Stride reports third quarter 2026 financial results

RESTON, Va., April 28, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. ( LRN ) , one of the nation’s most successful technology-based education companies, today announced its results for the third quarter of fiscal year 2026 ended March 31, 2026. Third Quarter Fiscal 2026 Highlights Compared to 2025 Revenue of $629.9 million, compared with $613.4 millionIncome from operations of $129.1 million, compared with $130.8 millionNet income of $88.5 million, compared with $99.3 millionDiluted net income per share of $1.93, compared with $2.02Adjusted operating income of $140.4 million, compared with $141.7 million (1)Adjusted EBITDA of $171.3 million, compared with $168.3 million (1)Adjusted earnings per share of $2.30, compared with $2.33 (1) Third Quarter Fiscal 2026 Summary Financial Metrics Three Months Ended March 31, Change 2026/2025 2026 2025 $ % (In thousands, except percentages and per share data)Revenues$629,873 $613,376 $16,497 2.7% Income from operations 129,080 130,786 (1,706) (1.3%)Adjusted operating income (1) 140,424 141,744 (1,320) (0.9%) Net income 88,527 99,346 (10,819) (10.9%)Net income per share, diluted 1.93 2.02 (0.09) (4.5%)Adjusted earnings per share (1) 2.30 2.33 (0.03) (1.3%) EBITDA (1) 161,676 159,727 1,949 1.2%Adjusted EBITDA (1) 171,250 168,275 2,975 1.8% (1) To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share. Management believes that these additional measures provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. Nine Month Fiscal 2026 Highlights Compared to 2025 Revenue of $1,882.0 million, compared with $1,751.7 millionIncome from operations of $344.9 million, compared with $303.2 millionNet income of $256.8 million, compared with $236.6 millionDiluted net income per share of $5.39, compared with $4.95Adjusted operating income of $380.6 million, compared with $335.7 million (1)Adjusted EBITDA of $467.8 million, compared with $412.6 million (1)Adjusted earnings per share of $6.22, compared with $5.83 (1) Nine Month Fiscal 2026 Summary Financial Metrics Nine Months Ended March 31, Change 2026/2025 2026 2025 $ % (In thousands, except percentages and per share data)Revenues$1,882,017 $1,751,670 $130,347 7.4% Income from operations 344,915 303,229 41,686 13.7%Adjusted operating income (1) 380,559 335,673 44,886 13.4% Net income 256,804 236,621 20,183 8.5%Net income per share, diluted 5.39 4.95 0.44 8.9%Adjusted earnings per share (1) 6.22 5.83 0.39 6.7% EBITDA (1) 437,698 387,699 49,999 12.9%Adjusted EBITDA (1) 467,761 412,621 55,140 13.4% Revenue Data Three Months Ended Nine Months Ended March 31, Change 2026 / 2025 March 31, Change 2026 / 2025 2026 2025 $ % 2026 2025 $ % (In thousands, except percentages) General Education$357,463 $370,821 $(13,358) (3.6%) $1,061,976 $1,054,542 $7,434 0.7%Career Learning Middle - High School 259,520 223,868 35,652 15.9% 776,610 635,832 140,778 22.1%Adult 12,890 18,687 (5,797) (31.0%) 43,431 61,296 (17,865) (29.1%)Total Career Learning 272,410 242,555 29,855 12.3% 820,041 697,128 122,913 17.6%Total Revenues$629,873 $613,376 $16,497 2.7% $1,882,017 $1,751,670 $130,347 7.4% Enrollment and Revenue Per Enrollment Data Third quarter enrollments were 244.5K, up 1.8% compared to 240.2K enrollments in the third quarter of fiscal year 2025. Of the total enrollments, 110.1K were Career Learning enrollments, up 11.6% compared to 98.7K Career Learning enrollments in the third quarter of fiscal 2025. Enrollments only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, and instructional and support services, inclusive of administrative support and may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollments for our Adult Learning business. Revenue per enrollment for the third quarter was $2,485, up 2.9% compared to $2,415 in the third quarter of fiscal year 2025. General Education revenue per enrollment was $2,590, up 2.9% compared to the third quarter of fiscal year 2025, and Career Learning revenue per enrollment was $2,356, up 3.8%, compared to the third quarter of fiscal year 2025. Cash Flow and Capital Allocation As of March 31, 2026, the Company’s cash and cash equivalents and marketable securities totaled $856.0 million, compared with $1,011.4 million reported at June 30, 2025. Capital expenditures for the three months ended March 31, 2026 were $18.5 million, compared to $15.8 million in the three months ended March 31, 2025, and were comprised of $0.5 million of property and equipment, $12.8 million of capitalized software development and $5.2 million of capitalized curriculum development. Fiscal Year 2026 Outlook The Company is narrowing its revenue, adjusted income, and capital expenditures forecast for the full fiscal year 2026: Revenue in the range of $2.490 billion to $2.520 billion.Capital expenditures in the range of $75 million to $80 million. Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows.Effective tax rate of 24% to 25%.Adjusted operating income in the range of $490 million to $500 million. (1) (1) In addition to providing an outlook for revenue and capital expenditures, adjusted operating income is provided as a supplemental non-GAAP financial measure as management believes that it provides useful information to our investors. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. Please also see Special Note on Forward-Looking Statements below. Conference Call The Company will discuss its third quarter of fiscal year 2026 financial results during a conference call scheduled for Tuesday, April 28, 2026 at 5:00 p.m. eastern time (ET). A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call. A replay of the call will be posted at investors.stridelearning.com/events-and-presentations. About Stride Inc. ( LRN ) Stride Inc. ( LRN ) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com. Investor Contactir@k12.comMedia Contactpress@k12.com Special Note on Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including FY 2026 outlook. We have tried, whenever possible, to identify these forward-looking statements using words such as “outlook,” “forecasts,” “anticipates,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends,” “should,” “would” and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model or meet guidance; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve, our vendors, or us to comply with our contracts, or federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, contractual remedies, or actions or proceedings against us; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve, including due to the evolution of curriculum standards, testing programs and state accountability metrics; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction or termination in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies (including artificial intelligence) and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud systems and facilities, resulting from cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems; problems in the implementation of new IT systems and technology; failure by us or third parties to maintain and support information technology systems, including addressing quality issues and timely delivering new products and enhancements; risks related to artificial intelligence; and other risks and uncertainties associated with our business described in the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequently filed Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this press release is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.Financial Statements The financial statements set forth below are not the complete set of Stride, Inc.’s financial statements for the three and nine months ended March 31, 2026 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC’s website at www.sec.gov or from Stride Inc.’s Investor Relations website at investors.stridelearning.com. STRIDE, INC. ( LRN )UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Nine Months Ended March 31, March 31, 2026 2025 2026 2025 (In thousands except share and per share data)Revenues$629,873 $613,376 $1,882,017 $1,751,670 Instructional costs and services 398,308 364,086 1,148,699 1,046,670 Gross margin 231,565 249,290 733,318 705,000 Selling, general, and administrative expenses 102,485 118,504 388,403 401,771 Income from operations 129,080 130,786 344,915 303,229 Interest expense, net (3,001) (2,787) (8,889) (7,810)Other income (expense), net (5,338) 7,360 811 23,469 Income before income taxes and loss from equity method investments 120,741 135,359 336,837 318,888 Income tax expense (31,545) (35,450) (79,934) (80,088)Loss from equity method investments (669) (563) (99) (2,179)Net income attributable to common stockholders$88,527 $99,346 $256,804 $236,621 Net income attributable to common stockholders per share: Basic$2.09 $2.31 $5.98 $5.50 Diluted$1.93 $2.02 $5.39 $4.95 Weighted average shares used in computing per share amounts: Basic 42,330,276 43,092,682 42,925,740 42,992,727 Diluted 45,835,843 49,181,728 47,607,602 47,798,923 STRIDE, INC. ( LRN )UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS March 31, June 30, 2026 2025 (audited)ASSETS(In thousands except share and per share data) Current assets Cash and cash equivalents$614,047 $782,497 Accounts receivable, net of allowance of $33,132 and $31,124 854,874 559,646 Inventories, net 