Stride reports first quarter 2027 financial results

Revenue per enrollment increased despite fewer students, while adjusted operating income and adjusted earnings per share declined year over year.

Rhea-AI Summary

Stride (LRN) reported fiscal first-quarter 2027 revenue of $639.4 million, with higher operating income but lower net income year over year.

For the quarter ended September 30, 2026, revenue rose 3.0%, operating income increased 22.2% to $84.3 million, and net income fell 5.6% to $64.9 million. Diluted earnings per share rose to $1.45 from $1.40, while adjusted earnings per share fell to $1.37 from $1.52. Average enrollment declined 2.5% to 241.4K, while revenue per enrollment increased 7.0% to $2,556. Career Learning middle-high school revenue grew 12.7%; General Education and Adult revenue declined.

Stride forecasts fiscal 2027 revenue of $2.530 billion to $2.610 billion and adjusted operating income of $500 million to $530 million. Second-quarter forecasts call for revenue of $625 million to $645 million and adjusted operating income of $135 million to $145 million.

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Positive

• Moderate pointRevenue rose 3.0% year over year to $639.4 million in fiscal first-quarter 2027.
• Moderate pointOperating income increased 22.2% year over year to $84.3 million.
• Moderate pointDiluted earnings per share rose 3.6% to $1.45 from $1.40 a year earlier.
• Moderate pointRevenue per enrollment increased 7.0% to $2,556 from $2,388 a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 revenue forecast: Stride expects $2.530 billion to $2.610 billion.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 adjusted operating income forecast: Stride expects $500 million to $530 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Second-quarter fiscal 2027 revenue forecast: Stride expects $625 million to $645 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Second-quarter fiscal 2027 adjusted operating income forecast: Stride expects $135 million to $145 million.

7 minor points

• Minor pointMiddle-high school Career Learning revenue increased 12.7% year over year to $272.098 million.
• Minor pointCareer Learning enrollment rose 2.0% to 112.2K from 110.0K a year earlier.
• Minor pointGeneral Education revenue per enrollment rose 5.0% year over year to $2,670.
• Minor pointCareer Learning revenue per enrollment rose 10.4% year over year to $2,425.
• Minor pointAdjusted EBITDA increased 3.1% year over year to $111.8 million; EBITDA means earnings before interest, taxes, depreciation and amortization.
• Minor pointSelling, general and administrative expenses fell to $156.849 million from $173.140 million a year earlier.
• Minor pointNet interest expense decreased to $2.906 million from $3.075 million a year earlier.

Negative

• Moderate pointNet income declined 5.6% year over year to $64.9 million from $68.8 million.
• Moderate pointAdjusted earnings per share fell 9.9% to $1.37 from $1.52 a year earlier.
• Moderate pointAdjusted operating income declined 3.1% year over year to $78.6 million.
• Moderate pointAverage enrollment fell 2.5% to 241.4K from 247.7K a year earlier.
• Minor pointGeneral Education revenue declined 1.8% year over year to $356.606 million.

9 minor points

• Minor pointAdult Career Learning revenue fell 34.4% year over year to $10.674 million.
• Minor pointGross profit declined to $241.117 million from $242.123 million a year earlier.
• Minor pointInstructional costs and services increased to $398.261 million from $378.761 million a year earlier.
• Minor pointOther income, net, fell to $1.477 million from $16.914 million a year earlier.
• Minor pointIncome tax expense increased to $17.840 million from $14.423 million a year earlier.
• Minor pointEquity-method investments recorded an $80,000 loss versus $401,000 income a year earlier.
• Minor pointCapital expenditures increased to $24.5 million from $21.7 million in the prior-year quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 capital expenditures: Stride forecasts $70 million to $80 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Second-quarter fiscal 2027 capital expenditures: Stride forecasts $19 million to $21 million.

News Explained

At September 30, cash and marketable securities were $884.2 million, versus $1,034.1 million at June 30.

Stride has reported fiscal first-quarter 2027 results; its September 30 balance sheet lists $418,431 thousand of current debt and no long-term debt, versus no current debt and $417,995 thousand of long-term debt at June 30.

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Key Figures

Revenue: $639.4 million vs. $620.9 million; +3.0% Income from operations: $84.3 million vs. $69.0 million; +22.2% Net income: $64.9 million vs. $68.8 million; -5.6% +5 more

