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Core Insights - K12 (LRN) reported quarterly earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, and showing an increase from $0.94 per share a year ago, resulting in an earnings surprise of +23.58% [1] - The company achieved revenues of $620.88 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.03% and up from $551.08 million year-over-year [2] - K12 shares have increased approximately 46.9% year-to-date, significantly outperforming the S&P 500's gain of 16.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.55 on revenues of $644.67 million, and for the current fiscal year, it is $8.81 on revenues of $2.66 billion [7] - The estimate revisions trend for K12 was favorable ahead of the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Schools industry, to which K12 belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting that the overall industry outlook may impact K12's stock performance [8] - Another company in the same industry, Lincoln Educational Services Corporation (LINC), is expected to report quarterly earnings of $0.12 per share, reflecting a year-over-year decline of -7.7%, with revenues projected at $129.34 million, up 13.1% from the previous year [9]

Financial Data and Key Metrics Changes - Revenue for the quarter was $620.9 million, up 13% from the first quarter of last year [10] - Adjusted operating income increased by almost $23 million, or 39%, to $81.1 million [10] - Adjusted earnings per share were $1.52, up $0.43 from last year [11] - Gross margins for the quarter were 39%, down 20 basis points from last year [12] - Free cash flow was -$217.5 million compared to -$156.8 million in the prior year period [14] Business Line Data and Key Metrics Changes - Career Learning middle and high school revenue was $241.5 million, up more than 21% from last year [11] - Career Learning enrollments grew 20% to 110,000 [11] - General Education revenue grew over 10% to $363.1 million on enrollment growth of 5.2% to 137,700 students [11] - Total revenue per enrollment across both lines was $2,388, up 3.7% from last year [11] Market Data and Key Metrics Changes - Total enrollments for the quarter were up 11.3% from last year, setting a record for the number of students served [11] - The company expects to finish the year flattish in revenue per enrollment compared to fiscal year 2025 [12] Company Strategy and Development Direction - The company is investing in upgrading learning and technology platforms, which is expected to pay dividends in the long term despite short-term growth limitations [4][5] - The focus is on running high-quality programs, which may involve limiting enrollment growth temporarily [5] - The company aims to meet the diverse educational needs of families, providing affordable alternatives to traditional schooling [7][8] Management's Comments on Operating Environment and Future Outlook - Management indicated that while demand remains strong, in-year enrollment growth is not expected to match previous years due to platform implementation challenges [6][10] - The outlook for the business remains bullish in the long term, with a commitment to improving customer experience and operational execution [7][10] Other Important Information - Capital expenditures for the quarter were $21.7 million, up $6.9 million from last year [11] - The company expects to incur additional expenses related to the platform rollout [12] - Full-year stock-based compensation is projected to be in the range of $41 million-$44 million [13] Q&A Session Summary Question: Enrollment guidance for the year - The company did not provide full-year enrollment guidance but indicated that they do not expect the same level of in-year enrollment growth as in previous years [19] Question: Impact of platform issues on enrollments - Management believes the majority of the 10,000-15,000 fewer enrollments were due to system implementation issues, which affected customer experience and led to higher withdrawal rates [21] Question: Rationale and timing for tech implementation - The rationale for the tech implementation was to support the company's growth, but execution did not go as planned during the critical summer period [26][27] Question: Competitive landscape - The company welcomes healthy competition and believes that its growth outpaces that of its largest competitors [39] Question: Nature of platform issues - The platform issues are related to both customer-facing and back-office functions, and the company is working on a series of fixes throughout the year [43][45]

Financial Data and Key Metrics Changes - Revenue for the quarter was $620.9 million, up 13% from the first quarter of last year [9] - Adjusted operating income was $81.1 million, an increase of almost $23 million, or 39% [9] - Adjusted earnings per share were $1.52, up $0.43 from last year [10] - Gross margins for the quarter were 39%, down 20 basis points from last year [11] - Free cash flow was -$217.5 million compared to -$156.8 million in the prior year period [12] Business Line Data and Key Metrics Changes - Total enrollments for the quarter were up 11.3% from last year, setting a record with 247,700 students [10] - Career Learning middle and high school revenue for the quarter was $241.5 million, up more than 21% from last year, with enrollments growing 20% to 110,000 [10] - General Education revenue grew over 10% to $363.1 million on enrollment growth of 5.2% to 137,700 students [10] - Total revenue per enrollment across both lines was $2,388, up 3.7% from last year [10] Market Data and Key Metrics Changes - The company indicated a positive funding environment but expects some impact from state mix and timing [11] - The outlook for revenue per enrollment is now expected to be flat compared to fiscal year 2025 [11] Company Strategy and Development Direction - The company is focused on upgrading learning and technology platforms, which is seen as a long-term investment despite short-term growth limitations [4][6] - The company aims to provide educational choices that meet diverse family needs, emphasizing personalized and tech-enabled education [6][7] - The company is rolling out free ELA tutoring for second and third graders to enhance foundational skills [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while demand remains strong, in-year enrollment growth is not expected to match previous years due to platform implementation issues [5][13] - The company remains optimistic about long-term growth despite current challenges, with a clear roadmap for resolving platform issues [6][37] Other Important Information - Capital expenditures were $21.7 million, up $6.9 million from last year [10] - Stock-based compensation for the quarter was $10.2 million, an increase of $1.8 million compared to last year [11] Q&A Session Summary Question: Enrollment guidance for the year - The company did not provide full-year enrollment guidance but indicated that they do not expect the same level of in-year enrollment growth as in previous years [17] Question: Impact of platform issues on enrollments - Management believes the majority of the 10,000 to 15,000 fewer enrollments were due to system implementation issues, which affected customer experience and led to higher withdrawal rates [19] Question: Rationale and timing for tech implementation - The rationale for the tech implementation was to support the company's growth, but execution did not go as planned, leading to issues during the critical summer period [22][24] Question: Competitive landscape - The company welcomes healthy competition and believes its growth outpaces that of its largest competitors, despite the challenges faced [33] Question: Clarification on platform issues - The platform issues affect both customer-facing and back-office functions, and the company is working on a series of fixes throughout the year [35][36]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-33883 Stride, Inc. (Exact name of registrant as specified in its charter) Delaware 95-4774688 (State or other jurisd ...

