metrics](index=2&type=section&id=Key%20Operational%20Metrics) Student enrollments grew 18.5% year-over-year, driven by a 30.4% rise in Career Learning enrollments, while revenue per enrollment remained stable - Total enrollments for Q1 FY2025 reached **222.6K**, an **18.5% increase** from 187.9K in the prior year[4](index=4&type=chunk) - Career Learning enrollments were a key growth driver, increasing **30.4% year-over-year** to **91.7K**[4](index=4&type=chunk) Revenue Per Enrollment (Q1 FY2025 vs. Q1 FY2024) | Category | Q1 FY2025 | Q1 FY2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue per Enrollment** | $2,303 | $2,292 | 0.5% | | **General Education** | $2,400 | N/A | 0.8% | | **Career Learning** | $2,166 | N/A | 1.0% | [Segment Performance](index=1&type=section&id=Segment%20Performance) Revenue growth was primarily fueled by a 22.6% increase in the Career Learning segment, led by a strong 31.7% rise in Middle-High School revenue [Revenue by Segment](index=1&type=section&id=Revenue%20by%20Segment) Revenue growth was primarily fueled by a 22.6% increase in the Career Learning segment, with the Adult learning sub-segment experiencing a 23.7% decline Revenue by Segment (Three Months Ended September 30, In thousands) | Segment | 2024 | 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **General Education** | $329,407 | $299,338 | $30,069 | 10.0% | | **Career Learning** | | | | | | Middle - High School | $198,885 | $150,974 | $47,911 | 31.7% | | Adult | $22,792 | $29,869 | ($7,077) | (23.7%) | | **Total Career Learning** | **$221,677** | **$180,843** | **$40,834** | **22.6%** | | **Total Revenues** | **$551,084** | **$480,181** | **$70,903** | 14.8% | [Financial Position and Cash Flow](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flow) Stride maintained a solid liquidity position with $539.4 million in cash and equivalents, despite net cash used in operating activities of $142.0 million [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of September 30, 2024, Stride maintained a solid liquidity position with cash, cash equivalents, and marketable securities totaling $539.4 million - Cash, cash equivalents, and marketable securities totaled **$539.4 million** as of September 30, 2024, compared to $714.2 million at June 30, 2024[5](index=5&type=chunk) [Cash Flow and Capital Allocation](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) For the first quarter, the company reported net cash used in operating activities of $142.0 million, with capital expenditures totaling $14.8 million - Net cash used in operating activities for the three months ended September 30, 2024, was **$142.0 million**[17](index=17&type=chunk) Capital Expenditures (Three Months Ended September 30) | Category | 2024 | 2023 | | :--- | :--- | :--- | | **Property and equipment** | $0.7 million | $1.7 million (approx.) | | **Capitalized software development** | $8.8 million | $10.0 million | | **Capitalized curriculum development** | $5.3 million | $4.4 million | | **Total Capital Expenditures** | **$14.8 million** | **$16.1 million** | [Fiscal Year 2025 Outlook](index=2&type=section&id=Fiscal%20Year%202025%20Outlook) Stride forecasts FY2025 revenue between $2.225 billion and $2.300 billion, with adjusted operating income projected from $395 million to $425 million [Full Year Fiscal 2025 Guidance](index=2&type=section&id=Full%20Year%20Fiscal%202025%20Guidance) Stride forecasts full fiscal year 2025 revenue between $2.225 billion and $2.300 billion, and adjusted operating income from $395 million to $425 million Full Fiscal Year 2025 Outlook | Metric | Range | | :--- | :--- | | **Revenue** | $2.225 billion to $2.300 billion | | **Capital expenditures** | $60 million to $65 million | | **Effective tax rate** | 24% to 26% | | **Adjusted operating income** | $395 million to $425 million | [Second Quarter Fiscal 2025 Guidance](index=2&type=section&id=Second%20Quarter%20Fiscal%202025%20Guidance) For the upcoming second quarter of fiscal 2025, the company anticipates continued growth with revenue projected to be between $560 million and $580 million Second Quarter Fiscal Year 2025 Outlook | Metric | Range | | :--- | :--- | | **Revenue** | $560 million to $580 million | | **Capital expenditures** | $13 million to $15 million | | **Adjusted operating income** | $115 million to $125 million | [Supplemental Information](index=2&type=section&id=Supplemental%20Information) This section provides details regarding the upcoming conference call to discuss the first-quarter fiscal year 2025 financial results [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Stride will host a conference call on Tuesday, October 22, 2024, at 5:00 p.m. ET to discuss its first-quarter fiscal year 2025 financial results - A conference call to discuss Q1 FY2025 results is scheduled for **Tuesday, October 22, 2024, at 5:00 p.m. eastern time (ET)**[7](index=7&type=chunk) - Dial-in numbers for domestic and international participants are **(800) 715-9871** and **+1 (646) 307-1963** respectively, with conference ID **8901384**[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations for the three months ended September 30, 2024, highlights a significant improvement in profitability, with net income increasing to $40.9 million Q1 FY2025 Statement of Operations (In thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Revenues** | $551,084 | $480,181 | | **Gross margin** | $215,853 | $172,888 | | **Income from operations** | $47,344 | $3,320 | | **Net income** | $40,882 | $4,878 | [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2024, shows total assets of $1.97 billion, a slight increase from $1.92 billion at June 30, 2024 Consolidated Balance Sheet Highlights (In thousands) | Account | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,291,326 | $1,245,446 | | **Total assets** | $1,971,961 | $1,920,465 | | **Total current liabilities** | $230,655 | $244,280 | | **Total liabilities** | $757,615 | $744,440 | | **Total stockholders' equity** | $1,214,346 | $1,176,025 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter, the company reported a net cash usage of $182.8 million, driven by operating activities and investing activities Consolidated Cash Flow Highlights (Three Months Ended Sep 30, In thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($142,004) | ($135,305) | | **Net cash used in investing activities** | ($20,894) | ($7,065) | | **Net cash used in financing activities** | ($19,951) | ($13,811) | | **Net change in cash** | ($182,849) | ($156,181) | | **Cash, end of period** | $317,765 | $254,626 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures, providing a clearer view of the company's consistent operating performance [Definition and Rationale of Non-GAAP Measures](index=7&type=section&id=Definition%20and%20Rationale%20of%20Non-GAAP%20Measures) Stride utilizes non-GAAP financial measures to supplement its GAAP-based financial statements, offering investors useful information by excluding non-cash charges - Adjusted operating income is defined as income from operations adjusted for **stock-based compensation** and the **amortization of intangible assets**[19](index=19&type=chunk) - Adjusted EBITDA is defined as income from operations adjusted for **stock-based compensation, depreciation, and amortization**[19](index=19&type=chunk) - Management uses these non-GAAP measures to assist in comparing performance on a consistent basis and for presentations to the Board of Directors[20](index=20&type=chunk) [Reconciliation of Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed tables reconciling the company's non-GAAP measures to the most directly comparable GAAP figures for Q1 FY2025 and the FY2025 outlook Q1 Reconciliation of Income from Operations to Adjusted Operating Income (In thousands) | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Income from operations** | $47,344 | $3,320 | | Amortization of intangible assets | $2,567 | $3,015 | | Stock-based compensation expense | $8,449 | $8,426 | | **Adjusted operating income** | **$58,360** | **$14,761** | Q1 Reconciliation of Net Income to EBITDA and Adjusted EBITDA (In thousands) | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net income** | $40,882 | $4,878 | | Adjustments (Interest, Tax, etc.) | $6,462 | ($1,558) | | Depreciation and amortization | $28,134 | $28,017 | | **EBITDA** | **$75,478** | **$31,337** | | Stock-based compensation expense | $8,449 | $8,426 | | **Adjusted EBITDA** | **$83,927** | **$39,763** | FY2025 Outlook Reconciliation of Income from Operations to Adjusted Operating Income (In millions) | Description | Q2 2025 Low | Q2 2025 High | FY 2025 Low | FY 2025 High | | :--- | :--- | :--- | :--- | :--- | | **Income from operations** | $104.3 | $112.3 | $351.5 | $375.5 | | Stock-based compensation | $8.5 | $10.0 | $34.0 | $39.0 | | Amortization of intangibles | $2.2 | $2.7 | $9.5 | $10.5 | | **Adjusted operating income** | **$115.0** | **$125.0** | **$395.0** | **$425.0** |