21,501 37,570 Prepaid expenses 64,573 35,579 Marketable securities 191,793 202,769 Other current assets 12,002 14,673 Total current assets 1,758,790 1,632,734 Property and equipment, net 103,281 78,582 Capitalized software, net 82,653 75,314 Capitalized curriculum development costs, net 62,444 58,584 Intangible assets, net 12,646 18,227 Goodwill 246,676 246,676 Deferred tax asset — 26,377 Deposits and other assets 180,446 157,465 Total assets$2,446,936 $2,293,959 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable$45,090 $43,962 Accrued liabilities 96,775 103,276 Accrued compensation and benefits 60,449 74,939 Deferred revenue 19,118 26,995 Current portion of finance lease liability 58,499 42,316 Current portion of operating lease liability 3,239 11,391 Total current liabilities 283,170 302,879 Long-term finance lease liability 59,297 44,567 Long-term operating lease liability 8,807 35,164 Long-term debt 417,579 416,322 Deferred tax liability 17,503 — Other long-term liabilities 18,655 15,408 Total liabilities 805,011 814,340 Commitments and contingencies Stockholders’ equity Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding — — Common stock, par value $0.0001; 100,000,000 shares authorized; 49,133,813 and 48,852,419 shares issued; and 42,526,280 and 43,517,676 shares outstanding, respectively 4 4 Additional paid-in capital 729,851 735,711 Accumulated other comprehensive loss (59) (67)Retained earnings 1,103,257 846,453 Treasury stock of 6,607,533 and 5,334,743 shares at cost, respectively (191,128) (102,482)Total stockholders’ equity 1,641,925 1,479,619 Total liabilities and stockholders' equity$2,446,936 $2,293,959 STRIDE, INC. ( LRN )UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended March 31, 2026 2025 (In thousands)Cash flows from operating activities Net income$256,804 $236,621 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 92,783 84,470 Stock-based compensation expense 30,063 24,922 Deferred income taxes 45,622 5,655 Provision for credit losses 10,689 13,357 Amortization of fees on debt 1,257 1,238 Noncash operating lease expense 4,541 9,230 Other 11,877 1,712 Changes in assets and liabilities: Accounts receivable (305,903) (240,429)Inventories, prepaid expenses, deposits and other current and long-term assets 11,606 (3,643)Accounts payable 1,249 (528)Accrued liabilities (8,768) 8,463 Accrued compensation and benefits (14,275) 4,149 Operating lease liability (15,950) (9,583)Deferred revenue and other liabilities (4,632) (1,142)Net cash provided by operating activities 116,963 134,492 Cash flows from investing activities Purchase of property and equipment (587) (1,350)Capitalized software development costs (37,471) (28,605)Capitalized curriculum development costs (18,156) (15,451)Other acquisitions, loans and investments, net of distributions (54,342) (1,681)Proceeds from the maturity of marketable securities 213,886 221,530 Purchases of marketable securities (222,643) (227,786)Net cash used in investing activities (119,313) (53,343)Cash flows from financing activities Repayments on finance lease obligations (41,277) (29,957)Purchase of treasury stock (88,645) - Repurchase of restricted stock for income tax withholding (36,178) (20,672)Net cash used in financing activities (166,100) (50,629)Net change in cash, cash equivalents and restricted cash (168,450) 30,520 Cash, cash equivalents and restricted cash, beginning of period 782,497 500,614 Cash, cash equivalents and restricted cash, end of period$614,047 $531,134 Reconciliation of cash, cash equivalents and restricted cash to balance sheet as of March 31st: Cash and cash equivalents$614,047 $528,547 Other current assets (restricted cash) — 476 Deposits and other assets (restricted cash) — 2,111 Total cash, cash equivalents and restricted cash$614,047 $531,134 Non-GAAP Financial Measures To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share, which are not presented in accordance with GAAP. Adjusted operating income (loss) is defined as income (loss) from operations as adjusted for amortization of intangible assets, stock-based compensation, and other one-time charges or gains.EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization.Adjusted EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization, stock-based compensation, and other one-time charges or gains.Adjusted earnings per share (adjusted EPS) is defined as net income (loss) attributable to common stockholders as adjusted for the amortization of intangible assets, stock-based compensation, and other one-time charges or gains net of tax impact divided by the diluted weighted average number of common shares outstanding less the shares expected to be received for the capped call transaction related to Stride’s convertible senior notes. Adjusted operating income (loss), adjusted EBITDA, and adjusted EPS exclude stock-based compensation, which consists of expenses for restricted stock, restricted stock units, and performance stock units. Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss), adjusted EBITDA and adjusted EPS remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. Adjusted operating income (loss), adjusted EBITDA and adjusted earnings per share remove one-time charges or gains which are not related to core operating activities and are not indicative of our ongoing operating performance. Additionally, adjusted EPS includes the impact from shares expected to be received by the Company to offset potential dilution from the convertible senior notes. EBITDA and adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired. Management uses these non-GAAP financial measures: as additional measures of operating performance because they assist in comparing the Company’s performance on a consistent basis; andin presentations to the members of the Company’s Board of Directors to enable the Board to review the same measures used by management to compare the Company’s current operating results with corresponding prior periods. Other companies may define these non-GAAP financial measures differently and, as a result, these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although these non-GAAP financial measures are used to assess the performance of the business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items included and/or not included in the most directly comparable GAAP financial measure. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and diluted net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. Third Quarter Fiscal Year 2026 Reconciliation of Income from Operations to Adjusted Operating Income Three Months Ended Nine Months Ended March 31, March 31, 2026 2025 2026 2025 (In thousands)Income from operations$129,080 $130,786 $344,915 $303,229Amortization of intangible assets 1,770 2,410 5,581 7,522Stock-based compensation expense 9,574 8,548 30,063 24,922Adjusted operating income$140,424 $141,744 $380,559 $335,673 Reconciliation of Net Income to EBITDA and Adjusted EBITDA Three Months EndedMarch 31, Nine Months EndedMarch 31, 2026 2025 2026 2025 (In thousands)Net income$88,527 $99,346 $256,804 $236,621 Interest expense, net 3,001 2,787 8,889 7,810 Other (income) expense, net 5,338 (7,360) (811) (23,469)Income tax expense 31,545 35,450 79,934 80,088 Loss from equity method investments 669 563 99 2,179 Depreciation and amortization 32,596 28,941 92,783 84,470 EBITDA 161,676 159,727 437,698 387,699 Stock-based compensation expense 9,574 8,548 30,063 24,922 Adjusted EBITDA$171,250 $168,275 $467,761 $412,621 Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share Three Months Ended Nine Months Ended March 31, March 31, 2026 2025 2026 2025 (In thousands)Net income attributable to common stockholders$88,527 $99,346 $256,804 $236,621 Amortization of intangible assets 1,770 2,410 5,581 7,522 Stock-based compensation expense 9,574 8,548 30,063 24,922 Income tax effect from adjustments above (942) (617) (11,749) (6,132)Adjusted net income attributable to common stockholders$98,929 $109,687 $280,699 $262,933 Share computation: Weighted average common shares — diluted 45,835,843 49,181,728 47,607,602 47,798,923 Effect of capped call transactions (2,764,425) (2,092,035) (2,481,111) (2,669,924)Adjusted weighted average common shares — diluted 43,071,418 47,089,693 45,126,491 45,128,999 Adjusted earnings per share$2.30 $2.33 $6.22 $5.83 Three Months Ended Nine Months Ended March 31, March 31, 2026 2025 2026 2025 (per share)Diluted net income per share$1.93 $2.02 $5.39 $4.95 Amortization of intangible assets 0.04 0.05 0.12 0.16 Stock-based compensation expense 0.21 0.17 0.64 0.52 Income tax effect from adjustments above (0.02) (0.01) (0.25) (0.13)Effect of capped call transactions 0.14 0.10 0.32 0.33 Adjusted earnings per share$2.30 $2.33 $6.22 $5.83 Fiscal Year 2026 Outlook Reconciliation of Income from Operations to Adjusted Operating Income (unaudited) Year EndedJune 30, 2026 Low High Income from operations$443.0 $450.0Stock-based compensation expense 40.0 42.0Amortization of intangible assets 7.0 8.0Adjusted operating income$490.0 $500.0 Image: https://www.globenewswire.com/newsroom/ti?nf=OTcwODU1NiM3NTY4NzM2IzIyOTEwMzc= Image: https://ml.globenewswire.com/media/YTkxM2RiOTMtYTViOC00ZjU0LTk0OTctYjA5YzhjZTRkODc4LTEzMDI1ODctMjAyNi0wNC0yOC1lbg==/tiny/Stride-Inc-.png Image: Primary Logo Source: Stride, Inc. ( LRN )