Core Insights - Strategic Education (STRA) reported revenue of $321.47 million for the quarter ended June 2025, marking a year-over-year increase of 3% and an EPS of $1.52 compared to $1.33 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $323.39 million by -0.59%, while the EPS exceeded the consensus estimate of $1.42 by +7.04% [1] Revenue Breakdown - Revenue from Australia/New Zealand was $69.14 million, below the two-analyst average estimate of $72.44 million, reflecting a year-over-year decline of -2.8% [4] - Revenue from Education Technology Services reached $36.69 million, surpassing the two-analyst average estimate of $35.2 million, with a significant year-over-year increase of 49.61% [4] - The U.S. Higher Education Segment generated $215.64 million, slightly above the average estimate of $215.46 million, representing a year-over-year change of -0.45% [4] Stock Performance - Over the past month, shares of Strategic Education have returned -3.60%, contrasting with the Zacks S&P 500 composite's increase of +2.71% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Strategic Education (STRA), an EdTech company, reported disappointing Q2 results that did not meet Wall Street expectations [1] Company Overview - Strategic Education operates several educational brands including Strayer, Capella, Sophia Learning, and WorkForce Edge [1] Financial Performance - The Q2 results released by Strategic Education have not pleased investors, indicating potential challenges in financial performance [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 June 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 a constant currency basis, revenue grew by 4% from the prior year, with disciplined expense management limiting operating expense growth to just 2%, resulting in operating income of $49 million, a 12% increase from the prior year [5] - Adjusted earnings per share increased by 16% to $1.54 compared to $1.33 from the prior year [6] - Operating margin increased by 110 basis points to 15.2% [5] Business Line Data and Key Metrics Changes - The Education Technology Services (ETS) division saw revenue and operating income both increase by 50% from the prior year to $37 million and $15 million respectively, with its share of operating income growing from 23% to 31% [6] - Sofia Learning, the direct-to-consumer portal, grew both average and total subscribers and revenue by 40% [7] - US higher education operating income increased by 5% from the prior year, with operating expenses decreasing by $2 million, or 1% [9] Market Data and Key Metrics Changes - Total enrollment in US higher education decreased by 1% from the prior year, but slightly higher revenue per student helped offset the decline, resulting in revenue being down by only 0.5% [7] - Employer affiliated enrollment increased by 8% from the prior year, now representing 32% of all US higher education enrollment [8] - In the Australia/New Zealand segment, total enrollment decreased by 3% from the prior year, but revenue increased slightly to $71 million [10] Company Strategy and Development Direction - The company is focusing on the Australian domestic market, where mid to high single-digit new student growth has been observed [10] - There is a plan to increase marketing investments in the domestic market in the back half of the year, which is expected to support growth in 2026 [19][39] - The company remains optimistic about the future growth of the Australia/New Zealand segment once international enrollment restrictions are lifted [10][37] Management's Comments on Operating Environment and Future Outlook - Management noted that the softness in new student enrollment is primarily at Strayer University, particularly among unaffiliated students, but expects enrollment to normalize in the mid-single-digit range over the long term [25] - The company does not expect any material adverse impact from the recent legislative changes, including the "one big beautiful bill" [21] - Management expressed confidence in the strong performance of the ETS division and its potential to contribute significantly to earnings [6][32] Other Important Information - The company repurchased approximately 325,000 shares during the quarter for a total of $28 million, with $169 million remaining on the share repurchase authorization [10] - The caps on employer-affiliated tuition assistance programs are expected to be a net positive for the company [40] Q&A Session Summary Question: Clarification on unaffiliated enrollment decline - Management indicated that the decline in unaffiliated enrollment is primarily at Strayer University and that the rate of decline was slightly better in the second quarter than in the first quarter [15] Question: Domestic vs. international enrollment split in ANZ - Management noted that the split between domestic and international enrollment has shifted towards more domestic due to regulatory restrictions on international students [19] Question: Legislative and regulatory impacts on higher education - Management stated that they do not expect any material adverse impact from the "one big beautiful bill" and are still digesting its components [21] Question: Weakness at Strayer and leading indicators - Management acknowledged pressure on unaffiliated undergraduate students at Strayer but expects enrollment to normalize over the long term [25] Question: Update on large employer partnerships - Management reported strong revenue growth from a large employer partnership and indicated that onboarding is progressing well [32]

Statements Under the Private Securities Litigation Reform Act of 1995 INVESTOR PRESENTATION JULY 2025 Forward-looking statements 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 wi ...

Exhibit 99.1 STRATEGIC EDUCATION, INC. REPORTS SECOND QUARTER 2025 RESULTS Education Technology Services revenue and operating income up 50% YOY Sophia Learning revenue and subscribers up 40% YOY U.S. Higher Education's healthcare portfolio total enrollment increased 8% YOY HERNDON, Va., July 30, 2025 ― Strategic Education, Inc. (Strategic Education) (NASDAQ: STRA) today announced financial results for the period ended June 30, 2025. STRATEGIC EDUCATION CONSOLIDATED RESULTS Education Technology Services Seg ...

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

Core Viewpoint - The article compares Strategic Education (STRA) and Universal Technical Institute (UTI) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Analyst Outlook - STRA has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while UTI has a Zacks Rank of 3 (Hold) [3] - STRA's improving analyst outlook suggests a more favorable investment opportunity compared to UTI [3] Group 2: Valuation Metrics - STRA has a forward P/E ratio of 15.09, significantly lower than UTI's forward P/E of 32.64 [5] - STRA's PEG ratio is 1.01, while UTI's PEG ratio is 2.18, indicating STRA is more reasonably priced relative to its expected earnings growth [5] - STRA's P/B ratio is 1.26, compared to UTI's P/B of 6.39, further highlighting STRA's valuation advantage [6] Group 3: Value Grades - STRA has a Value grade of A, while UTI has a Value grade of C, reflecting STRA's superior valuation metrics and earnings outlook [6]

Strategic Education, Inc. (STRA) , or SEI, reported impressive results for the first quarter of 2025. Its adjusted earnings and revenues topped the Zacks Consensus Estimate. On a year-over-year basis, both the top and bottom lines increased.The quarter witnessed robust employer-affiliated enrollment, strong growth from Sophia Learning subscriptions and continued enrollment growth in the U.S. Higher Education (“USHE”) segment.Inside STRA’s HeadlinesThe company reported adjusted earnings per share (EPS) of $1 ...

Table of Contents FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 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 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) Strategic Education, Inc. (Exact name of registrant as specified in this charter) | Maryland | 52-1975978 | | --- | --- | ...