Stride, Inc. (LRN) Balances Federal Investigations With Strong Underlying Business Momentum

Core Insights - Stride, Inc. is recognized as one of the best bear market stocks to buy, focusing on personalized online learning and career education programs [1] - The company is currently facing legal and regulatory challenges, including allegations of fraud and deceptive practices related to enrollment reporting [2] - Despite these challenges, Stride's underlying business performance remains strong, with significant revenue growth and increased student enrollments [3][4] Legal and Regulatory Challenges - In September 2025, Stride, Inc. faced a complaint from the Gallup-McKinley County Schools Board of Education, alleging inflated enrollment numbers and insufficiently licensed teachers [2] - The allegations have led to federal securities investigations and a stock price drop of approximately 11% [2] Business Performance - In Q4 FY25, Stride reported a 22.4% year-over-year revenue growth and over 20% increase in student enrollments, primarily driven by career learning programs [4] - Prior to the legal issues, the company's stock was on a solid upward trajectory, reflecting consistent growth in the online education market [4]