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For years, financial technology platforms operated with a structural vulnerability: they relied on third-party chartered banks to hold deposits and clear transactions. That software-wrapper era is drawing to a close. Chime Financial, Inc. NASDAQ: CHYM made a decisive pivot toward full vertical integration by announcing an agreement to acquire its long-time chartered partner, Stride Bank, N.A., in an all-cash transaction valued at $590 million.
Wall Street welcomed the decision. Shares of Chime climbed roughly 7% following the announcement, trading near $34.55 after touching a new 52-week high of $35.55, with trading volume more than double its typical daily volume. By taking direct control of its core banking ledger, Chime removes partner dependencies while setting the stage for steady margin expansion. Understanding how this purchase alters the underlying unit economics reveals why this transition marks a pivotal turning point for digital consumer banking.
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The Vertical Leap: Buying the Bank at 1.5x BookThe transaction between Chime and Central Service Corporation, the parent holding company of Stride Bank, carries a purchase price of approximately 1.5x tangible book value. For an established, profitable national bank that has partnered with Chime for seven years, paying a modest book multiple reflects disciplined capital deployment.
Chime will fund the entire $590 million purchase with balance-sheet cash, requiring no debt issuance and no share dilution. Chime entered this deal from a position of liquidity, supported by cash raised during its June 2025 initial public offering (IPO) and positive GAAP earnings per share (EPS) of 7 cents delivered in the second quarter of 2026. Management projects the acquisition will be immediately accretive to EPS upon closing in the first half of 2027, unlocking over $100 million in annual net savings.
In traditional sponsor-bank setups, consumer fintechs remit a steady cut of transaction fees to partner banks. Bringing Stride Bank in-house as a wholly owned subsidiary, rebranded as Chime Bank, N.A., eliminates those partner fees while giving Chime full control over operational compliance, fraud risk management, and settlement speeds.
The $10 Billion Sweet Spot: Protecting Swipe RevenueA primary question for investors analyzing bank acquisitions by fintech firms centers on the Durbin Amendment under Section 1075 of the Dodd-Frank Act. Federal rules cap debit card interchange fees for banks with $10 billion or more in assets at 21 cents plus five basis points per transaction. Institutions holding under $10 billion in assets remain exempt, allowing them to collect open-market interchange rates that average 1.2% to 1.5% of swipe volume.
Because debit interchange represents Chime’s primary revenue stream across more than 10 million Active Members, crossing that regulatory line would compress transactional margins. Management solved this structural puzzle by committing to keep Chime Bank’s balance sheet assets below $10 billion for the foreseeable future.
This guardrail allows Chime to capture optimal unit economics. The platform preserves its uncapped debit swipe interchange while retaining the fee split that previously went to external chartered partners. Competitors that rely on third-party institutions like The Bancorp, Inc. NASDAQ: TBBK continue sharing interchange revenue, but Chime can retain the full economics on member transactions.
Putting Deposits to Work: In-House Credit SpreadsBeyond protecting interchange margins, owning a national bank charter alters the cost of capital for Chime’s lending operations. Consumer banking platforms compound value when they successfully convert everyday transactional users into credit borrowers.
Chime has expanded its proprietary credit offerings, including payroll advances through MyPay, small-dollar Instant Loans, and the secured Credit Builder card. Originating consumer loans without an internal bank charter requires third-party origination partners or external warehouse credit facilities, both of which introduce borrowing expenses and regulatory friction.
With Stride Bank’s national charter integrated into ChimeCore, Chime’s proprietary technology architecture, the company can fund credit products directly through low-cost member deposits. This internal plumbing reduces borrowing expenses and widens the net interest margin across short-duration credit products. Disciplined automated underwriting, paired with direct-deposit visibility, lets Chime expand credit lines safely without loading the balance sheet with high-risk, long-duration debt.
The SoFi Blueprint: Stepping Toward Higher MultiplesThe strategic path Chime is navigating has a clear precedent in modern fintech. When SoFi Technologies, Inc. NASDAQ: SOFI acquired Golden Pacific Bancorp in 2022 to secure its national bank charter, critics questioned the regulatory overhead. Over subsequent quarters, that charter reduced SoFi’s cost of funds, fueled deposit growth, and accelerated the business toward sustained GAAP profitability.
Current Price$32.67High Forecast$50.00Average Forecast$35.00Low Forecast$17.00Chime Financial Stock Forecast Details
Chime enters this transition with notable operational momentum. Alongside the merger announcement, management raised its financial guidance across the board. For the third quarter of 2026, Chime now projects revenue of roughly $705 million, representing year-over-year (YOY) growth of about 30%, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) expected between $117 million and $120 million. For full-year 2026, revenue guidance rose to a range between $2.76 billion and $2.77 billion, with adjusted EBITDA projected between $481 million and $489 million.
Wall Street has started responding to this structural improvement. Following the announcement, Loop Capital initiated coverage on Chime with a Buy rating and a Street-high price target of $45, citing how in-house infrastructure supports premium valuation multiples. Management’s appearance at the Goldman Sachs Communacopia + Technology Conference offers a timely venue to communicate this integration roadmap to institutional investors.
Clearing the OCC Hurdle: What Investors Should WatchMarket participants should track the regulatory review schedule as the deal moves forward. The transaction remains subject to customary closing conditions, including formal reviews by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board of Governors.
Acquiring a national bank requires clearing rigorous regulatory scrutiny, and delays beyond the anticipated first-half-2027 closing window could defer the realization of savings from the combined entity. Operating a regulated bank holding company also introduces statutory capital adequacy and reporting duties.
Even with these necessary regulatory steps, Chime’s acquisition of Stride Bank represents a fundamental transition from an agile consumer application into a vertically integrated digital institution. Investors seeking exposure to profitable digital banking leaders may want to keep Chime on their watchlist as the integration progresses toward its expected closing in 2027.
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Chime Financial (CHYM) will acquire Stride for $590M in cash, aiming for immediate EPS accretion and further upside. Grand Theft Auto 6's launch is a major videogame catalyst.
Chime shares CHYM surged 9% before the bell on Wednesday after the fintech company agreed to acquire Stride Bank for $590 million, a move that would give it a national bank charter and greater control over its lending business.
The deal, announced late Tuesday, marks a significant step in Chime’s effort to compete more directly with traditional banks.
The company has spent years challenging established lenders with app-based, low-cost financial services, and acquiring its long-time banking partner could allow it to expand further into products typically dominated by traditional financial institutions.
Wall Street largely welcomed the transaction, with analysts pointing to the potential for stronger profitability and greater control over Chime’s product development.
"We see this as a bold move with the potential to accelerate Chime's market share," William Blair analysts wrote in a note.
Stride Bank has been Chime’s banking partner for more than seven years.
The acquisition would bring the nationally chartered bank under Chime’s ownership, allowing the fintech to gain greater control over its operations and lending strategy.
Chime estimates that the acquisition will generate more than $100 million in net synergies.
The savings are expected to come from lower sponsor-bank fees, a broader range of lending products and a significantly lower cost of funds.
That could strengthen the economics of Chime’s existing business while giving the company greater flexibility to develop new financial products.
"Becoming a full-fledged bank should allow Chime to capture a higher share of wallet with customers, increasing its direct depositor base and solidifying the moat around its platform," Evercore ISI analysts wrote.
Wolfe Research similarly highlighted the strategic benefits of the transaction.
"The acquisition will support faster product innovation, increased member trust, a structural cost advantage and greater control," its analysts wrote.
Chime expects the transaction to close in the first half of 2027.
Several Wall Street firms adjusted their outlook for Chime following the announcement.
Morgan Stanley raised its price target on Chime to $40 from $39 while maintaining an Overweight rating, calling the acquisition strategically important to the company's growth.
The stock closed at $32.31 on Tuesday.
The firm said the deal could help Chime win a larger share of the credit market, move upmarket, retain customers as their incomes rise, and improve profitability.
A national charter should also expand Chime’s ability to originate loans across its customer base.
Under its current sponsor-bank structure, Chime can lend to approximately 85% of its members.
The acquisition would give the company greater flexibility and speed in launching new credit products, which Morgan Stanley considers particularly important as Chime moves toward longer-duration credit products.
The strategy could allow Chime to monetize and retain its most valuable customers for longer as their financial needs become more sophisticated.
UBS raised its target to $31 from $28 and retained a Neutral rating.
UBS described the transaction as a strategically compelling extension of Chime’s vertical-integration strategy, arguing that it could strengthen the company’s structural cost advantage and accelerate product development.
Loop Capital went further, initiating coverage with a Buy rating and a Street-high price target of $45, which represents a nearly 40% upside from current levels.
Piper Sandler also said the acquisition could improve Chime’s unit economics while giving it greater control over product development.
The acquisition comes as a growing number of fintechs, neobanks and digital-asset companies pursue bank charters to increase their role in the financial system.
For Chime, however, the structure of the combined business will remain important.
The company expects to keep its assets below $10 billion for the foreseeable future.
That threshold is significant because it allows Chime to remain exempt from the debit-card interchange fee caps imposed on larger banks under the 2010 Durbin Amendment.
Maintaining that exemption could preserve an important part of Chime’s business model even as the company gains more control over lending and banking operations.
Chime also raised its third-quarter and full-year forecasts for revenue and core profit growth on Tuesday, adding to the positive reaction to the Stride transaction.
SAN FRANCISCO--(BUSINESS WIRE)--Chime® (NASDAQ: CHYM), America's #1 choice for banking1, today announced that it has entered into a definitive agreement to acquire Stride Bank, N.A. (“Stride”) for $590 million in cash.2 Stride is a nationally chartered bank that has been Chime's bank partner for more than seven years. Upon closing, Stride will become Chime Bank, N.A. and operate as a wholly owned subsidiary of Chime. The transaction marks an important milestone in Chime's evolution from industr.
Fintech Chime (CHYM.O) said on Tuesday it will acquire nationally chartered Stride Bank for $590 million, bringing key banking infrastructure in-house as it looks to expand its lending business.
Here are some details:
Chime's shares, which are up over 28% this year, jumped nearly 10% in extended trading.
The all-cash deal is expected to help Chime realize more than $100 million in net synergies and close in the first half of 2027.
Enid, Oklahoma-based Stride was founded in 1913 and provides financial services including consumer and commercial banking. The bank has been a partner to Chime for over seven years.
"The acquisition of Stride Bank provides Chime with a faster and more proven path to full-stack ownership versus pursuing a de novo bank charter," Chime said in a statement.
Chime will manage Stride's balance sheet upon closing and keep its assets below $10 billion for the foreseeable future.
San Francisco-based Chime targets everyday Americans with banking products and has managed to grow its user base by attracting younger customers through its mobile-first products
Chime also raised its full-year revenue forecast and now expects between 26% and 27% growth, from its prior expectation of 25% to 26%.
