Company Performance - Strategic Education (STRA) reported quarterly earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.42 per share, and up from $1.33 per share a year ago, representing an earnings surprise of +7.04% [1] - The company posted revenues of $321.47 million for the quarter ended June 2025, which was slightly below the Zacks Consensus Estimate by 0.59%, but an increase from $312.27 million year-over-year [2] - Over the last four quarters, Strategic Education has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Strategic Education shares have declined approximately 15% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.33 on revenues of $317.66 million, and for the current fiscal year, it is $5.69 on revenues of $1.27 billion [7] Industry Context - The Schools industry, to which Strategic Education belongs, is currently ranked in the top 13% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Strategic Education, Inc. reported strong second-quarter 2025 results, driven by significant growth in its Education Technology Services segment and the healthcare portfolio within U.S. Higher Education [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) Strategic Education, Inc. reported strong second-quarter 2025 results, driven by significant growth in its Education Technology Services segment and the healthcare portfolio within U.S. Higher Education - Education Technology Services (ETS) revenue and operating income increased by approximately **50% year-over-year**[1](index=1&type=chunk) - Sophia Learning revenue and subscribers grew by **40% year-over-year**[1](index=1&type=chunk) - U.S. Higher Education's healthcare portfolio total enrollment increased **8% year-over-year**[1](index=1&type=chunk) [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) Strategic Education, Inc.'s consolidated financial results for Q2 2025 show revenue growth, improved profitability, and a strong liquidity position [Q2 2025 Consolidated Financial Performance](index=1&type=section&id=Q2%202025%20Consolidated%20Financial%20Performance) Strategic Education, Inc. reported a 2.9% increase in consolidated revenue for Q2 2025, reaching $321.5 million, primarily driven by the Education Technology Services segment Consolidated Income Statement Highlights (Three Months Ended June 30) | Metric | Q2 2024 ($ thousands) | Q2 2025 ($ thousands) | YoY Change (%) | | :----------------------- | :--------------------- | :--------------------- | :------------- | | Revenues | $312,266 | $321,471 | 2.9% | | Income from operations | $41,924 | $45,760 | 9.2% | | Net income | $29,898 | $32,331 | 8.1% | | Diluted EPS | $1.24 | $1.37 | 10.5% | - Diluted weighted average shares outstanding decreased to **23,516,000** in Q2 2025 from **24,179,000** in Q2 2024, contributing to EPS growth[3](index=3&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) As of June 30, 2025, the company maintained a strong liquidity position with **$165.0 million** in cash, cash equivalents, and marketable securities, with no outstanding debt, while cash provided by operations slightly decreased Balance Sheet and Cash Flow Highlights | Metric | Dec 31, 2024 ($ thousands) | Jun 30, 2025 ($ thousands) | YoY Change (6 months) | | :-------------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Cash, cash equivalents, and marketable securities | $184,023 | $164,950 | -10.4% | | Total assets | $2,049,735 | $2,091,523 | 2.0% | | Total liabilities | $387,236 | $424,806 | 9.7% | | Total stockholders' equity | $1,662,499 | $1,666,717 | 0.3% | | Metric | 6 Months Ended Jun 30, 2024 ($ thousands) | 6 Months Ended Jun 30, 2025 ($ thousands) | YoY Change (%) | | :-------------------------------------- | :----------------------------------------- | :----------------------------------------- | :------------- | | Cash provided by operations | $101,935 | $98,864 | -3.0% | | Capital expenditures | $19,928 | $21,151 | 6.1% | | Free cash flow (non-GAAP) | $82,007 | $77,713 | -5.3% | - Consolidated bad debt expense as a percentage of revenue improved to **4.0%** in Q2 2025, down from **4.3%** in Q2 2024[8](index=8&type=chunk) [Non-GAAP Consolidated Financial Measures](index=9&type=section&id=Non-GAAP%20Consolidated%20Financial%20Measures) The company provides non-GAAP financial measures, including adjusted income from operations, net income, diluted EPS, EBITDA, and free cash flow, to offer insights into its ongoing operations Adjusted Consolidated Financial Highlights (Three Months Ended June 30) | Metric | Q2 2024 (Non-GAAP, $ thousands) | Q2 