[8-K] Strategic Education, Inc. Reports Material Event

Rhea-AI Filing Summary

United Therapeutics (UTHR) Q2-25 10-Q highlights

• Sales up 12%: Q2 revenue rose to $798.6 m (vs. $714.9 m), driven by Tyvaso DPI (+22%) and Orenitram (+16%). Six-month revenue reached $1.59 bn (+14%).
• Margin expansion: Gross margin held at 89%; operating income increased 14% to $364.5 m. Diluted EPS climbed 10% to $6.41; YTD EPS $13.02 (+8%).
• Strong cash generation & deleveraging: Operating cash flow $652.9 m (+7%). Paid off $500 m of credit lines; total liabilities down to $734 m (-20% YTD). Cash & equivalents $1.59 bn after $104 m outflow.
• Liquidity: New unsecured revolving credit facility of up to $2.5 bn (undrawn) replaces 2022 agreement.
• Capital allocation: No 2025 buybacks; treasury stock remains 30.2 m shares from 2024 ASR. Share-based comp $69.6 m YTD.
• Litigation update: $72.6 m accrued for Sandoz contract damages; multiple proceedings with Liquidia continue despite Yutrepia launch.
• Product mix: Tyvaso franchise contributes 59% of Q2 sales; Remodulin down 9% YoY.

Balance sheet: Equity $7.17 bn (+11%), assets $7.91 bn. Marketable investments total $3.38 bn; property, plant & equipment up 11% after $107 m RTP real-estate purchase.

Positive

• Revenue growth of 11.7% YoY and 14% YTD outpaces peers.
• Operating cash flow $653 m funds capex and debt repayment.
• Debt eliminated; $2.5 bn revolver provides inexpensive back-up liquidity.
• EPS dilution controlled despite higher share-based comp.
• Tyvaso DPI adoption delivers 59% of total sales, cementing pulmonary franchise.

Negative

• $72.6 m litigation accrual underscores ongoing legal uncertainty with Sandoz; additional appeals pending.
• Liquidia’s Yutrepia launch introduces direct competition to core Tyvaso products.
• Remodulin sales decline 9% YoY, highlighting portfolio maturing.
• Cash balance down $104 m in six months despite strong OCF.
• Customer concentration: two U.S. distributors represent 87% of revenue.

Insights

Equity Research Analyst

TL;DR: Double-digit top-line growth, debt paid, margins intact – outlook constructive.

UTHR’s Q2 shows solid execution on Tyvaso DPI adoption and disciplined cost control. With liabilities trimmed by $186 m and an undrawn $2.5 bn revolver, financial flexibility is high. Operating margin of 46% and ROE above 17% support valuation. Key watch-items are litigation overhang and product concentration, but current accruals appear manageable versus $7.9 bn asset base. Management’s cash build positions the firm for pipeline investments or resumed buybacks once legal clouds clear.

Litigation & Competitive Risk Analyst

TL;DR: Legal liabilities capped so far; competitive risk from Liquidia rising.

The $72.6 m Sandoz accrual addresses near-term exposure, yet appeals could modify damages. More strategic is Liquidia’s FDA-approved Yutrepia, which targets UTHR’s flagship Tyvaso market. A June trial on the ’327 patent may force label carve-outs but does not block sales. Investors should model potential Tyvaso share erosion starting 2H-25 and monitor patent outcomes through 2027. Two U.S. distributors account for 87% of revenue, amplifying channel risk should competitive pricing emerge.

0001013934FALSE00010139342025-07-302025-07-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2025

Strategic Education, Inc.

(Exact Name of Registrant as Specified in Charter)

Maryland

0-21039

52-1975978

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

2303 Dulles Station Boulevard

Herndon, VA 20171
(Address of Principal Executive Offices) (Zip Code)

(703) 561-1600
(Registrant’s telephone number, including area code)

N/A
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐                                     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 

☐                                     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

☐                                     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 

☐                                     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Exchange Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

STRA

Nasdaq Global Select Market

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).

Emerging growth company ☐

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. ☐

Item 2.02.         Results of Operations and Financial Condition. 

On July 30, 2025, Strategic Education, Inc. (“Strategic Education”) issued a press release announcing its financial results for the period ended June 30, 2025. A copy of the press release is furnished as Exhibit 99.1 hereto and is hereby incorporated by reference into this Item 2.02.

The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by Strategic Education under the Securities Act of 1933, as amended.

Item 9.01.      Financial Statements and Exhibits.

 (d) Exhibits.

Exhibit Number						Description
99.1						Press Release dated July 30, 2025
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

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.

			STRATEGIC EDUCATION, INC.
Date: July 30, 2025
			By:			/s/ Daniel W. Jackson
						Daniel W. Jackson
						Executive Vice President and Chief Financial Officer

FAQ

How much did United Therapeutics (UTHR) earn in Q2 2025?

Net income was $309.5 million, or $6.41 diluted EPS, up 10% year-over-year.

What drove UTHR’s revenue growth in the quarter?

Tyvaso DPI sales rose 22% to $315 m, with Orenitram and Nebulized Tyvaso also contributing.

Has United Therapeutics reduced its debt levels?

Yes. The company repaid $500 million of borrowings and ended Q2 with zero outstanding under its credit facilities.

What is the status of the Sandoz litigation?

A final judgment for $71 million in damages and interest is under appeal; UTHR has fully accrued the amount.

How exposed is UTHR to competition from Liquidia’s Yutrepia?

Yutrepia received FDA approval in May 2025; ongoing patent cases could affect its PH-ILD label but not block sales.