Strategic Education Earnings Call Transcripts
Fiscal Year 2026
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First quarter 2026 saw a 1% revenue decline year-over-year, but operating income grew 3% due to cost reductions and margin expansion. Education Technology Services drove growth, while U.S. Higher Education and ANZ faced enrollment headwinds. Management remains confident in meeting EBIT and EPS targets.
Fiscal Year 2025
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Fourth quarter and full year 2025 delivered strong revenue and margin growth, driven by AI-enabled productivity, robust ETS and employer-affiliated enrollment, and disciplined capital allocation. 2026 is expected to align with the notional model for growth and margin expansion.
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Third quarter 2025 saw strong growth in Education Technology Services and U.S. higher education, with adjusted EPS up 41% year-over-year. Productivity initiatives are on track, and share repurchases continue, while regulatory headwinds persist in Australia and New Zealand.
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Revenue grew 4% year-over-year with strong ETS segment gains and improved operating margin. U.S. higher education saw employer-affiliated and healthcare enrollments rise, while ANZ faced international enrollment declines but domestic growth. Share repurchases and positive regulatory changes support outlook.
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Q1 2025 saw 5% revenue growth, 16% adjusted operating income growth, and strong ETS performance, with employer-affiliated enrollment and Sophia Learning driving results. ANZ faced regulatory headwinds, but domestic growth offset declines. Share repurchases totaled $32 million.
Fiscal Year 2024
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Revenue grew 8% and operating income rose 26% in 2024, with strong performance across all segments and significant growth in employer-affiliated and technology services. The outlook calls for continued mid-single digit growth and margin expansion, while regulatory changes in Australia and the U.S. are being closely monitored.
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Third quarter 2024 delivered 6% revenue and 13% operating income growth, with strong performance across all segments and a 19% rise in adjusted EPS. U.S. and ANZ enrollments grew, while Education Technology Services excelled. Capital allocation focused on debt repayment and share repurchases.
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Second quarter 2024 delivered 9% revenue growth and over 60% operating income increase, with strong performance across all segments. Increased investments will raise full-year expenses, and margin expansion is now expected at 150–175 basis points.