Morgan Stanley is serving as a financial advisor to Chime, while Piper Sandler & Co is advising Stride.
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Chime plans to acquire its bank partner, Oklahoma-headquartered Stride Bank, to further Chime's efforts to provide “mainstream America” with better banking, the company said in a Tuesday (Sept. 8) press release.
Key Takeaways Oportun Financial gained 31% after its Zacks Rank upgrade to #2 (Buy) on July 13.Uranium Royalty advanced 67.6% after its Zacks Recommendation was upgraded to Outperform.Amgen returned 25.1% over 12 weeks as investors favored quality dividend stocks. Last week, major U.S. indexes like the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average have modestly gained by 0.52%, 0.42%, and 0.43%, respectively. Economic conditions remained complicated because of geopolitical tensions and rising energy costs. Oil prices climbed to about $91.01 per barrel for WTI and $95.63 for Brent as U.S.-Iran hostilities intensified around the Strait of Hormuz, adding fresh inflation pressure. Treasury yields remained elevated, with the 10-year yield around 4.818%, its highest level since November 2023. The trade deficit also widened sharply to $88.6 billion in July, while second-quarter productivity rose 1.4% and unit labor costs increased 1.2%. The ISM manufacturing PMI fell to 54.6 from 55.6 in July, while services activity improved to 55.4 but missed the street’s expectations.
The labor market remained the main story, with July JOLTS job openings coming in at 7.2 million, while ADP reported only 38,000 private-sector jobs in August, missing expectations. Weekly initial jobless claims rose slightly to 206,000, but continuing claims stayed contained at 1.779 million, suggesting that layoffs were limited. The bigger surprise came on Friday, when nonfarm payrolls jumped 162,000 in August, far above the expected 53,000. July and June payrolls were also revised higher by a combined 55,000. The unemployment rate held at 4.1%, while wage growth remained moderate at 0.3% month over month and 3.1% year over year. Overall, the labor market has cooled from a year ago but remains resilient.
The week’s payroll report gives policymakers less reason to rush into rate cuts, while persistent oil and inflation risks argue for caution. Overall, the economy remains resilient, but softer employment and spending signals suggest that growth is losing some momentum.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our forecasts to better prepare for your next action.
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Oportun Financial and UroGen Pharma Following Zacks Rank UpgradeShares of Oportun Financial Corporation (OPRT - Free Report) have gained 31% (versus the S&P 500’s 2.1% increase) since it was upgraded to a Zacks Rank #2 (Buy) on July 13.
Another stock, UroGen Pharma Ltd. (URGN - Free Report) , which was upgraded to a Zacks Rank #2 on July 6, has returned 16% (versus the S&P 500’s 3.4% increase) since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
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The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -9.4% in the first half of 2026 (through June 30) vs. +10.2% for the S&P 500 index.
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Zacks Top 10 Stock Stride Delivers Solid ReturnsStride, Inc. (LRN - Free Report) , from the Zacks Top 10 Stocks for 2026, has jumped 31.1% since the list was released on January 5, 2026, compared with the S&P 500 index’s 12.8% increase during this period.
The Top 10 portfolio returned +15% in the year-to-date 2026 period (through August 31st) vs. +12.9% for the S&P 500 index and +14.8% for the equal-weight version of the index.
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NEW YORK--(BUSINESS WIRE)--LRN Corporation, a global leader in ethics and compliance solutions, today announced the appointments of Matt Franks as Chief Revenue Officer and Lawrence Waldman as Executive Vice President of Client Success. Together, they bring extensive leadership experience, strengthening culture, building enduring customer relationships, and improving organizational performance. Their appointments deepen LRN's ability to help clients foster ethical cultures where people make bet.
4 Stocks That Crushed Analyst Estimates by More Than DoubleStride NYSE: LRN reported fiscal 2026 revenue growth of 4.7% and higher adjusted profitability, while outlining an executive transition and describing early enrollment indicators for the coming school year.
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Bob Knowling, who was appointed chief executive officer following a board-led leadership change announced last week, said the transition was intended to position the education company for its next stage of growth rather than reflect expectations for near-term performance.
2 Stocks That Crushed Short Sellers With Impressive Gains“Ultimately, the board determined that for Stride to reach its full potential, a new leader was needed to take the reins,” Knowling said. He added during the question-and-answer session that there was “no consideration” of forward-looking performance in the decision and that the change was made immediately to enable him to begin the fiscal 2027 year in the role.
Fiscal 2026 Results For the fiscal year ended 2026, Stride generated revenue of $2.518 billion, up 4.7% from fiscal 2025. Adjusted operating income increased nearly 7% to $498.4 million, while adjusted EBITDA rose 8.2% to $617.6 million. Adjusted earnings per share were $8.33.
Chegg Chokes on AI Attempt, CEO Talks it Up as He Passes Torch The company served about 243,900 students during the year, an increase of just over 4% from the prior year. Revenue per enrollment across its business was $9,914, compared with $9,677 a year earlier.
Career Learning was the company’s primary growth driver. Revenue from middle- and high-school Career Learning programs rose 19% to $1.04 billion, while full-year enrollments increased 14% to 109,700.
General Education revenue declined 2% to $1.42 billion, and enrollments in that business fell 2.5% to 134,200. Chief Financial Officer Donna Blackman said revenue per enrollment continued to be influenced by differences in state funding, program mix and enrollment timing.
Gross margin was 37.8%, down 140 basis points from the prior year. Selling, general and administrative expense fell 4.7% to $499.8 million. Capital expenditures totaled $78.8 million. Free cash flow was $355 million, down $17.8 million year over year. Cash equivalents and marketable securities totaled approximately $1.034 billion at year-end. Blackman said margins were affected by investments in technology platforms and strategic initiatives. While many one-time implementation costs are now behind the company, she said Stride expects to continue incurring some ongoing expenses tied to the new platforms and to continue investing in strategic priorities.
Capital Allocation and Repurchases Stride repurchased approximately $189 million of common stock during fiscal 2026 and ended the year with about $311 million remaining under its share repurchase authorization. The authorization has been extended through Oct. 31, 2027.
Knowling said he intends to “actively consider opportunistic stock repurchases” when the company’s trading window opens at the end of October. Blackman said the company’s capital allocation priorities remain investing in organic growth, evaluating strategic acquisitions and returning excess capital to shareholders when doing so can create long-term value.
Enrollment Outlook and Texas Contract The company did not provide formal fiscal 2027 enrollment or financial guidance, saying it will do so when it reports first-quarter results in October. Blackman said most partner states have finalized education budgets and that the overall funding environment remains supportive.
Stride expects fiscal 2027 revenue per enrollment to be relatively flat to modestly higher than fiscal 2026, though Blackman said state and program mix, along with enrollment yield, could affect results.
Early enrollment indicators were mixed. Knowling said applications are tracking slightly behind the same period last year, but conversion metrics have improved and re-registration activity is slightly ahead of the prior year. Blackman cautioned that first-quarter count-date enrollment growth will face a tougher comparison because the company moderated in-year enrollment growth during fiscal 2026, reducing the carryover benefit entering the new school year.
Blackman added that the company does expect in-year enrollment growth in fiscal 2027, although she did not commit to the level of growth seen in earlier periods. She said Stride does not expect to close enrollment windows to the same extent as it did in fiscal 2026.
The company also addressed Roscoe Independent School District’s decision not to renew its contract for Lone Star Online Academy in Texas. Blackman said the school had performance issues and that Roscoe elected not to renew. She noted that contracts can leave the business in any given year, while new contracts are also added.
Knowling said Texas remains an important state for Stride, which continues to operate multiple schools there and is placing families affected by the Roscoe decision into other programs.
Strategic Priorities Knowling said improving student outcomes will be a top priority, describing it as the “ultimate measure of educational success.” He said the company sees an opportunity to better use products and services including live and artificial intelligence tutoring, the Tallo career platform and digital curriculum offerings.
He also identified go-to-market improvements, deeper expansion in existing geographies and entry into new geographies as potential growth opportunities. “To grow our market share, in large part, we must improve student outcomes,” Knowling said.
For fiscal 2027, Blackman said Stride expects capital expenditures and SG&A as a percentage of revenue to be relatively flat, gross margins to be roughly in line with fiscal 2026, and both stock-based compensation and the tax rate to increase somewhat. She said the company believes it remains on track to achieve its fiscal 2028 financial targets.
About Stride (NYSE:LRN)Stride, Inc NYSE: LRN is a technology-driven education company that designs and delivers online learning solutions for students and adult learners. Through long-term partnerships with state-authorized public school districts, Stride operates virtual academies that serve K-12 students across the United States. The company's blended-learning model combines digital curriculum, live teaching support and data analytics to personalize instruction and monitor student progress.
In addition to its K-12 offerings, Stride provides a portfolio of career and workforce readiness programs under its Stride Career Prep division.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Stride, Inc. (LRN) Q4 2026 Earnings Call August 4, 2026 5:00 PM EDT
Company Participants
Eliza Henson
Robert Knowling - CEO & Director
Donna Blackman - Executive VP & CFO
Conference Call Participants
Jeffrey Silber - BMO Capital Markets Equity Research
Alexander Paris - Barrington Research Associates, Inc., Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to the Stride Fourth Quarter Fiscal Year 2026 Earnings Call. [Operator Instructions]
I will now hand the conference over to Eliza Henson, Manager of Investor Relations. Eliza, please go ahead.
Eliza Henson
Thank you, and good afternoon. Welcome to Stride's Fourth Quarter and Year-end Earnings Call for Fiscal year 2026.
With me on today's call are Bob Knowling, Chief Executive Officer; and Donna Blackman, Chief Financial Officer.
As a reminder, today's conference call and webcast are accompanied by a presentation that can be found on the Stride Investor Relations website. Please be advised that today's discussion of our financial results may include certain non-GAAP financial measures. A reconciliation of these measures is provided in the earnings release issued this afternoon and can also be found on our Investor Relations website.
In addition to historical information, this call will also involve forward-looking statements. The company's actual results could differ materially from any forward-looking statements due to several important factors as described in the company's earnings release and latest SEC filings, including our most recent annual report on Form 10-K and subsequent filings. These statements are made on the basis of our views and assumptions regarding future events and business performance at the time we make them, and the company assumes no obligation to update any forward-looking statements. Following our prepared remarks, we will answer questions you may have.
RESTON, Va., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the fourth quarter and full fiscal year ended June 30, 2026.
“I am pleased to lead Stride as we position the Company for its next chapter of growth,” said Robert Knowling, Stride Chief Executive Officer. “Building on Stride’s strong foundation, we will continue to prioritize investments in curriculum, technology and support services to improve student outcomes and drive growth and value creation. I look forward to working alongside our talented team and leveraging our full breadth of capabilities to reach Stride's full potential.”