2025 (Non-GAAP, $ thousands) | YoY Change (%) | | :-------------------------------------- | :------------------------------- | :------------------------------- | :------------- | | Adjusted income from operations | $43,919 | $48,543 | 10.5% | | Adjusted operating margin | 14.1% | 15.1% | 1.0 pp | | Adjusted net income | $32,261 | $35,846 | 11.1% | | Adjusted diluted EPS | $1.33 | $1.52 | 14.3% | | Adjusted EBITDA | $63,274 | $68,274 | 7.9% | Adjusted Consolidated Financial Highlights (Constant Currency, Three Months Ended June 30, 2025) | Metric | Q2 2025 (GAAP, $ thousands) | Q2 2025 (Adjusted with Constant Currency, $ thousands) | YoY Change (Constant Currency) | | :-------------------------------------- | :--------------------------- | :------------------------------------------------------ | :----------------------------- | | Revenues | $321,471 | $323,544 | 3.6% | | Income from operations | $45,760 | $49,063 | 17.0% | | Operating margin | 14.2% | 15.2% | 1.1 pp | | Net income | $32,331 | $36,228 | 12.2% | | Diluted EPS | $1.37 | $1.54 | 15.8% | - Free cash flow for the first six months of 2025 was **$77.7 million**, a decrease from **$82.0 million** in the same period of 2024[7](index=7&type=chunk)[31](index=31&type=chunk) [Segment Performance Highlights](index=1&type=section&id=Segment%20Performance%20Highlights) Strategic Education, Inc.'s segments show robust growth in Education Technology Services, a slight decline in U.S. Higher Education, and challenges in Australia/New Zealand [Education Technology Services (ETS)](index=1&type=section&id=Education%20Technology%20Services%20(ETS)) The Education Technology Services segment demonstrated robust growth in Q2 2025, with significant increases in revenue and operating income, primarily fueled by Sophia Learning and new Workforce Edge employer partnerships ETS Segment Financials (Three Months Ended June 30) | Metric | Q2 2024 ($ thousands) | Q2 2025 ($ thousands) | YoY Change (%) | | :--------------------- | :--------------------- | :--------------------- | :------------- | | Revenue | $24,523 | $36,692 | 49.6% | | Income from operations | $10,034 | $15,028 | 49.8% | | Operating income margin| 40.9% | 41.0% | 0.1 pp | - Sophia Learning average total subscribers increased approximately **40% year-over-year**, with Sophia Learning revenue growing **39.8%** to **$16.4 million**[3](index=3&type=chunk) - Workforce Edge expanded to **80 corporate agreements** as of June 30, 2025, collectively employing approximately **3,870,000 employees**[3](index=3&type=chunk) [U.S. Higher Education (USHE)](index=2&type=section&id=U.S.%20Higher%20Education%20(USHE)) The U.S. Higher Education segment experienced a slight revenue decrease due to an overall decline in student enrollment, offset by growth in employer-affiliated enrollment and the healthcare portfolio USHE Segment Financials (Three Months Ended June 30) | Metric | Q2 2024 ($ thousands) | Q2 2025 ($ thousands) | YoY Change (%) | | :--------------------- | :--------------------- | :--------------------- | :------------- | | Revenue | $216,613 | $215,635 | -0.5% | | Income from operations | $19,825 | $20,759 | 4.7% | | Operating income margin| 9.2% | 9.6% | 0.4 pp | - Total student enrollment decreased **0.8%** to **86,339**, primarily due to a decline in unaffiliated enrollment, which offset growth in employer-affiliated enrollment[10](index=10&type=chunk) - Employer affiliated enrollment reached an all-time high of **31.8%** of USHE enrollment (up from **29.3%** in Q2 2024), and the healthcare portfolio's total enrollment increased **8% year-over-year**, comprising **47%** of total USHE enrollment[10](index=10&type=chunk) [Australia/New Zealand (ANZ)](index=2&type=section&id=Australia%2FNew%20Zealand%20(ANZ)) The Australia/New Zealand segment saw a decrease in revenue and operating income, mainly due to lower international enrollment resulting from regulatory changes, partially mitigated by domestic enrollment growth ANZ Segment Financials (Three Months Ended June 30) | Metric | Q2 2024 ($ thousands) | Q2 2025 ($ thousands) | YoY Change (%) | | :-------------------------------------- | :--------------------- | :--------------------- | :------------- | | Revenue (GAAP) | $71,130 | $69,144 | -2.8% | | Revenue (Constant Currency) | $71,100 | $71,200 | 0.1% | | Income from operations (GAAP) | $14,060 | $12,756 | -9.3% | | Income from operations (Constant Currency)| $14,100 | $13,300 | -5.7% | | Operating income margin (GAAP) | 19.8% | 18.4% | -1.4 pp | | Operating income margin (Constant Currency)| 19.8% | 18.6% | -1.2 pp | - Student enrollment within ANZ decreased **3.1%** to **18,524**, primarily due to lower international enrollment caused by regulatory changes in Australia[10](index=10&type=chunk) - Domestic enrollment growth is expected to be a bigger driver of future growth, partially offsetting the decline in international enrollment[10](index=10&type=chunk) [Capital Management and Dividends](index=1&type=section&id=Capital%20Management%20and%20Dividends) Strategic Education, Inc. actively manages capital through share repurchases and consistent quarterly cash dividends [Share Repurchases](index=1&type=section&id=Share%20Repurchases) Strategic Education, Inc. actively repurchased its common stock during the second quarter and year-to-date, reducing diluted weighted average shares outstanding Common Stock Repurchases | Period | Shares Repurchased | Value ($ millions) | | :----------------------------------- | :----------------- | :------------------ | | Three months ended June 30, 2025 | 325,844 | $28.0 | | Six months ended June 30, 2025 (YTD) | 717,146 | $60.0 | [Quarterly Cash Dividend](index=2&type=section&id=Quarterly%20Cash%20Dividend) The company declared its regular quarterly cash dividend for common stock Quarterly Cash Dividend Details | Metric | Value | | :-------------- | :---------- | | Dividend per share | $0.60 | | Payment Date | Sep 15, 2025 | | Record Date | Sep 5, 2025 | [Company Overview and Disclosures](index=3&type=section&id=Company%20Overview%20and%20Disclosures) Strategic Education, Inc. provides details on its Q2 2025 conference call, company mission, and essential forward-looking statement disclosures [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Strategic Education, Inc. hosted a conference call to discuss its second quarter 2025 results, with webcast and dial-in options available for investors - A conference call was scheduled for **July 30, 2025, at 10:00 a.m. (ET)** to discuss Q2 2025 results[11](index=11&type=chunk) - Access to the live webcast and an earnings release presentation were available via the Investor Relations section of **www.strategiceducation.com**[11](index=11&type=chunk) [About Strategic Education, Inc.](index=3&type=section&id=About%20Strategic%20Education%2C%20Inc.) Strategic Education, Inc. is dedicated to advancing economic mobility through higher education, primarily serving working adult students globally across three core focus areas - The company's mission is to help advance economic mobility through higher education for working adult students globally[12](index=12&type=chunk) - Core focus areas include Education Technology Services (Workforce Edge, Sophia Learning), U.S. Higher Education (Capella University, Strayer University), and Australia/New Zealand (Torrens University, Think Education, Media Design School)[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section provides a standard disclosure regarding forward-looking statements, highlighting that such statements are based on current expectations and are subject to various assumptions, uncertainties, and risks - Forward-looking statements are identified by words like "expect," "estimate," "believe," and include all statements not historical facts, covering future financial performance, growth opportunities, plans, strategies, and prospects[13](index=13&type=chunk) - Key risks and uncertainties include student enrollment pace, compliance with regulations (Title IV, federal/state laws, accreditation), legislative and governmental actions (Department of Education, Australia/New Zealand), competitive factors, and risks associated with new programs, acquisitions, and general economic conditions[13](index=13&type=chunk)[15](index=15&type=chunk) - The company undertakes no obligation to update or revise forward-looking statements, except as required by law, and advises against undue reliance due to inherent risks[14](index=14&type=chunk)

Core Insights - The article does not provide specific company or industry insights, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2] Group 1 - There are no stock, option, or similar derivative positions held by the analyst in any mentioned companies, nor plans to initiate such positions within the next 72 hours [1] - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2] - Seeking Alpha's analysts include both professional and individual investors who may not be licensed or certified by any regulatory body [2]

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 | | --- | --- | ...

