WASHINGTON, D.C. 20549 FORM 10-Q Table of Contents (Mark One) SECURITIES AND EXCHANGE COMMISSION ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2021 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 | | --- | --- ...

l SM STRATEGIC EDUCATION INC Q2 2021 Results July 28, 2021 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 his ...

Financial Data and Key Metrics Changes - The second quarter financial results were in line with expectations, with Australia/New Zealand segment generating $74 million in revenue and $16 million in operating income [7][6] - The alternative learning segment's direct revenue increased by 52% year-over-year to $13 million, with operating income rising 24% to $5.2 million [10][11] - SEI reported nearly $300 million in cash and marketable securities, generating $125 million in cash from operations in the first half of 2021, a 13% increase from the previous year [19] Business Line Data and Key Metrics Changes - Australia/New Zealand segment's integration of Torrens University and others is nearly complete, with expected EBITDA of $60 million despite border closures impacting revenue [8][7] - Capella University saw a 6% growth in total enrollment year-to-date, with FlexPath enrollments increasing by 36% and now comprising 35% of total enrollments [13][14] - Strayer University is working to reverse enrollment declines, with summer academic enrollment showing improvement, although still below expectations [15][16] Market Data and Key Metrics Changes - The Australian borders are expected to remain closed until at least spring 2022, which may negatively impact revenue from international students [8] - The alternative learning segment is gaining traction, with Workforce Edge signing 20 corporate agreements covering over 415,000 employees, exceeding internal goals [12] Company Strategy and Development Direction - The company is focused on reopening campuses to improve enrollment and academic achievement, with plans to open all 65 campuses by October 1 [24][43] - There is a strategy to expand FlexPath programs, with potential applications in Strayer University and Australia/New Zealand [26][28] - The company aims to maintain flat pricing overall, balancing moderate tuition increases with higher corporate enrollments and FlexPath growth [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning Strayer University to growth, citing positive trends in inquiries and applications for new enrollment [40][71] - The company remains focused on cost discipline in the Australia/New Zealand segment, expecting to meet EBITDA guidance despite potential revenue shortfalls [72][74] - Management is optimistic about the recovery trajectory, noting that the current enrollment decline is expected to be short-lived due to a more diverse organizational structure [64] Other Important Information - The company is committed to providing high-quality education and ensuring graduates achieve a substantial return on their educational investments [19] - The Workforce Edge platform is seen as a significant opportunity for future student enrollments, with expectations for scale in 2022 [88] Q&A Session Summary Question: Impact of reopening physical campuses on marketing and enrollment trends - Management noted that campuses that have reopened are performing better than those that remain closed, with expectations for improved enrollment and retention [23][24] Question: Future plans for FlexPath expansion - Management indicated plans to extend FlexPath into doctoral programs and potentially to Strayer University, recognizing its success in driving enrollment growth [26][27] Question: Medium and long-term outlook for pricing - Management expects pricing to remain flat overall, balancing moderate tuition increases with higher corporate enrollments and FlexPath [30] Question: Strayer's enrollment trends and expectations - Management acknowledged that while enrollment is improving, it may take longer than initially expected to return to positive growth, with a focus on reopening campuses [40][41] Question: Australia/New Zealand enrollment challenges - Management explained that the inability of international students to enter Australia is impacting enrollment, but they remain well-positioned to attract domestic students [47][48] Question: Workforce Edge product and its implications - Management clarified that the initial focus is on building scale, with expectations for 1% to 3% of employees on the platform to enroll in SEI institutions in the future [86][88]

Strategic Education, Inc. (NASDAQ:STRA) Q1 2021 Earnings Conference Call April 29, 2021 10:00 AM ET Corporate Participants Terese Wilke - Manager of Investor relations Rob Silberman - Executive Chairman Karl McDonnell - President and Chief Executive Officer Dan Jackson - Executive Vice President and Chief Financial Officer Conference Call Participants Jeff Silber - BMO Capital Markets Tobey Sommer - Truist Securities Gary Bisbee - Bank of America Securities Greg Pendy - Sidoti Operator Welcome to Strategic ...

