Stride, Inc. Earnings Recaps
Q3 2026
Apr 29, 2026
Stride shares closed down 2.7% following Q3 results, as investors reacted to a combination of gross margin compression and a narrower full-year revenue outlook, which now implies a year-over-year decline in fourth quarter revenue.
Key takeaways
- Total enrollments grew 1.8% year-over-year to 244,500, with overall revenue up 2.7% to $629.9 million.
- Gross margin fell 380 basis points to 36.8%, attributed to increased investment in platform improvements; full-year gross margin is now expected to finish between 37% and 37.4%.
- General Education segment revenue declined 3.6% due to a 5% enrollment drop, partially offset by 11.6% growth in Career Learning enrollments.
- Full-year revenue guidance was narrowed to $2.490–$2.520 billion, which implies Q4 revenue will be below last year, citing higher attrition and unfavorable timing of funding adjustments.
- Free cash flow improved to $202.4 million, and the company ended the quarter with $856 million in cash and equivalents; full-year free cash flow is expected to be roughly flat year-over-year.
Q2 2026
Jan 28, 2026
Stride, Inc. delivered a robust Q2 2026 performance, highlighted by a 4.6% year-on-year revenue growth and a 25.4% increase in EBITDA, demonstrating significant operational leverage and a commitment to sustainable growth.
Key takeaways
- Revenue grew by 4.6% year-on-year, with gross margin increasing to 14.6%.
- EBITDA surged by 25.4%, and operational PAT rose 84%, showcasing enhanced profitability.
- The US market grew 2% year-on-year, supported by the launch of three new products and maintaining a top-three position in 37 key products.
- Other regulated markets exhibited strong performance, with overall growth of 14% and emerging market revenue increasing by 7%.
- Strategic focus on profitability led to the discontinuation of low-margin products, allowing for disciplined capital allocation.