LRN · 10-Q · 2026Q1

Stride, Inc.

Filed 2026-04-29 · Other

Ranked Events

• Capital Expenditures and InvestmentsImportance 83 · Surprise 82
  Net cash used in investing activities for the nine months ended March 31, 2026 was $119.3 million versus $53.3 million in the prior year period, an increase of $66.0 million. The increase was primarily driven by $52.7…
• Financing ActivitiesImportance 77 · Surprise 82
  Net cash used in financing activities for the nine months ended March 31, 2026 was $166.1 million compared to $50.6 million in the prior year, an increase in cash outflows of $115.5 million. The increase was primarily…
• Capital Return ProgramImportance 71 · Surprise 60
  On November 3, 2025 Stride’s board authorized a stock repurchase program of up to $500 million of the company’s common stock through October 31, 2026. Share repurchases may be executed in open market transactions,…
• Finance Lease ObligationsImportance 70 · Surprise 56
  Stride is a lessee under finance leases for computers and peripherals with Banc of America Leasing & Capital and CSI Leasing. As of March 31, 2026 the finance lease liability was $117.8 million (compared with $86.9…
• Equipment Finance and LeasingImportance 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…
• Other income (expense) TrendsImportance 65 · Surprise 82
  Other income (expense), net for the three months ended March 31, 2026 was expense of $5.3 million compared to income of $7.4 million in the prior-year quarter, a swing of $12.7 million.,For the nine months ended March 31, 2026 other income (expense), net was income of $0.8 million compared to $23.5 million of income in the prior-year period, a decline of $22.7 million year-over-year.,Management states the change was due to unrealized losses related to the company's investments in publicly-held equity securities.
• Outstanding IndebtednessImportance 56 · Surprise 24
  During the first quarter of fiscal 2021 Stride issued $420.0 million aggregate principal amount of 1.125% Convertible Senior Notes due September 1, 2027. The Notes bear interest at 1.125% per annum payable…
• Revenue Performance and MixImportance 56 · Surprise 24
  The company reports two lines of revenue: General Education and Career Learning, with the majority of revenue derived from comprehensive school-as-a-service contracts that include curriculum, technology, instruction…
• Market Demand TrendsImportance 54 · Surprise 40
  Total enrollments for the nine months ended March 31, 2026 were 246.7 thousand, up 13.2 thousand or 5.7% year-over-year, driven by growth in Career Learning enrollments. Career Learning enrollments increased 15.3% for…
• Enrollment TrendsImportance 54 · Surprise 40
  Total enrollments for the nine months ended March 31, 2026 were 246.7 thousand, an increase of 13.2 thousand, or 5.7%, versus 233.5 thousand in the prior year.,General Education enrollments were 136.0 thousand for the nine months (down 1.5 thousand, or 1.1% YoY) while Career Learning enrollments were 110.7 thousand (up 14.7 thousand, or 15.3% YoY).,For the three months ended March 31, 2026 General Education enrollments fell 5.0% to 134.4 thousand and Career Learning enrollments rose 11.6% to 110.1 thousand; the filing notes no enrollments are included in Career Learning for Galvanize, Tech Elevator or MedCerts.
• Operating Cash Flow TrendsImportance 54 · Surprise 40
  Net cash provided by operating activities for the nine months ended March 31, 2026 was $117.0 million, down from $134.5 million in the prior year period, a decrease of $17.5 million (≈13%). Management attributes the…
• Gross Margin DriversImportance 54 · Surprise 40
  Instructional costs and services increased to $1,148.7 million for the nine months ended March 31, 2026, a $102.0 million increase, or 9.7%, year-over-year, driven primarily by hiring in growth states and salary…
• Liquidity and Cash PositionImportance 43 · Surprise 6
  As of March 31, 2026, Stride reported net working capital of $1,475.6 million, including cash and cash equivalents of $614.1 million and accounts receivable of $854.9 million. Accounts receivable balance fluctuates…
• Operating Expense TrendsImportance 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.
• Income Tax Rate ChangesImportance 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.
• Interest Rate and Refinancing ExposureImportance 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…

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