RESTON, Va., Oct. 28, 2025 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the first quarter of fiscal year 2026 ended September 30, 2025. First Quarter Fiscal 2026 Highlights Compared to 2025 Revenue of $620.9 million, compared with $551.1 millionIncome from operations of $69.0 million, compared with $47.3 millionNet income of $68.8 million, compared with $40.9 millionDiluted net income per share of $1.4 ...

Core Insights - Stride, Inc. (LRN) is set to report its first-quarter fiscal 2026 results on October 28, with expectations of strong performance based on previous quarters [1][6] - The company has shown a consistent ability to exceed earnings estimates, with adjusted EPS and total revenues growing significantly year-over-year [1][2] Financial Performance - In the last reported quarter, Stride's adjusted EPS was $2.29, surpassing the Zacks Consensus Estimate by 25.1%, while total revenues reached $614.6 million, exceeding estimates by 3.9% [1][2] - The consensus estimate for the upcoming quarter's adjusted EPS is $1.23, reflecting a 30.9% increase from the previous year, and total revenues are expected to rise by 11.5% year-over-year [4][6] Enrollment and Growth Factors - Enrollment growth is anticipated to be between 10% and 15% year-over-year, driven by strong demand for tech-based education and career-focused programs [9][17] - The integration of AI in educational offerings and a focus on K12 Tutoring are expected to enhance growth prospects [8][17] Cost and Margin Considerations - While increased instructional costs and SG&A expenses may pressure margins, the overall top-line growth is expected to provide leverage [10][18] - The company aims to balance business investments and control expenses to maintain margin scalability [10] Market Position and Valuation - Stride's stock has appreciated by 18.5% over the past three months, outperforming its industry and broader market indices [14] - The stock is trading at a premium compared to industry averages but below its median forward P/E ratio, suggesting a cautious investment approach [15][18] Long-term Outlook - The ongoing regulatory reforms in the U.S. education sector and the demand for online K-12 and career education programs position Stride favorably for long-term growth [11][18] - The company's strategic focus on AI integration and enrollment growth reinforces its competitive edge in the education market [17][18]

Core Insights - K12 has received two Silver Medals from the International Serious Play Awards for its educational games, K12 ELA Village and K12 Coordinate Islands world for Minecraft Education, highlighting its commitment to game-based learning innovations [1][5] Company Overview - K12 has been a national leader in online learning for 25 years, serving over three million students across the United States [2][6] - The company offers flexible learning options, including online public and private schools, personalized tutoring, and accredited homeschool curriculum [6] Educational Innovations - K12 ELA Village is designed for students in Grades 2-5, focusing on the Science of Reading principles to enhance skills in grammar, vocabulary, syntax, and reading comprehension through various mini-games [3] - K12 Coordinate Islands world for Minecraft Education engages Grade 5 students in graphing lessons through an adventure across themed islands, allowing them to navigate coordinate planes and interpret ordered pairs [4] Learning Approach - K12 integrates technology-enabled, standards-aligned gameplay to transform traditional learning into active discovery, making education more interactive and engaging for students [5]

I'm rating Stride (NYSE: LRN ) as a Hold. While a rebound is likely given the consolidation in prices since September 16, the valuation, both relative and absolute, stops me from being a convinced bull. Plus, the CEO and CFO haveAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for ...

Core Points - Bragar Eagel & Squire, P.C. is investigating potential claims against Stride, Inc. for possible violations of federal securities laws and unlawful business practices [1][2] - The investigation follows a complaint filed by the Gallup-McKinley County Schools Board of Education, alleging fraud and deceptive practices, including inflating enrollment numbers to secure state funding [6] - Stride's stock price experienced a significant decline of $18.60 per share, or 11.75%, closing at $139.76 per share following the news of the complaint [6] Investigation Details - The law firm is reaching out to Stride stockholders who may have suffered losses and encourages them to discuss their legal rights [1][3] - The firm offers no-cost consultations for affected investors to learn more about their claims [3][4] About the Law Firm - Bragar Eagel & Squire, P.C. is a nationally recognized law firm with a focus on representing individual and institutional investors in complex litigation [4] - The firm operates in multiple states, including New York, South Carolina, and California, and has a strong track record in securities and derivative litigation [4]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a pressing concern regarding the energy supply needed to sustain this growth [2] - AI data centers consume energy equivalent to that of small cities, leading to a strain on global power grids and rising electricity prices [2][3] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI advancements [3][6] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses significant nuclear energy infrastructure assets, making it a pivotal player in the U.S. energy strategy [7] - The company is noted for its capability to execute large-scale engineering, procurement, and construction projects across various energy sectors [7] Financial Position - The company is completely debt-free and has a substantial cash reserve, amounting to nearly one-third of its market capitalization [8] - It also holds a significant equity stake in another AI-related company, providing indirect exposure to multiple growth opportunities without high premiums [9][10] Market Sentiment - There is a growing interest from hedge funds in this company, which is considered undervalued and off the radar compared to other AI and energy stocks [9][10] - The company is trading at less than 7 times earnings, indicating a strong potential for upside in the context of its critical role in the AI and energy sectors [10] Future Outlook - The ongoing AI infrastructure supercycle, combined with the onshoring boom and increased U.S. LNG exports, positions this company favorably for future growth [14] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, further solidifying the importance of energy infrastructure [12][13]

