Stride Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw 4.7% revenue growth, strong demand, and a leadership transition to drive future growth. Career Learning outperformed, while General Education declined. Early FY 2027 indicators show strong conversion and re-registration rates, with a supportive funding environment.
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Q3 saw 1.8% enrollment growth and 2.7% revenue increase, with Career Learning up 16% and General Education down 3.6%. Gross margin declined due to investments, but free cash flow surged. Guidance narrowed, with strong demand and a robust new business pipeline.
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Platform stabilization and strong demand drove 8% revenue growth and 17% higher adjusted operating income. Career Learning segment excelled, while General Education saw a revenue dip. Full-year guidance was reaffirmed, with robust cash reserves and continued share repurchases.
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Q1 saw 11.3% enrollment growth and 13% revenue growth, but platform rollout issues led to higher withdrawals and muted in-year growth expectations. Full-year revenue is guided at $2.48–$2.555 billion, with continued investments in technology and program quality.
Fiscal Year 2025
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Revenue grew 18% to $2.4B with adjusted operating income up nearly 60% and strong gross margin expansion. Enrollment is expected to grow 10%-15% in Q1 FY26, supported by robust demand and a positive funding environment.
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Q3 saw 21% enrollment growth and 17.8% revenue growth, with record margins and raised FY25 guidance. Career Learning led segment gains, and strong demand is expected to continue, supported by favorable market trends and ongoing investments in innovation.
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Record enrollments and strong demand drove a 16% revenue increase and 43% rise in adjusted operating income. Full-year guidance was raised, with continued margin improvement and robust cash flow. Strategic investments in new offerings and platforms are showing early promise.
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Record Q1 enrollments and 15% revenue growth were driven by strong organic demand and minimal SG&A increases. Gross margins improved 320 bps, and guidance points to continued growth despite minor ESSER funding headwinds, with confidence in long-term targets.
Fiscal Year 2024
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Record FY 2024 results with $2.04B revenue, 11% growth, and all-time high enrollments. Gross margin and profitability reached multi-year highs, with strong cash flow and positive early indicators for FY 2025 enrollment.