Core Insights - Stride, Inc. reported significant growth in its first fiscal quarter for 2025, with revenues reaching $551.1 million, a 14.8% increase from $480.2 million in the same period last year [1] - The company achieved a net income of $40.9 million, compared to $4.9 million in the prior year, reflecting a 738.1% increase [1] - Adjusted EBITDA for the quarter was $83.9 million, up 111.1% from $39.8 million in the previous year [1] Financial Performance - Revenue for the first quarter was $551.1 million, an increase of $70.9 million from $480.2 million, representing a 14.8% growth [1][3] - Income from operations surged to $47.3 million, a significant rise of 1326.0% from $3.3 million [1][3] - Adjusted operating income reached $58.4 million, up 295.4% from $14.8 million [1][3] - Net income was reported at $40.9 million, a substantial increase of $36 million compared to $4.9 million [1][3] - Diluted net income per share was $0.94, compared to $0.11 in the previous year, marking a 754.5% increase [1][3] Enrollment and Revenue Metrics - Total enrollments for the first quarter were 222.6K, an 18.5% increase from 187.9K enrollments in the same quarter last year [4] - Career Learning enrollments specifically rose to 91.7K, a 30.4% increase from 70.3K [4] - Revenue per enrollment was $2,303, a slight increase of 0.5% from $2,292 in the previous year [5] Cash Flow and Capital Allocation - As of September 30, 2024, the company's cash and cash equivalents totaled $539.4 million, down from $714.2 million at the end of June 2024 [6] - Capital expenditures for the quarter were $14.8 million, a decrease from $16.1 million in the same period last year [6] Fiscal Year 2025 Outlook - The company forecasts revenue for the full fiscal year 2025 to be between $2.225 billion and $2.300 billion [7] - For the second quarter of fiscal year 2025, revenue is expected to be in the range of $560 million to $580 million [7] - Adjusted operating income for the full fiscal year is projected to be between $395 million and $425 million [7]

