Stride (LRN) investor relations material

Executive summary

• FY 2026 revenue rose 4.7% to $2,518.1 million, with adjusted operating income up 6.9% to $498.4 million and adjusted EBITDA up 8.2% to $617.6 million; adjusted EPS was $8.33, up 2.8% year-over-year.

• Net income increased 17.5% to $338.2 million, and average full-year enrollments grew 4.2% to 243.9 thousand, driven by strong Career Learning performance.

• Leadership transition executed, appointing a new CEO with a strong background in tech and education to drive the next phase of growth and improve student outcomes.

• The company remains committed to expanding its student base, improving operational efficiency, and achieving FY 2028 targets, despite challenges such as the loss of a major school contract.

• Share repurchases totaled $188.7 million for the year, with authorization extended through October 2027 and $311 million remaining.

Financial highlights

• FY 2026 revenue reached $2,518.1 million, up 4.7% year-over-year; adjusted operating income was $498.4 million, and adjusted EBITDA was $617.6 million.

• Adjusted EPS was $8.33, up from $8.10 in FY 2025.

• Free cash flow for FY 2026 was $355 million.

• Cash, equivalents, and marketable securities stood at $1,034.1 million at year-end.

• Capital expenditures were $78.8 million, primarily for software and curriculum development.

Outlook and guidance

• FY 2028 targets include $3.3–$3.5 billion in revenue, $700–$800 million in adjusted operating income, and $8.00–$9.00 in diluted EPS, with a projected 10% CAGR for revenue and 20% CAGR for adjusted operating income and EPS.

• FY 2027 revenue per enrollment expected to be flat to slightly up versus FY 2026, with continued fluctuations possible based on state and program mix.

• Gross margins, CapEx, and SG&A as a percentage of revenue anticipated to remain relatively flat.

• Formal enrollment and financial guidance to be provided with Q1 results in October.

• Early indicators for FY 2027 show strong conversion and re-registration rates, though application volumes are slightly behind last year.