Revenue

$639.4 million vs. $620.9 million; +3.0%

First quarter fiscal 2027 vs. prior-year quarter

Income from operations

$84.3 million vs. $69.0 million; +22.2%

First quarter fiscal 2027 vs. prior-year quarter

Net income

$64.9 million vs. $68.8 million; -5.6%

First quarter fiscal 2027 vs. prior-year quarter

Diluted net income per share

$1.45 vs. $1.40; +3.6%

First quarter fiscal 2027 vs. prior-year quarter

Adjusted operating income

$78.6 million vs. $81.1 million; -3.1%

First quarter fiscal 2027 vs. prior-year quarter; non-GAAP

Adjusted earnings per share

$1.37 vs. $1.52; -9.9%

First quarter fiscal 2027 vs. prior-year quarter; non-GAAP

Revenue outlook

$2.530 billion to $2.610 billion

Full fiscal year 2027

Adjusted operating income outlook

$500 million to $530 million

Full fiscal year 2027; non-GAAP

Previous Earnings Reports

1 past event · Latest: Aug 04

Same Type 1 event

1. Aug 04

   Earnings results

   24h Move

   +2.6%

   Fiscal 2026 revenue rose 4.7%, while fourth-quarter revenue declined 2.7% year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap financial measures, ebitda

3 terms

gaap financial

"U.S. generally accepted accounting principles (GAAP)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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non-gaap financial measures financial

"we also present non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

ebitda financial

"Adjusted EBITDA of $111.8 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

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RESTON, Va., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the first quarter of fiscal year 2027 ended September 30, 2026.

First Quarter Fiscal 2027 Highlights Compared to 2026

• Revenue of $639.4 million, compared with $620.9 million
• Income from operations of $84.3 million, compared with $69.0 million
• Net income of $64.9 million, compared with $68.8 million
• Diluted net income per share of $1.45, compared with $1.40
• Adjusted operating income of $78.6 million, compared with $81.1 million (1)
• Adjusted EBITDA of $111.8 million, compared with $108.4 million (1)
• Adjusted earnings per share of $1.37, compared with $1.52 (1)
  
  

First Quarter Fiscal 2027 Summary Financial Metrics

	Three Months Ended September 30,						Change 2026/2025
	2026			2025			$			%
	(In thousands, except percentages and per share data)
Revenues	$	639,378		$	620,884		$	18,494		3.0%
Income from operations		84,268			68,983			15,285		22.2%
Adjusted operating income (1)		78,646			81,138			(2,492)		(3.1)%
Net income		64,919			68,800			(3,881)		(5.6)%
Net income per share, diluted		1.45			1.40			0.05		3.6%
Adjusted earnings per share (1)		1.37			1.52			(0.15)		(9.9)%
EBITDA (1)		119,202			98,217			20,985		21.4%
Adjusted EBITDA (1)		111,810			108,439			3,371		3.1%

⁽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.

Revenue Data

	Three Months Ended September 30,						Change 2026/2025
	2026			2025			$			%
	(In thousands, except percentages)
General Education	$	356,606		$	363,116		$	(6,510)		(1.8)%
Career Learning
Middle - High School		272,098			241,500			30,598		12.7%
Adult		10,674			16,268			(5,594)		(34.4)%
Total Career Learning		282,772			257,768			25,004		9.7%
Total Revenues		639,378			620,884			18,494		3.0%

Enrollment and Revenue Per Enrollment Data

First quarter enrollments averaged 241.4K, down (2.5)% compared to 247.7K enrollments in the first quarter of fiscal year 2026. Of the total enrollments, 112.2K were Career Learning enrollments, up 2.0% compared to 110.0K Career Learning enrollments in the first quarter of fiscal 2026.

Enrollments 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 first quarter was $2,556, up 7.0% compared to $2,388 in the first quarter of fiscal year 2026. General Education revenue per enrollment was $2,670, up 5.0%, and Career Learning revenue per enrollment was $2,425, up 10.4%, compared to fiscal year 2026. If the mix of enrollments changes, our revenues will be impacted to the extent the average revenues per enrollment are significantly different.

Cash Flow and Capital Allocation

As of September 30, 2026, the Company’s cash and cash equivalents and marketable securities totaled $884.2 million, compared with $1,034.1 million reported at June 30, 2026.

Capital expenditures for the three months ended September 30, 2026 were $24.5 million, compared to $21.7 million in the three months ended September 30, 2025, and were comprised of $17.9 million of capitalized software development and $6.6 million of capitalized curriculum development.

Fiscal Year 2027 Outlook

The Company is forecasting the following for the full fiscal year 2027:

• Revenue in the range of $2.530 billion to $2.610 billion
• Capital expenditures in the range of $70 million to $80 million. Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows
• Effective tax rate of 24% to 26%
• Adjusted operating income in the range of $500 million to $530 million (2)
  
  

The Company is forecasting the following for the second quarter of fiscal year 2027:

• Revenue in the range of $625 million to $645 million
• Capital expenditures in the range of $19 million to $21 million. Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows
• Adjusted operating income in the range of $135 million to $145 million (2)
  
  

⁽²⁾   In addition to providing an outlook for revenue and capital expenditures, adjusted operating income is provided as a supplemental non-GAAP financial measure as management believes that it provides useful information to our investors. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. Please also see Special Note on Forward-Looking Statements below.

