UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM
_________________
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
On August 4, 2026, Stride, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and full fiscal year ended June 30, 2026. A copy of the Company’s press release is furnished herewith as Exhibit 99.1.
The information contained in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of that Section. The information in this Item 2.02, including Exhibit 99.1, shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On August 4, 2026, the Company announced that the Company’s existing stock repurchase program, which was previously set to expire on October 31, 2026, was extended through October 31, 2027. The stock repurchase program has remaining availability for the repurchase of up to $311.3 million of the Company’s common stock.
Under the repurchase program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions, or otherwise, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase program does not obligate the Company to acquire any particular amount of its common stock, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.
Forward-Looking Statements
This 8-K contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this 8-K are forward-looking statements, including, but not limited to, statements as to any future share repurchases, the manner thereof, and the implementation of any capital allocation strategy. We have tried, whenever possible, to identify these forward-looking statements using words such as “outlook,” “forecasts,” “anticipates,” “trends,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends,” “should,” “would” and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual actions, results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model or to meet financial or operational guidance; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve, our vendors, or us to comply with our contracts, or federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, contractual remedies, or actions or proceedings against us; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve, including due to the evolution of curriculum standards, testing programs and state accountability metrics; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; potential violation of laws and regulations relating to privacy and data protection, including such laws and regulations as may apply to children’s data; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction or termination in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies (including artificial intelligence (“AI”)) and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud infrastructure, systems and facilities, including as a result of cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems or our data; problems in the implementation of new information technology systems and technology; failure by us or third parties to maintain and support information technology systems, including addressing quality issues and timely delivering new products and enhancements; risks related to the use, implementation and regulation of AI and other emerging technologies, including in the education of children, and their use by third-party vendors; risks related to our stock repurchase program; the extent to which we acquire businesses or change our capital allocation strategy or the implementation thereof; changes in our effective tax rate and additional liabilities; and other risks and uncertainties associated with our business described in the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequently filed Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements reflect our management’s expectations or predictions of future conditions, events or results based on various assumptions and estimates. They are not guarantees of future performance. Our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in any such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements in this 8-K or that we make from time to time, and to consider carefully the factors discussed above. All information in this 8-K is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement as a result of new information, future events or otherwise, except where we are expressly required to do so by law.
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Press Release regarding financial results for the quarter and year ended June 30, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Stride, Inc. | ||
| Date: August 4, 2026 | By: | /s/ Greerson G. McMullen |
| Greerson G. McMullen | ||
| EVP, General Counsel & Secretary | ||
EXHIBIT 99.1
Stride reports fourth quarter and full year 2026 financial results
RESTON, Va., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the fourth quarter and full fiscal year ended June 30, 2026.
“I am pleased to lead Stride as we position the Company for its next chapter of growth,” said Robert Knowling, Stride Chief Executive Officer. “Building on Stride’s strong foundation, we will continue to prioritize investments in curriculum, technology and support services to improve student outcomes and drive growth and value creation. I look forward to working alongside our talented team and leveraging our full breadth of capabilities to reach Stride's full potential.”
Fiscal 2026 Highlights Compared to 2025
Fiscal 2026 Summary Financial Metrics
| Year Ended June 30, | Change 2026/2025 | |||||||||||||
| 2026 | 2025 | $ | % | |||||||||||
| (In thousands, except percentages and per share data) | ||||||||||||||
| Revenues | $ | 2,518,081 | $ | 2,405,317 | $ | 112,764 | 4.7 | % | ||||||
| Income from operations | 450,767 | 360,094 | 90,673 | 25.2 | % | |||||||||
| Adjusted operating income (1) | 498,373 | 466,233 | 32,140 | 6.9 | % | |||||||||
| Net income | 338,192 | 287,941 | 50,251 | 17.5 | % | |||||||||
| Net income per share, diluted | 7.14 | 5.95 | 1.19 | 20.0 | % | |||||||||
| Adjusted earnings per share (1) | 8.33 | 8.10 | 0.23 | 2.8 | % | |||||||||
| EBITDA (1) | 577,329 | 474,763 | 102,566 | 21.6 | % | |||||||||
| Adjusted EBITDA (1) | 617,584 | 571,035 | 46,549 | 8.2 | % | |||||||||
(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.
