LRN · 10-Q · 2026Q1 · Full report

Income Tax Rate Changes

Stride, Inc. · 2026-04-29 · Importance 30 · Surprise 14

Income tax expense for the nine months ended March 31, 2026 was $79.9 million, representing an effective tax rate of 23.7% of income before income taxes versus $80.1 million and a 25.3% effective rate in the prior-year period.,The company attributes the reduction in the effective income tax rate year-to-date primarily to stock-based compensation.,For the three months ended March 31, 2026 income tax expense was $31.5 million, equal to 26.3% of income before income taxes, consistent with the quarter in the prior year on a percentage basis.

Key facts

• Income tax expense for the nine months ended March 31, 2026 was $79.934 million, or 23.7% of income before income taxes, compared to $80.088 million, or 25.3% of income before income taxes for the nine months ended March 31, 2025, with the decrease in effective tax rate primarily due to stock-based compensation.
• Income tax expense for the three months ended March 31, 2026 was $31.545 million, or 26.3% of income before income taxes, the same percentage (26.3%) as the three months ended March 31, 2025.

Impact estimates