Stride (LRN) Q4 2025 earnings summary

Executive summary

• Achieved record revenue and profitability for FY2025, marking the ninth consecutive year of revenue growth and celebrating the 25th anniversary with industry awards.

• Served over 240,000 students and families, with full-year enrollments rising 20.4% and Career Learning enrollments up 32.5%.

• Strong demand and enrollment growth support continued momentum into FY2026, with double-digit growth anticipated.

• Maintains a strong balance sheet, enabling flexibility for organic and inorganic growth.

• On track to meet FY2028 financial targets as outlined in prior guidance.

Financial highlights

• FY2025 revenue reached $2,405.3M, up 18% year-over-year; adjusted operating income $466.2M, up 59%.

• Adjusted EBITDA for FY2025 was $571.0M, a 46% increase year-over-year; adjusted EPS $8.10, up 48%.

• Net income for the year reached $287.9M, a 41% increase year-over-year.

• Free cash flow for FY2025 was $372.8M, up from $217.2M in FY2024.

• Cash, cash equivalents, and marketable securities totaled $1,011.4M at year-end, up from $714.2M.

Outlook and guidance

• Initial Q1 FY2026 enrollment guidance projects 10–15% year-over-year growth.

• Expects FY2026 revenue per enrollment to be flat to slightly up; funding environment remains positive.

• Remains on track to achieve FY2028 targets, including $3.3–$3.5B revenue and $8.35–$9.00 EPS.

• Gross margin growth expected to continue but at a slower pace due to increased investments.

• Forward-looking statements highlight risks from funding, enrollment, regulatory changes, and competition.