Revenue: As of FY2026 Q3, the actual value is USD 629.87 M, beating the estimate of USD 629.67 M.EPS: As of FY2026 Q3, the actual value is USD 1.93, beating the estimate of USD 1.9167.EBIT: As of FY2026 Q3, the actual value is USD 132.08 M.<h4>Segment Revenue</h4>Stride, Inc.’s total revenues for the three months ended March 31, 2026, were $629,873 thousand, an increase of 2.7% from the prior year’s $613,376 thousand. General Education revenues decreased by 3.6% to $357,463 thousand, while Career Learning revenues increased by 12.3% to $272,410 thousand, driven by an 11.6% increase in enrollments and client mix. Within Career Learning, Middle-High School revenues grew by 15.9% to $259,520 thousand, and Adult revenues decreased by 31.0% to $12,890 thousand for the three months ended March 31, 2026.For the nine months ended March 31, 2026, total revenues for Stride, Inc. were $1,882,017 thousand, a 7.4% increase from $1,751,670 thousand in the prior year. General Education revenues increased by 0.7% to $1,061,976 thousand, partially offset by a 1.1% decrease in enrollments. Career Learning revenues increased by 17.6% to $820,041 thousand, primarily due to a 15.3% increase in enrollments and client mix. Specifically, Middle-High School Career Learning revenues rose by 22.1% to $776,610 thousand, while Adult Career Learning revenues decreased by 29.1% to $43,431 thousand for the nine months ended March 31, 2026.<h4>Operational Metrics</h4>Three Months Ended March 31, 2026 vs. 2025: Instructional costs and services were $398,308 thousand (63.2% of revenues), an increase of 9.4% from $364,086 thousand (59.4% of revenues), primarily due to personnel hiring in growth states and salary increases. Gross margin decreased to $231,565 thousand (36.8% of revenues) from $249,290 thousand (40.6% of revenues). Selling, general, and administrative expenses decreased by 13.5% to $102,485 thousand (16.3% of revenues) from $118,504 thousand (19.3% of revenues), mainly due to reductions in personnel, professional services, and bad debt expense. Income from operations was $129,080 thousand (20.5% of revenues), a slight decrease from $130,786 thousand (21.3% of revenues). Net income attributable to common stockholders was $88,527 thousand, down from $99,346 thousand.Nine Months Ended March 31, 2026 vs. 2025: Instructional costs and services were $1,148,699 thousand (61.0% of revenues), an increase of 9.7% from $1,046,670 thousand (59.8% of revenues), attributed to personnel hiring and salary increases, partially offset by a lease termination gain. Gross margin increased to $733,318 thousand (39.0% of revenues) from $705,000 thousand (40.2% of revenues). Selling, general, and administrative expenses decreased by 3.3% to $388,403 thousand (20.6% of revenues) from $401,771 thousand (22.9% of revenues), mainly due to reductions in personnel and bad debt expense, partially offset by increased professional services. Income from operations increased by 13.8% to $344,915 thousand (18.3% of revenues) from $303,229 thousand (17.3% of revenues). Net income attributable to common stockholders was $256,804 thousand, up from $236,621 thousand.<h4>Cash Flow</h4>Nine Months Ended March 31, 2026 vs. 2025: Net cash provided by operating activities was $116,963 thousand, a decrease of $17,529 thousand from $134,492 thousand in the prior year, primarily due to changes in working capital, partially offset by higher net income adjusted for non-cash items. Net cash used in investing activities was - $119,313 thousand, an increase of $65,970 thousand in cash used compared to - $53,343 thousand in the prior year, mainly due to increased investments, capital expenditures, and net purchases of marketable securities. Net cash used in financing activities was - $166,100 thousand, an increase of $115,471 thousand in cash used compared to - $50,629 thousand in the prior year, driven by treasury stock purchases, increased repurchases of restricted stock, and repayments of finance lease obligations.<h4>Unique Metrics</h4><ul><li>Total Enrollment: For the nine months ended March 31, 2026, total enrollments were 246.7 thousand, a 5.7% increase (13.2 thousand) over the prior year. General Education enrollments decreased by 1.1% to 136.0 thousand, while Career Learning enrollments increased by 15.3% to 110.7 thousand.</li><li>Stock Repurchase Program: Stride, Inc. had $411.4 million remaining available under its $500 million stock repurchase program as of March 31, 2026, with no shares repurchased during the three months ended March 31, 2026.</li><li>Convertible Senior Notes: Stride, Inc. has $420.0 million aggregate principal amount of 1.125% Convertible Senior Notes due 2027, with an initial conversion price of approximately $52.88 per share.</li><li>Finance Lease Liability: As of March 31, 2026, finance lease liability was $117.8 million, up from $86.9 million as of June 30, 2025.</li><li>Marketable Securities: As of March 31, 2026, marketable securities included $191.8 million short-term and $50.2 million long-term investments. The company recorded a net unrealized loss of $11.5 million for the three months and $22.7 million for the nine months ended March 31, 2026, related to changes in fair value of publicly-held equity securities.</li><li>Capitalized Software Development Costs: Total capitalized software development additions were $37.5 million for the nine months ended March 31, 2026.</li><li>Capitalized Curriculum Development Costs: Total capitalized curriculum development additions were $18.2 million for the nine months ended March 31, 2026.</li><li>Allowance for Credit Losses: The allowance for credit losses increased from $31.1 million as of June 30, 2025, to $33.1 million as of March 31, 2026.</li></ul><h4>Future Outlook and Strategy</h4>Stride, Inc. anticipates that its combination of funds from operations and net working capital will be sufficient to finance ongoing operations both in the short and long term. The company continues to explore acquisitions, strategic investments, and joint ventures to grow its business, with potential financing through cash, stock, debt, or a combination thereof.

Stride | 10-Q: FY2026 Q3 Revenue Beats Estimate at USD 629.87 M