Core Insights - Strategic Education reported Q3 CY2025 results that exceeded market expectations, with revenue of $319.9 million, reflecting a 4.6% year-on-year growth and surpassing analyst estimates of $314.5 million by 1.7% [1][5] - The non-GAAP profit was $1.64 per share, which was 25.8% above analysts' consensus estimates of $1.30 [1][5] - The company’s adjusted EBITDA was $69.62 million, achieving a margin of 21.8%, which was a 13.9% beat compared to analyst expectations [5] Revenue and Profitability - The Education Technology and Services segment, particularly Sophia Learning and Workforce Edge, contributed significantly to revenue growth [3][6] - Operating margin remained stable at 11.6%, consistent with the same quarter last year [5] - Domestic student enrollment decreased slightly to 85,640, down by 893 year-on-year [5] Strategic Initiatives - Management emphasized the importance of employer-affiliated enrollments, which increased by approximately 8% year-on-year, now representing 33% of all domestic enrollments [3][6] - The company is targeting up to $100 million in operating expense savings by the end of 2027, with roughly $30 million already realized [6][7] - Future growth is expected to be driven by technology and productivity initiatives, alongside expanding employer partnerships and scaling the Sophia platform [3][6] Challenges and Outlook - The Australia and New Zealand segment faces challenges due to lower international enrollment caused by government-imposed caps and stricter transfer rules [7] - Management anticipates that new student growth will resume in 2026 as these restrictions are lifted, although the near-term outlook remains pressured [7]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2025 or ☐ Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 0-21039 Strategic Education, Inc. (Exact name of registrant as specified in this charter) | Maryland | 52-1975978 | | --- | - ...

Financial Data and Key Metrics Changes - On an adjusted constant currency basis, revenue rose 5% from the previous year, with adjusted earnings increasing by 41% to $1.64 compared to $1.16 from the prior year [5][6] - Operating income grew by 39%, and operating expenses increased by less than 1%, resulting in a 400 basis point margin expansion [5][6] Business Line Data and Key Metrics Changes - The Education Technology Services division saw revenue and operating income increase by 46% and 48% year-over-year, reaching $38 million and $16 million, respectively [6] - U.S. higher education revenue grew by 3% from the prior year, driven by higher revenue per student despite a slight decrease in total enrollment [7][9] - The Australia and New Zealand segment experienced a 2% decrease in revenue to $70 million, with operating income declining from $15 million to $13 million [10] Market Data and Key Metrics Changes - Employer-affiliated enrollment in U.S. higher education increased approximately 8% from the prior year, now representing 33% of all U.S. higher education enrollment [7] - The healthcare portfolio within U.S. higher education generated strong total enrollment growth of 7% from the prior year, representing half of all U.S. higher education enrollments [7][8] Company Strategy and Development Direction - The company is focused on leveraging technology to enhance productivity, with an expectation to save upwards of $100 million in operating expenses by the end of 2027 [15][16] - The strategy includes a strong emphasis on employer partnerships and direct-to-consumer offerings, particularly through the Sofia Learning platform [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new student growth in Australia and New Zealand in 2026, anticipating a return to total enrollment growth by the end of that year [19][27] - The company remains confident in achieving its long-term financial targets, with no current indicators suggesting a deviation from the outlined notional model [20] Other Important Information - The company repurchased approximately 429,000 shares for a total of $34 million during the quarter, with $134 million remaining on its share repurchase authorization [10] Q&A Session Summary Question: What drove the healthy revenue per student gain in the quarter? - Management indicated that lower drop rates and higher course enrollments per student contributed to the revenue per student increase, with expectations for continued benefits [14] Question: Can you provide details on the expense reductions in the U.S.? - Management noted an aggressive productivity initiative aimed at reducing operating expenses, with a run rate of approximately $30 million in reductions already achieved [15][16] Question: How are Strayer and Capella performing relative to each other? - Capella has shown stronger growth, while Strayer has faced challenges primarily due to a reduction in non-affiliated students [18] Question: What is the outlook for the Australia and New Zealand segment? - Management expects new student growth in 2026, with hopes for total enrollment growth by the end of that year [19][27] Question: What is the exposure to military and veteran students amid the government shutdown? - Management stated that there has been no significant impact observed, as the company has very few direct military students [30][31]

