Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, Oct. 22, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Stride, Inc. (“Stride” or “the Company”) (NYSE: LRN) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. Stride investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq. Investors are encouraged to contact attorney Lesley F. ...

Financial Data and Key Metrics Changes - Revenue for Q1 FY 2025 was $551.1 million, representing a 15% increase from Q1 FY 2024 [7] - Adjusted operating income increased to $58.4 million, up 295% year-over-year [7][11] - Diluted earnings per share rose to $0.94, an increase of $0.83 from the previous year [7][11] - Gross margin improved to 39.2%, up 320 basis points from last year [9] Business Line Data and Key Metrics Changes - Career Learning revenue was $198.9 million, up more than 30% year-over-year, with enrollments growing 30.4% to 91,700 [8] - General Education revenue increased by 10% to $329.4 million, with enrollment growth of 11.3% to 130,900 students [8] - Adult Learning revenue decreased to $22.8 million, down from the previous year [9] Market Data and Key Metrics Changes - Total enrollments for the quarter exceeded 222,000, almost 100,000 more than pre-pandemic levels in FY 2020 [7] - Record enrollments were reported with an 18.5% year-over-year growth, marking the highest growth since the company became publicly traded [5][6] Company Strategy and Development Direction - The company aims to continue leading in K-12 education by providing choices and adapting to customer needs [4] - Focus on innovation and technology investment to enhance educational offerings [4] - Plans to maintain strong demand and operational efficiency while managing costs effectively [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2028 targets based on current demand trends [7] - The company anticipates a strong year ahead, driven by increasing customer demand and effective marketing strategies [19][30] - Management noted that the loss of ESSER funding would have a minimal impact on profitability and revenue [18][19] Other Important Information - Capital expenditures for the quarter were $14.8 million, down $1.3 million from last year [11] - Free cash flow was negative $156.8 million, consistent with seasonal trends related to school launches [11] Q&A Session Summary Question: Drivers of strong demand and record enrollment - Management indicated that the demand was broad-based, with strong organic growth and word-of-mouth referrals contributing significantly [13] Question: Impact of ESSER funding on revenue and profit - Management stated that the revenue impact from ESSER funding last year was less than 3%, with no significant profit impact [18][19] Question: Future enrollment growth expectations - Management noted that strong demand continues, and while they are not guiding for a specific increase, they are optimistic about maintaining growth [35] Question: State expansion plans - Management confirmed ongoing efforts to expand into new states, although no immediate updates were provided for the current fiscal year [41][42]

