分组1 - K12 reported quarterly earnings of $2.5 per share, exceeding the Zacks Consensus Estimate of $2.33 per share, and showing an increase from $2.03 per share a year ago, representing an earnings surprise of +7.14% [1] - The company achieved revenues of $631.26 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.62% and up from $587.21 million year-over-year [2] - K12 has outperformed the S&P 500 with a share price increase of about 10.3% since the beginning of the year, compared to the S&P 500's gain of 1.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $2.37 on revenues of $635.84 million, and for the current fiscal year, it is $8.35 on revenues of $2.52 billion [7] - The Zacks Industry Rank indicates that the Schools industry is currently in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $631.3 million, an increase of nearly 8% from the second quarter of fiscal year 2025 [10] - Adjusted operating income rose to $159 million, up $23.4 million or 17% year-over-year [10] - Adjusted EPS increased to $2.50, reflecting a 13% growth from the previous year [10] - Adjusted EBITDA reached $188.1 million, up 17% [10] - Gross margin for the quarter was 41.1%, up 30 basis points from last year [12] - Free cash flow was $75.9 million, down from $208.6 million last year due to timing of payments [14] Business Line Data and Key Metrics Changes - Total enrollments for the second quarter were 248.5 thousand, up 7.8% year-over-year [11] - Revenue from Career Learning programs grew 29% to $275.6 million, driven by a 17.6% increase in enrollment [11] - General Education revenue declined 3.6% to $341.4 million compared to last year [11] - Average enrollments were slightly up to 137,000, but revenue per enrollment decreased by 3.6% due to mix [11] Market Data and Key Metrics Changes - The company noted a generally positive state funding environment, although some impacts from state and program mix are anticipated [11] - The company expects to finish the year flattish compared to last year due to these factors [11] Company Strategy and Development Direction - The company is focused on stabilizing its platforms and enhancing customer experience, with plans to build proprietary solutions to maintain control over user experience [4][7] - The strategy includes a cautious approach to growth, prioritizing stability over aggressive enrollment increases [5][30] - The company aims to balance investments in organic growth and potential M&A transactions with share repurchases [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the primary issues from the previous fall are behind them, with significant improvements in customer support call volumes and social media sentiment [8] - The company believes it is well-positioned for a return to expected growth patterns next year based on current trends in demand and customer experience [8] - Management reaffirmed full-year revenue guidance of $2.480-$2.555 billion, with adjusted operating income expected between $485-$505 million [15][17] Other Important Information - Capital expenditures for the quarter were $16 million, with full-year expectations unchanged at $70-$80 million [15] - The board authorized a share repurchase of up to $500 million, with $88.6 million already purchased in the second quarter [14][15] Q&A Session Summary Question: Clarification on withdrawal trends and enrollment - Management confirmed that withdrawal rates have returned to normal levels, which is positive news [20] Question: Demand characterization - Demand remains strong, with application volumes similar to last year, indicating robust organic demand [22] Question: School and program relations post-issues - Partners expressed frustration but also faith in the company's ability to resolve issues, indicating a shared mission [25] Question: Enrollment growth potential in the third quarter - Management is taking a cautious approach to growth, prioritizing long-term stability over immediate enrollment increases [30] Question: Revenue per enrollment changes - Variations in revenue per enrollment are attributed to state and program mix, with a focus on combined revenue per enrollment for forecasting [38] Question: Gross margin adjustments - A long-term lease exit positively impacted gross margins, with a 200 basis point improvement noted [40]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $631.3 million, an increase of nearly 8% from the second quarter of fiscal year 2025 [10] - Adjusted Operating Income rose to $159 million, up $23.4 million or 17% year-over-year [10] - Adjusted EPS increased to $2.50, reflecting a 13% growth from the previous year [10] - Adjusted EBITDA reached $188.1 million, up 17% [10] - Capital expenditures were $16 million, up from $14.8 million last year [10] Business Line Data and Key Metrics Changes - Total enrollments for the second quarter were 248,500, up 7.8% year-over-year and slightly up from the first quarter [11] - Revenue from Career Learning programs grew 29% to $275.6 million, driven by a 17.6% increase in enrollment [11] - General Education revenue declined 3.6% to $341.4 million, with average enrollments slightly up but revenue per enrollment down 3.6% [11] Market Data and Key Metrics Changes - The company noted a generally positive state funding environment, although some impacts from state and program mix are anticipated [11] - Total revenue per enrollment across both lines was $2,437, an increase of 1.8% from last year [11] Company Strategy and Development Direction - The company is focused on stabilizing its platforms and enhancing customer experience, with plans to build proprietary solutions to maintain control over user experience [4][7] - The strategy includes a cautious approach to growth, prioritizing stability over aggressive enrollment increases [5][30] - The company aims to balance investments in organic growth and potential M&A