N O V E M B E R 2 0 2 5 Forward-looking statements Statements Under the Private Securities Litigation Reform Act of 1995 Statements in this presentation are "forward-looking statements" under the federal securities laws. Such statements may be identified by the use of words such as "expect," "estimate," "assume," "believe," "anticipate," "may," "will," "forecast," "outlook," "plan," "project," "potential" and other similar words, and include all statements that are not historical facts, including with respe ...

HERNDON, Va., November 6, 2025 ― Strategic Education, Inc. (Strategic Education) (NASDAQ: STRA) today announced financial results for the period ended September 30, 2025. STRATEGIC EDUCATION CONSOLIDATED RESULTS Three Months Ended September 30 Education Technology Services Segment Highlights 1 Exhibit 99.1 STRATEGIC EDUCATION, INC. REPORTS THIRD QUARTER 2025 RESULTS Education Technology Services revenue up 46% YOY and operating income up 48% YOY Sophia Learning revenue and subscribers up 42% YOY U.S. Higher ...

Core Insights - Strategic Education, Inc. has launched Signal Labs in collaboration with LearnLaunch Fund + Accelerator [1] Company Overview - Strategic Education, Inc. is focused on enhancing educational opportunities through innovative initiatives [1] - The partnership with LearnLaunch Fund + Accelerator aims to foster educational technology and innovation [1] Industry Implications - The launch of Signal Labs signifies a growing trend in the education sector towards integrating technology and innovation [1] - This initiative may attract further investments and partnerships within the educational technology landscape [1]

Core Points - Strategic Education, Inc. will host a conference call to discuss its third quarter results on November 6, 2025 at 10:00 a.m. ET [1] - A news release outlining the results will be issued before the market opens on the same day [1] - The conference call will be available via webcast, accessible through the Investor Relations section of the company's website [1]

Core Insights - Ariel Sokol has over twenty years of experience in corporate finance, focusing on both established companies and startups [1] - Sokol founded Kolari Consulting, which specializes in strategy consulting for subscription and edtech businesses [1] - He previously held significant roles at Pearson, including VP of strategy and finance and General Manager of Institutional Business [1] - Sokol has experience as an equity research analyst on Wall Street, covering sectors such as education, software, and media [1] - He has served on the board of a for-profit university, indicating a strong background in the education sector [1]

Group 1 - Strategic Education, Inc. (NASDAQ:STRA) is recognized as one of the 14 Best Small Cap Stocks to Buy Right Now, with Truist Financial reiterating its Buy rating without a price target [1] - The company experienced a decline in Q2 FY2025 student enrollment within the U.S. Higher Education (USHE) segment by 0.8% to 86,339, and a 3.1% drop in the Australia/New Zealand (ANZ) segment to 18,524 year-over-year [2] - Despite the enrollment declines, Strategic Education saw strong growth in Sophia Learning, with total subscribers increasing nearly 40% and revenue rising 39.8% to $16.4 million [2] Group 2 - The overall revenue for Strategic Education was reported at $321.5 million, reflecting a 2.9% increase from the previous year, although it slightly missed consensus estimates [2] - The adjusted earnings per share were reported at $1.52, surpassing the estimates of $1.43 [2] - Analysts have set an average price target of $105 for Strategic Education, indicating an upside potential of approximately 28.11% from current levels [3] Group 3 - Strategic Education operates through three segments: U.S. Higher Education (USHE), Australia/New Zealand (ANZ), and Education Technology Services, providing both campus-based and online post-secondary education [3]