LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz continues its investigation of Stride, Inc. ("Stride†or the "Company†) (NYSE: LRN) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON STRIDE, INC. (LRN), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On September 14, 2025, Simply Wall St. published a report stating that the Gallup-M. ...

Core Viewpoint - Stride, Inc. is under investigation for potential violations of federal securities laws following a significant drop in stock price due to enrollment issues and poor customer experiences related to platform upgrades [1][3][5]. Company Overview - Stride, Inc. is an education technology company that provides an online platform for students across the U.S. [3]. Investigation Details - The investigation is led by Bleichmar Fonti & Auld LLP, a prominent securities law firm, focusing on potential securities fraud related to Stride's statements about record demand for its products and services [1][2][3]. - Stride's claims of continued investment in its career platform and programs are now being scrutinized in light of the recent developments [3]. Stock Performance - On October 28, 2025, Stride disclosed that its growth rate did not meet expectations due to poorly executed upgrades, which led to a "poor customer experience" and increased withdrawal rates [5]. - The company estimated a loss of approximately 10,000 to 15,000 enrollments, resulting in a muted outlook compared to previous years [5]. - Following this announcement, Stride's stock price plummeted over 50% during trading on October 29, 2025 [5].

Financial Performance - Q3 2025 revenue reached $195.7 million, exceeding expectations[13, 15] - Adjusted EBITDA for Q3 2025 was $24.3 million, representing a 12% margin[13, 15] - Free cash flow for Q3 2025 was positive $12.1 million, with year-to-date free cash flow at positive $58.2 million, or 10% of revenue[13] - Consolidated subscription revenue increased by 8% year-over-year in Q3 2025, accounting for 74% of total revenue[13, 17] - The company is projecting full year 2025 revenue between $787 million and $790 million and adjusted EBITDA between $92 million and $94 million[9, 26] Business Growth and Strategy - Udemy Business (UB) Annual Recurring Revenue (ARR) increased by 4% year-over-year[9, 15] - The platform has over 294,000 paid consumer subscribers, surpassing the 2025 target of 250,000[9, 13, 18] - Enterprise segment gross margin is at 75%[9] AI Initiatives - The platform offers over 5,000 AI-focused courses with over 14 million enrollments and 560 million+ minutes of AI training consumed[9, 18] - Nearly 13,000 Role Play simulations have been created, with over 400 enterprise customers launching custom Role Plays[9, 18]

Core Insights - Stride's shares have dropped nearly 49% following the release of first-quarter earnings, despite reporting increases in enrollments, revenue, and adjusted earnings per share by 11%, 13%, and 39% respectively [1][5] - The company has projected only 5% sales growth for 2026 due to significant issues encountered during the implementation of an upgraded platform [1][3] Enrollment and Revenue Impact - Stride experienced a loss of 10,000 to 15,000 enrollments due to disruptions from the platform upgrade, which is significant given the current total enrollment of 247,700 [2][5] - The implementation issues have negatively affected customer experience, leading to higher withdrawal rates and lower conversion rates than anticipated [3] Company Strategy and Future Outlook - Stride aimed for annualized sales growth of 19% over the past five years and sought to upgrade its platform to accommodate growth, but the execution did not meet expectations [3] - The CEO acknowledged the challenges faced during the implementation and emphasized ongoing efforts to rectify the situation with vendors [3] Market Reaction - The market has reacted cautiously to Stride's stock due to concerns over customer dissatisfaction and the potential for slower growth following the implementation issues [2][5] - Stride is currently trading at 13 times earnings, suggesting it may be viewed as a potential turnaround stock if management can restore customer trust [6]

Core Insights - Stride has been recognized in the 2026 GSV 150 list, highlighting its role in transforming digital learning and workforce skills globally [1][2] - The GSV 150 selection process involved over 3,000 companies, emphasizing Stride's strong business performance and social impact in education and training [2] Company Overview - Stride has been redefining education for 25 years, focusing on serving diverse learners and expanding educational choices for families [3] - The company operates in all 50 states and over 100 countries, offering a variety of education and career training brands, including K12-powered schools and professional skills training [3][5] Industry Context - The ASU+GSV Summit is a significant global event for stakeholders in the education and skills sector, with a focus on unlocking opportunities through innovation [6] - The education and skills sector is valued at $8 trillion, indicating substantial market potential for companies like Stride [6]

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. ...

Core Insights - Chegg (NYSE:CHGG) is facing challenges due to the rise of artificial intelligence in academia, leading to an uncertain future for the company [2] - The company announced plans to reduce its workforce and undergo restructuring to adapt to the changing educational landscape [2]

Core Insights - Chegg Inc. announced a significant restructuring plan, including a 45% reduction in its global workforce, primarily due to revenue declines attributed to the impact of artificial intelligence [1][3]. Restructuring Details - The restructuring plan involves laying off 388 employees, which is expected to reduce non-GAAP expenses by approximately $100-$110 million in 2026 [1][3]. - The company will incur charges of $15-$19 million, mainly for cash severance payments to the laid-off employees [3]. Leadership Changes - Executive Chairman Dan Rosensweig will take on the roles of President and CEO, while Nathan Schultz will transition to an Executive Advisor role [2]. Financial Performance - Chegg's stock price increased by 4.17% in after-hours trading following the announcement of the restructuring plan [2]. - Year-to-date, Chegg shares are down 14.29%, underperforming compared to the S&P 500 index, which has gained 17.15% [6]. Strategic Focus - The company is pivoting towards its business-to-business (B2B) operations, particularly its professional language learning platform Busuu and AI-related skills courses, which are projected to generate around $70 million in revenue in 2025 [5]. - Chegg aims to capitalize on the $40 billion+ skilling market as part of its new strategy [4]. Future Outlook - Chegg has reiterated its revenue and adjusted EBITDA guidance for the third quarter of 2025, with further details on the restructuring expected during the earnings call on November 10, 2025 [5].

Core Viewpoint - Chegg is laying off approximately 45% of its workforce, equating to 388 employees, due to the impact of artificial intelligence and reduced internet search traffic on its revenue [1][2] Group 1: Workforce Reduction - The company has announced a significant workforce reduction of 45%, following a previous layoff of 22% in May, attributed to the increasing adoption of AI tools [1][2] - Chegg's restructuring aims to adapt its academic learning products in response to the challenges posed by AI and diminished traffic from Google [2] Group 2: Financial Performance - Chegg's stock price peaked at $113.51 in February 2021 but has since plummeted by 99%, with its market capitalization dropping from approximately $14.7 billion to around $156 million [3] - The company offers various services, including textbook rentals and AI tools, but has faced declining revenue due to competition from generative AI software [3] Group 3: Leadership Changes - Dan Rosensweig has returned as CEO, replacing Nathan Schultz, who will remain as an executive advisor [4] - Rosensweig previously served as CEO from 2010 until April 2024, indicating a shift back to prior leadership [4] Group 4: Strategic Direction - Chegg has decided to remain a standalone company, concluding a strategic review process that began earlier in the year, with the board believing this will maximize long-term shareholder value [5] - The company had faced potential delisting from the New York Stock Exchange due to stock trading below $1, but it recovered above this threshold by May [6]

(the "Company") (A joint stock company incorporated in the People's Republic of China with limited liability) WARNING The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Beijing Hiducation Technolog ...