Revenue Growth - Revenue for the three months ended September 30, 2024 increased to $551.1 million, up 14.8% from $480.2 million in the prior year[133] - Revenues for the three months ended September 30, 2024 were $551.1 million, a 14.8% increase from $480.2 million in the same period in 2023[151] - Revenues for the three months ended September 30, 2024 increased to $551.1 million from $480.2 million in the prior year, an increase of 14.8%[133] - Revenues for Q3 2024 increased by 14.8% to $551.1 million compared to $480.2 million in Q3 2023[151] Operating Income - Operating income for the three months ended September 30, 2024 rose to $47.3 million, compared to $3.3 million in the prior year[133] - Operating income for the three months ended September 30, 2024 increased to $47.3 million from $3.3 million in the prior year[133] Enrollment Growth - Total enrollments for the three months ended September 30, 2024 were 222.6 thousand, an increase of 34.7 thousand (18.5%) over the prior year[133] - General Education enrollments increased to 130.9 thousand, up 13.3 thousand (11.3%) from the prior year[143] - Career Learning enrollments grew to 91.7 thousand, an increase of 21.4 thousand (30.4%) from the prior year[143] - Total enrollments for the three months ended September 30, 2024 were 222.6 thousand, an increase of 34.7 thousand, or 18.5%, over the prior year[133] - General Education enrollments for the three months ended September 30, 2024 were 130.9 thousand, an increase of 13.3 thousand, or 11.3%, over the prior year[143] - Career Learning enrollments for the three months ended September 30, 2024 were 91.7 thousand, an increase of 21.4 thousand, or 30.4%, over the prior year[143] General Education Revenue - General Education revenue reached $329.4 million, up $30.1 million (10.0%) from the prior year[144] - General Education revenues increased by $30.1 million (10.0%) year over year, driven by an 11.3% increase in enrollments[152] - General Education revenues for the three months ended September 30, 2024 were $329.4 million, an increase of $30.1 million, or 10.0%, over the prior year[144] - General Education revenues grew by 10.0% to $30.1 million, driven by an 11.3% increase in enrollments[152] Career Learning Revenue - Career Learning revenue for middle and high school students increased to $198.9 million, up $47.9 million (31.7%) from the prior year[144] - Total Career Learning revenue was $221.7 million, an increase of $40.8 million (22.6%) from the prior year[144] - Career Learning revenues increased by $40.8 million (22.6%) year over year, primarily due to a 30.4% increase in enrollments[152] - Career Learning revenues for the three months ended September 30, 2024 were $221.7 million, an increase of $40.8 million, or 22.6%, over the prior year[144] - Middle-High School Career Learning revenues for the three months ended September 30, 2024 were $198.9 million, an increase of $47.9 million, or 31.7%, over the prior year[144] - Adult Career Learning revenues for the three months ended September 30, 2024 were $22.8 million, a decrease of $7.1 million, or 23.7%, over the prior year[144] - Career Learning revenues surged by 22.6% to $40.8 million, primarily due to a 30.4% increase in enrollments[152] Net Income - Net income attributable to common stockholders was $40.9 million, or 7.4% of revenues, compared to $4.9 million, or 1.0% of revenues, in the same period in 2023[151] - Net income attributable to common stockholders increased to $40.9 million, or 7.4% of revenues, compared to $4.9 million, or 1.0% in Q3 2023[151] Expenses - Instructional costs and services expenses were $335.2 million, representing 60.8% of revenues, a decrease from 64.0% in the same period in 2023[153] - Selling, general, and administrative expenses were $168.5 million, or 30.6% of revenues, a decrease from 35.3% in the same period in 2023[153] - Instructional costs and services expenses rose by 9.1% to $335.2 million, representing 60.8% of revenues[153] - Selling, general, and administrative expenses decreased by 0.6% to $168.5 million, accounting for 30.6% of revenues[153] Cash Flow - Net cash used in operating activities for the three months ended September 30, 2024 was $142.0 million, an increase of $6.7 million from the same period in 2023[164] - Net cash used in investing activities for the three months ended September 30, 2024 was $20.9 million, an increase of $13.8 million from the same period in 2023[165] - Net cash used in financing activities for the three months ended September 30, 2024 was $20.0 million, an increase of $6.2 million from the same period in 2023[166] - Net cash used in operating activities increased by $6.7 million to $142.0 million, primarily due to changes in working capital[164] - Net cash used in investing activities rose by $13.8 million to $20.9 million, driven by higher net purchases of marketable securities[165] - Net cash used in financing activities increased by $6.2 million to $20.0 million, mainly due to higher repurchase of restricted stock[166] Working Capital - As of September 30, 2024, the company had net working capital of $1,060.7 million, including cash and cash equivalents of $317.8 million and accounts receivable of $675.7 million[156] - The company had net working capital of $1,060.7 million as of September 30, 2024, including $317.8 million in cash and cash equivalents[156] School-as-a-Service Offering - The company provides its school-as-a-service offering to 89 schools in 31 states and the District of Columbia in the General Education market, and 56 schools or programs in 27 states and the District of Columbia in the Career Learning market[131] - The company provides its school-as-a-service offering to 89 schools in 31 states and the District of Columbia in the General Education market, and 56 schools or programs in 27 states and the District of Columbia in the Career Learning market for the 2024-2025 school year[131] Graduation Data - The company graduated 15,987 high school students from its partner schools in the academic year ended June 30, 2024[127]

| --- | --- | |----------------------------------------|-------| | | | | Q1 FY2025 | | | Earnings Presentation October 22, 2024 | | | | | Safe Harbor This presentation 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 presentation are forward-looking statements. We have tried, whenever possible, to identify these for ...

EXHIBIT 99.1 Strong Demand Drives Record Enrollment Enrollments Grow 18% RESTON, Va., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation's most successful technology-based education companies, today announced its results for the first fiscal quarter ended September 30, 2024. First Quarter Fiscal 2025 Highlights Compared to 2024 Revenue of $551.1 million, compared with $480.2 million. Income from operations of $47.3 million, compared with $3.3 million. Net income of $40.9 million, ...

RESTON, Va., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the first fiscal quarter ended September 30, 2024. First Quarter Fiscal 2025 Highlights Compared to 2024 Revenue of $551.1 million, compared with $480.2 million.Income from operations of $47.3 million, compared with $3.3 million.Net income of $40.9 million, compared with $4.9 million.Diluted net income per share of $0.94, compared ...

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 ...

LOS ANGELES, Oct. 18, 2024 /PRNewswire -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Stride, Inc. ("Stride" or "the Company") (NYSE: LRN) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Stride is the subject of a report published by Fuzzy Panda Research on October 16, 2024. ...

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 ...