LRN

The market seemed underwhelmed by last week's earnings announcement from Stride, Inc. (NYSE:LRN) despite the healthy numbers. Our analysis suggests that shareholders might be missing some positive underlying factors in the earnings report. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To properly understand Stride's profit results, we need to consider the US$60m expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect Stride to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from Stride's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Stride's statutory profit actually understates its earnings potential! Better yet, its EPS are growing strongly, which is nice to see. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. Obviously, we love to consider the historical data to inform our opinion of a company. But it can be really valuable to consider what other analysts are forecasting. So feel free to check out our free graph representing analyst forecasts. Today we've zoomed in on a single data point to better understand the nature of Stride's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may fi...

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Stride (LRN) put fresh numbers on the table with its third quarter results and an updated full year outlook, giving you a clearer view of how its online education business is currently performing. For the quarter ended March 31, 2026, Stride reported sales of US$629.87 million, compared with US$613.38 million a year earlier. Net income for the period was US$88.53 million versus US$99.35 million, with basic earnings per share from continuing operations at US$2.09 compared with US$2.31 and diluted earnings per share at US$1.93 compared with US$2.02. Across the first nine months of the fiscal year, sales were US$1.88b, compared with US$1.75b a year ago. Net income for this period was US$256.8 million versus US$236.62 million, while basic earnings per share from continuing operations were US$5.98 compared with US$5.50 and diluted earnings per share were US$5.39 compared with US$4.95. Alongside the earnings release, management narrowed full year revenue guidance to a range of US$2.49b to US$2.52b and outlined an income from operations range of US$443 million to US$450 million. For you as a shareholder or potential investor, this pairing of reported results with guidance helps set expectations for how the rest of the fiscal year may unfold. See our latest analysis for Stride. Stride’s share price has been sensitive to the latest earnings and guidance, with a 1 day share price return of 4.2% decline and a 7 day share price return of 5.1% decline, while a 30 day share price return of 3.8% and year to date share price return of 44.1% sit alongside a 1 year total shareholder return of 41.7% decline and multi year total shareholder returns that have been very strong. This suggests that longer term momentum remains intact even as recent sentiment cools. If Stride’s recent move has you thinking about what else is shaping education and training, it could be worth scanning 66 profitable AI stocks that aren't just burning cash as another way to spot potential opportunities. Stride now trades on an EBITDA multiple near 5x and at a sizeable discount to one set of intrinsic value estimates. Should investors view this as mispricing that leaves potential upside on the table, or assume markets are already incor...

Stride (LRN) reported fiscal Q3 adjusted earnings late Tuesday of $2.30 per diluted share, down from

This article first appeared on GuruFocus. Total Revenue: $629.9 million, up 2.7% year-over-year. Career Learning Revenue: $259.5 million, up nearly 16% driven by 11.6% enrollment growth. General Education Revenue: $357.5 million, down 3.6% due to a 5% enrollment decline. Total Enrollment: 244,500, up 1.8%. Revenue per Enrollment: $2,485, up 2.9% from $2,415 last year. Gross Margin: 36.8%, down 380 basis points. SG&A Expenses: $102.5 million, down 13.5% from last year. Stock-Based Compensation: $9.6 million for the quarter. Adjusted Operating Income: $140.4 million, down 1%. Adjusted EBITDA: $171.3 million, up 1.8%. Adjusted EPS: $2.30, down $0.03 from last year. Capital Expenditures: $18.5 million, up from $15.8 million last year. Free Cash Flow: $202.4 million, up from $37.3 million last year. Cash and Equivalents: $856 million. Full-Year Revenue Guidance: $2.490 billion to $2.520 billion. Full-Year Adjusted Operating Income Guidance: $490 million to $500 million. Full-Year CapEx Guidance: $75 million to $80 million. Effective Tax Rate Guidance: 24% to 25%. Warning! GuruFocus has detected 13 Warning Signs with WERN. Is LRN fairly valued? Test your thesis with our free DCF calculator. Release Date: April 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total enrollment grew by 1.8% to 244,500, indicating a positive trend in student interest. Revenue for Career Learning - Middle and High School programs increased by nearly 16%, driven by strong enrollment growth of 11.6%. Stride Inc (NYSE:LRN) reported a total revenue of $629.9 million for the quarter, up 2.7% compared to last year. The company has a strong pipeline of new business activity, which is as robust as it has been in the past five years. Free cash flow increased significantly to $202.4 million, up from $37.3 million last year, showcasing improved financial health. General Education revenue declined by 3.6% due to a 5% drop in enrollment. Gross margins decreased by 380 basis points to 36.8%, primarily due to continued investments in the business. Adjusted operating income was down 1%, and adjusted earnings per share decreased by $0.03 from last year. The company anticipates a sequential decline in enrollment next quarter as most programs no longer accept enrollments during the fourth quarter. The Adult Learning segment, particularly the bo...

