Stride reports fourth quarter and full year 2026 financial results

RESTON, Va., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the fourth quarter and full fiscal year ended June 30, 2026.

“I am pleased to lead Stride as we position the Company for its next chapter of growth,” said Robert Knowling, Stride Chief Executive Officer. “Building on Stride’s strong foundation, we will continue to prioritize investments in curriculum, technology and support services to improve student outcomes and drive growth and value creation. I look forward to working alongside our talented team and leveraging our full breadth of capabilities to reach Stride's full potential.”

Fiscal 2026 Highlights Compared to 2025

• Revenue of $2,518.1 million, compared with $2,405.3 million
• Income from operations of $450.8 million, compared with $360.1 million
• Net income of $338.2 million, compared with $287.9 million
• Diluted net income per share of $7.14, compared with $5.95
• Adjusted operating income of $498.4 million, compared with $466.2 million (1)
• Adjusted EBITDA of $617.6 million, compared with $571.0 million (1)
• Adjusted earnings per share of $8.33, compared with $8.10 (1)
• Repurchased approximately $188.7 million of common stock under the Company’s share repurchase authorization
• Share repurchase authorization extended through October 31, 2027
  

Fiscal 2026 Summary Financial Metrics

 Year Ended June 30,
 Change 2026/2025 2026
 2025
 $
 % (In thousands, except percentages and per share data)Revenues$2,518,081  $2,405,317  $112,764  4.7%              Income from operations 450,767   360,094   90,673  25.2%Adjusted operating income (1) 498,373   466,233   32,140  6.9%              Net income 338,192   287,941   50,251  17.5%Net income per share, diluted 7.14   5.95   1.19  20.0%Adjusted earnings per share (1) 8.33   8.10   0.23  2.8%              EBITDA (1) 577,329   474,763   102,566  21.6%Adjusted EBITDA (1) 617,584   571,035   46,549  8.2%

(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.

Fourth Quarter Fiscal 2026 Highlights Compared to 2025

• Revenue of $636.1 million, compared with $653.6 million
• Income from operations of $105.9 million, compared with $56.9 million
• Net income of $81.4 million, compared with $51.3 million
• Diluted net income per share of $1.75, compared with $1.03
• Adjusted operating income of $117.8 million, compared with $130.6 million (1)
• Adjusted EBITDA of $149.8 million, compared with $158.4 million (1)
• Adjusted earnings per share of $2.12, compared with $2.29 (1)
• Repurchased approximately $100 million of common stock under the Company’s share repurchase authorization

Fourth Quarter Fiscal 2026 Summary Financial Metrics

 Three Months Ended June 30, Change 2026/2025 2026 2025 $ % (In thousands, except percentages and per share data)Revenues$636,064  $653,647  $(17,583) (2.7%)             Income from operations 105,852   56,864   48,988  86.1%Adjusted operating income (1) 117,814   130,558   (12,744) (9.8%)             Net income 81,388   51,320   30,068  58.6%Net income per share, diluted 1.75   1.03   0.72  69.9%Adjusted earnings per share (1) 2.12   2.29   (0.17) (7.4%)             EBITDA (1) 139,631   87,063   52,568  60.4%Adjusted EBITDA (1) 149,823   158,413   (8,590) (5.4%)               

Revenue Data

 Three Months Ended      Year Ended      June 30, Change 2026 / 2025 June 30, Change 2026 / 2025 2026 2025 $ % 2026  2025 $ % (In thousands, except percentages)                      General Education$355,809 $394,134 $(38,325) (9.7%) $1,417,785 $1,448,676 $(30,891) (2.1%)Career Learning                     Middle - High School 267,116  240,455  26,661  11.1%  1,043,726  876,287  167,439  19.1%Adult 13,139  19,058  (5,919) (31.1%)  56,570  80,354  (23,784) (29.6%)Total Career Learning 280,255  259,513  20,742  8.0%  1,100,296  956,641  143,655  15.0%Total Revenues$636,064 $653,647 $(17,583) (2.7%) $2,518,081 $2,405,317 $112,764  4.7%                      

Enrollment and Revenue Per Enrollment Data

Full year enrollments averaged 243.9K, up 4.2% compared to 234.0K enrollments in fiscal year 2025. Of the total enrollments, 109.7K were Career Learning enrollments, up 13.9% compared to 96.3K Career Learning enrollments in fiscal 2025.

