Stride (LRN) investor relations material

Executive summary

• FY 2026 revenue reached $2,518.1 million, up 4.7% year-over-year, with total enrollments increasing just over 4% and Career Learning enrollments up 13.9%.

• Adjusted operating income grew 6.9% to $498.4 million, adjusted EBITDA rose 8.2% to $617.6 million, and adjusted EPS was $8.33, up 2.8% year-over-year.

• Leadership transition executed with appointment of a new CEO focused on tech and education experience, aiming to drive student outcomes and shareholder value.

• The business remains on track to achieve FY2028 targets, with continued progress since the November 2023 Investor Day.

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

Financial highlights

• FY 2026 revenue was $2,518.1 million, up 4.7% from $2,405.3 million in FY 2025.

• Adjusted operating income was $498.4 million, up from $466.2 million in FY 2025; adjusted EBITDA reached $617.6 million, compared to $571.0 million in FY 2025.

• 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.

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.

• 10% CAGR for revenue, 20% CAGR for adjusted operating income and diluted EPS projected through FY 2028.

• FY 2027 revenue per enrollment expected to be flat to slightly up versus FY 2026; gross margins and CapEx as a percent of revenue expected to remain flat.

• Formal guidance for FY 2027 to be provided with Q1 results in October.

• Early enrollment indicators show applications slightly behind last year, but conversion and re-registration rates are higher.