LRN · 10-Q · 2026Q1 · Full report
Operating Expense Trends
Stride, Inc. · 2026-04-29 · Importance 35 · Surprise 22
Selling, general, and administrative (SG&A) expenses for the three months ended March 31, 2026 were $102.5 million, a decrease of $16.0 million, or 13.5%, from $118.5 million in the prior-year quarter.,The quarter-over-quarter SG&A decline was primarily due to an $8.6 million reduction in personnel and related benefit costs, a $4.0 million decrease in professional services, and a $1.4 million decrease in bad debt expense.,For the nine months ended March 31, 2026, SG&A was $388.4 million, down $13.4 million, or 3.3%, from $401.8 million in the prior-year period, driven mainly by an $11.3 million decrease in personnel and related benefits and a $2.7 million decline in bad debt expense, partially offset by a $1.2 million increase in professional services.
Key facts
- Instructional costs and services expenses for the three months ended March 31, 2026 were $398.308 million, an increase of $34.222 million, or 9.4%, from $364.086 million for the three months ended March 31, 2025, due to hiring of personnel in growth states and salary increases.
- Instructional costs and services expenses for the nine months ended March 31, 2026 were $1,148.699 million, an increase of $102.029 million, or 9.7%, from $1,046.670 million for the nine months ended March 31, 2025, partially offset by a lease termination gain related to the San Francisco lease.
- Selling, general, and administrative expenses for the nine months ended March 31, 2026 were $388.403 million, a decrease of $13.368 million, or 3.3%, from $401.771 million for the nine months ended March 31, 2025, primarily due to a decrease of $11.3 million in personnel and related benefit costs and a decrease of $2.7 million in bad debt expense, partially offset by an increase of $1.2 million in professional services.
- Selling, general, and administrative expenses for the three months ended March 31, 2026 were $102.485 million, a decrease of $16.019 million, or 13.5%, from $118.504 million for the three months ended March 31, 2025, primarily due to a decrease of $8.6 million in personnel and related benefit costs, a decrease of $4.0 million in professional services, and a decrease of $1.4 million in bad debt expense.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -5.4% | Instructional costs and services expenses for the nine months ended March 31, 2026 were $1,148.699 million, an increase of $102.029… |
| operating_income | negative | realized | -1.8% | Instructional costs and services expenses for the three months ended March 31, 2026 were $398.308 million, an increase of $34.222 million,… |
| operating_income | positive | realized | +0.8% | Selling, general, and administrative expenses for the three months ended March 31, 2026 were $102.485 million, a decrease of $16.019… |
| operating_income | positive | realized | +0.7% | Selling, general, and administrative expenses for the nine months ended March 31, 2026 were $388.403 million, a decrease of $13.368… |