Stride (NYSE:LRN) Announces Quarterly Earnings Results, Beats Estimates By $0.48 EPS

Stride (NYSE:LRN) released its quarterly earnings results on Tuesday. The company reported $2.12 earnings per share for the quarter, topping analysts’ consensus estimates of $1.64 by $0.48, FiscalAI reports. Stride had a return on equity of 25.20% and a net margin of 12.15%.The firm had revenue of $636.06 million during the quarter, compared to analysts’ expectations of $626.52 million.

Here are the key takeaways from Stride’s conference call:

• Fiscal 2026 results were solid: revenue increased 4.7% to $2.518 billion, adjusted operating income rose nearly 7% to $498.4 million, and adjusted EBITDA grew 8.2% to $617.6 million.
• Career Learning remained a key growth engine, with revenue up 19% and enrollment up 14%, offsetting a 2% revenue decline and 2.5% enrollment decrease in General Education.
• Early fiscal 2027 indicators are mixed: applications are slightly below last year, but conversion and re-registration rates are higher. Management expects a difficult year-over-year count-date comparison, while indicating that in-year enrollment growth should resume and formal guidance will come with first-quarter results.
• Stride appointed longtime board member Bob Knowling as CEO to lead its next growth phase, with a focus on student outcomes, technology, product expansion, and go-to-market execution; the company also extended its $311 million share-repurchase authorization through October 2027.
• Stride acknowledged performance issues at Lone Star Online Academy, which led Roscoe Independent School District not to renew its contract, creating a risk of additional contract losses despite efforts to place affected families in other Texas programs.

Stride Stock Up 0.2%

Shares of LRN traded up $0.16 during midday trading on Tuesday, hitting $80.26. The company had a trading volume of 1,689,602 shares, compared to its average volume of 975,979. The stock has a market cap of $3.41 billion, a price-to-earnings ratio of 12.39, a PEG ratio of 0.45 and a beta of 0.11. The company’s 50 day moving average price is $89.61 and its 200 day moving average price is $87.67. The company has a quick ratio of 6.14, a current ratio of 6.21 and a debt-to-equity ratio of 0.29. Stride has a 52 week low of $60.61 and a 52 week high of $171.17.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Stride in a research report on Wednesday, July 8th. Barrington Research reiterated an “outperform” rating and issued a $125.00 price objective on shares of Stride in a report on Thursday, April 16th. William Blair downgraded Stride from an “outperform” rating to a “market perform” rating in a research note on Thursday, July 30th. Finally, BMO Capital Markets reiterated a “market perform” rating on shares of Stride in a research note on Monday, June 15th. Two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $109.75.

Hedge Funds Weigh In On Stride

A number of hedge funds have recently bought and sold shares of the company. Newbridge Financial Services Group Inc. bought a new stake in Stride in the second quarter valued at about $25,000. Northwestern Mutual Wealth Management Co. lifted its holdings in Stride by 78.7% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 193 shares of the company’s stock worth $28,000 after buying an additional 85 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in Stride by 482.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 617 shares of the company’s stock worth $40,000 after buying an additional 511 shares during the last quarter. Geneos Wealth Management Inc. grew its position in shares of Stride by 62.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 340 shares of the company’s stock worth $43,000 after acquiring an additional 131 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its position in shares of Stride by 481.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 512 shares of the company’s stock worth $74,000 after acquiring an additional 424 shares in the last quarter. 98.24% of the stock is currently owned by institutional investors and hedge funds.

Stride Company Profile

Stride, Inc (NYSE:LRN) is a technology-driven education company that designs and delivers online learning solutions for students and adult learners. Through long-term partnerships with state-authorized public school districts, Stride operates virtual academies that serve K-12 students across the United States. The company’s blended-learning model combines digital curriculum, live teaching support and data analytics to personalize instruction and monitor student progress.

In addition to its K-12 offerings, Stride provides a portfolio of career and workforce readiness programs under its Stride Career Prep division.