Fiscal 2026 Highlights Compared to 2025
Revenue of $2,518.1 million, compared with $2,405.3 millionIncome from operations of $450.8 million, compared with $360.1 millionNet income of $338.2 million, compared with $287.9 millionDiluted net income per share of $7.14, compared with $5.95Adjusted operating income of $498.4 million, compared with $466.2 million (1)Adjusted EBITDA of $617.6 million, compared with $571.0 million (1)Adjusted earnings per share of $8.33, compared with $8.10 (1)Repurchased approximately $188.7 million of common stock under the Company’s share repurchase authorizationShare repurchase authorization extended through October 31, 2027
Fiscal 2026 Summary Financial Metrics
Year Ended June 30,
Change 2026/2025 2026
2025
$
% (In thousands, except percentages and per share data)Revenues$2,518,081 $2,405,317 $112,764 4.7% Income from operations 450,767 360,094 90,673 25.2%Adjusted operating income (1) 498,373 466,233 32,140 6.9% Net income 338,192 287,941 50,251 17.5%Net income per share, diluted 7.14 5.95 1.19 20.0%Adjusted earnings per share (1) 8.33 8.10 0.23 2.8% EBITDA (1) 577,329 474,763 102,566 21.6%Adjusted EBITDA (1) 617,584 571,035 46,549 8.2% (1) To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share. Management believes that these additional measures provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.
Fourth Quarter Fiscal 2026 Highlights Compared to 2025
Revenue of $636.1 million, compared with $653.6 millionIncome from operations of $105.9 million, compared with $56.9 millionNet income of $81.4 million, compared with $51.3 millionDiluted net income per share of $1.75, compared with $1.03Adjusted operating income of $117.8 million, compared with $130.6 million (1)Adjusted EBITDA of $149.8 million, compared with $158.4 million (1)Adjusted earnings per share of $2.12, compared with $2.29 (1)Repurchased approximately $100 million of common stock under the Company’s share repurchase authorization Fourth Quarter Fiscal 2026 Summary Financial Metrics
Three Months Ended June 30, Change 2026/2025 2026 2025 $ % (In thousands, except percentages and per share data)Revenues$636,064 $653,647 $(17,583) (2.7%) Income from operations 105,852 56,864 48,988 86.1%Adjusted operating income (1) 117,814 130,558 (12,744) (9.8%) Net income 81,388 51,320 30,068 58.6%Net income per share, diluted 1.75 1.03 0.72 69.9%Adjusted earnings per share (1) 2.12 2.29 (0.17) (7.4%) EBITDA (1) 139,631 87,063 52,568 60.4%Adjusted EBITDA (1) 149,823 158,413 (8,590) (5.4%) Revenue Data
Three Months Ended Year Ended June 30, Change 2026 / 2025 June 30, Change 2026 / 2025 2026 2025 $ % 2026 2025 $ % (In thousands, except percentages) General Education$355,809 $394,134 $(38,325) (9.7%) $1,417,785 $1,448,676 $(30,891) (2.1%)Career Learning Middle - High School 267,116 240,455 26,661 11.1% 1,043,726 876,287 167,439 19.1%Adult 13,139 19,058 (5,919) (31.1%) 56,570 80,354 (23,784) (29.6%)Total Career Learning 280,255 259,513 20,742 8.0% 1,100,296 956,641 143,655 15.0%Total Revenues$636,064 $653,647 $(17,583) (2.7%) $2,518,081 $2,405,317 $112,764 4.7% Enrollment and Revenue Per Enrollment Data
Full year enrollments averaged 243.9K, up 4.2% compared to 234.0K enrollments in fiscal year 2025. Of the total enrollments, 109.7K were Career Learning enrollments, up 13.9% compared to 96.3K Career Learning enrollments in fiscal 2025.
Fourth quarter enrollments averaged 234.2K, down (0.5)% compared to 235.3K enrollments in the fourth quarter of fiscal year 2025. Of the total average enrollments, 106.4K were Career Learning enrollments, up 9.7% compared to 97.0K Career Learning enrollments in the fourth quarter of fiscal 2025.
Enrollments only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, and instructional and support services, inclusive of administrative support and may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollments for our Adult Learning business.
Revenue per enrollment for the full fiscal year 2026 was $9,914, up 2.4% compared to $9,677 in fiscal year 2025. General Education revenue per enrollment was $10,243, up 1.6%, and Career Learning revenue per enrollment was $9,512, up 4.5%, compared to fiscal year 2025. If the mix of enrollments changes, our revenues will be impacted to the extent the average revenues per enrollments are significantly different.
Revenue per enrollment for the fourth quarter was $2,620, down (0.4)% compared to $2,630 in the fourth quarter of fiscal year 2025. General Education revenue per enrollment was $2,710, down (1.0)% compared to the fourth quarter of fiscal year 2025, and Career Learning revenue per enrollment was $2,511, up 1.3%, compared to the fourth quarter of fiscal year 2025.
Cash Flow and Capital Allocation
As of June 30, 2026, the Company’s cash and cash equivalents and marketable securities totaled $1,034.1 million, compared with $1,011.4 million reported at June 30, 2025.
Capital expenditures for the fiscal year ended June 30, 2026 were $78.8 million, compared to $60.0 million in fiscal year 2025, and were comprised of $0.6 million of property and equipment, $61.6 million of capitalized software development and $16.6 million of capitalized curriculum development.
During fiscal year 2026, the Company repurchased approximately 2.3 million shares of its common stock for an aggregate purchase price of approximately $188.7 million under its previously announced share repurchase authorization. As of June 30, 2026, approximately $311.3 million remained available under the current authorization. The Company continues to evaluate share repurchases as part of its disciplined capital allocation strategy.
Conference Call
The Company will discuss its fourth quarter and full fiscal year 2026 financial results during a conference call scheduled for Tuesday, August 4, 2026 at 5:00 p.m. eastern time (ET).
A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (833) 461-5787 (domestic) or +1 (585) 542-9983 (international) and provide the conference ID number 708 877 615. Please access the website at least 15 minutes prior to the start of the call.
A replay of the call will be posted at investors.stridelearning.com/events-and-presentations.
About Stride Inc.
Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.
Special Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, such as any statements that look to future events and include, among other things, our expectations regarding: mix of enrollment, revenue per enrollment, and future share repurchases. We have tried, whenever possible, to identify these forward-looking statements using words such as “outlook,” “forecasts,” “anticipates,” “trends,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends,” “should,” “would” and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model or to meet financial or operational guidance; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve, our vendors, or us to comply with our contracts, or federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, contractual remedies, or actions or proceedings against us; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve, including due to the evolution of curriculum standards, testing programs and state accountability metrics; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; potential violation of laws and regulations relating to privacy and data protection, including as such laws and regulations may apply to children’s data; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction or termination in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies (including artificial intelligence (“AI”)) and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud infrastructure, systems and facilities, including as a result of cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems or our data; problems in the implementation of new information technology systems and technology; failure by us or third parties to maintain and support information technology systems, including addressing quality issues and timely delivering new products and enhancements; risks related to the use, implementation and regulation of AI and other emerging technologies, including in the education of children, and their use by third-party vendors; risks related to our stock repurchase program; changes in our effective tax rate and additional liabilities; and other risks and uncertainties associated with our business described in the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequently filed Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements reflect our management’s expectations or predictions of future conditions, events or results based on various assumptions and estimates. They are not guarantees of future performance. Our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements in this press release or that we make from time, and to consider carefully the factors discussed above. All information in this press release is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement as a result of new information, future events or otherwise, except where we are expressly required to do so by law.
Financial Statements
The financial statements set forth below are not the complete set of Stride, Inc.’s financial statements for the three months and year ended June 30, 2026 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Annual Report on Form 10-K for the year ended June 30, 2026, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC’s website at www.sec.gov or from Stride Inc.’s Investor Relations website at investors.stridelearning.com.
STRIDE, INC.CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended June 30, June 30, 2026 2025 2026 2025 (In thousands except share and per share data)Revenues$636,064 $653,647 $2,518,081 $2,405,317 Instructional costs and services 418,781 414,728 1,567,481 1,461,398 Gross margin 217,283 238,919 950,600 943,919 Selling, general, and administrative expenses 111,431 122,577 499,833 524,347 Impairment of long-lived assets — 59,478 — 59,478 Income from operations 105,852 56,864 450,767 360,094 Interest expense, net (2,889) (2,693) (11,778) (10,504)Other income, net 1,362 10,160 2,173 33,629 Income before income taxes and loss from equity method investments 104,325 64,331 441,162 383,219 Income tax expense (22,831) (12,919) (102,765) (93,007)Loss from equity method investments (106) (92) (205) (2,271)Net income attributable to common stockholders$81,388 $51,320 $338,192 $287,941 Net income attributable to common stockholders per share: Basic$1.93 $1.19 $7.92 $6.69 Diluted$1.75 $1.03 $7.14 $5.95 Weighted average shares used in computing per share amounts: Basic 42,091,404 43,186,913 42,717,156 43,041,274 Diluted 46,388,112 49,767,056 47,332,855 48,413,717 STRIDE, INC.
