LRN · 10-Q · 2026Q1 · Full report

Interest Rate and Refinancing Exposure

Stride, Inc. · 2026-04-29 · Importance 23 · Surprise 22

Net interest expense increased year over year, reflecting higher finance lease obligations and related interest. For the three months ended March 31, 2026 net interest expense was $3.0 million versus $2.8 million in the prior year period; for the nine months net interest expense was $8.9 million versus $7.8 million in the prior year. Management attributes the increase in net interest expense primarily to an increase in finance leases (computer and peripheral financing). The rising finance lease balances and associated interest rates (implied/stated in the range of ~4.18% to 6.72%) increase Stride’s exposure to financing costs over the near term.

Key facts

• Net interest expense for the nine months ended March 31, 2026 was $8.889 million compared to $7.810 million for the nine months ended March 31, 2025, with the increase primarily due to an increase in finance leases.
• The increase in net interest expense for the three months ended March 31, 2026 to $3.0 million from $2.8 million for the same period in the prior year was primarily due to an increase in finance leases.