Financial Data and Key Metrics Changes - On a constant currency basis, revenue grew by 4% from the prior year, with disciplined expense management limiting operating expense growth to just 2%, resulting in operating income of $49 million, a 12% increase from the prior year [5] - Adjusted earnings per share increased by 16% to $1.54 compared to $1.33 from the prior year [6] - Operating margin increased by 110 basis points to 15.2% [5] Business Line Data and Key Metrics Changes - The Education Technology Services (ETS) division saw revenue and operating income both increase by 50% from the prior year to $37 million and $15 million respectively, with its share of operating income growing from 23% to 31% [6] - Sofia Learning, the direct-to-consumer portal, grew both average and total subscribers and revenue by 40% [7] - US higher education operating income increased by 5% from the prior year, with operating expenses decreasing by $2 million, or 1% [9] Market Data and Key Metrics Changes - Total enrollment in US higher education decreased by 1% from the prior year, but slightly higher revenue per student helped offset the decline, resulting in revenue being down by only 0.5% [7] - Employer affiliated enrollment increased by 8% from the prior year, now representing 32% of all US higher education enrollment [8] - In the Australia/New Zealand segment, total enrollment decreased by 3% from the prior year, but revenue increased slightly to $71 million [10] Company Strategy and Development Direction - The company is focusing on the Australian domestic market, where mid to high single-digit new student growth has been observed [10] - There is a plan to increase marketing investments in the domestic market in the back half of the year, which is expected to support growth in 2026 [19][39] - The company remains optimistic about the future growth of the Australia/New Zealand segment once international enrollment restrictions are lifted [10][37] Management's Comments on Operating Environment and Future Outlook - Management noted that the softness in new student enrollment is primarily at Strayer University, particularly among unaffiliated students, but expects enrollment to normalize in the mid-single-digit range over the long term [25] - The company does not expect any material adverse impact from the recent legislative changes, including the "one big beautiful bill" [21] - Management expressed confidence in the strong performance of the ETS division and its potential to contribute significantly to earnings [6][32] Other Important Information - The company repurchased approximately 325,000 shares during the quarter for a total of $28 million, with $169 million remaining on the share repurchase authorization [10] - The caps on employer-affiliated tuition assistance programs are expected to be a net positive for the company [40] Q&A Session Summary Question: Clarification on unaffiliated enrollment decline - Management indicated that the decline in unaffiliated enrollment is primarily at Strayer University and that the rate of decline was slightly better in the second quarter than in the first quarter [15] Question: Domestic vs. international enrollment split in ANZ - Management noted that the split between domestic and international enrollment has shifted towards more domestic due to regulatory restrictions on international students [19] Question: Legislative and regulatory impacts on higher education - Management stated that they do not expect any material adverse impact from the "one big beautiful bill" and are still digesting its components [21] Question: Weakness at Strayer and leading indicators - Management acknowledged pressure on unaffiliated undergraduate students at Strayer but expects enrollment to normalize over the long term [25] Question: Update on large employer partnerships - Management reported strong revenue growth from a large employer partnership and indicated that onboarding is progressing well [32]

Core Insights - Stride, Inc.'s career-learning programs are experiencing high demand due to a favorable market where parents prefer career-focused alternatives to traditional K-12 education [1][2] - The company is expanding its career learning and adult certification programs, targeting middle and high school students in high-demand industries such as information technology, healthcare, and general business [2][3] - The Career Learning segment contributed 39.8% to total revenues in the first nine months of fiscal 2025, with revenues growing 23.7% year over year to $697.1 million [3][9] - Enrollment in the Career Learning segment increased by 32% year over year, indicating strong market fundamentals and a positive long-term outlook [3][4] Industry Context - Other education firms like Adtalem Global Education Inc. and Strategic Education, Inc. are also benefiting from the increased demand for career professionals in various industries [5] - Adtalem has seen growth in its nursing programs, driven by strong demand for healthcare education [6] - Strategic Education offers innovative solutions to meet the evolving needs of students and employers, focusing on flexibility and career readiness [7] Financial Performance - Stride's stock has increased by 38.9% year-to-date, outperforming the Zacks Schools industry and the S&P 500 index [8][9] - The stock is currently trading at a forward P/E ratio of 18.68X, indicating a premium valuation compared to industry peers [11] - Earnings estimates for fiscal 2025 and 2026 have increased by 6.3% and 6.2%, respectively, suggesting strong growth potential [12]