CONSOLIDATED BALANCE SHEETS
June 30, 2026 2025ASSETS(In thousands except share and per share data) Current assets Cash and cash equivalents$754,501 $782,497 Accounts receivable, net of allowance of $31,302 and $31,124 664,788 559,646 Inventories, net 38,250 37,570 Prepaid expenses 43,052 35,579 Marketable securities 203,499 202,769 Other current assets 12,033 14,673 Total current assets 1,716,123 1,632,734 Property and equipment, net 102,042 78,582 Capitalized software, net 95,002 75,314 Capitalized curriculum development costs, net 56,895 58,584 Intangible assets, net 10,876 18,227 Goodwill 246,676 246,676 Deferred tax asset — 26,377 Deposits and other assets 207,938 157,465 Total assets$2,435,552 $2,293,959 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable$46,742 $43,962 Accrued liabilities 95,446 103,276 Accrued compensation and benefits 62,896 74,939 Deferred revenue 20,553 26,995 Current portion of finance lease liability 60,477 42,316 Current portion of operating lease liability 2,737 11,391 Total current liabilities 288,851 302,879 Long-term finance lease liability 56,455 44,567 Long-term operating lease liability 8,316 35,164 Long-term debt 417,995 416,322 Deferred tax liability 13,033 — Other long-term liabilities 18,573 15,408 Total liabilities 803,223 814,340 Commitments and contingencies Stockholders’ equity Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding — — Common stock, par value $0.0001; 100,000,000 shares authorized; 49,126,917 and 48,852,419 shares issued; and 41,477,230 and 43,517,676 shares outstanding, respectively 4 4 Additional paid-in capital 739,829 735,711 Accumulated other comprehensive loss (59) (67)Retained earnings 1,184,645 846,453 Treasury stock of 7,649,687 and 5,334,743 shares at cost, respectively (292,090) (102,482)Total stockholders’ equity 1,632,329 1,479,619 Total liabilities and stockholders' equity$2,435,552 $2,293,959 STRIDE, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended June 30, 2026 2025 (In thousands)Cash flows from operating activities Net income$338,192 $287,941 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 126,562 114,669 Stock-based compensation expense 40,255 36,794 Deferred income taxes 39,993 (17,783)Provision for credit losses 16,463 15,267 Amortization of fees on debt 1,673 1,647 Noncash operating lease expense 5,063 12,265 Impairment of long-lived assets — 59,478 Other 20,514 (596)Changes in assets and liabilities: Accounts receivable (121,370) (102,188)Inventories, prepaid expenses, deposits and other current and long-term assets 6,538 (6,239)Accounts payable 2,164 310 Accrued liabilities (10,188) 40,915 Accrued compensation and benefits (11,828) 9,913 Operating lease liability (16,943) (12,396)Deferred revenue and other liabilities (3,274) (7,181)Net cash provided by operating activities 433,814 432,816 Cash flows from investing activities Purchase of property and equipment (587) (1,781)Capitalized software development costs (61,591) (36,428)Capitalized curriculum development costs (16,668) (21,801)Other acquisitions, loans and investments, net of distributions (55,538) (20,682)Proceeds from the maturity of marketable securities 279,497 252,930 Purchases of marketable securities (324,941) (260,233)Net cash used in investing activities (179,828) (87,995)Cash flows from financing activities Repayments on finance lease obligations (56,856) (41,469)Purchase of treasury stock (188,659) - Repurchase of restricted stock for income tax withholding (36,467) (21,469)Net cash used in financing activities (281,982) (62,938)Net change in cash, cash equivalents and restricted cash (27,996) 281,883 Cash, cash equivalents and restricted cash, beginning of period 782,497 500,614 Cash, cash equivalents and restricted cash, end of period$754,501 $782,497 Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share, which are not presented in accordance with GAAP.
Adjusted operating income (loss) is defined as income (loss) from operations as adjusted for amortization of intangible assets, stock-based compensation, and other one-time charges or gains.EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization.Adjusted EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization, stock-based compensation, and other one-time charges or gains.Adjusted earnings per share (adjusted EPS) is defined as net income (loss) attributable to common stockholders as adjusted for the amortization of intangible assets, stock-based compensation, and other one-time charges or gains net of tax impact divided by the diluted weighted average number of common shares outstanding less the shares expected to be received for the capped call transaction related to Stride’s convertible senior notes. Adjusted operating income (loss), adjusted EBITDA, and adjusted EPS exclude stock-based compensation, which consists of expenses for restricted stock, restricted stock units, and performance stock units.
Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss), adjusted EBITDA and adjusted EPS remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. Adjusted operating income (loss), adjusted EBITDA and adjusted earnings per share remove one-time charges or gains which are not related to core operating activities and are not indicative of our ongoing operating performance. Additionally, adjusted EPS includes the impact from shares expected to be received by the Company to offset potential dilution from the convertible senior notes. EBITDA and adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired.
Management uses these non-GAAP financial measures:
as additional measures of operating performance because they assist in comparing the Company’s performance on a consistent basis; andin presentations to the members of the Company’s Board of Directors to enable the Board to review the same measures used by management to compare the Company’s current operating results with corresponding prior periods. Other companies may define these non-GAAP financial measures differently and, as a result, these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although these non-GAAP financial measures are used to assess the performance of the business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items included and/or not included in the most directly comparable GAAP financial measure.
These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and diluted net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below.
Fourth Quarter and Full Fiscal Year 2026
Reconciliation of Income from Operations to Adjusted Operating Income
Three Months Ended
Year Ended
June 30,
June 30,
2026
2025
2026
2025
(In thousands) Income from operations$105,852 $56,864 $450,767 $360,094 Amortization of intangible assets 1,770 2,344 7,351 9,867 Stock-based compensation expense 10,192 11,872 40,255 36,794 Impairment of long-lived assets - 59,478 - 59,478 Adjusted operating income$117,814 $130,558 $498,373 $466,233 Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Three Months Ended
June 30, Year Ended
June 30, 2026 2025 2026 2025 (In thousands)Net income$81,388 $51,320 $338,192 $287,941 Interest expense, net 2,889 2,693 11,778 10,504 Other income, net (1,362) (10,160) (2,173) (33,629)Income tax expense 22,831 12,919 102,765 93,007 Loss from equity method investments 106 92 205 2,271 Depreciation and amortization 33,779 30,199 126,562 114,669 EBITDA 139,631 87,063 577,329 474,763 Stock-based compensation expense 10,192 11,872 40,255 36,794 Impairment of long-lived assets - 59,478 - 59,478 Adjusted EBITDA$149,823 $158,413 $617,584 $571,035 Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share
Three Months Ended Year Ended June 30, June 30, 2026 2025 2026 2025 (In thousands)Net income attributable to common stockholders$81,388 $51,320 $338,192 $287,941 Amortization of intangible assets 1,770 2,344 7,351 9,867 Stock-based compensation expense 10,192 11,872 40,255 36,794 Impairment of long-lived assets - 59,478 - 59,478 Income tax effect from adjustments above (1,188) (15,309) (12,937) (21,442)Adjusted net income attributable to common stockholders$92,162 $109,705 $372,861 $372,638 Share computation: Weighted average common shares — diluted 46,388,112 49,767,056 47,332,855 48,413,717 Effect of capped call transactions (2,876,857) (1,827,961) (2,568,353) (2,396,207)Adjusted weighted average common shares — diluted 43,511,255 47,939,095 44,764,502 46,017,510 Adjusted earnings per share$2.12 $2.29 $8.33 $8.10 Three Months Ended Year Ended June 30, June 30, 2026 2025 2026 2025 (per share)Diluted net income per share$1.75 $1.03 $7.14 $5.95 Amortization of intangible assets 0.04 0.05 0.16 0.20 Stock-based compensation expense 0.23 0.24 0.85 0.76 Impairment of long-lived assets - 1.20 - 1.23 Income tax effect from adjustments above (0.03) (0.31) (0.27) (0.44)Effect of capped call transactions 0.13 0.08 0.45 0.40 Adjusted earnings per share$2.12 $2.29 $8.33 $8.10
Robert Knowling, Independent Board Member, Appointed CEO Stride Lead Independent Director Steven B. Fink Named Chair of the Board Brian Shepherd Appointed to the Board Company Reports Select Preliminary Fiscal Year 2026 Financial Results RESTON, Va.
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RESTON, Va., July 21, 2026 (GLOBE NEWSWIRE) -- Stride Inc. (NYSE: LRN) announced today it plans to discuss its fourth quarter and full fiscal year 2026 financial results during a conference call scheduled for Tuesday, August 4, 2026 at 5:00 p.m. eastern time (ET).
A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (833) 461-5787 (domestic) or +1 (585) 542-9983 (international) and provide the conference ID number 708 877 615. Please access the website at least 15 minutes prior to the start of the call.
A replay of the call will be posted at investors.stridelearning.com/events-and-presentations as soon as it is available.
About Stride Inc.
Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.
MAUMEE, OHIO, March 12, 2026 (GLOBE NEWSWIRE) -- Ohio Virtual Academy (OHVA), an online public school serving students statewide, has earned the Recognized ASCA Model Program® (RAMP®) designation from the American School Counselor Association (ASCA), a national recognition awarded to schools whose counseling programs demonstrate strong alignment with the ASCA National Model® framework and measurable impact on student success.
The RAMP designation is a highly selective recognition that reflects a school’s commitment to delivering a comprehensive, data-informed school counseling program that supports students’ academic achievement, social-emotional development, and postsecondary readiness. The designation is valid for five years.
According to ASCA, more than 1,300 schools nationwide have earned the RAMP designation since the program’s inception in 2004. Ohio Virtual Academy is currently one of only four schools in Ohio holding the recognition.
“This is an extremely difficult and time-consuming process, and few schools in the nation are able to claim this designation,” said Kyle Wilkinson, executive director of Ohio Virtual Academy. “I’m incredibly proud of the entire counseling team for their dedication to our students and families. This recognition reflects the high-level support services OHVA provides every day.”
The RAMP application requires schools to submit a full year of evidence demonstrating implementation of the ASCA National Model through data-driven counseling practices, including program goals, student support services, planning tools, and measurable outcomes. Applications are reviewed by a national committee using a detailed scoring rubric.
“Earning the RAMP designation requires thorough documentation and clear evidence that the counseling program is making a measurable difference for students,” said Cristina Foster, lead school counselor at Ohio Virtual Academy. “Our counselors are focused on supporting students academically, socially, and emotionally while helping them plan for their futures. Their goals matter, and their growth is intentional.”
Ohio Virtual Academy’s 35 school counselors serve approximately 16,700 students in grades K–12 and bring decades of experience supporting students academically, socially and emotionally. The team is organized by grade bands and includes specialized counselors supporting career and technical education pathways and students who need additional academic support.
Delivering comprehensive counseling support in an online environment presents unique challenges, particularly when it comes to student access and engagement. OHVA counselors address this by connecting with students through multiple channels, including phone calls, email check-ins, and one-on-one virtual meetings, ensuring students receive the support they need wherever they are.
“Students choose online learning for many reasons, and many benefit from the flexibility and individualized support our model provides. This recognition shows what’s possible when a counseling program is intentionally designed to support students in an online learning environment.” Megan Daley, OHVA student support principal, said.
Ohio Virtual Academy will be formally recognized for its achievement at the ASCA Annual Conference in New Orleans during the RAMP Recognition Dinner on July 13, 2026.
The designation will remain in effect through the 2030–2031 school year, at which point the school may apply again to maintain its RAMP status.
About Ohio Virtual Academy
Ohio Virtual Academy (OHVA) is a tuition-free, full-time online public charter school serving students in grades K–12 throughout Ohio. Guided by the motto “We are accountable, respectful, engaged,” OHVA is committed to providing personalized learning experiences that meet the unique needs of each student. The school offers tailored education options and support from state-certified teachers to ensure academic success. Powered by K12, a Stride, Inc. portfolio brand, OHVA benefits from more than 25 years of expertise in online education. Learn more at https://ohva.k12.com/.
Stride (LRN) offers alternative K-12 and career-focused online education, targeting enrollment growth as its main revenue driver. LRN's competitive edge is scale, but customer satisfaction issues and enrollment legitimacy risks threaten long-term sustainability. Flat 2026 revenue growth guidance (5%) and a fair value estimate of $87 align with the current $84 stock price.
BURLINGTON, Mass. & NEW YORK--(BUSINESS WIRE)---- $BFLY #POCUS--Butterfly Network, Inc. (“Butterfly,” “the Company”) (NYSE: BFLY), a pioneer and leader in semiconductor-based ultrasound devices, programmable cloud software and AI, today announced it has received clearance from the U.S. Food and Drug Administration (FDA) for a fully automated Gestational Age (GA) Tool integrated into its handheld ultrasound solution. This marks the first FDA-cleared blind-sweep ultrasound AI tool for estimating gestational age.