transactions with share repurchases, maintaining financial flexibility [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the primary issues from the previous fall are resolved, with a significant reduction in customer support calls and improved social media sentiment [8] - The company believes it is well-positioned for a return to expected growth patterns next year, supported by strong demand and stable withdrawal rates [8][17] - Management reaffirmed full-year revenue guidance of $2.480 billion to $2.555 billion, with adjusted operating income expected between $485 million and $505 million [15][17] Other Important Information - Free cash flow for the quarter was $75.9 million, down from $208.6 million last year due to timing issues with payments [14] - The board authorized a share repurchase of up to $500 million, with $88.6 million repurchased during the second quarter [15] Q&A Session Summary Question: Clarification on enrollment and withdrawal trends - Management confirmed that withdrawal rates have returned to normal levels, which is positive news [20] Question: Demand characterization - Demand remains strong, with application volumes similar to last year, indicating robust organic demand [22] Question: School and program relations post-issues - Partners expressed frustration but also faith in the company's ability to resolve issues, indicating a shared mission [25] Question: In-year enrollment growth potential - Management is taking a cautious approach to growth, prioritizing long-term stability over immediate enrollment increases [30] Question: Revenue per enrollment changes - Variations in revenue per enrollment are attributed to state and program mix, with a focus on combined revenue per enrollment [36] Question: Gross margin adjustments - A long-term lease exit positively impacted gross margins, contributing approximately 200 basis points [39] Question: Operational performance of the platform - The platform is performing better, with ongoing improvements and a focus on user experience [49] Question: New partner pipeline discussions - Potential partners remain unconcerned about past issues, indicating strong macro conditions and belief in the company's mission [60]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $631.3 million, an increase of nearly 8% from the second quarter of fiscal year 2025 [10] - Adjusted operating income rose to $159 million, up $23.4 million or 17% year-over-year [10] - Adjusted EPS increased to $2.50, reflecting a 13% rise from the previous year [10] - Adjusted EBITDA reached $188.1 million, up 17% [10] - Gross margin for the quarter was 41.1%, up 30 basis points from last year [12] - Free cash flow was $75.9 million, down from $208.6 million last year due to timing issues with payments [13] Business Line Data and Key Metrics Changes - Total enrollments for the second quarter were 248.5 thousand, up 7.8% year-over-year [11] - Revenue from Career Learning programs grew 29% to $275.6 million, driven by a 17.6% increase in enrollment [11] - General Education revenue declined 3.6% to $341.4 million, with average enrollments slightly up but revenue per enrollment down 3.6% [11] Market Data and Key Metrics Changes - The company noted a generally positive state funding environment, although some impacts from state and program mix are anticipated [11] - The company expects to finish the year flattish compared to last year due to these factors [11] Company Strategy and Development Direction - The company is focusing on stabilizing its platforms and enhancing customer experience, with a goal of maintaining control over user experience through proprietary solutions [4][6] - The strategy includes investing in new platforms to replace outdated systems while ensuring a degree of control over operations [6] - The company aims for stability rather than aggressive growth this year, prioritizing long-term success over short-term gains [5][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that primary issues from the previous fall are resolved, as evidenced by reduced customer support calls and improved social media sentiment [7][8] - The company is optimistic about returning to expected growth patterns next year based on current demand trends and customer experience [8] - Management reaffirmed full-year revenue guidance of $2.480-$2.555 billion, with adjusted operating income expected between $485-$505 million [14][16] Other Important Information - The board authorized a share repurchase of up to $500 million, with $88.6 million already purchased in the second quarter [13][14] - Capital expenditures for the year are expected to be between $70-$80 million, unchanged from prior guidance [16] Q&A Session Summary Question: Clarification on enrollment and attrition trends - Management confirmed that withdrawal rates have returned to historical norms, indicating stabilization in attrition [20] Question: Demand characterization - Demand remains strong, with application volumes similar to last year, despite less aggressive marketing efforts [22] Question: School and program relations post-issues - Partners expressed frustration but also faith in the company's ability to resolve issues, indicating a shared mission [25] Question: Enrollment growth potential in the third quarter - Management is taking a cautious approach to growth, prioritizing long-term stability over immediate enrollment increases [30] Question: Revenue per enrollment analysis - Variations in revenue per enrollment are attributed to state and program mix, with a focus on combined revenue metrics [36] Question: Gross margin adjustments - A long-term lease exit positively impacted gross margins by approximately 200 basis points [40]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-33883 Stride, Inc. (Exact name of registrant as specified in its charter) Delaware 95-4774688 (State or other jurisdi ...