Image source: The Motley Fool. Tuesday, April 28, 2026 at 5 p.m. ET Chief Executive Officer — James Rhyu Chief Financial Officer — Donna Blackman James Rhyu: Thanks, Eliza, and good afternoon, everyone. I'd like to start off with an update on the platform issues we experienced earlier this year. As I mentioned last quarter, we continue to execute on the road map for stability and improvements. As we close out this school year and preparations have already begun for the coming fall, we are heads down making sure our customers get the best experience possible. So I'm comfortable with our progress and believe we are on the right track as we prepare for the fall season. And as we have discussed previously, the demand for our products and services, as indicated by application volumes continues to be strong relative to historic levels. And while our focus is on finishing this year executing against our road map, we believe the demand environment sets us up well for the future. And although we experienced a marginally higher level of attrition since I gave an update on our last call, this was not unexpected. We continue to monitor, but we are confident it won't harm our long-term prospects. I believe the macro environment for school alternatives like ours continues to be a long-term trend that will serve as a tailwind to our business. Our job right now is to maintain focus and execute through the rest of this year and into the fall, so that the students and their families can continue to choose the options, including our programs that they deserve. Thank you, and I will now turn the call over to Donna. Donna Blackman: Thank you, James, and good afternoon. As James mentioned, we are seeing strong demand for the fall as measured by application volume, and we remain confident in the long-term growth in the business. This quarter's results reflect continued demand and solid execution across the business, and I'll start by reviewing those results. Total enrollments grew 1.8% to 244,500 and total revenue for the quarter was $629.9 million, up 2.7% compared to last year. Revenue in our career learning, middle and high school programs grew nearly 16% to $259.5 million, driven by strong enrollment growth of 11.6%. General Education revenue was $357.5 million, down 3.6% compared to last year, driven by an enrollment decline of 5%, which was more than offset by the growth in...

K12 (LRN) came out with quarterly earnings of $2.3 per share, beating the Zacks Consensus Estimate of $2.21 per share. This compares to earnings of $2.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.07%. A quarter ago, it was expected that this online education company would post earnings of $2.33 per share when it actually produced earnings of $2.5, delivering a surprise of +7.3%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. K12, which belongs to the Zacks Schools industry, posted revenues of $629.87 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.05%. This compares to year-ago revenues of $613.38 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. K12 shares have added about 50.6% since the beginning of the year versus the S&P 500's gain of 4.8%. While K12 has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for K12 was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see...

Management says the company is making progress on a “roadmap for stability” after earlier platform issues and remains “comfortable” with its trajectory, noting application volumes and the sales pipeline are strong even though attrition is “marginally higher.” Career Learning growth offset weakness in General Education in Q3: total enrollments rose 1.8% to 244.5k and revenue climbed 2.7% to $629.9M, with Career Learning revenue up ~16% while General Education fell 3.6%; total revenue per enrollment was up ~2.9% and is expected to rise ~2% for the full year. Margins and guidance: gross margin fell 380 bps to 36.8% due mainly to platform investment (expected to moderate into FY2027), adjusted EBITDA rose 1.8% to $171.3M, free cash flow was strong at $202.4M, and management narrowed full-year guidance to revenue $2.49–2.52B, adjusted operating income $490–500M, capex $75–80M, and an effective tax rate of 24–25%. Interested in Stride, Inc.? Here are five stocks we like better. 4 Stocks That Crushed Analyst Estimates by More Than Double Stride (NYSE:LRN) executives said the company is making progress addressing platform issues that surfaced earlier in the fiscal year, while demand indicators such as application volume remain strong heading into the next school year. Management also pointed to ongoing investments tied to the platform rollout as a key factor affecting margins, even as the company narrowed its full-year guidance ranges. Chief Executive Officer James Rhyu opened the call by revisiting the platform challenges discussed on prior updates, saying Stride continues to execute on a “roadmap for stability and improvements.” Rhyu said the company is focused on closing out the school year and preparing for the fall, adding that he is “comfortable with our progress” and believes the business is “on the right track” for the upcoming season. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank 2 Stocks That Crushed Short Sellers With Impressive Gains Rhyu said application volumes indicate demand remains “strong relative to the start levels,” and suggested that the broader macro environment for school alternatives remains a long-term tailwind. He acknowledged attrition has moved “marginally higher” since the previous quarter’s update, but said it was not unexpected and that management does not believe it will harm long-term prospects. Chief Fina...