D SM STRATEGIC EDUCATION INC Q1 2021 Results April 29, 2021 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 hi ...

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 March 31, 2021 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 | | --- | --- ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Strategic Education, Inc. (SEI) is an education services company providing post-secondary education and job-ready skills through its subsidiaries, generating **$1.0 billion** in net revenue in 2020 * Strategic Education, Inc. is an education services company providing post-secondary education and job-ready skills programs through its main subsidiaries: Strayer University, Capella University, and Torrens University Australia[17](index=17&type=chunk) 2020 Financial Snapshot | Metric | Amount (USD) | | :--- | :--- | | Net Revenue | $1.0 billion | * On November 3, 2020, the company completed the acquisition of Torrens University and related assets in Australia and New Zealand (ANZ) for approximately **$658.4 million** in cash, expanding its international presence[19](index=19&type=chunk)[20](index=20&type=chunk) * The company's reportable segments as of December 31, 2020, are the Strayer University Segment, the Capella University Segment, and the Australia/New Zealand Segment[22](index=22&type=chunk) [Strayer University Segment](index=4&type=section&id=Strayer%20University%20Segment) This segment, including Strayer University and its affiliates, offers undergraduate and graduate degrees primarily to working adults, with **50,773** students in Fall 2020 * Strayer University offers undergraduate and graduate programs in fields like business, IT, and healthcare at 64 physical campuses and online, also including the Jack Welch Management Institute (JWMI), DevMountain (a software development school), and Hackbright Academy (a software engineering school for women)[22](index=22&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) Strayer University Student Enrollment by Program (Fall 2020) | Program | Number of Students | Percentage of Total | | :--- | :--- | :--- | | Bachelor's | 40,770 | 80% | | Master's | 8,608 | 17% | | Associate's | 1,309 | 3% | | Other | 86 | <1% | | **Total** | **50,773** | **100%** | * The student population is primarily working adults, with approximately **64%** aged 31 or older and **90%** studying part-time, and a diverse student body comprising **73%** minorities and **72%** women as of the Fall 2020 quarter[54](index=54&type=chunk)[55](index=55&type=chunk) [Capella University Segment](index=5&type=section&id=Capella%20University%20Segment) This segment, comprising Capella University and Sophia Learning, focuses on online master's and doctoral degrees for working adults, serving **41,073** students as of December 31, 2020 * Capella University is an online post-secondary institution offering bachelor's, master's, and doctoral degrees, with a focus on graduate programs (**70%** of students), and also includes Sophia Learning, which provides self-paced online general education courses[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) Capella University Student Enrollment by Program (as of Dec 31, 2020) | Program | Number of Students | Percentage of Total | | :--- | :--- | :--- | | Master's | 19,130 | 47% | | Bachelor's | 12,928 | 31% | | Doctoral | 8,210 | 20% | | Other | 805 | 2% | | **Total** | **41,073** | **100%** | * Capella offers two learning formats: GuidedPath (structured, credit-hour courses) and FlexPath (a direct assessment model where students progress by demonstrating competencies at their own pace)[63](index=63&type=chunk)[65](index=65&type=chunk) [Australia/New Zealand Segment](index=5&type=section&id=Australia%2FNew%20Zealand%20Segment) The ANZ segment, acquired in November 2020, includes Torrens University, Think Education, and Media Design School, serving both domestic and international students * The ANZ segment includes Torrens University (Australia's only investor-funded university), Think Education (a vocational and higher education provider in Australia), and Media Design School (a creative and technology institution in New Zealand)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) * The ANZ institutions offer a range of undergraduate, graduate, and vocational programs both online and on-campus, with a strong focus on industry partnerships and career-relevant curriculum[88](index=88&type=chunk) * The student body comprises both domestic students from Australia and New Zealand and international students, who make up approximately half of the student population[95](index=95&type=chunk) [Human Capital Resources](index=16&type=section&id=Human%20Capital%20Resources) As of December 31, 2020, Strategic Education