Stride(US:LRN)2026-01-27 21:15Financial Performance - Revenues for Q2 FY 2026 reached $631.3 million, a 7.5% increase from $587.2 million in Q2 FY 2025[4] - Net income for Q2 FY 2026 was $99.5 million, up 3.2% from $96.4 million in Q2 FY 2025[6] - Adjusted EBITDA for Q2 FY 2026 was $188.1 million, reflecting a 17.2% increase compared to $160.4 million in Q2 FY 2025[4] - Income from operations for Q2 FY 2026 was $146.9 million, up from $125.1 million in Q2 FY 2025, representing a 17.0% increase[38] - Adjusted operating income for Q2 FY 2026 reached $159.0 million, compared to $135.6 million in Q2 FY 2025, reflecting a 17.2% growth[38] - Adjusted EBITDA for Q2 FY 2026 was $188.1 million, compared to $160.4 million in Q2 FY 2025, marking a 17.3% rise[41] - The company projects income from operations for FY 2026 to be between $437.0 million and $454.0 million[43] - Adjusted operating income for FY 2026 is expected to range from $485.0 million to $505.0 million[43] Enrollment Metrics - Total enrollments in Q2 FY 2026 were 248.5K, a 7.8% increase from 230.6K in Q2 FY 2025[10] - Career Learning enrollments increased by 17.6% to 111.5K in Q2 FY 2026 compared to 94.8K in Q2 FY 2025[10] - Revenue per enrollment for Q2 FY 2026 was $2,437, up 1.8% from $2,395 in Q2 FY 2025[12] Forecast and Projections - The company forecasts FY 2026 revenue in the range of $2.480 billion to $2.555 billion[19] - Adjusted operating income for FY 2026 is projected to be between $485 million and $505 million[19] - Capital expenditures for FY 2026 are expected to be between $70 million and $80 million[19] - The effective tax rate is anticipated to be between 24% and 25% for FY 2026[19] Cash and Assets - Total current assets as of December 31, 2025, were $1,600,317,000, slightly down from $1,632,734,000 as of June 30, 2025[26] - Total liabilities decreased to $758,709,000 as of December 31, 2025, from $814,340,000 as of June 30, 2025, showing a reduction of 6.8%[27] - Cash and cash equivalents at the end of the period were $497,098,000, down from $782,497,000 at the beginning of the period, a decrease of 36.5%[29] Earnings and Share Metrics - Basic earnings per share for the three months ended December 31, 2025, was $2.31, up from $2.24 in the same period of 2024, a growth of 3.1%[24] - Adjusted earnings per share for Q2 FY 2026 was $2.50, up from $2.37 in Q2 FY 2025, which is a 5.5% increase[41] - Stock-based compensation expense for Q2 FY 2026 was $10.3 million, compared to $7.9 million in Q2 FY 2025, a 30.0% increase[41] - The weighted average diluted shares for Q2 FY 2026 were 46,863,391, compared to 47,462,688 in Q2 FY 2025[41] Cash Flow and Operating Activities - The company reported a net cash used in operating activities of $103,944,000 for the six months ended December 31, 2025, compared to a net cash provided of $81,360,000 in 2024[30] - The company has capitalized software development costs of $24,691,000 for the six months ended December 31, 2025, compared to $18,601,000 in 2024, indicating an increase of 32.8%[30] Gross Margin - Gross margin for the six months ended December 31, 2025, was $501,754,000, up from $455,711,000 in 2024, indicating a year-over-year growth of 10.1%[24]