Fourth quarter enrollments averaged 234.2K, down (0.5)% compared to 235.3K enrollments in the fourth quarter of fiscal year 2025. Of the total average enrollments, 106.4K were Career Learning enrollments, up 9.7% compared to 97.0K Career Learning enrollments in the fourth 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 full fiscal year 2026 was $9,914, up 2.4% compared to $9,677 in fiscal year 2025. General Education revenue per enrollment was $10,243, up 1.6%, and Career Learning revenue per enrollment was $9,512, up 4.5%, compared to fiscal year 2025. If the mix of enrollments changes, our revenues will be impacted to the extent the average revenues per enrollments are significantly different.

Revenue per enrollment for the fourth quarter was $2,620, down (0.4)% compared to $2,630 in the fourth quarter of fiscal year 2025. General Education revenue per enrollment was $2,710, down (1.0)% compared to the fourth quarter of fiscal year 2025, and Career Learning revenue per enrollment was $2,511, up 1.3%, compared to the fourth quarter of fiscal year 2025.

Cash Flow and Capital Allocation

As of June 30, 2026, the Company’s cash and cash equivalents and marketable securities totaled $1,034.1 million, compared with $1,011.4 million reported at June 30, 2025.

Capital expenditures for the fiscal year ended June 30, 2026 were $78.8 million, compared to $60.0 million in fiscal year 2025, and were comprised of $0.6 million of property and equipment, $61.6 million of capitalized software development and $16.6 million of capitalized curriculum development.

During fiscal year 2026, the Company repurchased approximately 2.3 million shares of its common stock for an aggregate purchase price of approximately $188.7 million under its previously announced share repurchase authorization. As of June 30, 2026, approximately $311.3 million remained available under the current authorization. The Company continues to evaluate share repurchases as part of its disciplined capital allocation strategy.

Conference Call

The Company will discuss its fourth quarter and full fiscal year 2026 financial results during a conference call scheduled for Tuesday, August 4, 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 (833) 461-5787 (domestic) or +1 (585) 542-9983 (international) and provide the conference ID number 708 877 615. 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.

Stride Inc. (NYSE: 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.

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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, such as any statements that look to future events and include, among other things, our expectations regarding: mix of enrollment, revenue per enrollment, and future share repurchases. We have tried, whenever possible, to identify these forward-looking statements using words such as “outlook,” “forecasts,” “anticipates,” “trends,” “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. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, 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 to meet financial or operational 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; potential violation of laws and regulations relating to privacy and data protection, including as such laws and regulations may apply to children’s data; 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 (“AI”)) 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 infrastructure, systems and facilities, including as a result of cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems or our data; problems in the implementation of new information technology 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 the use, implementation and regulation of AI and other emerging technologies, including in the education of children, and their use by third-party vendors; risks related to our stock repurchase program; changes in our effective tax rate and additional liabilities; 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 Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements reflect our management’s expectations or predictions of future conditions, events or results based on various assumptions and estimates. They are not guarantees of future performance. Our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements in this press release or that we make from time, and to consider carefully the factors discussed above. All information in this press release is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement as a result of new information, future events or otherwise, except where we are expressly required to do so by law.

Financial Statements

The financial statements set forth below are not the complete set of Stride, Inc.’s financial statements for the three months and year ended June 30, 2026 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Annual Report on Form 10-K for the year ended June 30, 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.