Financial Data and Key Metrics Changes - Strategic Education, Inc. reported a revenue growth of 5% in Q1 2025, with adjusted operating income increasing by 16% [5] - The operating margin improved to 13.6%, and adjusted earnings per share rose by 16% to $1.29, compared to $1.11 in Q1 2024 [5] Business Line Data and Key Metrics Changes - U.S. higher education revenue grew by 1%, with operating income increasing by 7% year-over-year [7] - The education technology services (ETS) segment saw a significant revenue growth of 45% and operating income increased by 37%, driven by higher employer-affiliated enrollment and new partnerships [11] - In Australia and New Zealand (ANZ), total enrollment decreased by 1%, but revenue increased by 6% on a constant currency basis, primarily due to pricing [8] Market Data and Key Metrics Changes - Total enrollment in U.S. higher education slightly increased, with employer-affiliated enrollment rising by 7% [6] - In ANZ, international enrollment declined due to regulatory changes, while domestic enrollment grew as part of the strategy to focus on the domestic market [8][31] Company Strategy and Development Direction - The company is focusing on strengthening corporate partnerships and deepening relationships in Workforce Edge to drive future growth [20] - There is a strategic shift towards increasing domestic enrollment in Australia, with enhanced marketing efforts [31] Management's Comments on Operating Environment and Future Outlook - Management noted that the flat enrollment growth in the U.S. is part of normal cyclicality and expects normalization to mid-single digit growth [18] - The company remains confident in achieving its long-term performance goals, including adjusted operating margin expansion in 2025 [40] Other Important Information - The company repurchased approximately 390,000 shares for a total of $32 million during the quarter, with $197 million remaining in share repurchase authorization [13] Q&A Session Summary Question: Concerns about U.S. higher education enrollment growth - Management indicated that the flat growth is part of normal cyclicality and expects mid-single digit growth to return [18][20] Question: Drivers behind strong EPS performance - The strength in Sofia Learning and Workforce Edge partnerships contributed to the solid EPS performance [22][23] Question: International enrollment decline in ANZ - Management explained that new regulations have made it harder for transfer students to enroll, impacting international enrollment [34] Question: Adjusted operating expenses and spending levels - Management confirmed that spending plans remain on track, with some timing differences in headcount affecting Q1 results [37] Question: Domestic versus international enrollment mix in ANZ - Management noted a shift towards more domestic enrollment, with historical trends showing a 50/50 split [45][46] Question: Update on large employer partner launch - The launch has been well-received, with demand running ahead of internal models [49][51]

INVESTOR PRESENTATION APRIL 2025 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 w ...

Financial Data and Key Metrics Changes - SEI's revenue grew by 5% in Q1 2025, with adjusted operating income increasing by 16% [4] - Operating margin increased to 13.6%, and adjusted earnings per share grew 16% to $1.29 compared to $1.11 in Q1 2024 [5] Business Line Data and Key Metrics Changes - Total enrollment in U.S. Higher Education slightly increased, driven by a 7% rise in employer-affiliated enrollment, offset by lower unaffiliated enrollment [5] - U.S. Higher Education revenue grew by 1%, and operating income increased by 7% from the previous year [6] - ANZ total enrollment decreased by 1%, primarily due to lower international enrollment related to regulatory changes [6] - ANZ revenue increased by 6% on a constant currency basis, driven by pricing, despite reporting an operating loss of $2.2 million [7][8] - Education Technology Services (ETS) segment revenue grew by 45%, with operating income increasing by 37% [9] Market Data and Key Metrics Changes - The percentage of total U.S. higher education enrollment from corporate partnerships reached 31%, an increase of 200 basis points from the prior year [6] - Enrollments in Workforce Edge increased nearly 50%, reaching approximately 2,300 students [10] Company Strategy and Development Direction - The company is focusing on expanding corporate partnerships and deepening relationships in Workforce Edge to drive future growth [15] - There is a strategic shift towards increasing domestic enrollment in Australia and New Zealand [25] Management Comments on Operating Environment and Future Outlook - Management noted that the enrollment slowdown is part of normal cyclicality, with expectations for mid-single-digit growth in the future [14] - Confidence was expressed regarding the performance in 2025 aligning with the notional model outlined at Investor Day [31] Other Important Information - The company repurchased approximately 390,000 shares for a total of $32 million during the quarter, with $197 million remaining in share repurchase authorization [10] Q&A Session Summary Question: U.S. Higher Education enrollment growth has slowed; any specific changes? - Management indicated no changes in marketing or advertising, attributing the slowdown to normal cyclicality [14] Question: What is driving the strong EPS numbers? - The strength in Sofia and increased marketing investments were highlighted as key drivers [17] Question: Comments on persistence rates? - Persistence rates were stable, with slight improvements noted [23] Question: Discussion on international enrollment and domestic growth in ANZ? - Management explained that regulatory changes impacted international enrollment, while domestic marketing efforts have been increased [25][27] Question: Adjusted operating expenses were up; any comments? - Management confirmed that spending plans remain on track, with some timing differences in headcount affecting the first quarter [29] Question: Confidence in revenue growth aligning with the notional model? - Management expressed confidence that revenue growth would align with the 4% to 6% target [39]

Strategic Education (STRA) came out with quarterly earnings of $1.30 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.71%. A quarter ago, it was expected that this for-profit education company would post earnings of $1.19 per share when it actually produced earnings of $1.27, delivering a surprise of 6.72%.Over the last fou ...