Financial Data and Key Metrics Changes - Full year revenue reached $2.4 billion, an increase of 18% from the previous year [12] - Adjusted operating income was $466.2 million, up nearly 60% year-over-year [12][18] - Diluted net income per share increased to $5.95, a 27% rise from last year [19] - Adjusted earnings per share was $8.1, up 48% compared to $5.49 in FY '24 [20] - Free cash flow was $372.8 million, an increase of $155.6 million from last year [21] Business Line Data and Key Metrics Changes - Career learning and middle and high school revenues were $876.3 million, up 35% [13] - General education revenue totaled $1.45 billion, an increase of 12% [13] - Total enrollments for career learning reached 96,300, up 33% [13] - General education enrollments totaled 137,700, up 13% [14] Market Data and Key Metrics Changes - The company anticipates double-digit enrollment growth for the upcoming school year, with current trends indicating a potential 10% to 15% growth in the first quarter [9][22] - The funding environment for FY '26 is expected to be positive, with some states increasing funding while others remain flat [14][44] Company Strategy and Development Direction - The company is focusing on expanding its tutoring services, particularly for second and third graders, to enhance reading skills [10][51] - Investments in AI and technology are being pursued to improve operational efficiency and customer outcomes [10][52] - The company aims to maintain its market leadership by adapting to macro trends and enhancing its product offerings [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued demand for school choice and the company's ability to serve more families and students [5][9] - The management team acknowledged the challenges of maintaining high growth rates as the company scales but remains committed to ambitious targets [36][38] - The overall funding environment is viewed positively, with no significant negative impacts anticipated from federal changes [45][44] Other Important Information - The company received multiple awards, including being named one of America's best mid-sized companies and best EdTech company [6] - A one-time noncash impairment charge of $59.5 million was recorded, related to the galvanized business [17] Q&A Session Summary Question: Can you discuss the current trends driving the expected enrollment growth? - Management indicated that strong application volumes are a reliable indicator of demand, with early funnel activity showing positive trends [25][27] Question: What is the status of contracts in New Mexico? - Management confirmed that despite losing a contract with Gallup McKinley, new partnerships were quickly established, and families have transitioned to new programs [30][64] Question: How does the company plan to manage operating income growth? - Management acknowledged that as the company scales, achieving operating income growth at twice the rate of revenue growth will become more challenging, but they remain committed to ambitious targets [36][38] Question: What are the expectations for the funding environment in FY '26? - Management expects a favorable funding environment, with some states increasing funding and no significant negative impacts from federal changes [44][45] Question: What are the plans for the adult learning business? - Management stated that while the adult learning business is not a major part of their operations, they believe it can generate incremental value and are focused on improving its performance [97][98]

Financial Data and Key Metrics Changes - Full year revenue reached $2.4 billion, an increase of 18% from the previous year [11] - Adjusted operating income was $466.2 million, up nearly 60% year-over-year [16] - Diluted net income per share increased to $5.95, a 27% rise from last year [17] - Adjusted earnings per share was $8.1, up 48% compared to $5.49 in FY '24 [18] - Free cash flow was $372.8 million, an increase of $155.6 million from last year [19] Business Line Data and Key Metrics Changes - Career learning and middle/high school revenues were $876.3 million, up 35% [12] - General education revenue totaled $1.45 billion, a 12% increase [12] - Total enrollments for career learning reached 96,300, up 33% [12] - General education enrollments totaled 137,700, up 13% [12] Market Data and Key Metrics Changes - The company anticipates double-digit enrollment growth for the upcoming fall, with current trends indicating a potential 10% to 15% growth in the first quarter [20] - The funding environment for FY '26 is expected to be positive, with some states increasing funding while others remain flat [13][41] Company Strategy and Development Direction - The company is focusing on expanding its tutoring services, particularly for second and third graders, to enhance reading skills [9][47] - Investments in AI and technology are being pursued to improve operational efficiency and customer outcomes [9][48] - The company aims to maintain its market leadership by adapting to macro trends and increasing demand for school choice [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming fiscal year, citing strong demand indicators and a favorable funding environment [20][41] - The company is committed to supporting families and teachers in New Mexico despite recent contract changes, indicating resilience in its operations [28][61] - Management acknowledged challenges in the adult learning segment but remains focused on improving execution and capturing value [54][95] Other Important Information - A one-time noncash impairment charge of $59.5 million was recorded, primarily related to the coworking business and a trade name write-down [16] - The company continues to prioritize investments in products and services while managing gross margin growth [15][48] Q&A Session Summary Question: Can you elaborate on the expected enrollment growth for fiscal '26? - Management indicated that strong application volumes are a reliable indicator of demand, suggesting a positive outlook for enrollment growth [22][24] Question: What is the status of contracts in New Mexico? - Management confirmed that despite losing a contract, they quickly secured new partnerships, demonstrating the strength of their franchise [28][30] Question: How does the company plan to manage operating income growth? - Management acknowledged that as the company scales, achieving operating income growth at twice the rate of revenue growth may become more challenging [32][34] Question: What is the outlook for the adult learning business? - Management expressed disappointment in the adult learning segment but sees potential for improvement and value creation [54][95] Question: How is the company addressing the demand for tutoring services? - Management highlighted the unique characteristics of their tutoring services, including certified teachers, and noted increasing traction in the market [81][82]