Fourth Quarter Fiscal 2026 Highlights Compared to 2025
Fourth Quarter Fiscal 2026 Summary Financial Metrics
| Three Months Ended June 30, | Change 2026/2025 | |||||||||||||
| 2026 | 2025 | $ | % | |||||||||||
| (In thousands, except percentages and per share data) | ||||||||||||||
| Revenues | $ | 636,064 | $ | 653,647 | $ | (17,583 | ) | (2.7 | %) | |||||
| Income from operations | 105,852 | 56,864 | 48,988 | 86.1 | % | |||||||||
| Adjusted operating income (1) | 117,814 | 130,558 | (12,744 | ) | (9.8 | %) | ||||||||
| Net income | 81,388 | 51,320 | 30,068 | 58.6 | % | |||||||||
| Net income per share, diluted | 1.75 | 1.03 | 0.72 | 69.9 | % | |||||||||
| Adjusted earnings per share (1) | 2.12 | 2.29 | (0.17 | ) | (7.4 | %) | ||||||||
| EBITDA (1) | 139,631 | 87,063 | 52,568 | 60.4 | % | |||||||||
| Adjusted EBITDA (1) | 149,823 | 158,413 | (8,590 | ) | (5.4 | %) | ||||||||
Revenue Data
| Three Months Ended | Year Ended | ||||||||||||||||||||||||
| June 30, | Change 2026 / 2025 | June 30, | Change 2026 / 2025 | ||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||
| (In thousands, except percentages) | |||||||||||||||||||||||||
| General Education | $ | 355,809 | $ | 394,134 | $ | (38,325 | ) | (9.7 | %) | $ | 1,417,785 | $ | 1,448,676 | $ | (30,891 | ) | (2.1 | %) | |||||||
| Career Learning | |||||||||||||||||||||||||
| Middle - High School | 267,116 | 240,455 | 26,661 | 11.1 | % | 1,043,726 | 876,287 | 167,439 | 19.1 | % | |||||||||||||||
| Adult | 13,139 | 19,058 | (5,919 | ) | (31.1 | %) | 56,570 | 80,354 | (23,784 | ) | (29.6 | %) | |||||||||||||
| Total Career Learning | 280,255 | 259,513 | 20,742 | 8.0 | % | 1,100,296 | 956,641 | 143,655 | 15.0 | % | |||||||||||||||
| Total Revenues | $ | 636,064 | $ | 653,647 | $ | (17,583 | ) | (2.7 | %) | $ | 2,518,081 | $ | 2,405,317 | $ | 112,764 | 4.7 | % | ||||||||
Enrollment and Revenue Per Enrollment Data
Full year enrollments averaged 243.9K, up 4.2% compared to 234.0K enrollments in fiscal year 2025. Of the total enrollments, 109.7K were Career Learning enrollments, up 13.9% compared to 96.3K Career Learning enrollments in fiscal 2025.
Fourth quarter enrollments averaged 234.2K, down (0.5)% compared to 235.3K enrollments in the fourth quarter of fiscal year 2025. Of the total average enrollments, 106.4K were Career Learning enrollments, up 9.7% compared to 97.0K Career Learning enrollments in the fourth 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 services, inclusive of administrative support and may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollments for our Adult Learning business.
Revenue per enrollment for the full fiscal year 2026 was $9,914, up 2.4% compared to $9,677 in fiscal year 2025. General Education revenue per enrollment was $10,243, up 1.6%, and Career Learning revenue per enrollment was $9,512, up 4.5%, compared to fiscal year 2025. If the mix of enrollments changes, our revenues will be impacted to the extent the average revenues per enrollments are significantly different.
Revenue per enrollment for the fourth quarter was $2,620, down (0.4)% compared to $2,630 in the fourth quarter of fiscal year 2025. General Education revenue per enrollment was $2,710, down (1.0)% compared to the fourth quarter of fiscal year 2025, and Career Learning revenue per enrollment was $2,511, up 1.3%, compared to the fourth quarter of fiscal year 2025.
