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]