Strategic Education(STRA) - 2024 Q4 - Annual Report

Financial Performance - The company generated revenue of $1.2 billion in 2024[17]. - Capella University derived approximately 66.79% of its cash-basis revenues from federal funds in fiscal year 2023, while Strayer University derived approximately 89.48%[176]. Enrollment Statistics - As of the 2024 fall term, total enrollment in the U.S. Higher Education segment was 88,860 students, with 57% in bachelor's programs and 31% in master's programs[20]. - As of December 31, 2024, the total student enrollment in the Australia/New Zealand segment is 19,825, with 47% in bachelor's programs and 25% in master's programs[58]. - Total estimated number of post-secondary students enrolled in the U.S. as of fall 2023 is approximately 18.4 million, with proprietary institutions accounting for about 0.8 million students[78]. - Total enrollment at proprietary colleges increased by 3.2% in fall 2023, marking a recovery trend post-COVID-19 pandemic[78]. Student Demographics - Approximately 70% of students in the U.S. Higher Education segment were age 31 or older, and 78% of self-reported gender were female[20]. - Approximately 52% of students enrolled in the ANZ institutions are domestic students, while 48% are international students[60]. Institutional Offerings - Capella University offers a variety of undergraduate and graduate programs, with approximately 57% of its students enrolled in master's and doctoral programs[22]. - Strayer University offers a diverse range of programs, including undergraduate and graduate degrees in business, criminal justice, education, health services, information technology, and public administration, primarily online[39]. - The company offers a diversified program portfolio, including Strayer University's undergraduate programs and Capella University's graduate-focused, competency-based programs[85]. Accreditation and Compliance - The Higher Learning Commission reaffirmed Capella University's accreditation, allowing continued participation in Title IV programs[109]. - Strayer University has been institutionally accredited by Middle States since 1981, with the current accreditation period extending into 2025[113]. - Strayer University is required to submit annual reports on student achievement and financial sustainability as part of its accreditation process[115]. - Capella University and Strayer University maintain eligibility for Title IV programs, including Federal Grants and Federal Direct Student Loans[152]. Financial Aid and Scholarships - The company has expanded its offering of student success scholarships to promote affordability and encourage enrollment[37]. - Strayer University provides scholarships and tuition discounts, including a Graduation Fund that offers qualifying students one free course for every three courses completed[51]. - Under the Post-9/11 GI Bill, eligible veterans can receive tuition benefits up to approximately$ 28,937 for non-public domestic institutions for the 2024-2025 academic year[148]. Operational Strategies - The company operates in three reportable segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services[17]. - The acquisition of Torrens University and associated assets in Australia and New Zealand is part of the company's growth strategy[15]. - The company is actively building relationships with employers to create education benefits programs, which are a significant source of corporate-funded enrollment[88]. Technology and Innovation - The company aims to enhance student experience through technology, including artificial intelligence and automation, to improve support services[86]. - The company reported a focus on innovation and investment in educational experiences to improve student success and employment outcomes[83]. Sustainability Initiatives - The company is committed to energy-saving initiatives, including the use of LED lighting and water-efficient fixtures across its campuses[96]. - The company securely recycled approximately 50 U.S. short tons of paper between January 2021 and December 2022, with an additional 8 and 7 U.S. short tons recycled in 2023 and 2024, respectively[96]. Employee Engagement - The company employs 3,801 full-time employees worldwide, with 2,906 based in the U.S. and 895 outside the U.S.[87]. - The company has a comprehensive benefits package that includes a 401(k) Plan and Employee Stock Purchase Plan, aimed at promoting financial wellness among employees[92]. - The company prioritizes the development of high-performing employees to foster a strong, diverse succession pipeline[93]. Regulatory Environment - The Department of Education requires institutions to maintain a composite score of at least 1.5 to be deemed financially responsible without further oversight[163]. - Institutions must report triggering events related to financial responsibility within 21 days, which may result in financial protection requirements ranging from 10% to 50% of Title IV funds[167]. - The Department of Education's final regulations regarding Borrower Defense to Repayment (BDTR) became effective on July 1, 2023, establishing a streamlined process for claims[204].