CONSOLIDATED STATEMENTS OF OPERATIONS     Three Months Ended Year Ended June 30, June 30, 2026 2025 2026 2025 (In thousands except share and per share data)Revenues$636,064  $653,647  $2,518,081  $2,405,317 Instructional costs and services 418,781   414,728   1,567,481   1,461,398 Gross margin 217,283   238,919   950,600   943,919 Selling, general, and administrative expenses 111,431   122,577   499,833   524,347 Impairment of long-lived assets —   59,478   —   59,478 Income from operations 105,852   56,864   450,767   360,094 Interest expense, net (2,889)  (2,693)  (11,778)  (10,504)Other income, net 1,362   10,160   2,173   33,629 Income before income taxes and loss from equity method investments 104,325   64,331   441,162   383,219 Income tax expense (22,831)  (12,919)  (102,765)  (93,007)Loss from equity method investments (106)  (92)  (205)  (2,271)Net income attributable to common stockholders$81,388  $51,320  $338,192  $287,941 Net income attributable to common stockholders per share:           Basic$1.93  $1.19  $7.92  $6.69 Diluted$1.75  $1.03  $7.14  $5.95 Weighted average shares used in computing per share amounts:           Basic 42,091,404   43,186,913   42,717,156   43,041,274 Diluted 46,388,112   49,767,056   47,332,855   48,413,717                 

STRIDE, INC.
CONSOLIDATED BALANCE SHEETS
   June 30, 2026 2025ASSETS(In thousands except share and per share data)      Current assets     Cash and cash equivalents$754,501  $782,497 Accounts receivable, net of allowance of $31,302 and $31,124 664,788   559,646 Inventories, net 38,250   37,570 Prepaid expenses 43,052   35,579 Marketable securities 203,499   202,769 Other current assets 12,033   14,673 Total current assets 1,716,123   1,632,734 Property and equipment, net 102,042   78,582 Capitalized software, net 95,002   75,314 Capitalized curriculum development costs, net 56,895   58,584 Intangible assets, net 10,876   18,227 Goodwill 246,676   246,676 Deferred tax asset —   26,377 Deposits and other assets 207,938   157,465 Total assets$2,435,552  $2,293,959 LIABILITIES AND STOCKHOLDERS' EQUITY     Current liabilities     Accounts payable$46,742  $43,962 Accrued liabilities 95,446   103,276 Accrued compensation and benefits 62,896   74,939 Deferred revenue 20,553   26,995 Current portion of finance lease liability 60,477   42,316 Current portion of operating lease liability 2,737   11,391 Total current liabilities 288,851   302,879 Long-term finance lease liability 56,455   44,567 Long-term operating lease liability 8,316   35,164 Long-term debt 417,995   416,322 Deferred tax liability 13,033   — Other long-term liabilities 18,573   15,408 Total liabilities 803,223   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; 49,126,917 and 48,852,419 shares issued; and 41,477,230 and 43,517,676 shares outstanding, respectively 4   4 Additional paid-in capital 739,829   735,711 Accumulated other comprehensive loss (59)  (67)Retained earnings 1,184,645   846,453 Treasury stock of 7,649,687 and 5,334,743 shares at cost, respectively (292,090)  (102,482)Total stockholders’ equity 1,632,329   1,479,619 Total liabilities and stockholders' equity$2,435,552  $2,293,959         

