K12 Demand Remains Strong

Core Insights - Stride, Inc. reported a revenue increase of 7.5% in Q2 FY 2026 compared to the same period in FY 2025, reaching $631.3 million [3][8] - The company achieved a net income of $99.5 million, reflecting a 3.2% increase year-over-year [5][6] - Enrollment figures rose by 7.8% to 248.5K in Q2 FY 2026, with Career Learning enrollments increasing by 17.6% [9][11] Financial Performance - Revenues for the three months ended December 31, 2025, were $631.3 million, up from $587.2 million in 2024, marking a $44.1 million increase [3][8] - Income from operations increased by 17.4% to $146.9 million compared to $125.1 million in the previous year [3][5] - Adjusted operating income for the quarter was $159.0 million, a 17.3% increase from $135.6 million [5][6] Earnings Metrics - Net income per share, diluted, rose to $2.12, up 4.4% from $2.03 in the prior year [3][5] - Adjusted earnings per share increased by 5.5% to $2.50 compared to $2.37 in the same quarter last year [3][5] - EBITDA for the quarter was reported at $177.8 million, a 16.6% increase from $152.5 million [3][5] Enrollment and Revenue Insights - Revenue per enrollment for Q2 FY 2026 was $2,437, up 1.8% from $2,395 in Q2 FY 2025 [11] - General Education revenue per enrollment decreased by 3.6%, while Career Learning revenue per enrollment increased by 10.0% [11][9] Cash Flow and Capital Allocation - As of December 31, 2025, the company's cash and cash equivalents totaled $676.0 million, down from $1,011.4 million at the end of June 2025 [12] - Capital expenditures for Q2 FY 2026 were $16.0 million, compared to $14.8 million in the same quarter of the previous year [13] Fiscal Year 2026 Outlook - The company forecasts full fiscal year 2026 revenue in the range of $2.480 billion to $2.555 billion [18] - Adjusted operating income is expected to be between $485 million and $505 million for the fiscal year [18]