Q2 FY2026 Earnings Presentation January 27, 2026 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 t ...

Financial Performance - Revenues for Q2 FY 2026 reached $631.3 million, a 7.5% increase from $587.2 million in Q2 FY 2025[4] - Net income for Q2 FY 2026 was $99.5 million, up 3.2% from $96.4 million in Q2 FY 2025[6] - Adjusted EBITDA for Q2 FY 2026 was $188.1 million, reflecting a 17.2% increase compared to $160.4 million in Q2 FY 2025[4] - Income from operations for Q2 FY 2026 was $146.9 million, up from $125.1 million in Q2 FY 2025, representing a 17.0% increase[38] - Adjusted operating income for Q2 FY 2026 reached $159.0 million, compared to $135.6 million in Q2 FY 2025, reflecting a 17.2% growth[38] - Adjusted EBITDA for Q2 FY 2026 was $188.1 million, compared to $160.4 million in Q2 FY 2025, marking a 17.3% rise[41] - The company projects income from operations for FY 2026 to be between $437.0 million and $454.0 million[43] - Adjusted operating income for FY 2026 is expected to range from $485.0 million to $505.0 million[43] Enrollment Metrics - Total enrollments in Q2 FY 2026 were 248.5K, a 7.8% increase from 230.6K in Q2 FY 2025[10] - Career Learning enrollments increased by 17.6% to 111.5K in Q2 FY 2026 compared to 94.8K in Q2 FY 2025[10] - Revenue per enrollment for Q2 FY 2026 was $2,437, up 1.8% from $2,395 in Q2 FY 2025[12] Forecast and Projections - The company forecasts FY 2026 revenue in the range of $2.480 billion to $2.555 billion[19] - Adjusted operating income for FY 2026 is projected to be between $485 million and $505 million[19] - Capital expenditures for FY 2026 are expected to be between $70 million and $80 million[19] - The effective tax rate is anticipated to be between 24% and 25% for FY 2026[19] Cash and Assets - Total current assets as of December 31, 2025, were $1,600,317,000, slightly down from $1,632,734,000 as of June 30, 2025[26] - Total liabilities decreased to $758,709,000 as of December 31, 2025, from $814,340,000 as of June 30, 2025, showing a reduction of 6.8%[27] - Cash and cash equivalents at the end of the period were $497,098,000, down from $782,497,000 at the beginning of the period, a decrease of 36.5%[29] Earnings and Share Metrics - Basic earnings per share for the three months ended December 31, 2025, was $2.31, up from $2.24 in the same period of 2024, a growth of 3.1%[24] - Adjusted earnings per share for Q2 FY 2026 was $2.50, up from $2.37 in Q2 FY 2025, which is a 5.5% increase[41] - Stock-based compensation expense for Q2 FY 2026 was $10.3 million, compared to $7.9 million in Q2 FY 2025, a 30.0% increase[41] - The weighted average diluted shares for Q2 FY 2026 were 46,863,391, compared to 47,462,688 in Q2 FY 2025[41] Cash Flow and Operating Activities - The company reported a net cash used in operating activities of $103,944,000 for the six months ended December 31, 2025, compared to a net cash provided of $81,360,000 in 2024[30] - The company has capitalized software development costs of $24,691,000 for the six months ended December 31, 2025, compared to $18,601,000 in 2024, indicating an increase of 32.8%[30] Gross Margin - Gross margin for the six months ended December 31, 2025, was $501,754,000, up from $455,711,000 in 2024, indicating a year-over-year growth of 10.1%[24]

