Strategic Education Earnings Call Transcripts
Fiscal Year 2026
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Second quarter 2026 saw 3% revenue growth, strong ETS and U.S. higher education performance, and robust cash flow. A $13M one-time charge impacted Australia, but margin expansion and domestic growth remain on track. Visa delays continue to affect international enrollment.
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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 nearly 200 basis points of margin expansion. Regulatory changes in Australia and a shift to employer-affiliated enrollment are key factors for 2025, with stable expenses and continued margin growth expected.
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Revenue grew 6% to $304M with operating income up 13% and adjusted EPS up 19%. Enrollment growth was strong across all segments, especially in employer-affiliated and Australia-New Zealand, while Education Technology Services saw robust gains. Operating margin expansion is expected at the high end of guidance.
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Q2 2024 saw 9% revenue growth and over 60% operating income increase, driven by strong U.S. higher education and ETS performance. Corporate-affiliated enrollment surged, and investments in ETS and ANZ will raise full-year expenses, with margin expansion now forecast at 150–175 bps.