LRN · 10-Q · 2026Q1 · Full report

Equipment Finance and Leasing

Stride, Inc. · 2026-04-29 · Importance 70 · Surprise 56

Stride is a lessee under finance leases for computers and peripherals with BALC and CSI Leasing to support student technology provisioning. The finance lease liability was $117.8 million at March 31, 2026, up from $86.9 million at June 30, 2025, with lease interest rates ranging from 4.18% to 6.72%. Individual leases typically have 36-month payment terms and some include a $1 purchase option; the company pledges financed assets to secure leases and uses its incremental borrowing rate to determine implied interest. The growth in finance lease obligations contributed to higher net interest expense (net interest expense increased year-to-date), indicating device financing is a meaningful driver of financing costs.

Key facts

• Individual leases with BALC include 36-month payment terms, fixed rates ranging from 4.75% to 6.72%, and a $1 purchase option at the end of each lease term.
• Stride pledged the assets financed under the BALC leases to secure the outstanding leases.
• Individual leases under the agreement with CSI Leasing include 36-month payment terms and do not include a stated interest rate, with Stride using its incremental borrowing rate as the implied interest rate.