Stride's Career Learning Lifts Revenue as General Education Falls

The Tip Desk · November 8, 2026 · 2 min read

First-quarter revenue was $639.4 million, up 3.0% from a year earlier, as Career Learning rose 9.7% and General Education declined.

Stride, Inc. (LRN), a technology-based education company, reported first-quarter fiscal 2027 revenue of $639.4 million for the three months ended September 30, 2026, up 3.0% from $620.9 million a year earlier.

The mix of that growth was uneven. General Education revenue fell 1.8% to $356.6 million. Career Learning revenue rose 9.7% to $282.8 million, with Middle-High School up 12.7% to $272.1 million and Adult down 34.4% to $10.7 million.

Average enrollments were 241.4 thousand, down 2.5% from 247.7 thousand in the first quarter of fiscal 2026. Career Learning enrollments were 112.2 thousand, up 2.0% from 110.0 thousand. Revenue per enrollment rose 7.0% to $2,556 from $2,388. General Education revenue per enrollment was $2,670, up 5.0%, and Career Learning revenue per enrollment was $2,425, up 10.4%.

Income from operations rose 22.2% to $84.3 million from $69.0 million. Gross margin declined to $241.1 million from $242.1 million. Selling, general, and administrative expenses fell to $156.8 million from $173.1 million.

Net income fell 5.6% to $64.9 million from $68.8 million. Diluted net income per share rose 3.6% to $1.45 from $1.40, on a lower diluted share count of 44.8 million versus 49.2 million. Other income, net was $1.5 million, compared with $16.9 million a year earlier.

Adjusted operating income fell 3.1% to $78.6 million from $81.1 million, as stock-based compensation swung to a $7.4 million credit from a $10.2 million expense. Adjusted earnings per share fell 9.9% to $1.37 from $1.52. Adjusted EBITDA rose 3.1% to $111.8 million from $108.4 million. EBITDA rose 21.4% to $119.2 million from $98.2 million.

Cash and cash equivalents and marketable securities totaled $884.2 million at September 30, 2026, compared with $1,034.1 million at June 30, 2026. Capital expenditures were $24.5 million, compared with $21.7 million a year earlier, and included $17.9 million of capitalized software development and $6.6 million of capitalized curriculum development.

The company is forecasting full fiscal 2027 revenue of $2.530 billion to $2.610 billion, capital expenditures of $70 million to $80 million, and adjusted operating income of $500 million to $530 million. For the second quarter of fiscal 2027, it is forecasting revenue of $625 million to $645 million, capital expenditures of $19 million to $21 million, and adjusted operating income of $135 million to $145 million.

Robert Knowling became chief executive officer on July 29, 2026, succeeding James Rhyu.