Key Takeaways LRN has jumped 38.7% in 2026, outperforming a declining S&P 500 over the same period.INNV surged 34.5% after a Zacks Recommendation upgrade to Outperform in early February.PEP gained 13% in 12 weeks, supported by its inclusion in the ECAP portfolio. Last Friday, all three Wall Street benchmark stock indexes registered a week of gains. The tech-focused Nasdaq, the S&P 500 and the Dow Jones Industrial Average gained 4.4%, 3.4% and 3%, respectively.
The rebound was supported by easing concerns around inflation and interest rates, as investors took comfort from steady messaging by Jerome Powell and expectations that the Fed would avoid aggressive tightening. Cooling bond yields and stable economic data, including resilient jobs and consumer spending trends, improved risk appetite and encouraged investors to move back into equities after recent weakness.
At the same time, the ongoing Iran war played a complex role. While the conflict drove sharp spikes in oil prices due to disruptions in the Strait of Hormuz, markets partly rebounded as investors assessed that the economic impact, though serious, may remain contained in the near term. Tech stocks led gains, with dip-buying and optimism around corporate outlooks lifting sentiment, even as geopolitical risks and energy-driven inflation concerns lingered in the background.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Century Aluminum and Teradyne Surge Following Zacks Rank UpgradeShares of Century Aluminum Company (CENX - Free Report) have gained 23.9% (versus the S&P 500’s 4.9% decrease) since it was upgraded to a Zacks Rank #1 (Strong Buy) on February 4.
Another stock, Teradyne, Inc. (TER - Free Report) , which was also upgraded to a Zacks Rank #1 on February 4, has returned 9.4% since then.
An equal-weight portfolio of Zacks Rank # 1 (Strong Buy) stocks outperformed the equal-weight S&P 500 index by 7.7 percentage points in the year-to-date 2026 period (through March 3rd, 2026); The Zacks Rank #1 stocks returned +6.57% through March 3rd, while the equal-weight S&P 500 index lost -1.14% of its value.
In 2025, this hypothetical equal-weight portfolio returned +17.81% vs. +10.85% for the index, while performance comparison was +22.4% vs. +13.7% in 2024. Over the preceding 10-year period (2016 through 2025), this portfolio of qual-weight Zacks Rank #1 stocks outperformed the equal-weight S&P 500 index by more than 7 percentage points (+18.55% vs. +11.65%).
You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Century Aluminum’s historical EPS and Sales here>>>
Check Teradyne’s historical EPS and Sales here>>>
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Zacks Recommendation Upgrades InnovAge and Teekay TankersShares of InnovAge Holding Corp. (INNV - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) have surged 34.5% and 18.2% (versus the S&P 500’s 4.9% fall), respectively, since their Zacks Recommendation was upgraded to Outperform on February 4.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Stocks Celanese, Quanta Services Shoot UpShares of Celanese Corporation (CE - Free Report) , which belongs to the Zacks Focus List, have gained 44% over the past 12 weeks. The stock was added to the Focus List on December 5, 2016. Another Focus-List holding, Quanta Services, Inc. (PWR - Free Report) , which was added to the portfolio on December 23, 2021, has returned 27.9% over the past 12 weeks. The S&P 500 has declined 5.2% over this period.
The 50-stock Focus List portfolio returned +6.65% in 2026 (through February 28th) vs. +0.68% for the S&P 500 index and +7.06% for the equal-weight version of the index.
The portfolio returned +22.1% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.
The Zacks Focus List portfolio returned +18.41% in 2024 vs. +25.04% for the S&P 500 index and +13% for the equal-weight S&P 500 index. The portfolio had returned +29.54% in 2023 vs. +26.28% for the S&P 500 index and +13.61% for the equal-weight S&P 500 index. In 2022, the portfolio returned -15.2% vs. the S&P 500 index’s -17.96%.
Through February 28th, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, ten-year, and since 2004 have been +29.35% (vs. +17% for the S&P 500 index), +23.13% (vs. +21.81%), +14.15% (vs. +14.19%), +16.79% (vs. +15.50%) and +12.38% vs. (+10.66%), respectively.
Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>
Zacks ECAP Stocks PepsiCo & Walmart Gain SignificantlyPepsiCo, Inc. (PEP - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 13% over the past 12 weeks. Walmart Inc. (WMT - Free Report) followed PepsiCo with 10% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -2.3% in the fourth quarter of 2025 vs. the S&P 500 index’s +2.7% gain (SPY ETF). For 2025 as a whole, the portfolio returned -1.67% vs. +17.9% gain for the S&P 500 index.
For the year 2024, the portfolio returned +16.26% vs. +24.89% for the S&P 500 index (SPY ETF). In 2023, the portfolio returned +12.17% vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. the S&P 500 index’s -17.96%.
With little to no turnover and annual rebalance periodicity, ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks Hershey’s and Coca-Cola Outperform PeersThe Hershey Company (HSY - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 15% over the past 12 weeks. Another ECDP stock, The Coca-Cola Company (KO - Free Report) , has climbed 13.1% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
Check Hershey’s dividend history here>>>
Check Coca-Cola’s dividend history here>>>
With an extremely low beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -2.1% in 2025 Q4 vs. the S&P 500 index’s +2.7% gain and the Dividend Aristocrats ETF’s (NOBL) +1.6% return. For 2025, the portfolio returned -0.6% vs. +6.8% gain for the Dividend Aristocrat ETF.
For the full year 2024, the portfolio returned +6.95% vs. +24.89% for the S&P 500 index and +6.72% for NOBL.
The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for NOBL. The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stock Stride Delivers Solid ReturnsStride, Inc. (LRN - Free Report) , from the Zacks Top 10 Stocks for 2025, has jumped 38.7% since January 5, 2026, against the S&P 500 Index’s 4% decrease.
The Top 10 portfolio retuned +10.5% in 2026 (through February 28th) vs. +0.5% for the S&P 500 index and +6.3% for the equal-weight version of the index.
The Top 10 portfolio returned +22.6% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.
The Top 10 portfolio returned +62.98% in 2024, vs. +25.04% for the S&P 500 index and +13% for the equal-weight version of the index. The portfolio had returned +25.15% in 2023 vs. +26.28% for the S&P 500 index.
Through the end of February 2026, the Top 10 portfolio has produced a cumulative return of +2,761.6% since 2012 vs. +564.8% for the S&P 500 index and +435% for the equal-weight version of the index. The portfolio has produced an average annual return of +26.4% in the period 2012 through February 28th, 2026 vs. +13% for the S&P 500 index and +11% for the equal-weight version of the index.
Shares of Stride, Inc. (NYSE:LRN – Get Free Report) crossed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $88.98 and traded as high as $90.12. Stride shares last traded at $89.2170, with a volume of 342,554 shares.
Analyst Ratings Changes A number of equities analysts have recently issued reports on LRN shares. Morgan Stanley reduced their target price on shares of Stride from $130.00 to $95.00 and set an “equal weight” rating on the stock in a research report on Wednesday, December 17th. Wall Street Zen lowered shares of Stride from a “buy” rating to a “hold” rating in a report on Saturday, January 31st. Barrington Research restated an “outperform” rating and issued a $125.00 price objective on shares of Stride in a report on Wednesday, January 28th. BMO Capital Markets restated a “market perform” rating on shares of Stride in a report on Tuesday, March 3rd. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Stride in a report on Monday, December 29th. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $109.75.
View Our Latest Analysis on Stride
Stride Price Performance The company has a debt-to-equity ratio of 0.31, a current ratio of 7.27 and a quick ratio of 7.19. The stock has a market cap of $3.80 billion, a P/E ratio of 13.58, a P/E/G ratio of 0.55 and a beta of 0.05. The company’s 50 day simple moving average is $85.53 and its 200 day simple moving average is $88.98.
Institutional Investors Weigh In On Stride Several large investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in Stride by 7.5% in the fourth quarter. Vanguard Group Inc. now owns 4,883,571 shares of the company’s stock valued at $317,090,000 after purchasing an additional 340,838 shares in the last quarter. Invesco Ltd. grew its position in Stride by 1.3% in the third quarter. Invesco Ltd. now owns 1,805,508 shares of the company’s stock valued at $268,912,000 after purchasing an additional 23,488 shares in the last quarter. Dimensional Fund Advisors LP grew its position in Stride by 32.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,659,795 shares of the company’s stock valued at $107,773,000 after purchasing an additional 408,585 shares in the last quarter. Morgan Stanley grew its position in Stride by 98.1% in the fourth quarter. Morgan Stanley now owns 1,631,570 shares of the company’s stock valued at $105,938,000 after purchasing an additional 808,141 shares in the last quarter. Finally, William Blair Investment Management LLC grew its position in Stride by 37.2% in the third quarter. William Blair Investment Management LLC now owns 1,511,080 shares of the company’s stock valued at $225,060,000 after purchasing an additional 410,029 shares in the last quarter. Institutional investors own 98.24% of the company’s stock.
About Stride (Get Free Report)
Stride, Inc (NYSE:LRN) is a technology-driven education company that designs and delivers online learning solutions for students and adult learners. Through long-term partnerships with state-authorized public school districts, Stride operates virtual academies that serve K-12 students across the United States. The company’s blended-learning model combines digital curriculum, live teaching support and data analytics to personalize instruction and monitor student progress.
In addition to its K-12 offerings, Stride provides a portfolio of career and workforce readiness programs under its Stride Career Prep division.
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RESTON, Va., April 14, 2026 (GLOBE NEWSWIRE) -- Stride Inc. (NYSE: LRN) announced today it plans to discuss its third quarter fiscal year 2026 financial results during a conference call scheduled for Tuesday, April 28, 2026 at 5:00 p.m. eastern time (ET).
A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call.
A replay of the call will be posted at investors.stridelearning.com/events-and-presentations as soon as it is available.
About Stride Inc.
Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.
Stride (LRN) has stabilized after LMS challenges, with the stock up 34% since January and operational concerns largely resolved. AI presents both opportunity and risk: it could erode curriculum value but also strengthen LRN's K12 brand as a discovery moat in an AI-driven world. LRN's bundled service model and high switching costs protect against near-term customer attrition, but pricing pressure may emerge if curriculum lags the alternative, necessitating further investment in curriculum development.
RESTON, Va., April 28, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the third quarter of fiscal year 2026 ended March 31, 2026.