Cash Flow and Capital Allocation
As of June 30, 2026, the Company’s cash and cash equivalents and marketable securities totaled $1,034.1 million, compared with $1,011.4 million reported at June 30, 2025.
Capital expenditures for the fiscal year ended June 30, 2026 were $78.8 million, compared to $60.0 million in fiscal year 2025, and were comprised of $0.6 million of property and equipment, $61.6 million of capitalized software development and $16.6 million of capitalized curriculum development.
During fiscal year 2026, the Company repurchased approximately 2.3 million shares of its common stock for an aggregate purchase price of approximately $188.7 million under its previously announced share repurchase authorization. As of June 30, 2026, approximately $311.3 million remained available under the current authorization. The Company continues to evaluate share repurchases as part of its disciplined capital allocation strategy.
Conference Call
The Company will discuss its fourth quarter and full fiscal year 2026 financial results during a conference call scheduled for Tuesday, August 4, 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 (833) 461-5787 (domestic) or +1 (585) 542-9983 (international) and provide the conference ID number 708 877 615. 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.
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 ir@k12.com | Media Contact press@k12.com |
Special Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, such as any statements that look to future events and include, among other things, our expectations regarding: mix of enrollment, revenue per enrollment, and future share repurchases. We have tried, whenever possible, to identify these forward-looking statements using words such as “outlook,” “forecasts,” “anticipates,” “trends,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends,” “should,” “would” and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model or to meet financial or operational guidance; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve, our vendors, or us to comply with our contracts, or federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, contractual remedies, or actions or proceedings against us; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve, including due to the evolution of curriculum standards, testing programs and state accountability metrics; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; potential violation of laws and regulations relating to privacy and data protection, including as such laws and regulations may apply to children’s data; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction or termination in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies (including artificial intelligence (“AI”)) and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud infrastructure, systems and facilities, including as a result of cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems or our data; problems in the implementation of new information technology systems and technology; failure by us or third parties to maintain and support information technology systems, including addressing quality issues and timely delivering new products and enhancements; risks related to the use, implementation and regulation of AI and other emerging technologies, including in the education of children, and their use by third-party vendors; risks related to our stock repurchase program; changes in our effective tax rate and additional liabilities; and other risks and uncertainties associated with our business described in the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequently filed Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements reflect our management’s expectations or predictions of future conditions, events or results based on various assumptions and estimates. They are not guarantees of future performance. Our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements in this press release or that we make from time, and to consider carefully the factors discussed above. All information in this press release is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement as a result of new information, future events or otherwise, except where we are expressly required to do so by law.
Financial Statements
The financial statements set forth below are not the complete set of Stride, Inc.’s financial statements for the three months and year ended June 30, 2026 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Annual Report on Form 10-K for the year ended June 30, 2026, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC’s website at www.sec.gov or from Stride Inc.’s Investor Relations website at investors.stridelearning.com.