Conference Call

The Company will discuss its first quarter fiscal year 2027 financial results during a conference call scheduled for Tuesday, October 20, 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 305 592 627. 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, future financial and other trends, forecasts, assumptions and guidance, 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 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, 2026 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 to 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 ended September 30, 2026 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Quarterly Report on Form 10-Q for the three months ended September 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.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
	Three Months Ended
	September 30,
	2026				2025
	(In thousands except share and per share data)
Revenues	$	639,378			$	620,884
Instructional costs and services		398,261				378,761
Gross margin		241,117				242,123
Selling, general, and administrative expenses		156,849				173,140
Income from operations		84,268				68,983
Interest expense, net		(2,906	)			(3,075	)
Other income, net		1,477				16,914
Income before income taxes and income (loss) from equity method investments		82,839				82,822
Income tax expense		(17,840	)			(14,423	)
Income (loss) from equity method investments		(80	)			401
Net income attributable to common stockholders	$	64,919			$	68,800
Net income attributable to common stockholders per share:
Basic	$	1.57			$	1.59
Diluted	$	1.45			$	1.40
Weighted average shares used in computing per share amounts:
Basic		41,479,826				43,371,952
Diluted		44,828,092				49,222,851

STRIDE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
	September 30,				June 30,
	2026				2026
					(audited)
ASSETS	(In thousands except share and per share data)
Current assets
Cash and cash equivalents	$	547,750			$	754,501
Accounts receivable, net of allowance of $31,751 and $31,302		854,808				664,788
Inventories, net		22,665				38,250
Prepaid expenses		75,345				43,052
Marketable securities		241,425				203,499
Other current assets		12,414				12,033
Total current assets		1,754,407				1,716,123
Property and equipment, net		172,974				102,042
Capitalized software, net		101,916				95,002
Capitalized curriculum development costs, net		59,963				56,895
Intangible assets, net		9,106				10,876
Goodwill		246,676				246,676
Deposits and other assets		185,914				207,938
Total assets	$	2,530,956			$	2,435,552
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	75,884			$	46,742
Accrued liabilities		68,400				95,446
Accrued compensation and benefits		28,220				62,896
Deferred revenue		6,817				20,553
Current portion of finance lease liability		85,463				60,477
Current portion of operating lease liability		2,374				2,737
Current portion of debt		418,431				-
Total current liabilities		685,589				288,851
Long-term finance lease liability		104,661				56,455
Long-term operating lease liability		8,106				8,316
Long-term debt		—				417,995
Deferred tax liability		41,137				13,033
Other long-term liabilities		19,698				18,573
Total liabilities		859,191				803,223
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; 49,681,525 and 49,126,917 shares issued; and 42,031,838 and 41,477,230 shares outstanding, respectively		4				4
Additional paid-in capital		714,347				739,829
Accumulated other comprehensive loss		(60	)			(59	)
Retained earnings		1,249,564				1,184,645
Treasury stock of 7,649,687 shares at cost		(292,090	)			(292,090	)
Total stockholders’ equity		1,671,765				1,632,329
Total liabilities and stockholders' equity	$	2,530,956			$	2,435,552

STRIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		Three Months Ended
		September 30,
		2026				2025
		(In thousands)
Cash flows from operating activities
Net income		$	64,919			$	68,800
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization expense			34,934				29,234
Stock-based compensation expense			(7,392	)			10,222
Deferred income taxes			29,425				49,472
Provision for credit losses			2,143				3,377
Amortization of fees on debt			435				429
Noncash operating lease expense			352				2,661
Other			8,092				(3,989	)
Changes in assets and liabilities:
Accounts receivable			(191,894	)			(253,026	)
Inventories, prepaid expenses, deposits and other current and long-term assets			(18,356	)			(36,322	)
Accounts payable			27,881				15,716
Accrued liabilities			(28,566	)			(45,356	)
Accrued compensation and benefits			(33,257	)			(30,882	)
Operating lease liability			(899	)			(879	)
Deferred revenue and other liabilities			(12,604	)			(5,237	)
Net cash used in operating activities			(124,787	)			(195,780	)
Cash flows from investing activities
Purchase of property and equipment			(4	)			(306	)
Capitalized software development costs			(17,911	)			(13,713	)
Capitalized curriculum development costs			(6,567	)			(7,677	)
Sale of other investments			35,110				-
Other acquisitions, loans and investments, net of distributions			(886	)			(2,574	)
Proceeds from the maturity of marketable securities			61,638				61,767
Purchases of marketable securities			(117,295	)			(62,220	)
Net cash used in investing activities			(45,915	)			(24,723	)
Cash flows from financing activities
Repayments on finance lease obligations			(16,540	)			(11,961	)
Repurchase of restricted stock for income tax withholding			(19,509	)			(31,594	)
Net cash used in financing activities			(36,049	)			(43,555	)
Net change in cash, cash equivalents and restricted cash			(206,751	)			(264,058	)
Cash, cash equivalents and restricted cash, beginning of period			754,501				782,497
Cash, cash equivalents and restricted cash, end of period		$	547,750			$	518,439