Stride, Inc. (NYSE:LRN) stock plunged after the company released its third-quarter earnings report after Tuesday's closing bell. Here's what to know: LRN stock is dropping. See the real-time price action here.The Details: Stride reported quarterly earnings of $1.40 per share which beat the analyst estimate of $1.13. Read Next: Amazon To Cut Up To 30,000 Jobs, Largest Layoff In Company HistoryQuarterly revenue came in at $620.9 million, which beat the analyst consensus estimate of $613.7 million.As of Sept. ...

Q1 FY2026 Performance - Total enrollments reached 247700, an increase of 113% year-over-year[8] - Adjusted Operating Income was $811 million, up 39% year-over-year[12] - Adjusted EBITDA was $1084 million, up 29% year-over-year[12] - Adjusted EPS was $152, up 39% year-over-year[12] Financial Growth and Guidance - Q1 FY26 total revenue was $6209 million, representing a 127% increase year-over-year[21] - The company is guiding for FY26 revenue between $248 billion and $2555 billion, representing approximately 5% year-over-year growth at the midpoint[23, 24] - The company is guiding for FY26 Adjusted Operating Income between $475 million and $500 million, representing approximately 5% year-over-year growth at the midpoint[23, 24] Secular Trends and Market Demand - 60% of parents searched for new schools for their children in the last year, with 27% considering full-time online education options[13] - 44% of parents fear for their children's safety at school[13] - 81% of K-12 parents support making K-12 education more flexible[13] - Only 35% of Americans are satisfied with K-12 education in the US[13] Balance Sheet and Capital Allocation - The company has a strong balance sheet with $7496 million in cash, cash equivalents, and marketable securities[25] - Total debt obligations are $5418 million, resulting in a leverage ratio of 004x[25] - The company prioritizes organic growth, new product and technology development, and synergistic M&A[28]

EXHIBIT 99.1 Strong Demand Drives Growth 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 First Quarter Fiscal 2026 Summary Financial Metrics | | Three Months Ended | | | | | | --- | --- | --- | --- | --- | --- | | | September 30, | | | Change 2025/2024 | | | | 20 ...

Core Insights - Stride, Inc. reported strong financial results for the first quarter of fiscal year 2026, with revenues reaching $620.9 million, a 12.7% increase from $551.1 million in the same period last year [3][5][4]. Financial Performance - Revenues for the first quarter were $620.9 million, up from $551.1 million, reflecting a $69.8 million increase [3][5]. - Income from operations was $69.0 million, compared to $47.3 million, marking a 45.7% increase [3][5]. - Net income rose to $68.8 million, a significant increase of 68.3% from $40.9 million [3][5]. - Diluted net income per share increased to $1.40, up 48.9% from $0.94 [3][5]. - Adjusted operating income was $81.1 million, a 39.0% increase from $58.4 million [3][5]. - Adjusted EBITDA reached $108.4 million, up 29.2% from $83.9 million [3][5]. Enrollment and Revenue Metrics - Total enrollments for the first quarter were 247.7K, an 11.3% increase from 222.6K enrollments in the first quarter of fiscal year 2025 [6]. - Career Learning enrollments increased by 20.0% to 110.0K compared to 91.7K in the previous year [6]. - Revenue per enrollment was $2,388, a 3.7% increase from $2,303 in the first quarter of fiscal year 2025 [8]. Cash Flow and Capital Allocation - As of September 30, 2025, the company's cash and cash equivalents totaled $749.6 million, down from $1,011.4 million at the end of June 2025 [9]. - Capital expenditures for the quarter were $21.7 million, compared to $14.8 million in the same period last year [10]. Fiscal Year 2026 Outlook - The company forecasts total revenue for fiscal year 2026 to be in the range of $2.480 billion to $2.555 billion [13]. - For the second quarter of fiscal year 2026, revenue is expected to be between $620 million and $640 million, with adjusted operating income projected between $135 million and $145 million [13].

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]