Stride (LRN) PT Cut to $82 by BMO Capital Due to Platform Integration Failure, Maintains Market Perform

Financial Performance - Stride reported FQ1 2026 earnings with revenue of $620.9 million, reflecting a 13% year-over-year increase, driven by strong demand and record enrollment growth [2][3] - The Career Learning segment contributed significantly, generating $241.5 million, which is a 21% increase compared to the previous year [3] Operational Challenges - The company faced operational issues due to a failed technology platform integration, which negatively impacted enrollment [2][3] - It is estimated that the platform issues resulted in approximately 10,000 to 15,000 fewer enrollments than expected, although total enrollments still grew by 11.3% year-over-year [3] Analyst Sentiment - BMO Capital reduced Stride's price target from $108 to $82 while maintaining a Market Perform rating, citing the platform integration failure as a key reason for the downgrade [1] - Despite the challenges, BMO noted that Stride has not received non-renewal notices from partners, indicating some stability in relationships [1]