| STRIDE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In thousands except share and per share data) | |||||||||||||||
| Revenues | $ | 636,064 | $ | 653,647 | $ | 2,518,081 | $ | 2,405,317 | |||||||
| Instructional costs and services | 418,781 | 414,728 | 1,567,481 | 1,461,398 | |||||||||||
| Gross margin | 217,283 | 238,919 | 950,600 | 943,919 | |||||||||||
| Selling, general, and administrative expenses | 111,431 | 122,577 | 499,833 | 524,347 | |||||||||||
| Impairment of long-lived assets | — | 59,478 | — | 59,478 | |||||||||||
| Income from operations | 105,852 | 56,864 | 450,767 | 360,094 | |||||||||||
| Interest expense, net | (2,889 | ) | (2,693 | ) | (11,778 | ) | (10,504 | ) | |||||||
| Other income, net | 1,362 | 10,160 | 2,173 | 33,629 | |||||||||||
| Income before income taxes and loss from equity method investments | 104,325 | 64,331 | 441,162 | 383,219 | |||||||||||
| Income tax expense | (22,831 | ) | (12,919 | ) | (102,765 | ) | (93,007 | ) | |||||||
| Loss from equity method investments | (106 | ) | (92 | ) | (205 | ) | (2,271 | ) | |||||||
| Net income attributable to common stockholders | $ | 81,388 | $ | 51,320 | $ | 338,192 | $ | 287,941 | |||||||
| Net income attributable to common stockholders per share: | |||||||||||||||
| Basic | $ | 1.93 | $ | 1.19 | $ | 7.92 | $ | 6.69 | |||||||
| Diluted | $ | 1.75 | $ | 1.03 | $ | 7.14 | $ | 5.95 | |||||||
| Weighted average shares used in computing per share amounts: | |||||||||||||||
| Basic | 42,091,404 | 43,186,913 | 42,717,156 | 43,041,274 | |||||||||||
| Diluted | 46,388,112 | 49,767,056 | 47,332,855 | 48,413,717 | |||||||||||
| STRIDE, INC. CONSOLIDATED BALANCE SHEETS | |||||||
| June 30, | |||||||
| 2026 | 2025 | ||||||
| ASSETS | (In thousands except share and per share data) | ||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 754,501 | $ | 782,497 | |||
| Accounts receivable, net of allowance of $31,302 and $31,124 | 664,788 | 559,646 | |||||
| Inventories, net | 38,250 | 37,570 | |||||
| Prepaid expenses | 43,052 | 35,579 | |||||
| Marketable securities | 203,499 | 202,769 | |||||
| Other current assets | 12,033 | 14,673 | |||||
| Total current assets | 1,716,123 | 1,632,734 | |||||
| Property and equipment, net | 102,042 | 78,582 | |||||
| Capitalized software, net | 95,002 | 75,314 | |||||
| Capitalized curriculum development costs, net | 56,895 | 58,584 | |||||
| Intangible assets, net | 10,876 | 18,227 | |||||
| Goodwill | 246,676 | 246,676 | |||||
| Deferred tax asset | — | 26,377 | |||||
| Deposits and other assets | 207,938 | 157,465 | |||||
| Total assets | $ | 2,435,552 | $ | 2,293,959 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 46,742 | $ | 43,962 | |||
| Accrued liabilities | 95,446 | 103,276 | |||||
| Accrued compensation and benefits | 62,896 | 74,939 | |||||
| Deferred revenue | 20,553 | 26,995 | |||||
| Current portion of finance lease liability | 60,477 | 42,316 | |||||
| Current portion of operating lease liability | 2,737 | 11,391 | |||||
| Total current liabilities | 288,851 | 302,879 | |||||
| Long-term finance lease liability | 56,455 | 44,567 | |||||
| Long-term operating lease liability | 8,316 | 35,164 | |||||
| Long-term debt | 417,995 | 416,322 | |||||
| Deferred tax liability | 13,033 | — | |||||
| Other long-term liabilities | 18,573 | 15,408 | |||||
| Total liabilities | 803,223 | 814,340 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding | — | — | |||||
| Common stock, par value $0.0001; 100,000,000 shares authorized; 49,126,917 and 48,852,419 shares issued; and 41,477,230 and 43,517,676 shares outstanding, respectively | 4 | 4 | |||||
| Additional paid-in capital | 739,829 | 735,711 | |||||
| Accumulated other comprehensive loss | (59 | ) | (67 | ) | |||
| Retained earnings | 1,184,645 | 846,453 | |||||
| Treasury stock of 7,649,687 and 5,334,743 shares at cost, respectively | (292,090 | ) | (102,482 | ) | |||
| Total stockholders’ equity | 1,632,329 | 1,479,619 | |||||
