Stride (LRN) investor relations material

Executive summary

• Q3 2026 revenue rose 2.7% year-over-year to $629.9 million, with total enrollments up 1.8% to 244.5 thousand and Career Learning enrollments up 11.6%.

• Net income for Q3 2026 was $88.5 million, down 10.9% year-over-year, and diluted EPS was $1.93, a 4.5% decrease.

• For the nine months ended March 31, 2026, revenue increased 7.4% to $1.88 billion, with operating income up 13.8% to $344.9 million and net income up 8.5% to $256.8 million.

• Adjusted operating income for Q3 was $140.4 million (down 0.9%), adjusted EBITDA $171.3 million (up 1.8%), and adjusted EPS $2.30 (down 1.3%).

• The company maintains a strong balance sheet and is committed to achieving FY2028 targets.

Financial highlights

• Q3 2026 revenue was $629.9 million, up 2.7% year-over-year; nine-month revenue reached $1.88 billion, up 7.4%.

• Gross margin for Q3 was 36.8%, down from 40.6% year-over-year, and Q3 operating margin was 20.5%.

• Free cash flow for Q3 was $202.4 million, up from $37.3 million last year.

• Cash, equivalents, and marketable securities totaled $856 million at quarter end.

• Net income for Q3 was $88.5 million, with diluted EPS at $1.93.

Outlook and guidance

• Fiscal 2026 revenue guidance narrowed to $2.49–$2.52 billion, with adjusted operating income expected between $490–$500 million.

• Capital expenditures projected at $75–$80 million; effective tax rate expected at 24–25%.

• On track for FY2028 targets: $3.3B–$3.5B revenue, $800M adjusted operating income, $8.35–$9.00 diluted EPS.

• Q4 revenue expected to be below last year due to higher attrition and funding timing.

• Management expects continued revenue growth, supported by Career Learning enrollment gains and ongoing investments.