employed **3,679** full-time employees globally, emphasizing a student-centric, diverse, and inclusive culture Full-Time Employee Headcount (as of Dec 31, 2020) | Region | Faculty | Non-Faculty Staff | Total | | :--- | :--- | :--- | :--- | | U.S. | 385 | 2,382 | 2,767 | | Outside U.S. | 246 | 666 | 912 | | **Worldwide Total** | **631** | **3,048** | **3,679** | * The company emphasizes a vibrant, diverse, and inclusive culture, with initiatives such as recurring organization health surveys, company-wide town halls, and a CEO's Council on Diversity, Equity, and Inclusion[105](index=105&type=chunk)[106](index=106&type=chunk) [Regulation](index=17&type=section&id=Regulation) The company's U.S. operations are extensively regulated by the U.S. Department of Education, state bodies, and accrediting agencies, with compliance crucial for Title IV federal student aid eligibility * Strayer University and Capella University are heavily regulated by a triad of U.S. entities: the Department of Education (federal), state education bodies, and institutional accrediting agencies (Middle States for Strayer, Higher Learning Commission for Capella)[111](index=111&type=chunk)[119](index=119&type=chunk)[126](index=126&type=chunk) 90/10 Rule Compliance (2019) | Institution | % of Cash-Basis Revenue from Title IV | Status | | :--- | :--- | :--- | | Strayer University | 82.4% | Compliant | | Capella University | 75.8% | Compliant | Official Three-Year Cohort Default Rates | Year | Strayer University | Capella University | National Average (Proprietary) | | :--- | :--- | :--- | :--- | | 2017 | 11.3% | 6.5% | 14.7% | | 2016 | 10.4% | 6.8% | 15.2% | | 2015 | 10.6% | 6.5% | 15.6% | * The Australian and New Zealand institutions are regulated by national bodies, including the Tertiary Education Quality and Standards Agency (TEQSA) and the Australian Skills Quality Authority (ASQA) in Australia, and the New Zealand Qualifications Authority[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from extensive U.S. regulatory compliance, enrollment uncertainty, intense competition, and the ongoing impact of the COVID-19 pandemic * A primary risk is the failure of Strayer University and Capella University to comply with extensive U.S. legal and regulatory requirements, which could result in significant penalties, including the loss of access to federal Title IV student loans and grants[249](index=249&type=chunk) * The company is dependent on the renewal and maintenance of Title IV programs, where any action by Congress that significantly reduces funding or participation could materially harm the business[257](index=257&type=chunk) * Business operations face risks from enrollment uncertainty, strong competition, the need to update academic programs, system disruptions, and potential difficulties in integrating the newly acquired ANZ business[292](index=292&type=chunk)[298](index=298&type=chunk)[309](index=309&type=chunk) * The COVID-19 pandemic poses ongoing risks to business operations and financial results due to its uncertain duration and scope, its impact on economic activity, and its effect on employees and students[311](index=311&type=chunk)[312](index=312&type=chunk) [Properties](index=49&type=section&id=Item%202.%20Properties) The company primarily leases its U.S. campus and administrative facilities, totaling **1.4 million** square feet across approximately **90** locations, with corporate headquarters in Herndon, VA * The company's corporate headquarters is in Herndon, VA, with primary locations for its main subsidiaries in Minneapolis, MN (Capella), Washington, D.C. (Strayer), and Sydney, NSW (ANZ)[316](index=316&type=chunk) * As of year-end 2020, the company leased approximately **90** campus and administrative facilities in the U.S., totaling **1.4 million** square feet, and owned five facilities totaling **110,000** square feet, with the leased footprint reduced by **115,000** square feet in 2020[316](index=316&type=chunk)[317](index=317&type=chunk) [Legal Proceedings](index=50&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine litigation, but management believes these matters will not materially affect its consolidated financial position or results of operations * The company is involved in routine litigation but does not believe any current matters will have a material adverse effect on its financial condition or results of operations[319](index=319&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=51&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ under "STRA," with **$2.40** in quarterly dividends per share approved in 2020 and a **$250 million** share repurchase program authorized * The company's common stock is traded on the NASDAQ Global Select Market under the