STRIDE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS   Year Ended June 30, 2026 2025 (In thousands)Cash flows from operating activities     Net income$338,192  $287,941 Adjustments to reconcile net income to net cash provided by operating activities:     Depreciation and amortization expense 126,562   114,669 Stock-based compensation expense 40,255   36,794 Deferred income taxes 39,993   (17,783)Provision for credit losses 16,463   15,267 Amortization of fees on debt 1,673   1,647 Noncash operating lease expense 5,063   12,265 Impairment of long-lived assets —   59,478 Other 20,514   (596)Changes in assets and liabilities:     Accounts receivable (121,370)  (102,188)Inventories, prepaid expenses, deposits and other current and long-term assets 6,538   (6,239)Accounts payable 2,164   310 Accrued liabilities (10,188)  40,915 Accrued compensation and benefits (11,828)  9,913 Operating lease liability (16,943)  (12,396)Deferred revenue and other liabilities (3,274)  (7,181)Net cash provided by operating activities 433,814   432,816 Cash flows from investing activities     Purchase of property and equipment (587)  (1,781)Capitalized software development costs (61,591)  (36,428)Capitalized curriculum development costs (16,668)  (21,801)Other acquisitions, loans and investments, net of distributions (55,538)  (20,682)Proceeds from the maturity of marketable securities 279,497   252,930 Purchases of marketable securities (324,941)  (260,233)Net cash used in investing activities (179,828)  (87,995)Cash flows from financing activities     Repayments on finance lease obligations (56,856)  (41,469)Purchase of treasury stock (188,659)  - Repurchase of restricted stock for income tax withholding (36,467)  (21,469)Net cash used in financing activities (281,982)  (62,938)Net change in cash, cash equivalents and restricted cash (27,996)  281,883 Cash, cash equivalents and restricted cash, beginning of period 782,497   500,614 Cash, cash equivalents and restricted cash, end of period$754,501  $782,497         

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; and
• in 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.

Fourth Quarter and Full Fiscal Year 2026

Reconciliation of Income from Operations to Adjusted Operating Income

 Three Months Ended
 Year Ended
 June 30,
 June 30,
 2026
 2025
 2026
 2025
 (In thousands) Income from operations$105,852  $56,864  $450,767  $360,094 Amortization of intangible assets 1,770   2,344   7,351   9,867 Stock-based compensation expense 10,192   11,872   40,255   36,794 Impairment of long-lived assets -   59,478   -   59,478 Adjusted operating income$117,814  $130,558  $498,373  $466,233             

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

 Three Months Ended
June 30, Year Ended
June 30,  2026   2025   2026   2025  (In thousands)Net income$81,388  $51,320  $338,192  $287,941 Interest expense, net 2,889   2,693   11,778   10,504 Other income, net (1,362)  (10,160)  (2,173)  (33,629)Income tax expense 22,831   12,919   102,765   93,007 Loss from equity method investments 106   92   205   2,271 Depreciation and amortization 33,779   30,199   126,562   114,669 EBITDA 139,631   87,063   577,329   474,763 Stock-based compensation expense 10,192   11,872   40,255   36,794 Impairment of long-lived assets -   59,478   -   59,478 Adjusted EBITDA$149,823  $158,413  $617,584  $571,035                 

Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share

 Three Months Ended Year Ended June 30, June 30,  2026   2025   2026   2025  (In thousands)Net income attributable to common stockholders$81,388  $51,320  $338,192  $287,941 Amortization of intangible assets 1,770   2,344   7,351   9,867 Stock-based compensation expense 10,192   11,872   40,255   36,794 Impairment of long-lived assets -   59,478   -   59,478 Income tax effect from adjustments above (1,188)  (15,309)  (12,937)  (21,442)Adjusted net income attributable to common stockholders$92,162  $109,705  $372,861  $372,638         Share computation:       Weighted average common shares — diluted 46,388,112   49,767,056   47,332,855   48,413,717 Effect of capped call transactions (2,876,857)  (1,827,961)  (2,568,353)  (2,396,207)Adjusted weighted average common shares — diluted 43,511,255   47,939,095   44,764,502   46,017,510 Adjusted earnings per share$2.12  $2.29  $8.33  $8.10          Three Months Ended Year Ended June 30, June 30,  2026   2025   2026   2025  (per share)Diluted net income per share$1.75  $1.03  $7.14  $5.95 Amortization of intangible assets 0.04   0.05   0.16   0.20 Stock-based compensation expense 0.23   0.24   0.85   0.76 Impairment of long-lived assets -   1.20   -   1.23 Income tax effect from adjustments above (0.03)  (0.31)  (0.27)  (0.44)Effect of capped call transactions 0.13   0.08   0.45   0.40 Adjusted earnings per share$2.12  $2.29  $8.33  $8.10