Third Quarter Fiscal 2026 Highlights Compared to 2025
Revenue of $629.9 million, compared with $613.4 millionIncome from operations of $129.1 million, compared with $130.8 millionNet income of $88.5 million, compared with $99.3 millionDiluted net income per share of $1.93, compared with $2.02Adjusted operating income of $140.4 million, compared with $141.7 million (1)Adjusted EBITDA of $171.3 million, compared with $168.3 million (1)Adjusted earnings per share of $2.30, compared with $2.33 (1)
Third Quarter Fiscal 2026 Summary Financial Metrics
Three Months Ended March 31, Change 2026/2025 2026 2025 $ % (In thousands, except percentages and per share data)Revenues$629,873 $613,376 $16,497 2.7% Income from operations 129,080 130,786 (1,706) (1.3%)Adjusted operating income (1) 140,424 141,744 (1,320) (0.9%) Net income 88,527 99,346 (10,819) (10.9%)Net income per share, diluted 1.93 2.02 (0.09) (4.5%)Adjusted earnings per share (1) 2.30 2.33 (0.03) (1.3%) EBITDA (1) 161,676 159,727 1,949 1.2%Adjusted EBITDA (1) 171,250 168,275 2,975 1.8% (1) To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share. Management believes that these additional measures provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.
Nine Month Fiscal 2026 Highlights Compared to 2025
Revenue of $1,882.0 million, compared with $1,751.7 millionIncome from operations of $344.9 million, compared with $303.2 millionNet income of $256.8 million, compared with $236.6 millionDiluted net income per share of $5.39, compared with $4.95Adjusted operating income of $380.6 million, compared with $335.7 million (1)Adjusted EBITDA of $467.8 million, compared with $412.6 million (1)Adjusted earnings per share of $6.22, compared with $5.83 (1)
Nine Month Fiscal 2026 Summary Financial Metrics
Nine Months Ended March 31, Change 2026/2025 2026 2025 $ % (In thousands, except percentages and per share data)Revenues$1,882,017 $1,751,670 $130,347 7.4% Income from operations 344,915 303,229 41,686 13.7%Adjusted operating income (1) 380,559 335,673 44,886 13.4% Net income 256,804 236,621 20,183 8.5%Net income per share, diluted 5.39 4.95 0.44 8.9%Adjusted earnings per share (1) 6.22 5.83 0.39 6.7% EBITDA (1) 437,698 387,699 49,999 12.9%Adjusted EBITDA (1) 467,761 412,621 55,140 13.4% Revenue Data
Three Months Ended Nine Months Ended March 31, Change 2026 / 2025 March 31, Change 2026 / 2025 2026 2025 $ % 2026 2025 $ % (In thousands, except percentages) General Education$357,463 $370,821 $(13,358) (3.6%) $1,061,976 $1,054,542 $7,434 0.7%Career Learning Middle - High School 259,520 223,868 35,652 15.9% 776,610 635,832 140,778 22.1%Adult 12,890 18,687 (5,797) (31.0%) 43,431 61,296 (17,865) (29.1%)Total Career Learning 272,410 242,555 29,855 12.3% 820,041 697,128 122,913 17.6%Total Revenues$629,873 $613,376 $16,497 2.7% $1,882,017 $1,751,670 $130,347 7.4% Enrollment and Revenue Per Enrollment Data
Third quarter enrollments were 244.5K, up 1.8% compared to 240.2K enrollments in the third quarter of fiscal year 2025. Of the total enrollments, 110.1K were Career Learning enrollments, up 11.6% compared to 98.7K Career Learning enrollments in the third quarter of fiscal 2025.
Enrollments only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, and instructional and support services, inclusive of administrative support and may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollments for our Adult Learning business.
Revenue per enrollment for the third quarter was $2,485, up 2.9% compared to $2,415 in the third quarter of fiscal year 2025. General Education revenue per enrollment was $2,590, up 2.9% compared to the third quarter of fiscal year 2025, and Career Learning revenue per enrollment was $2,356, up 3.8%, compared to the third quarter of fiscal year 2025.
Cash Flow and Capital Allocation
As of March 31, 2026, the Company’s cash and cash equivalents and marketable securities totaled $856.0 million, compared with $1,011.4 million reported at June 30, 2025.
Capital expenditures for the three months ended March 31, 2026 were $18.5 million, compared to $15.8 million in the three months ended March 31, 2025, and were comprised of $0.5 million of property and equipment, $12.8 million of capitalized software development and $5.2 million of capitalized curriculum development.
Fiscal Year 2026 Outlook
The Company is narrowing its revenue, adjusted income, and capital expenditures forecast for the full fiscal year 2026:
Revenue in the range of $2.490 billion to $2.520 billion.Capital expenditures in the range of $75 million to $80 million. Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows.Effective tax rate of 24% to 25%.Adjusted operating income in the range of $490 million to $500 million. (1) (1) In addition to providing an outlook for revenue and capital expenditures, adjusted operating income is provided as a supplemental non-GAAP financial measure as management believes that it provides useful information to our investors. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. Please also see Special Note on Forward-Looking Statements below.
Conference Call
The Company will discuss its third quarter of fiscal year 2026 financial results during a conference call scheduled for Tuesday, April 28, 2026 at 5:00 p.m. eastern time (ET).
A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call.
A replay of the call will be posted at investors.stridelearning.com/events-and-presentations.
About Stride Inc.
Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.
Special Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including FY 2026 outlook. We have tried, whenever possible, to identify these forward-looking statements using words such as “outlook,” “forecasts,” “anticipates,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends,” “should,” “would” and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model or meet guidance; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve, our vendors, or us to comply with our contracts, or federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, contractual remedies, or actions or proceedings against us; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve, including due to the evolution of curriculum standards, testing programs and state accountability metrics; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction or termination in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies (including artificial intelligence) and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud systems and facilities, resulting from cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems; problems in the implementation of new IT systems and technology; failure by us or third parties to maintain and support information technology systems, including addressing quality issues and timely delivering new products and enhancements; risks related to artificial intelligence; and other risks and uncertainties associated with our business described in the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequently filed Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this press release is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
Financial Statements
The financial statements set forth below are not the complete set of Stride, Inc.’s financial statements for the three and nine months ended March 31, 2026 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC’s website at www.sec.gov or from Stride Inc.’s Investor Relations website at investors.stridelearning.com.
STRIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended March 31, March 31, 2026
2025
2026
2025
(In thousands except share and per share data)Revenues$629,873 $613,376 $1,882,017 $1,751,670 Instructional costs and services 398,308 364,086 1,148,699 1,046,670 Gross margin 231,565 249,290 733,318 705,000 Selling, general, and administrative expenses 102,485 118,504 388,403 401,771 Income from operations 129,080 130,786 344,915 303,229 Interest expense, net (3,001) (2,787) (8,889) (7,810)Other income (expense), net (5,338) 7,360 811 23,469 Income before income taxes and loss from equity method investments 120,741 135,359 336,837 318,888 Income tax expense (31,545) (35,450) (79,934) (80,088)Loss from equity method investments (669) (563) (99) (2,179)Net income attributable to common stockholders$88,527 $99,346 $256,804 $236,621 Net income attributable to common stockholders per share: Basic$2.09 $2.31 $5.98 $5.50 Diluted$1.93 $2.02 $5.39 $4.95 Weighted average shares used in computing per share amounts: Basic 42,330,276 43,092,682 42,925,740 42,992,727 Diluted 45,835,843 49,181,728 47,607,602 47,798,923 STRIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS March 31, June 30, 2026
2025
(audited)ASSETS(In thousands except share and per share data) Current assets Cash and cash equivalents$614,047 $782,497 Accounts receivable, net of allowance of $33,132 and $31,124 854,874 559,646 Inventories, net 21,501 37,570 Prepaid expenses 64,573 35,579 Marketable securities 191,793 202,769 Other current assets 12,002 14,673 Total current assets 1,758,790 1,632,734 Property and equipment, net 103,281 78,582 Capitalized software, net 82,653 75,314 Capitalized curriculum development costs, net 62,444 58,584 Intangible assets, net 12,646 18,227 Goodwill 246,676 246,676 Deferred tax asset — 26,377 Deposits and other assets 180,446 157,465 Total assets$2,446,936 $2,293,959 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable$45,090 $43,962 Accrued liabilities 96,775 103,276 Accrued compensation and benefits 60,449 74,939 Deferred revenue 19,118 26,995 Current portion of finance lease liability 58,499 42,316 Current portion of operating lease liability 3,239 11,391 Total current liabilities 283,170 302,879 Long-term finance lease liability 59,297 44,567 Long-term operating lease liability 8,807 35,164 Long-term debt 417,579 416,322 Deferred tax liability 17,503 — Other long-term liabilities 18,655 15,408 Total liabilities 805,011 814,340 Commitments and contingencies Stockholders’ equity Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding — — Common stock, par value $0.0001; 100,000,000 shares authorized; 49,133,813 and 48,852,419 shares issued; and 42,526,280 and 43,517,676 shares outstanding, respectively 4 4 Additional paid-in capital 729,851 735,711 Accumulated other comprehensive loss (59) (67)Retained earnings 1,103,257 846,453 Treasury stock of 6,607,533 and 5,334,743 shares at cost, respectively (191,128) (102,482)Total stockholders’ equity 1,641,925 1,479,619 Total liabilities and stockholders' equity$2,446,936 $2,293,959 STRIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended March 31, 2026
2025
(In thousands)Cash flows from operating activities Net income$256,804 $236,621 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 92,783 84,470 Stock-based compensation expense 30,063 24,922 Deferred income taxes 45,622 5,655 Provision for credit losses 10,689 13,357 Amortization of fees on debt 1,257 1,238 Noncash operating lease expense 4,541 9,230 Other 11,877 1,712 Changes in assets and liabilities: Accounts receivable (305,903) (240,429)Inventories, prepaid expenses, deposits and other current and long-term assets 11,606 (3,643)Accounts payable 1,249 (528)Accrued liabilities (8,768) 8,463 Accrued compensation and benefits (14,275) 4,149 Operating lease liability (15,950) (9,583)Deferred revenue and other liabilities (4,632) (1,142)Net cash provided by operating activities 116,963 134,492 Cash flows from investing activities Purchase of property and equipment (587) (1,350)Capitalized software development costs (37,471) (28,605)Capitalized curriculum development costs (18,156) (15,451)Other acquisitions, loans and investments, net of distributions (54,342) (1,681)Proceeds from the maturity of marketable securities 213,886 221,530 Purchases of marketable securities (222,643) (227,786)Net cash used in investing activities (119,313) (53,343)Cash flows from financing activities Repayments on finance lease obligations (41,277) (29,957)Purchase of treasury stock (88,645) - Repurchase of restricted stock for income tax withholding (36,178) (20,672)Net cash used in financing activities (166,100) (50,629)Net change in cash, cash equivalents and restricted cash (168,450) 30,520 Cash, cash equivalents and restricted cash, beginning of period 782,497 500,614 Cash, cash equivalents and restricted cash, end of period$614,047 $531,134 Reconciliation of cash, cash equivalents and restricted cash to balance sheet as of March 31st: Cash and cash equivalents$614,047 $528,547 Other current assets (restricted cash) — 476 Deposits and other assets (restricted cash) — 2,111 Total cash, cash equivalents and restricted cash$614,047 $531,134 Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share, which are not presented in accordance with GAAP.