symbol "STRA", with **24,408,808** shares outstanding as of January 29, 2021[323](index=323&type=chunk) Dividends Per Common Share | Quarter | 2019 | 2020 | | :--- | :--- | :--- | | First | $0.50 | $0.60 | | Second | $0.50 | $0.60 | | Third | $0.50 | $0.60 | | Fourth | $0.60 | $0.60 | | **Total** | **$2.10** | **$2.40** | * As of December 31, 2020, **$250 million** remained under the company's share repurchase authorization, which is effective through December 31, 2021[330](index=330&type=chunk) [Selected Financial Data](index=53&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents selected consolidated financial data for the five years ended December 31, 2020, reflecting significant revenue growth to **$1,027.7 million** in 2020, largely due to acquisitions Selected Financial Data (2018-2020) | (in thousands, except per share data) | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | | **Revenues** | $634,185 | $997,137 | $1,027,653 | | **Income (loss) from operations** | ($22,740) | $110,532 | $109,384 | | **Net income (loss)** | ($15,671) | $81,138 | $86,268 | | **Diluted EPS** | ($1.03) | $3.67 | $3.77 | | **Total assets** | $1,661,029 | $1,789,408 | $2,295,807 | * Financial results include Capella Education Company (CEC) from August 1, 2018, and Australia/New Zealand (ANZ) from November 3, 2020, making periods prior to these dates not directly comparable[332](index=332&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting the COVID-19 pandemic's impact, recent acquisitions, and a strong liquidity position with **$225.3 million** in cash and equivalents as of December 31, 2020 * The COVID-19 pandemic prompted a shift to remote work and online courses, along with financial relief measures for students, but also led to a deterioration in overall demand and enrollment, most pronounced at Strayer University[338](index=338&type=chunk)[340](index=340&type=chunk) * A restructuring plan was implemented in Q3 2020 to reduce operating costs, involving employee terminations and the closure of underutilized campus and office space[339](index=339&type=chunk) Year-Over-Year Financial Performance (2019 vs. 2020) | (in millions) | 2019 | 2020 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $997.1 | $1,027.7 | +3.1% | | **Income from Operations** | $110.5 | $109.4 | -1.0% | | **Net Income** | $81.1 | $86.3 | +6.4% | | **Diluted EPS** | $3.67 | $3.77 | +2.7% | * As of December 31, 2020, the company had cash, cash equivalents, and marketable securities of **$225.3 million** and **$141.8 million** outstanding on its **$350 million** revolving credit facility[402](index=402&type=chunk)[403](index=403&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=67&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from interest rate changes and foreign currency fluctuations, with a **100 basis point** LIBOR increase potentially raising annual interest expense by **$3.5 million** * The company is subject to interest rate risk on its cash investments and its revolving credit facility, where a **100 basis point** increase in LIBOR would increase annual interest expense by **$3.5 million** if the full **$350 million** facility was drawn[415](index=415&type=chunk)[417](index=417&type=chunk) * Following the acquisition of ANZ, the company has foreign currency risk, primarily related to the Australian dollar, where a weakening of foreign currencies relative to the USD could negatively affect reported revenue and operating income[418](index=418&type=chunk) [Financial Statements and Supplementary Data](index=69&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's consolidated financial statements for the three years ended December 31, 2020, reflecting the significant impact of the Capella and ANZ acquisitions Key Consolidated Balance Sheet Data (as of Dec 31) | (in thousands) | 2019 | 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $524,094 | $286,122 | | **Goodwill** | $732,075 | $1,318,526 | | **Total Assets** | $1,789,408 | $2,295,807 | | **Total Current Liabilities** | $156,748 | $200,052 | | **Long-term Debt** | $0 | $141,823 | | **Total Liabilities** | $326,698 | $547,488 | | **Total Stockholders' Equity** | $1,462,710 | $1,748,319 | Key Consolidated Income Statement Data (Year Ended Dec 31) | (in thousands) | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | | **Revenues** | $634,185 | $997,137 | $1,027,653 | | **Income (loss) from operations** | ($22,740) | $110,532 | $109,384 | | **Net income (loss)** | ($15,671) | $81,138 | $86,268 | Key Consolidated Cash Flow Data (Year Ended Dec 31) | (in thousands) | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | | **Net cash from operating activities** | $46,867 | $202,146 | $142,905 | | **Net cash from investing