RESTON, Va., April 28, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the third quarter of fiscal year 2026 ended March 31, 2026. Third Quarter Fiscal 2026 Highlights Compared to 2025 Revenue of $629.9 million, compared with $613.4 million Income from operations of $129.1 million, compared with $130.8 million Net income of $88.5 million, compared with $99.3 million Diluted net income per share of $1.93, compared with $2.02 Adjusted operating income of $140.4 million, compared with $141.7 million (1) Adjusted EBITDA of $171.3 million, compared with $168.3 million (1) Adjusted earnings per share of $2.30, compared with $2.33 (1) Third Quarter Fiscal 2026 Summary Financial Metrics (1) To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share. Management believes that these additional measures provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. Nine Month Fiscal 2026 Highlights Compared to 2025 Revenue of $1,882.0 million, compared with $1,751.7 million Income from operations of $344.9 million, compared with $303.2 million Net income of $256.8 million, compared with $236.6 million Diluted net income per share of $5.39, compared with $4.95 Adjusted operating income of $380.6 million, compared with $335.7 million (1) Adjusted EBITDA of $467.8 million, compared with $412.6 million (1) Adjusted earnings per share of $6.22, compared with $5.83 (1) Nine Month Fiscal 2026 Summary Financial Metrics Revenue Data Enrollment and Revenue Per Enrollment Data Third quarter enrollments were 244.5K, up 1.8% compared to 240.2K enrollments in the third quarter of fiscal year 2025. Of the total enrollments, 110.1K were Career Learning enrollments, up 11.6% compared to 98.7K Career Learning enrollments in the third quarter of fiscal 2025. Enrollments only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, and instructional and support serv...

Management is executing a stability roadmap to address previous platform issues, reporting comfortable progress ahead of the critical fall enrollment season. Total revenue growth of 2.7% was driven by a 16% surge in Career Learning, which effectively offset a 3.6% decline in General Education revenue. The 5% decline in General Education enrollment was attributed to a strategic decision to prioritize backfilling over growth and closing enrollment windows earlier than in prior years. Marginally higher attrition rates were noted since the previous update, though management characterized this as expected and not a threat to long-term prospects. Gross margin compression of 380 basis points reflects intentional, heavy investment in platform infrastructure to support the transition and ensure future stability. Management views the macro environment for alternative education as a persistent tailwind, with application volumes remaining strong relative to historical levels. Full-year revenue per enrollment is expected to increase approximately 2%, serving as management's primary indicator of underlying business health. Fourth quarter profitability is projected to be lower than the third quarter due to a planned ramp-up in marketing and operational spend for the upcoming school year. Management anticipates a portion of the current platform-related investment costs to moderate as the company moves into fiscal year 2027. Guidance for the fourth quarter assumes a sequential enrollment decline as most programs have ceased accepting new students for the current academic cycle. The company is monitoring state budget finalizations to provide a clearer picture of the fiscal year 2027 funding environment during the next earnings call. Pennsylvania legislation to reduce virtual school funding was enacted after 20 years of opposition, though management views this as an opportunity for market consolidation by stronger players. The Adult Learning segment, specifically coding boot camps, remains in secular decline with management expressing skepticism regarding a meaningful recovery in that industry. Free cash flow for the full year is expected to be flattish compared to the prior year, despite a significant year-over-year increase in the third quarter. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's o...

RESTON, Va., April 14, 2026 (GLOBE NEWSWIRE) -- Stride Inc. (NYSE: LRN) announced today it plans to discuss its third quarter fiscal year 2026 financial results during a conference call scheduled for Tuesday, April 28, 2026 at 5:00 p.m. eastern time (ET). A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call. A replay of the call will be posted at investors.stridelearning.com/events-and-presentations as soon as it is available. About Stride Inc. Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com. Investor Contact Investor Relations Stride, Inc. [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Stride (LRN) recently reported quarterly results with revenue up 7.5% year on year, an earnings beat, and guidance ahead of expectations. The stock has climbed sharply since that announcement. See our latest analysis for Stride. That earnings surprise and upbeat guidance have arrived after a powerful run, with the share price at US$90.21 and a 90 day share price return of 30.78%, even as the 1 year total shareholder return is 33.08% lower and the 5 year total shareholder return is 178.94% higher. This suggests momentum has revived recently after a weak year for long term holders. If Stride’s move has you thinking about what else is working in the market, this is a good moment to broaden your search and uncover 18 top founder-led companies With the shares already up strongly and trading at US$90.21, the key question now is whether Stride’s earnings surprise and guidance leave room for mispricing, or if the market is already paying up for future growth. According to the most followed narrative on Stride, a fair value of $51 sits well below the recent $90.21 close, which puts the current optimism into sharp focus and frames the latest earnings surprise against a much lower long term anchor. Read the complete narrative. Curious how this view arrives at a much lower fair value? The narrative leans heavily on measured revenue growth, steady margins, and a restrained future earnings multiple. The tension between a disciplined model and a fast moving share price is where the story gets interesting. Result: Fair Value of $51 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this thesis still faces pressure points, including regulatory shifts in virtual schooling and any sustained setback in career learning or adult education demand. Find out about the key risks to this Stride narrative. The user narrative pins Stride’s fair value at $51, which implies the stock is 76.9% overvalued at $90.21. Yet on earnings, the picture flips. With a P/E of 11.9x versus a fair ratio of 17.8x, peers at 18.8x, and the wider Consumer Services group at 17.8x, the question is whether the market is being too harsh or the narrative is simply more cautious. See what the...