Stride(US:LRN)2026-01-27 22:35Financial Performance - Revenues for the six months ended December 31, 2025, increased to $1,252.1 million, a 10.0% increase from $1,138.3 million in the prior year[169] - Operating income for the same period rose to $215.8 million, reflecting a 25.2% increase from $172.4 million in the prior year, driven by revenue growth and an increase in gross margin[169] - Revenues for the three months ended December 31, 2025, were $631.3 million, an increase of $44.1 million, or 7.5%, from $587.2 million in the same period of 2024[186] - Revenues for the six months ended December 31, 2025, were $1,252.1 million, an increase of $113.8 million, or 10.0%, from $1,138.3 million for the same period in 2024[193] Enrollment Statistics - Total enrollments for the six months ended December 31, 2025, were 248.3 thousand, an increase of 19.6 thousand or 8.6% over the prior year[169] - Total enrollments in General Education increased by 1.9% to 137.2 thousand, while Career Learning enrollments rose by 17.6% to 111.1 thousand for the six months ended December 31, 2025[174] - The company graduated 19,045 high school students from partner schools in the most recent academic year ended June 30, 2025[160] Revenue Breakdown - General Education revenues for the six months ended December 31, 2025, were $704.5 million, a 3.0% increase from $683.7 million in the prior year[177] - Career Learning revenues for the same period increased to $547.6 million, a 20.5% increase from $454.6 million in the prior year[177] - Career Learning revenues increased by $57.0 million, or 24.5%, primarily due to a 17.6% increase in enrollments[186] Expenses - Instructional costs and services expenses for the three months ended December 31, 2025, were $371.6 million, an increase of $24.2 million, or 7.0%, from $347.4 million in the same period of 2024[188] - Selling, general, and administrative expenses for the three months ended December 31, 2025, were $112.8 million, a decrease of $2.0 million, or 1.7%, from $114.8 million in the same period of 2024[189] - Instructional costs and services expenses for the six months ended December 31, 2025, were $750.4 million, an increase of $67.8 million, or 9.9%, from $682.6 million in the same period of 2024[194] - Selling, general, and administrative expenses for the six months ended December 31, 2025, were $285.9 million, an increase of $2.6 million, or 0.9%, from $283.3 million in the same period of 2024[195] Cash Flow and Capital - As of December 31, 2025, the company had net working capital of $1,380.2 million, including cash and cash equivalents of $497.1 million and accounts receivable of $869.0 million[200] - Net cash used in operating activities for the six months ended December 31, 2025, was $103.9 million, a significant increase from net cash provided of $81.4 million in the prior year[209] - Net cash used in financing activities for the six months ended December 31, 2025, was $146.8 million, compared to $28.7 million in the prior year, primarily due to treasury stock purchases[211] Strategic Initiatives - The company operates in two markets: General Education and Career Learning, with the majority of revenue derived from a comprehensive school-as-a-service offering[162][166] - The company continues to explore acquisitions and strategic investments to enhance its business operations[208] - The board of directors authorized a stock repurchase program for the purchase of up to $500 million of the company's common stock until October 31, 2026[205]