Stride Reports Q1 Revenue Growth

By Greg Peters • Wednesday, October 21 01:47 • Permanent Link

Stride reported first-quarter fiscal 2027 revenue of $639.4 million, up 3.0% from $620.9 million a year earlier.

Income from operations rose 22.2% to $84.3 million from $69.0 million. Net income fell 5.6% to $64.9 million from $68.8 million, while diluted earnings per share increased to $1.45 from $1.40.

Adjusted operating income slipped 3.1% to $78.6 million from $81.1 million. Adjusted EBITDA increased 3.1% to $111.8 million from $108.4 million. Adjusted earnings per share declined to $1.37 from $1.52.

By business line, general education revenue declined 1.8% to $356.6 million from $363.1 million. Career learning revenue increased 9.7% to $282.8 million from $257.8 million, driven by middle and high school revenue of $272.1 million, up 12.7%, while adult revenue fell 34.4% to $10.7 million from $16.3 million.

Average enrollments fell 2.5% to 241.4 thousand from 247.7 thousand. Career learning enrollments rose 2.0% to 112.2 thousand from 110.0 thousand. Revenue per enrollment increased 7.0% to $2,556 from $2,388. General education revenue per enrollment rose 5.0% to $2,670, and career learning revenue per enrollment increased 10.4% to $2,425.

Cash and cash equivalents plus marketable securities totaled $884.2 million at Sept. 30, 2026, down from $1.03 billion at June 30, 2026.

Capital expenditures were $24.5 million for the quarter, up from $21.7 million a year ago, including $17.9 million for capitalized software development and $6.6 million for capitalized curriculum development.

For full-year fiscal 2027, Stride projected revenue of $2.53 billion to $2.61 billion, capital expenditures of $70 million to $80 million, an effective tax rate of 24% to 26%, and adjusted operating income of $500 million to $530 million. For the second quarter, it forecast revenue of $625 million to $645 million, capital expenditures of $19 million to $21 million, and adjusted operating income of $135 million to $145 million. Today the company's shares have moved -1.7% to a price of $80.99. For the full picture, make sure to review Stride's 8-K report.

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