Stride Inc
LRN
$64.48 1.69%
Exchange: NYSE | Sector: Consumer Defensive | Industry: Education Training Services
Q1 2025
Published: Oct 23, 2024

Earnings Highlights

  • Revenue of $551.08M up 14.8% year-over-year
  • EPS of $0.94 increased by 763.6% from previous year
  • Gross margin of 39.2%
  • Net income of 40.88M
  • "Education should not be a political issue. It should be a customer-focused one." - James Rhyu
LRN
Company LRN

Executive Summary

Stride Inc reported a robust start to fiscal year 2025, delivering revenue of $551.1 million for QQ1 2025, up 15% year over year, with a notable acceleration in enrollment driving top-line gains. The quarter featured a sharp improvement in profitability driven by scale benefits and disciplined SG&A, delivering adjusted operating income of $58.4 million (up 295% YoY) and adjusted EBITDA of $83.9 million (up 111% YoY). Management highlighted sustained demand for core offerings, with total enrollments exceeding 222,000, and highlighted that Career Learning revenue rose more than 30% year over year, while General Education revenue rose 10% on an 11.3% enrollment increase. Adult Learning revenue declined due to a slowdown in software development products, signaling mix-related headwinds in a portion of the portfolio. Management reaffirmed guidance for FY2025, projecting Q2 revenue of $560–$580 million and full-year revenue of $2.225–$2.300 billion, with adjusted operating income of $395–$425 million and capex of $60–$65 million. The company continues to emphasize demand-driven growth, cost discipline, and a multi-year playbook around school choice and virtual education, while noting ESSER funding headwinds to revenue per enrollment that are expected to be offset by state funding improvements. This analysis blends the QQ1 data with management commentary to assess the investment thesis, competitive positioning, and risk factors facing Stride as it navigates a dynamic policy and funding backdrop.

Key Performance Indicators

Revenue
Increasing
551.08M
QoQ: 3.16% | YoY: 14.77%
Gross Profit
Increasing
215.85M
39.17% margin
QoQ: 14.69% | YoY: 24.85%
Operating Income
Increasing
47.34M
QoQ: -35.74% | YoY: 1 326.02%
Net Income
Increasing
40.88M
QoQ: -34.88% | YoY: 738.09%
EPS
Increasing
0.95
QoQ: -35.37% | YoY: 763.64%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 620.88 1.40 +16.2% View
Q3 2025 613.38 1.98 +17.8% View
Q2 2025 587.21 2.03 +16.3% View
Q1 2025 551.08 0.94 +14.8% View
Q4 2024 534.18 1.42 +10.5% View