activities** | $130,137 | ($38,066) | ($642,192) | | **Net cash from financing activities** | ($21,215) | ($55,820) | $279,187 | [Controls and Procedures](index=109&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020, excluding the newly acquired ANZ business * Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[648](index=648&type=chunk) * Management's assessment concluded that internal control over financial reporting was effective as of December 31, 2020, with the assessment excluding the recently acquired ANZ business, which represented approximately **10%** of total assets and **2%** of total revenues[652](index=652&type=chunk)[653](index=653&type=chunk) [Other Information](index=110&type=section&id=Item%209B.%20Other%20Information) The company announced a change in its principal accounting officer, with Tal Darmon replacing Thomas J. Aprahamian as SVP, Controller, and Chief Accounting Officer, effective March 22, 2021 * The company announced a change in its principal accounting officer, with Tal Darmon set to replace Thomas J. Aprahamian as SVP, Controller and Chief Accounting Officer, effective March 22, 2021[656](index=656&type=chunk)[657](index=657&type=chunk) Part III [Directors, Executive Officers, and Corporate Governance](index=112&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) This section provides biographical information for the company's directors and executive officers, including Robert S. Silberman as Executive Chairman and Karl McDonnell as CEO * Key leadership includes Robert S. Silberman (Executive Chairman), J. Kevin Gilligan (Vice Chairman), and Karl McDonnell (CEO and Director)[660](index=660&type=chunk) * The Board of Directors is composed of individuals with extensive experience in finance, education, technology, and corporate management[661](index=661&type=chunk)[662](index=662&type=chunk)[663](index=663&type=chunk) [Executive Compensation](index=115&type=section&id=Item%2011.%20Executive%20Compensation) Detailed information on executive compensation is incorporated by reference from the company's forthcoming Proxy Statement * Detailed information on executive compensation is incorporated by reference from the company's Proxy Statement[678](index=678&type=chunk) [Security Ownership of Certain Beneficial Owners and Management](index=115&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management) Detailed information on security ownership is incorporated by reference from the company's forthcoming Proxy Statement * Detailed information on security ownership is incorporated by reference from the company's Proxy Statement[679](index=679&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=115&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Detailed information on related party transactions and director independence is incorporated by reference from the company's forthcoming Proxy Statement * Detailed information on related transactions and director independence is incorporated by reference from the company's Proxy Statement[680](index=680&type=chunk) [Principal Accounting Fees and Services](index=115&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Detailed information on principal accounting fees and services is incorporated by reference from the company's forthcoming Proxy Statement * Detailed information on principal accounting fees and services is incorporated by reference from the company's Proxy Statement[681](index=681&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=115&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements and exhibits filed as part of the Annual Report on Form 10-K, with financial statements included under Item 8 * This section contains the list of all financial statements (included in Item 8) and exhibits filed with the Form 10-K[683](index=683&type=chunk)[685](index=685&type=chunk) [Form 10-K Summary](index=119&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the report * Item 16 is not applicable[692](index=692&type=chunk)

SM STRATEGIC EDUCATION INC Q4 2020 Results February 26, 2021 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 h ...

Strategic Education, Inc. (NASDAQ:STRA) Q4 2020 Earnings Conference Call February 26, 2021 10:00 AM ET Company Participants Terese Wilke - Manager, Investor Relations Robert Silberman - Executive Chairman Karl McDonnell - President and Chief Executive Officer Daniel Jackson - Executive Vice President and Chief Financial Officer Conference Call Participants Jeff Silber - BMO Capital Markets Tobey Sommer - Truist Securities Gary Bisbee - Bank of America Greg Pendy - Sidoti Operator Good day, ladies and gentle ...

SM STRATEGIC EDUCATION INC Q3 2020 Results November 5, 2020 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 hi ...