Core Viewpoint - Stride (NYSE: LRN) stock is currently undervalued, expanding, and generating cash, making it an attractive investment opportunity for market participants [2]. Company Performance - LRN is trading at a significant discount compared to its highs over the past 3 months, 1 year, and 2 years, primarily due to platform implementation challenges in mid-2025, which resulted in 10,000-15,000 fewer enrollments and increased expenses [3]. - Despite recent challenges, LRN has shown strong demand, with Career Learning enrollments increasing by 20% in Q1 FY26 [4]. - The company maintains a robust balance sheet with $749.6 million in cash and a low debt-to-equity ratio of 0.32 [4]. - Revenue expectations for fiscal 2026 are projected between $2.48 billion and $2.555 billion, indicating resilience in the face of challenges [4]. Financial Metrics - LRN offers a cash flow yield of 10.4% and has experienced a revenue surge of 17.3% over the last twelve months, suggesting continued growth in cash reserves [8]. - The stock is currently priced at 55% less than its 3-month peak, 59% below its 1-year high, and 59% below its 2-year peak, reflecting a significant valuation discount [8]. Investment Considerations - The company has a market cap exceeding $2 billion, positive revenue growth, and a high free cash flow yield, making it a compelling investment option [9]. - Historical performance indicates average returns of 25.7% and 57.9% for the 6-month and 12-month periods, respectively, with a win rate of over 70% for both durations [9].

Third Quarter Presentation Nov 2025 Forward Looking Statements MATTERS DISCUSSED IN THIS DOCUMENT MAY CONSTITUTE FORWARD-LOOKING STATEMENTS. THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 PROVIDES SAFE HARBOR PROTECTIONS FOR FORWARD-LOOKING STATEMENTS IN ORDER TO ENCOURAGE COMPANIES TO PROVIDE PROSPECTIVE INFORMATION ABOUT THEIR BUSINESS. FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING PLANS, OBJECTIVES, GOALS, STRATEGIES, FUTURE EVENTS OR PERFORMANCE, AND UNDERLYING ASSUMPTIONS AND OTHER STA ...

Group 1: Investment Thesis - DEA's current market price of just over $20 is considered undervalued relative to its cash flow potential, offering a 14% cash yield with slightly growing cash flows [2][21] - The bear thesis surrounding DEA has weakened as fears regarding DOGE's impact on revenues and dividend sustainability have not materialized [3][21] - The dividend cut from $0.6625 to $0.45 was viewed as a responsible decision to ensure long-term growth, despite negative market reactions [7][8] Group 2: Financial Performance - DEA's Q1 2025 earnings report showed solid performance with a net operating income (NOI) increase to $57.121 million from $51.480 million year-over-year [12] - Cash available for distribution (CAD) increased significantly to $31.145 million from $25.885 million year-over-year, indicating strong cash flow generation [14] - FFO per share remained flat at $0.71, while core FFO per share increased to $0.73 from $0.71 year-over-year, reflecting stable operational performance [14] Group 3: Market Position and Future Outlook - DEA maintains a strong lease structure with over 95% of lease income in firm terms, reducing exposure to potential lease cancellations [15][16] - The company has a project pipeline valued at $1.5 billion, indicating growth opportunities in government-related real estate [17] - Long-term lease agreements with the U.S. government provide a stable revenue base, with rent obligations exceeding the company's enterprise value [26][28]