Core Insights - Stride, Inc. reported a revenue increase of 7.5% in Q2 FY 2026 compared to the same period in FY 2025, reaching $631.3 million [3][8] - The company achieved a net income of $99.5 million, reflecting a 3.2% increase year-over-year [5][6] - Enrollment figures rose by 7.8% to 248.5K in Q2 FY 2026, with Career Learning enrollments increasing by 17.6% [9][11] Financial Performance - Revenues for the three months ended December 31, 2025, were $631.3 million, up from $587.2 million in 2024, marking a $44.1 million increase [3][8] - Income from operations increased by 17.4% to $146.9 million compared to $125.1 million in the previous year [3][5] - Adjusted operating income for the quarter was $159.0 million, a 17.3% increase from $135.6 million [5][6] Earnings Metrics - Net income per share, diluted, rose to $2.12, up 4.4% from $2.03 in the prior year [3][5] - Adjusted earnings per share increased by 5.5% to $2.50 compared to $2.37 in the same quarter last year [3][5] - EBITDA for the quarter was reported at $177.8 million, a 16.6% increase from $152.5 million [3][5] Enrollment and Revenue Insights - Revenue per enrollment for Q2 FY 2026 was $2,437, up 1.8% from $2,395 in Q2 FY 2025 [11] - General Education revenue per enrollment decreased by 3.6%, while Career Learning revenue per enrollment increased by 10.0% [11][9] Cash Flow and Capital Allocation - As of December 31, 2025, the company's cash and cash equivalents totaled $676.0 million, down from $1,011.4 million at the end of June 2025 [12] - Capital expenditures for Q2 FY 2026 were $16.0 million, compared to $14.8 million in the same quarter of the previous year [13] Fiscal Year 2026 Outlook - The company forecasts full fiscal year 2026 revenue in the range of $2.480 billion to $2.555 billion [18] - Adjusted operating income is expected to be between $485 million and $505 million for the fiscal year [18]

Stride, Inc. (NYSE: LRN) is a prominent figure in the online education sector, offering comprehensive education programs for a wide range of students and adults. As it gears up to announce its quarterly earnings on January 27, 2026, the market is abuzz with anticipation. Analysts have set high expectations for the company's financial performance, projecting significant earnings per share and revenue. However, Stride finds itself under scrutiny due to a legal investigation concerning its board of directors' ...

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Stride, Inc. due to allegations of fiduciary duty breaches by the board of directors during a specified class period [2]. Group 1: Legal Investigation - A class action complaint was filed against Stride on November 11, 2025, concerning actions taken between October 22, 2024, and October 28, 2025 [2]. - The investigation focuses on whether Stride's board of directors has breached their fiduciary duties to the company [2]. Group 2: Allegations Against Stride - The complaint alleges that Stride made false and misleading statements about its success and capabilities in the education sector [8]. - Specific allegations include: 1. Inflating enrollment numbers by retaining "ghost students" [8]. 2. Cutting staffing costs by assigning teachers excessive caseloads beyond statutory limits [8]. 3. Ignoring compliance requirements, including background checks and licensure laws for employees, and federally mandated special education services [8]. 4. Suppressing whistleblowers who reported financial directives aimed at delaying hiring and denying services to maintain profit margins [8]. 5. Losing existing and potential enrollments due to these practices [8]. - These materially false statements led to the purchase of securities at artificially inflated prices, resulting in damages when the truth was revealed [8].