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) is defined as income (loss) from operations as adjusted for amortization of intangible assets, stock-based compensation, and other one-time charges or gains.
• EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization.
• Adjusted EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization, stock-based compensation, and other one-time charges or gains.
• Adjusted earnings per share (adjusted EPS) is defined as net income (loss) attributable to common stockholders as adjusted for the amortization of intangible assets, stock-based compensation, and other one-time charges or gains net of tax impact divided by the diluted weighted average number of common shares outstanding less the shares expected to be received for the capped call transaction related to Stride’s convertible senior notes.
  
  

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:

• as additional measures of operating performance because they assist in comparing the Company’s performance on a consistent basis; and
• in presentations to the members of the Company’s Board of Directors to enable the Board to review the same measures used by management to compare the Company’s current operating results with corresponding prior periods.
  
  

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.

First Quarter Fiscal Year 2027

Reconciliation of Income from Operations to Adjusted Operating Income

	Three Months Ended
	September 30,
	2026				2025
	(In thousands)
Income from operations	$	84,268			$	68,983
Amortization of intangible assets		1,770				1,933
Stock-based compensation expense		(7,392	)			10,222
Adjusted operating income	$	78,646			$	81,138

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

	Three Months Ended September 30,
	2026				2025
	(In thousands)
Net income	$	64,919			$	68,800
Interest expense, net		2,906				3,075
Other income, net		(1,477	)			(16,914	)
Income tax expense		17,840				14,423
(Income) loss from equity method investments		80				(401	)
Depreciation and amortization		34,934				29,234
EBITDA		119,202				98,217
Stock-based compensation expense		(7,392	)			10,222
Adjusted EBITDA	$	111,810			$	108,439

Reconciliation of Net Income Attributable to Common Stockholders and Diluted Net Income Per Share to Adjusted Earnings Per Share

	Three Months Ended
	September 30,
	2026				2025
	(In thousands)
Net income attributable to common stockholders	$	64,919			$	68,800
Amortization of intangible assets		1,770				1,933
Stock-based compensation expense		(7,392	)			10,222
Income tax effect from adjustments above		(2,038	)			(8,969	)
Adjusted net income attributable to common stockholders	$	57,259			$	71,986
Share computation:
Weighted average common shares — diluted		44,828,092				49,222,851
Effect of capped call transactions		(2,958,006	)			(1,803,506	)
Adjusted weighted average common shares — diluted		41,870,086				47,419,345
Adjusted earnings per share	$	1.37			$	1.52
	Three Months Ended
	September 30,
	2026				2025
	(per share)
Diluted net income per share	$	1.45			$	1.40
Amortization of intangible assets		0.04				0.04
Stock-based compensation expense		(0.16	)			0.20
Income tax effect from adjustments above		(0.05	)			(0.18	)
Effect of capped call transactions		0.09				0.06
Adjusted earnings per share	$	1.37			$	1.52

Fiscal Year 2027 Outlook

Reconciliation of Income from Operations to Adjusted Operating Income (unaudited)

	Three Months Ended								Year Ended
	December 31, 2026								June 30, 2027
	Low				High				Low				High
	(In millions)
Income from operations	$	126.0			$	134.5			$	479.5			$	503.5
Amortization of intangible assets		1.5				2.0				5.5				7.5
Stock-based compensation expense		7.5				8.5				15.0				19.0
Adjusted operating income	$	135.0			$	145.0			$	500.0			$	530.0

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Stride's LRN fiscal first-quarter 2027 earnings results?

Stride reported $639.4 million in revenue and $1.45 in diluted earnings per share for the quarter ended September 30, 2026. Revenue increased 3.0% year over year, while net income declined 5.6% to $64.9 million. Adjusted earnings per share were $1.37, down from $1.52.

What is Stride's LRN fiscal 2027 financial outlook?

Stride forecasts fiscal 2027 revenue of $2.530 billion to $2.610 billion and adjusted operating income of $500 million to $530 million. Its capital expenditure forecast is $70 million to $80 million, with an effective tax rate of 24% to 26%.

What did Stride spend its first-quarter fiscal 2027 capital expenditures on?

Stride's $24.5 million in capital expenditures comprised $17.9 million of capitalized software development and $6.6 million of capitalized curriculum development. Capital expenditures were $21.7 million in the prior-year quarter.

Which students are included in Stride's reported enrollment figures?

Stride's enrollment figures cover students in full-service public or private programs receiving a combination of curriculum, technology, instruction and support services. They may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollment for its Adult Learning business.