Core Insights - Strategic Education, Inc. (STRA) reported strong first-quarter results for 2025, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate, showing year-over-year growth in both metrics [1][2] Financial Performance - Adjusted earnings per share (EPS) reached $1.30, surpassing the Zacks Consensus Estimate of $1.01 by 28.7%, and increased from $1.11 in the same quarter last year [2] - Total revenues amounted to $303.6 million, exceeding the consensus mark of $301.3 million by 0.8% and reflecting a 4.6% increase from the previous year [2] - On a constant-currency basis, revenues increased by 5.3% to $305.7 million [2] Segment Performance - **U.S. Higher Education (USHE)**: Revenues increased by 0.8% year-over-year to $221 million, driven by higher revenue per student, with student enrollment slightly rising to 87,854 [3] - **Education Technology Services (ETS)**: Revenues surged by 45.2% year-over-year to $34.3 million, supported by growth in Sophia Learning subscriptions and employer-affiliated enrollment [5][6] - **Australia/New Zealand (ANZ)**: Revenues were $48.3 million, up 1.9% year-over-year, although student enrollment decreased by 0.6% to 20,082 [7] Operating Metrics - Operating margin improved to 13.6%, up 80 basis points from the previous year [4] - Adjusted operating income rose to $41.7 million from $35.8 million year-over-year, with an adjusted operating margin of 13.7%, expanding 130 basis points [10] Cash and Debt Position - As of March 31, 2025, cash and cash equivalents stood at $144.2 million, an increase from $137.1 million at the end of 2024, with no long-term debt reported [11] - Cash provided by operating activities was $67.7 million, down from $77.6 million in the prior year [11]