Wall Street expects a year-over-year increase in earnings on higher revenues when K12 (LRN) reports results for the quarter ended September 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 28. On the ...

Core Insights - The online education sector is experiencing a significant shift towards digital alternatives, with companies like Stride, Inc. and Coursera, Inc. benefiting from this trend [1][21]. Stride, Inc. (LRN) - Stride is focusing on strategic investments across its programs, particularly in career platforms and AI integration [2]. - The company has seen record enrollment growth, with a 20.4% year-over-year increase in fiscal 2025, driven by a 32.5% increase in Career Learning and a 13.2% increase in General Education [3][9]. - Stride's K12 Tutoring services are gaining traction, with partnerships like the one with Lake Forest School District enhancing its growth prospects [5]. - Despite macroeconomic challenges, Stride's in-house strategies and favorable market shifts are mitigating risks [6]. - Stride's trailing 12-month Return on Equity (ROE) stands at 25.5%, indicating strong efficiency in generating shareholder returns [20]. Coursera, Inc. (COUR) - Coursera is heavily investing in AI-powered features to enhance learner engagement, with over 925 generative AI courses and enrollments exceeding 10 million [7][11]. - The company has introduced new job-specific generative AI courses in collaboration with major tech firms, aligning with market trends [8]. - Coursera's revenues grew by 8% year-over-year in the first half of 2025, driven by an 18% increase in Registered Learners and a 15% increase in Paid Enterprise Customers [11]. - However, Coursera faces challenges such as lower retention rates among paid learners and budgetary constraints affecting corporate spending [12]. Comparative Analysis - Stride's stock is currently trading at a lower price-to-earnings (P/E) ratio compared to Coursera, suggesting a more attractive entry point for investors [14]. - Stride's earnings estimates for fiscal 2026 and 2027 indicate year-over-year growth of 8.8% and 10.2%, respectively, while Coursera's estimates reflect growth of 14.7% and 16.5% [18][20]. - Stride's consistent earnings momentum and favorable ROE position it as a better investment option compared to Coursera, which is rated as a hold [22][24].

What's on the other side?gettyStride, a giant in the cyber charter school industry, was accused by a New Mexico school district of violating rules and regulations. Now a lawsuit alleges that Stride responded by mounting a coordinated attack on the district and its superintendent. In 2020, Gallup-McKinley County Schools contracted with Stride (formerly known as K12 Inc) to operate its New Mexico Destinations Career Academy. But the district alleges that the for-profit organization repeatedly cut corners, vio ...

Core Insights - Stride, Inc. (LRN) focuses on online and hybrid education models to meet the increasing demand for flexibility, accessibility, and personalized learning [1] - The company is investing in various programs, particularly in career platforms and AI integration, to enhance customer outcomes and experiences [2] - Stride's fiscal 2025 performance showed a 20.4% year-over-year enrollment growth, with significant increases in both General Education (13.2%) and Career Learning (32.5%) segments [3] Business Initiatives - Stride is actively integrating AI into its tutoring model to improve service offerings and meet growing demand [2][3] - The K12 Tutoring service is becoming a key differentiator for Stride, positioning it favorably among competitors [2] Competitive Landscape - Stride competes with major players like Coursera, Inc. and Chegg, Inc., with its integrated K-12 and career learning model providing a competitive edge [5][7] - Coursera offers flexibility and global recognition, while Chegg focuses on direct-to-consumer subscription models for college support [6] Financial Performance - Stride's stock has increased by 41.1% year-to-date, outperforming the Zacks Schools industry and the S&P 500 Index [8] - Earnings estimates for fiscal 2026 and 2027 have risen to $8.81 and $9.71 per share, indicating year-over-year growth of 8.8% and 10.2% respectively [12] Valuation Metrics - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 16.13, which is a premium compared to industry peers [11]