| Total liabilities and stockholders' equity | $ | 2,435,552 | $ | 2,293,959 | |||
| STRIDE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| Year Ended | |||||||
| June 30, | |||||||
| 2026 | 2025 | ||||||
| (In thousands) | |||||||
| Cash flows from operating activities | |||||||
| Net income | $ | 338,192 | $ | 287,941 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization expense | 126,562 | 114,669 | |||||
| Stock-based compensation expense | 40,255 | 36,794 | |||||
| Deferred income taxes | 39,993 | (17,783 | ) | ||||
| Provision for credit losses | 16,463 | 15,267 | |||||
| Amortization of fees on debt | 1,673 | 1,647 | |||||
| Noncash operating lease expense | 5,063 | 12,265 | |||||
| Impairment of long-lived assets | — | 59,478 | |||||
| Other | 20,514 | (596 | ) | ||||
| Changes in assets and liabilities: | |||||||
| Accounts receivable | (121,370 | ) | (102,188 | ) | |||
| Inventories, prepaid expenses, deposits and other current and long-term assets | 6,538 | (6,239 | ) | ||||
| Accounts payable | 2,164 | 310 | |||||
| Accrued liabilities | (10,188 | ) | 40,915 | ||||
| Accrued compensation and benefits | (11,828 | ) | 9,913 | ||||
| Operating lease liability | (16,943 | ) | (12,396 | ) | |||
| Deferred revenue and other liabilities | (3,274 | ) | (7,181 | ) | |||
| Net cash provided by operating activities | 433,814 | 432,816 | |||||
| Cash flows from investing activities | |||||||
| Purchase of property and equipment | (587 | ) | (1,781 | ) | |||
| Capitalized software development costs | (61,591 | ) | (36,428 | ) | |||
| Capitalized curriculum development costs | (16,668 | ) | (21,801 | ) | |||
| Other acquisitions, loans and investments, net of distributions | (55,538 | ) | (20,682 | ) | |||
| Proceeds from the maturity of marketable securities | 279,497 | 252,930 | |||||
| Purchases of marketable securities | (324,941 | ) | (260,233 | ) | |||
| Net cash used in investing activities | (179,828 | ) | (87,995 | ) | |||
| Cash flows from financing activities | |||||||
| Repayments on finance lease obligations | (56,856 | ) | (41,469 | ) | |||
| Purchase of treasury stock | (188,659 | ) | - | ||||
| Repurchase of restricted stock for income tax withholding | (36,467 | ) | (21,469 | ) | |||
| Net cash used in financing activities | (281,982 | ) | (62,938 | ) | |||
| Net change in cash, cash equivalents and restricted cash | (27,996 | ) | 281,883 | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 782,497 | 500,614 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 754,501 | $ | 782,497 | |||
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share, which are not presented in accordance with GAAP.
Adjusted operating income (loss), adjusted EBITDA, and adjusted EPS exclude stock-based compensation, which consists of expenses for restricted stock, restricted stock units, and performance stock units.
Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss), adjusted EBITDA and adjusted EPS remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. Adjusted operating income (loss), adjusted EBITDA and adjusted earnings per share remove one-time charges or gains which are not related to core operating activities and are not indicative of our ongoing operating performance. Additionally, adjusted EPS includes the impact from shares expected to be received by the Company to offset potential dilution from the convertible senior notes. EBITDA and adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired.
Management uses these non-GAAP financial measures:
Other companies may define these non-GAAP financial measures differently and, as a result, these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although these non-GAAP financial measures are used to assess the performance of the business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items included and/or not included in the most directly comparable GAAP financial measure.
These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and diluted net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below.
