Core Insights - Stride, Inc. reported strong first-quarter fiscal 2026 results, with earnings and revenues exceeding the Zacks Consensus Estimate, and both metrics showing year-over-year growth [1][4][8] Financial Performance - Adjusted earnings per share (EPS) reached $1.52, surpassing the Zacks Consensus Estimate of $1.23 by 23.6%, compared to $1.09 in the same quarter last year [4][8] - Revenues totaled $620.9 million, beating the consensus estimate of $615 million by 1% and increasing by 12.7% year over year [5][8] - Total enrollment rose 11.3% year over year, reaching a record 247,700 students, indicating growing demand for alternative education options [5][8] - Average revenue per student increased by 3.7% from the previous year to $2,388 [5] Segment Performance - General Education segment revenues were $363.1 million, up 10.2% from the prior year, with enrollments growing 5.2% to 137,700 students [6] - Career Learning segment revenues for Middle-High School reached $241.5 million, up over 21% year over year, while Adult School revenues were $16.3 million, down from $22.8 million in the prior year [6] Operational Metrics - Stride's gross margin for the fiscal first quarter was 39%, a decrease of 20 basis points from the previous year [9] - Selling, general and administrative (SG&A) expenses totaled $173.1 million, reflecting a 3% year-over-year increase [9] - Adjusted EBITDA was $108.4 million, compared to $83.9 million in the prior-year quarter [10] Balance Sheet - As of September 30, 2025, Stride's cash and cash equivalents and marketable securities amounted to $749.6 million, down from $1,011.4 million reported on June 30, 2025 [11] - Capital expenditures were $21.7 million as of September 30, 2025, an increase from $14.8 million a year earlier [12] Future Guidance - For the second quarter of fiscal 2026, Stride expects revenues between $620 million and $640 million, with capital expenditures projected at $15 million to $18 million [13][14] - For the full fiscal year 2026, the company anticipates revenues in the range of $2.48 billion to $2.555 billion, with capital expenditures expected to be between $70 million and $80 million [15][16]

Core Insights - K12 (LRN) reported a revenue of $620.88 million for the quarter ended September 2025, reflecting a year-over-year increase of 12.7% and surpassing the Zacks Consensus Estimate by 1.03% [1] - The earnings per share (EPS) for the quarter was $1.52, significantly higher than the $0.94 reported in the same quarter last year, resulting in an EPS surprise of 23.58% compared to the consensus estimate of $1.23 [1] Revenue Breakdown - General Education revenue was $363.12 million, slightly below the average estimate of $365.73 million from two analysts [4] - Total Career Learning revenue reached $257.77 million, exceeding the average estimate of $245.96 million from two analysts [4] - Career Learning revenue for Adults was $16.27 million, falling short of the estimated $21.08 million [4] - Career Learning revenue for Middle to High School was $241.5 million, outperforming the average estimate of $224.87 million [4] Stock Performance - K12 shares have returned +1.8% over the past month, while the Zacks S&P 500 composite has increased by +3.6% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Q3 FY25 revenue reached $613.4 million, an 18% year-over-year increase[9] - Adjusted Operating Income for Q3 FY25 was $141.7 million, a 47% year-over-year increase[9] - Adjusted EBITDA for Q3 FY25 was $168.3 million, a 40% year-over-year increase[9] - Revenue for the first nine months of FY25 reached $1751.7 million, a 16% year-over-year increase[9] - Adjusted Operating Income for the first nine months of FY25 was $335.7 million, a 63% year-over-year increase[9] - Adjusted EBITDA for the first nine months of FY25 was $412.6 million, a 48% year-over-year increase[9] Enrollment Trends - Average Q3 enrollments reached 240200, up 21.1% from the prior year[7] - General Education enrollments increased by 16900, up 14% year-over-year[17] - Career Learning enrollments increased by 24900, up 34% year-over-year[17] Guidance and Targets - The company increased its full-year revenue guidance to a range of $2370 billion to $2385 billion[18] - The company increased its full-year Adjusted Operating Income guidance to a range of $455 million to $465 million[18]