BOSTON, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Block & Leviton is investigating Stride, Inc. (NYSE: LRN) for potential securities law violations. Investors who have lost money in their Stride, Inc. investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/lrn. What is this all about? Shares of Stride fell 5% on October 16, 2024, after a report from Fuzzy Panda Research alleged that Stride has been inflating its earnings by m ...

NEW YORK, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Stride, Inc. (“Stride” or the “Company”) (NYSE: LRN) on behalf of Stride stockholders. Our investigation concerns whether Stride has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. The investigation focuses on whether the Company issued false and/or misleading ...

Core Viewpoint - The Schall Law Firm is investigating Stride, Inc. for potential violations of securities laws related to misleading statements about earnings and COVID-19 relief funds [1] Group 1: Investigation Details - The investigation is focused on whether Stride issued false or misleading statements and failed to disclose important information to investors [1] - A report by Fuzzy Panda Research claims that Stride inflated its earnings, with 25% of its EBITDA derived from Elementary and Secondary School Emergency Relief (ESSER) funds, which are set to expire in September 2024 [1] Group 2: Market Reaction - Following the news of the investigation and the report's claims, shares of Stride fell on the same day [1]

MERIDIAN, Idaho, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Idaho Virtual Academy (IDVA) has been recognized as a 2024 Cognia™ School of Distinction, a program which recognizes preK–12 education institutions that exemplify excellence in education and service to learners. Cognia selected IDVAas one ofthe 60 Schools and Systems of Distinction out of more than 1,900 institutions that were reviewed worldwide. Idaho Virtual Academy is an accredited, full-time online public school, serving students in kindergarten through ...

LIVONIA, MI, Oct. 16, 2024 (GLOBE NEWSWIRE) -- Joining forces to help tackle hypertension, a condition that impacts 120 million U.S. adults each year, MedCerts and the American Medical Association (AMA) today announced their collaborative efforts to improve blood pressure (BP) measurement skills and knowledge among more health care professionals. When blood pressure is measured incorrectly, it can lead to improper screening, diagnosis and care management of hypertension, ultimately impacting a patient's ove ...

RESTON, Va, Oct. 08, 2024 (GLOBE NEWSWIRE) -- Stride Inc. (NYSE: LRN) announced today it plans to discuss its first quarter fiscal year 2025 financial results during a conference call scheduled for Tuesday, October 22, 2024 at 5:00 p.m. eastern time (ET). A live webcast of the call will be available at https://events.q4inc.com/attendee/118785460. 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 nu ...

Core Viewpoint - Stride, Inc. (LRN) has demonstrated strong stock performance, significantly outperforming its industry and sector peers, driven by enrollment strength and strategic initiatives aimed at achieving long-term financial targets by 2028 [1][2][17]. Group 1: Stock Performance - LRN stock has increased by 24.1% over the past three months, while the Zacks Schools industry declined by 2.7% [1] - The stock closed at $85.12, nearing its 52-week high of $86.06 [1] - LRN has outperformed other industry players such as Adtalem Global Education Inc. (ATGE) and PowerSchool Holdings, Inc. (PWSC) during the same period [4] Group 2: Growth Drivers - Continued enrollment strength and improved student retention are key factors positioning Stride to meet its 2028 financial targets [2][9] - The acquisition of MedCerts in 2020 has been pivotal in enhancing adult learning offerings, contributing to consistent growth in the Career Learning segment [6] - MedCerts recently launched a Certified Nursing Assistant (CNA) eLearning program, addressing healthcare staffing shortages and contributing to revenue growth [7] Group 3: Financial Targets and Projections - Stride aims for a total revenue compound annual growth rate (CAGR) of 10%, adjusted operating income CAGR of 20%, and earnings per share (EPS) CAGR of 20% by fiscal 2028 [8] - The Career Learning segment saw a year-over-year revenue increase of 6.4% to $750.9 million and enrollment growth of 10.3% to 72,700 students in fiscal 2024 [7] Group 4: Capital Allocation and Valuation - The company employs a disciplined capital allocation strategy focusing on organic growth, new product development, and mergers and acquisitions [10] - LRN is currently trading at a discount compared to industry peers based on a forward 12-month price-to-earnings (P/E) ratio, indicating potential for attractive entry points for investors [13] Group 5: Earnings Estimates - The Zacks Consensus Estimate for LRN's fiscal 2025 earnings has increased, indicating a growth of 7.7% year-over-year, with fiscal 2026 earnings expected to grow by 11.8% [15]