Financial Data and Key Metrics Changes - SEI's revenue grew by 5% in Q1 2025, with adjusted operating income increasing by 16% [4] - Operating margin increased to 13.6%, and adjusted earnings per share grew 16% to $1.29 compared to $1.11 in Q1 2024 [5] Business Line Data and Key Metrics Changes - Total enrollment in U.S. Higher Education slightly increased, driven by a 7% rise in employer-affiliated enrollment, offset by lower unaffiliated enrollment [5] - U.S. Higher Education revenue grew by 1%, and operating income increased by 7% from the previous year [6] - ANZ total enrollment decreased by 1%, primarily due to lower international enrollment related to regulatory changes [6] - ANZ revenue increased by 6% on a constant currency basis, driven by pricing, despite reporting an operating loss of $2.2 million [7][8] - Education Technology Services (ETS) segment revenue grew by 45%, with operating income increasing by 37% [9] Market Data and Key Metrics Changes - The percentage of total U.S. higher education enrollment from corporate partnerships reached 31%, an increase of 200 basis points from the prior year [6] - Enrollments in Workforce Edge increased nearly 50%, reaching approximately 2,300 students [10] Company Strategy and Development Direction - The company is focusing on expanding corporate partnerships and deepening relationships in Workforce Edge to drive future growth [15] - There is a strategic shift towards increasing domestic enrollment in Australia and New Zealand [25] Management Comments on Operating Environment and Future Outlook - Management noted that the enrollment slowdown is part of normal cyclicality, with expectations for mid-single-digit growth in the future [14] - Confidence was expressed regarding the performance in 2025 aligning with the notional model outlined at Investor Day [31] Other Important Information - The company repurchased approximately 390,000 shares for a total of $32 million during the quarter, with $197 million remaining in share repurchase authorization [10] Q&A Session Summary Question: U.S. Higher Education enrollment growth has slowed; any specific changes? - Management indicated no changes in marketing or advertising, attributing the slowdown to normal cyclicality [14] Question: What is driving the strong EPS numbers? - The strength in Sofia and increased marketing investments were highlighted as key drivers [17] Question: Comments on persistence rates? - Persistence rates were stable, with slight improvements noted [23] Question: Discussion on international enrollment and domestic growth in ANZ? - Management explained that regulatory changes impacted international enrollment, while domestic marketing efforts have been increased [25][27] Question: Adjusted operating expenses were up; any comments? - Management confirmed that spending plans remain on track, with some timing differences in headcount affecting the first quarter [29] Question: Confidence in revenue growth aligning with the notional model? - Management expressed confidence that revenue growth would align with the 4% to 6% target [39]

Financial Data and Key Metrics Changes - For the full year 2024, revenue increased by 8% and operating income increased by 26%, resulting in almost 200 basis points of operating margin expansion [6] - Adjusted earnings per share grew by 31% for the year to $4.87 [7] Business Line Data and Key Metrics Changes - In US higher education, revenue increased by 5% for the year, but decreased in the fourth quarter due to higher scholarships and a shift towards employer-affiliated students [8] - The Australia and New Zealand segment saw revenue growth of 11% on a constant currency basis, driven by enrollment growth and higher revenue per student [9] - The education technology services segment achieved record revenue growth of over 30% to exceed $100 million, with operating income increasing by almost 50% [12] Market Data and Key Metrics Changes - US higher education average total enrollment grew by 6% in 2024, with employer-affiliated enrollment growing by 16% [7] - The Australia and New Zealand segment's average total enrollment grew by 5% for the year [8] Company Strategy and Development Direction - The company continues to focus on productivity and disciplined cost management, which allowed expense growth to remain below revenue growth in US higher education [8] - The network of corporate partners is a major competitive strength, with over 70% of incremental total enrollment in US higher education coming through these partnerships [14] - The company plans to market more towards the domestic Australian market to counteract potential enrollment caps [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, projecting mid-single-digit growth in US higher education and high single-digit growth in Australia and New Zealand [41] - The company is monitoring the evolving political and regulatory environment in Australia, particularly regarding international student immigration [11][22] Other Important Information - The company generated approximately $217 million pretax cash from operations in 2024, with $128 million of distributable free cash flow remaining after expenses and dividends [15] - The company repaid a $61 million balance on its revolver and refinanced a $250 million revolver, ending 2024 with just under $200 million in cash and marketable securities [16] Q&A Session Summary Question: Enrollment trends and growth expectations - Management noted that corporate partnership enrollment remains strong, and while growth may normalize to long-term trends, they expect fluctuations in quarterly performance [20] Question: Regulatory changes in Australia and New Zealand - Management explained that the proposed international student caps were replaced with a ministerial direction focusing on visa processing times, which may impact enrollment later in the year [22][25] Question: Impact of US government changes on business - Management indicated that they have a significant presence among federal government employees and are monitoring the situation as new political appointees are confirmed [27] Question: Adjusted operating expenses and future guidance - Management confirmed that the adjusted operating expense of $271 million in 2024 is expected to be appropriate for 2025, with some seasonality in marketing investments [38] Question: Revenue per student decline in US higher education - Management attributed the decline to a shift towards employer-affiliated students and higher scholarships, expecting revenue per student to remain stable in 2025 [54][55]