Adjusted operating income (loss) is defined as income (loss) from operations as adjusted for amortization of intangible assets, stock-based compensation, and other one-time charges or gains.EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization.Adjusted EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization, stock-based compensation, and other one-time charges or gains.Adjusted earnings per share (adjusted EPS) is defined as net income (loss) attributable to common stockholders as adjusted for the amortization of intangible assets, stock-based compensation, and other one-time charges or gains net of tax impact divided by the diluted weighted average number of common shares outstanding less the shares expected to be received for the capped call transaction related to Stride’s convertible senior notes. Adjusted operating income (loss), adjusted EBITDA, and adjusted EPS exclude stock-based compensation, which consists of expenses for restricted stock, restricted stock units, and performance stock units.
Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss), adjusted EBITDA and adjusted EPS remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. Adjusted operating income (loss), adjusted EBITDA and adjusted earnings per share remove one-time charges or gains which are not related to core operating activities and are not indicative of our ongoing operating performance. Additionally, adjusted EPS includes the impact from shares expected to be received by the Company to offset potential dilution from the convertible senior notes. EBITDA and adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired.
Management uses these non-GAAP financial measures:
as additional measures of operating performance because they assist in comparing the Company’s performance on a consistent basis; andin presentations to the members of the Company’s Board of Directors to enable the Board to review the same measures used by management to compare the Company’s current operating results with corresponding prior periods. Other companies may define these non-GAAP financial measures differently and, as a result, these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although these non-GAAP financial measures are used to assess the performance of the business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items included and/or not included in the most directly comparable GAAP financial measure.
These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and diluted net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below.
Third Quarter Fiscal Year 2026
Reconciliation of Income from Operations to Adjusted Operating Income
Three Months Ended Nine Months Ended March 31, March 31, 2026
2025
2026
2025
(In thousands)Income from operations$129,080 $130,786 $344,915 $303,229Amortization of intangible assets 1,770 2,410 5,581 7,522Stock-based compensation expense 9,574 8,548 30,063 24,922Adjusted operating income$140,424 $141,744 $380,559 $335,673 Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Three Months Ended
March 31, Nine Months Ended
March 31, 2026
2025
2026
2025
(In thousands)Net income$88,527 $99,346 $256,804 $236,621 Interest expense, net 3,001 2,787 8,889 7,810 Other (income) expense, net 5,338 (7,360) (811) (23,469)Income tax expense 31,545 35,450 79,934 80,088 Loss from equity method investments 669 563 99 2,179 Depreciation and amortization 32,596 28,941 92,783 84,470 EBITDA 161,676 159,727 437,698 387,699 Stock-based compensation expense 9,574 8,548 30,063 24,922 Adjusted EBITDA$171,250 $168,275 $467,761 $412,621 Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share
Three Months Ended Nine Months Ended March 31, March 31, 2026 2025 2026 2025 (In thousands)Net income attributable to common stockholders$88,527 $99,346 $256,804 $236,621 Amortization of intangible assets 1,770 2,410 5,581 7,522 Stock-based compensation expense 9,574 8,548 30,063 24,922 Income tax effect from adjustments above (942) (617) (11,749) (6,132)Adjusted net income attributable to common stockholders$98,929 $109,687 $280,699 $262,933 Share computation: Weighted average common shares — diluted 45,835,843 49,181,728 47,607,602 47,798,923 Effect of capped call transactions (2,764,425) (2,092,035) (2,481,111) (2,669,924)Adjusted weighted average common shares — diluted 43,071,418 47,089,693 45,126,491 45,128,999 Adjusted earnings per share$2.30 $2.33 $6.22 $5.83 Three Months Ended Nine Months Ended March 31, March 31, 2026 2025 2026 2025 (per share)Diluted net income per share$1.93 $2.02 $5.39 $4.95 Amortization of intangible assets 0.04 0.05 0.12 0.16 Stock-based compensation expense 0.21 0.17 0.64 0.52 Income tax effect from adjustments above (0.02) (0.01) (0.25) (0.13)Effect of capped call transactions 0.14 0.10 0.32 0.33 Adjusted earnings per share$2.30 $2.33 $6.22 $5.83 Fiscal Year 2026 Outlook
Reconciliation of Income from Operations to Adjusted Operating Income (unaudited)
Year Ended
June 30, 2026 Low High Income from operations$443.0 $450.0Stock-based compensation expense 40.0 42.0Amortization of intangible assets 7.0 8.0Adjusted operating income$490.0 $500.0
K12 (LRN - Free Report) came out with quarterly earnings of $2.3 per share, beating the Zacks Consensus Estimate of $2.21 per share. This compares to earnings of $2.02 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.07%. A quarter ago, it was expected that this online education company would post earnings of $2.33 per share when it actually produced earnings of $2.5, delivering a surprise of +7.3%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
K12, which belongs to the Zacks Schools industry, posted revenues of $629.87 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.05%. This compares to year-ago revenues of $613.38 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
K12 shares have added about 50.6% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for K12?While K12 has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for K12 was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.95 on $635 million in revenues for the coming quarter and $8.13 on $2.52 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Schools is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Universal Technical Institute (UTI - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This school for auto, motorcycle and marine technicians is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of -100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Universal Technical Institute's revenues are expected to be $221.45 million, up 6.8% from the year-ago quarter.
Stride (LRN) posted relatively healthy Q3 results, showcasing continued enrollment growth after technical challenges earlier this year. Secular tailwinds in online education and parental demand support long-term enrollment growth for LRN's platform. Stride's career learning programs are achieving double-digit enrollment growth, offsetting K-12 declines.
A well-received quarterly earnings report was the catalyst behind Stride (LRN +1.20%) stock's leap into positive territory on Wednesday. Shares of the educational services company rose by nearly 3%, contrasting well with the slight decline of the benchmark S&P 500 index.
Earning from learning Stride released its fiscal third-quarter 2026 results after market close on Tuesday. These revealed that the company's revenue was $629.9 million for the period, bettering the same quarter of 2025 by almost 3%.
Image source: Getty Images.
Going in the opposite direction was attributable net income not under generally accepted accounting principles (GAAP). This sank by nearly 10% year-over-year but was still well in the black, at slightly below $99 million ($2.30 per share).
That crucial line item also came in well above the consensus analyst estimate of $1.92 per share on a non-GAAP (adjusted) basis. On the top line, Stride edged past the average pundit projection of $629.7 million.
The company divides its business into two broad categories, general education and career learning. Of the two, only the latter posted growth -- its revenue rose by 12%, thanks mainly to a 16% increase in the considerable middle-high school segment (to nearly $260 million). General education, meanwhile, slid by almost 4% to $357.5 million.
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Striding into the future Stride also narrowed its existing guidance for the entirety of the current fiscal year. It's now anticipating annual revenue of $2.49 billion to $2.52 billion, with adjusted operating income landing at $490 million to $500 million. It did not provide net income guidance. The average analyst estimate for revenue is slightly more than $2.52 billion.
It looks to me like management has identified a sweet spot in the middle-high school career-learning niche and is moving accordingly. While I like a proactive and opportunistic C-suite team, however, I'd be concerned about the slump in general education, which remains the company's largest revenue stream.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Stride. The Motley Fool has a disclosure policy.
After reaching an important support level, K12 (LRN - Free Report) could be a good stock pick from a technical perspective. LRN surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
LRN could be on the verge of another rally after moving 7.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case solidifies once investors consider LRN's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on LRN for more gains in the near future.
Stride, Inc. (LRN) is rated Buy at $93 as the post-crisis recovery is largely priced in and easy gains are behind. Career Learning segment drives growth, now 44% of revenue, with +15.9% y/y revenue and +11.6% y/y enrollment in Q3 FY2026. General Education enrollment decline (-5% y/y in Q3) is the key risk; stabilization is needed for further upside.
What happenedAccording to its SEC filing dated May 15, 2026, Frontier Capital Management increased its position in Stride (LRN +1.20%) by 1,388,589 shares during the first quarter. The estimated trade value was $112.63 million, calculated using the quarter’s average closing share price. At quarter end, the Stride stake was valued at $136.60 million, an increase of $126.17 million from the prior period.
What else to knowFrontier Capital Management bought more Stride, bringing its stake to 1.4% of 13F AUM.
Top holdings after the filing:FTAI Aviation: $260.24 million (2.7% of AUM)Darling Ingredients: $151.88 million (1.6% of AUM)United Therapeutics: $149.85 million (1.5% of AUM)Circle Internet Group: $147.71 million (1.5% of AUM)Granite Construction: $142.39 million (1.5% of AUM)As of May 20, 2026, Stride shares were trading at $89.06, down 45.1% over the past year and underperforming the S&P 500 by 70 percentage points.
Company overviewMetricValuePrice (as of market close May 20, 2026)$89.06Market capitalization$3.79 billionRevenue (TTM)$2.54 billionNet income (TTM)$308.12 millionCompany snapshotStride delivers technology-based educational services and online curriculum for K-12 students, as well as career learning programs for adult learners through brands such as Galvanize, Tech Elevator, and MedCerts.The company generates revenue by providing integrated educational platforms, digital courses, and professional development services to public and private schools, school districts, and individual consumers.Primary customers include public and private educational institutions, charter boards, individual learners, employers, and government agencies in the United States and internationally.Stride is a leading provider of online and blended education solutions, serving over 7,800 employees and a diverse client base in the education and workforce development sectors. The company leverages proprietary technology and specialized content to deliver scalable, individualized learning experiences across K-12 and adult education markets. Its strategic focus on both core academic and career-oriented programs positions Stride as a differentiated player in the evolving education services industry.
What this transaction means for investorsFrontier Capital Management likes to look for smaller stocks with “relative” value, and its Q1 purchase of Stride certainly fits this strategy. The firm began buying LRN stock in Q3 2024, but the position never exceeded 0.2% of Frontier’s portfolio. Q1’s purchase marks a huge departure from its small sizing after the company added $113 million in Stride stock, making it a 1.4% position -- the firm’s sixth-largest holding.
I think this hefty purchase makes a lot of sense, and I did something similar, buying the stock after it crashed by 50% when management announced that a platform upgrade went wrong and caused the company to miss out on thousands of new registrations. As bad as this was at the time, it seems like Stride has resolved the tech issues, and its registrations have somewhat normalized. Most importantly, management reiterated that it plans to grow sales by 10% annually and to reach $8 in EPS by 2028 -- which would make today’s share price around $89 rather reasonable.