Fourth Quarter and Full Fiscal Year 2026
Reconciliation of Income from Operations to Adjusted Operating Income
| Three Months Ended | Year Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| Income from operations | $ | 105,852 | $ | 56,864 | $ | 450,767 | $ | 360,094 | |||||||
| Amortization of intangible assets | 1,770 | 2,344 | 7,351 | 9,867 | |||||||||||
| Stock-based compensation expense | 10,192 | 11,872 | 40,255 | 36,794 | |||||||||||
| Impairment of long-lived assets | - | 59,478 | - | 59,478 | |||||||||||
| Adjusted operating income | $ | 117,814 | $ | 130,558 | $ | 498,373 | $ | 466,233 | |||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
| Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| Net income | $ | 81,388 | $ | 51,320 | $ | 338,192 | $ | 287,941 | |||||||
| Interest expense, net | 2,889 | 2,693 | 11,778 | 10,504 | |||||||||||
| Other income, net | (1,362 | ) | (10,160 | ) | (2,173 | ) | (33,629 | ) | |||||||
| Income tax expense | 22,831 | 12,919 | 102,765 | 93,007 | |||||||||||
| Loss from equity method investments | 106 | 92 | 205 | 2,271 | |||||||||||
| Depreciation and amortization | 33,779 | 30,199 | 126,562 | 114,669 | |||||||||||
| EBITDA | 139,631 | 87,063 | 577,329 | 474,763 | |||||||||||
| Stock-based compensation expense | 10,192 | 11,872 | 40,255 | 36,794 | |||||||||||
| Impairment of long-lived assets | - | 59,478 | - | 59,478 | |||||||||||
| Adjusted EBITDA | $ | 149,823 | $ | 158,413 | $ | 617,584 | $ | 571,035 | |||||||
Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share
| Three Months Ended | Year Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| Net income attributable to common stockholders | $ | 81,388 | $ | 51,320 | $ | 338,192 | $ | 287,941 | |||||||
| Amortization of intangible assets | 1,770 | 2,344 | 7,351 | 9,867 | |||||||||||
| Stock-based compensation expense | 10,192 | 11,872 | 40,255 | 36,794 | |||||||||||
| Impairment of long-lived assets | - | 59,478 | - | 59,478 | |||||||||||
| Income tax effect from adjustments above | (1,188 | ) | (15,309 | ) | (12,937 | ) | (21,442 | ) | |||||||
| Adjusted net income attributable to common stockholders | $ | 92,162 | $ | 109,705 | $ | 372,861 | $ | 372,638 | |||||||
| Share computation: | |||||||||||||||
| Weighted average common shares — diluted | 46,388,112 | 49,767,056 | 47,332,855 | 48,413,717 | |||||||||||
| Effect of capped call transactions | (2,876,857 | ) | (1,827,961 | ) | (2,568,353 | ) | (2,396,207 | ) | |||||||
| Adjusted weighted average common shares — diluted | 43,511,255 | 47,939,095 | 44,764,502 | 46,017,510 | |||||||||||
| Adjusted earnings per share | $ | 2.12 | $ | 2.29 | $ | 8.33 | $ | 8.10 | |||||||
| Three Months Ended | Year Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (per share) | |||||||||||||||
| Diluted net income per share | $ | 1.75 | $ | 1.03 | $ | 7.14 | $ | 5.95 | |||||||
| Amortization of intangible assets | 0.04 | 0.05 | 0.16 | 0.20 | |||||||||||
| Stock-based compensation expense | 0.23 | 0.24 | 0.85 | 0.76 | |||||||||||
| Impairment of long-lived assets | - | 1.20 | - | 1.23 | |||||||||||
| Income tax effect from adjustments above | (0.03 | ) | (0.31 | ) | (0.27 | ) | (0.44 | ) | |||||||
| Effect of capped call transactions | 0.13 | 0.08 | 0.45 | 0.40 | |||||||||||
| Adjusted earnings per share | $ | 2.12 | $ | 2.29 | $ | 8.33 | $ | 8.10 | |||||||
Cover |
Aug. 04, 2026 |
|---|---|
| Document Type | 8-K |
| Amendment Flag | false |
| Document Period End Date | Aug. 04, 2026 |
| Entity File Number | 001-33883 |
| Entity Registrant Name | Stride, Inc. |
| Entity Central Index Key | 0001157408 |
| Entity Tax Identification Number | 95-4774688 |
| Entity Incorporation, State or Country Code | DE |
| Entity Address, Address Line One | 11720 Plaza America Drive, 9th Floor |
| Entity Address, City or Town | Reston |
| Entity Address, State or Province | VA |
| Entity Address, Postal Zip Code | 20190 |
| City Area Code | 703 |
| Local Phone Number | 483-7000 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock, $0.0001 par value per share |
| Trading Symbol | LRN |
| Security Exchange Name | NYSE |
| Entity Emerging Growth Company | false |