While Stride will have to face the increasingly loud hum of being “disrupted” by AI, I think educational regulations and the need for a “human-in-the-loop” in the learning process give the company a moat. As more parents search for alternatives outside of traditional on-location public schools -- and perhaps seek adult learning classes of their own through Stride -- the company remains one of my favorite consumer staples stocks to buy at a discount today.
Josh Kohn-Lindquist has positions in Circle Internet Group and Stride. The Motley Fool has positions in and recommends Stride and United Therapeutics. The Motley Fool recommends Darling Ingredients and recommends the following options: short July 2026 $55 calls on Darling Ingredients. The Motley Fool has a disclosure policy.
RESTON, Va., May 22, 2026 (GLOBE NEWSWIRE) -- Tallo, a free digital career platform, has earned a Gold Stevie® Award in the Education – Career and Workforce Readiness Solution category at the 24th Annual American Business Awards®.
Recognized for connecting two million individuals to careers, credentials, and opportunities, Tallo offers early talent ages 13 to 30 the tools and resources to move from career uncertainty to confident action. The award comes as workforce readiness remains a critical challenge nationwide. Tallo's 2025 Resource Gap research, which was covered by CBS Evening News and Fortune, found that nearly two-thirds of young adults lack clear career direction and one in four cannot find work in their intended field.
"The workforce readiness gap persists because resources aren't reaching the people who need them," said Allison Danielsen, CEO of Tallo. "Too many young people are navigating one of the most consequential decisions of their lives with almost no real support. Tallo was built to meet people where they are, give them tools that reflect their actual options, and trust them to move forward."
Tallo empowers users to make informed decisions about their futures with a variety of tools and resources. Career Navigator surfaces more than 1,800 careers across 170 industries, using real-time labor market data and personalized assessments to help students identify paths that align with their strengths and goals. Real Careers, Real Journeys™ connects users directly with working professionals across fields from medicine to manufacturing, grounding career exploration in real-world context through on-demand video and live sessions.
Tallo by the numbers:
21,000+ scholarships totaling $1.6 billion in available fundingFour million+ job listings matched to individual user profiles900+ employer partners recruiting directly through the platform, including Moog, Walgreens, and BAE Systems The Gold Stevie® adds to Tallo's growing record of industry recognition, which includes an EdTech Cool Tool Award for Hiring, Internships, or Apprenticeship Solution, multiple finalist recognitions across industry programs, and an Emerging Leader Award for CEO Allison Danielsen from Profiles in Leadership Journal. The recognition reflects Tallo's commitment to ensuring every young person has the guidance and access needed to build a future that works for them.
For more information, visit www.tallo.com.
About Tallo
Tallo is a free digital career platform that moves individuals age 13–30 from career uncertainty to confident action, providing the tools and connections for lasting success. With over 2 million users, Tallo helps individuals discover and explore career options, learn and earn valuable credentials, and ultimately, connect directly with employers to get a job that helps them build a better life. Tallo provides the tools for every step of the journey. Tallo is a portfolio brand of Stride, Inc., (NYSE: LRN) a leader in online education. Learn more at www.tallo.com.
Contact Data
Emily Riordan, Communications
Stride, Inc [email protected]
Voss Capital disclosed a significant purchase of Stride (LRN +1.20%) in its May 15, 2026, SEC filing, adding 711,726 shares in a transaction estimated at $57.73 million based on quarterly average pricing.
What happenedAccording to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Voss Capital increased its position in Stride (LRN +1.20%) by 711,726 shares during the first quarter. The estimated value of the shares acquired is $57.73 million, based on the average closing price over the quarter. The fund’s total position value in Stride rose by $65.97 million, a figure that includes both trading activity and stock price changes.
What else to knowThis was a buy; the Stride stake represented 3.98% of Voss Capital’s reportable 13F assets under management as of March 31, 2026.Top holdings after the filing:NASDAQ: FLYW: $158.59 million (9.1% of AUM)NASDAQ: CLBT: $133.32 million (7.6% of AUM)NYSE: GFF: $132.64 million (7.6% of AUM)NYSE: SRE: $121.95 million (7.0% of AUM)NASDAQ: EEFT: $104.53 million (6.0% of AUM)As of May 14, 2026, Stride shares were priced at $88.40, down about 40% from one year earlier and trailing the S&P 500, which is instead up about 28%.Company overviewMetricValuePrice (as of market close May 14, 2026)$88.40Market capitalization$4 billionRevenue (TTM)$2.54 billionNet income (TTM)$308.12 millionCompany snapshotStride delivers online curriculum, proprietary software systems, and educational services for K-12 students, as well as career learning programs for adult learners in fields such as information technology, healthcare, and business.The company generates revenue through a combination of integrated educational packages for virtual and blended public schools, individual online courses, supplemental learning products, and career training services marketed under brands like Galvanize, Tech Elevator, and MedCerts.Primary customers include public and private schools, school districts, charter boards, individual consumers, employers, and government agencies, both in the United States and internationally.Stride is a leading provider of technology-driven education solutions. The company leverages proprietary platforms and a broad portfolio of educational offerings to address the needs of K-12 students and adult learners seeking career advancement. Its scale and integration of curriculum, technology, and support services position it as a key player in the evolving education and training sector.
What this transaction means for investorsDespite Stride stock being down sharply from last year, Voss Capital appears to be focusing on what the business is doing, which is a good reminder of what long-term investors should be focused on. According to the firm’s latest results, Stride’s revenue from Career Learning rose 12.3% in the third fiscal quarter, while middle and high school Career Learning revenue jumped nearly 16% (helping to offset weakness in the adult segment). Enrollment in those programs increased 11.6%, reinforcing management's thesis that students increasingly want education tied directly to workforce outcomes.
Meanwhile, overall revenue increased 2.7% to $629.9 million during the quarter, while adjusted EBITDA climbed to $171.3 million. Over the first nine months of fiscal 2026, revenue rose 7.4% to $1.88 billion, and adjusted EBITDA increased 13.4% to $467.8 million. The company also narrowed its full-year outlook and ended March with $856 million in cash, cash equivalents, and marketable securities.
While quarterly earnings dipped modestly from last year, the broader trend remains encouraging. Stride is investing heavily in curriculum, software, and career-focused programs while still producing substantial profitability. And if that continues, then the stock could be due for a turnaround.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cellebrite, Euronet Worldwide, and Stride. The Motley Fool has a disclosure policy.
LIVONIA, Mich. and PALO ALTO, Calif., June 01, 2026 (GLOBE NEWSWIRE) -- MedCerts, a leading online provider of allied health and IT certification training, and a Stride, Inc. (NYSE: LRN) portfolio company, and Pace AI today announced a strategic partnership to accelerate access to healthcare career pathways through personalized AI learning support for adult learners.
The partnership brings together MedCerts’ industry-recognized allied health training programs and Pace AI's personalized AI tutoring to provide real-time guidance that meets learners where they are, removing barriers and creating structured pathways into healthcare careers. Through this partnership, graduates of GED Testing Service – administrator of the official GED® test, the most widely recognized high school equivalency credential in the United States – will be the first in the country to access AI-powered healthcare certification training with MedCerts, creating a direct and supported pathway from high school diploma to healthcare training and employment. GED Testing Service has supported more than 20 million graduates to date and serves nearly 200,000 GED graduates each year who earn the credential as a springboard for continued education and career advancement.
Adult learners across the United States are eager to enter healthcare careers, but too often face barriers that prevent them from successfully starting or completing training, including language skills, financial access, and sustained learning support. At the same time, the U.S. healthcare system is experiencing an acute shortage of healthcare workers, with hospitals and care providers struggling to meet rising patient demand and maintain adequate staffing levels.
“This collaboration reflects what the healthcare labor market urgently needs,” said Todd Goldthwaite, Managing Director at Stride, Inc. “Solving workforce shortages requires more than expanding the number of training seats. It requires providing students with the support to persist, complete and transition into the roles healthcare systems are actively struggling to fill.”
“We started Pace AI with a mission to build AI focused on adult learners to unlock economic opportunity for adult learners, from the GED graduate balancing work and family to the English language learner building new skills, to the reentry learner rebuilding their career path,” said Victoria Pu, CEO of Pace AI. “What unites them is not a lack of ability, drive, or desire—but a lack of support. That is what we are solving for.”
Healthcare workforce demand continues to outpace supply, with hundreds of thousands of allied health roles projected to be added over the next decade. However, traditional education and training models have not evolved to support the scale or diversity of today’s adult learner population.
With this launch, Pace AI’s AI Tutors will be embedded inside foundational courses across eight of MedCerts’ most in-demand healthcare programs—including Phlebotomy Technician, Medical Assistant, Electronic Health Records Specialist, and Reimbursement Specialist—roles that represent critical entry points into the healthcare workforce.
For GED Testing Service, the partnership extends the value of the GED credential into a defined next step toward healthcare employment.
“Each year, hundreds of thousands of adults earn their GED credential with the goal of building a better future,” said CT Turner, President and CEO of GED Testing Service. “What has often been missing is a direct, supported pathway forward. This partnership creates that bridge into healthcare careers where demand is strong and opportunity is real.”
MedCerts, Pace AI, and GED Testing Service will jointly track learner persistence, completion, and credential attainment throughout 2026, with plans to expand into additional training programs and employer- and workforce-board-sponsored training cohorts.
Together, the partnership establishes a powerful model for workforce transformation, strengthening healthcare talent pipelines, addressing critical labor shortages, and expanding economic mobility for millions of adult learners across the United States.
For more information about this partnership, please visit: ged.medcerts.com
About MedCerts
MedCerts provides innovative, online career training programs that prepare adult learners for in-demand roles in healthcare and IT. With interactive eLearning, expert instruction and strong industry partnerships, MedCerts has helped over 100,000 students gain the skills and certifications needed for career success. Through MedCerts Partner Solutions, the company collaborates with employers, higher education institutions and workforce agencies to bridge the gap between training and career opportunities. MedCerts is a portfolio brand of Stride, Inc., a leader in online education. For more information on MedCerts, visit medcerts.com
About Pace AI
Pace AI builds AI specifically to advance ESL, GED, and nontraditional learners onto high-quality career pathways and continuing education. The company develops personalized AI Tutors that support adult learners throughout their learning journey, delivering real-time guidance that meets learners at different levels and in 250+ languages—helping learners build skills, stay engaged, and progress toward credential and career goals. By improving confidence, retention, and completion, Pace AI helps learners overcome barriers to advancement while unlocking economic mobility and strengthening outcomes for families and communities. Learn more at paceapp.ai.
About GED Testing Service
GED Testing Service administers the official GED® test, the most widely recognized high school equivalency credential in the United States. The GED program provides adults who did not complete high school the opportunity to demonstrate high school-level academic skills and earn a credential that is accepted by employers, colleges, and universities nationwide, as well as workforce programs across the country. Each year, hundreds of thousands of adults pursue the GED credential, which serves as a critical foundation for continued education, career advancement, and economic mobility. Learn more at ged.com.
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