Stride : Third Quarter 2026 Q3 FY26 Financial Supplemental Slides

Published: 2026-04-28 17:54:34 ET LRN

Published on 04/28/2026 at 05:54 pm EDT

Disruptor in Education

Innovator with the scale, expertise & long-term customer relationships to change education

Sustainable & Growing Virtual School Business

Accelerating secular shift toward virtual education and school choice

New Products & Technologies

Leveraging capabilities and assets to address market failures or shortcomings

Experienced Leadership Team

Deep educational, regulatory, and policy expertise

Financial Track Record

Track record of revenue and profitability growth with a strong balance sheet to support organic and

inorganic growth 3

Enrollment growth remains positive

Total enrollments up 1.8% from prior year

As satisfaction with traditional public school systems falls, families seek alternative education options

Record low K-12 satisfaction rates among parents, down 8% from 2025

FY2026 Guidance

Narrowing full year revenue and profitability guidance from prior ranges (see slide 8 for details)

Committed to achieving FY2028 targets

Remain well on track to achieve FY2028 targets outlined in our November 2023 Investor Day

Note: 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, adjusted EBITDA, and adjusted earnings per share. Management believes that these additional metrics 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 in the Appendix to this presentation.

Q3 FY2026 Performance

Revenue

$629.9M, 2.7% YoY

Adjusted Operating Income

$140.4M, (0.9)% YoY

Adjusted EBITDA

$171.3M, 1.8% YoY

Adjusted EPS

$2.30, (1.3)% YoY

75%

Secular trends driving demand

44%

Percentage of parents who considered, searched for, or enrolled a child in a new school in 2025; 15% of which enrolled in a full-time online school

81%

Percentage of parents who fear for the safety of their children at school

35%

Percentage of K-12 parents who support making K-12 education more flexible, including the schools they can attend

Percentage of Americans who are satisfied with K-12 education in the U.S.

Top reasons parents enroll students in virtual education

Health & wellbeing concerns

Bullying

Negative social experience

Behavioral / social issues

School safety

Value flexibility and individualized pace

Mobile / military family

Seeking 1:1 instruction

Academically lagging

Working student

Athletics

Concern about environment at previous school

Academic struggles

Disciplinary needs

Special needs

Religion

$534

$551

$587

$613

$621

$631

$654

Revenue ($M) Adjusted Operating Income ($M)

$800

$700

$600

$480

$505

$521

$500

$400

$300

$200

$100

FY24

FY25

FY26

$180

$159

$160

$136

$140

$142

$630

$140

$131

$120

$96

$95

$100

$81

$88

$80

$58

$60

$40

$15

$20

Continued demand for

school options

Demonstrated track record

of profitability

Strong business model and

competitive position

FY24

FY25

FY26

Q3 FY26 YoY enrollment growth 1.8%

Three months ended March 31,

2026

2025

Change

Revenue ($M)

General Education

$357.5

$370.8

(3.6)%

↓

Career Learning

Middle - High School

259.5

223.9

15.9%

↑

Adult

12.9

18.7

(31.0)%

↓

Total Career Learning

272.4

242.6

12.3%

↑

Total

$629.9

$613.4

2.7%

↑

Enrollments (K)

General Education, K-12

134.4

141.5

(5.0)%

↓

Career Learning, Middle - High School

110.1

98.7

11.6%

↑

Total

244.5

240.2

1.8%

↑

Enrollments Trends

General Education average

enrollments decreased 7.1K, down 5% y-o-y

Career Learning average

enrollments increased 11.4K, up ~12% y-o-y

Demand trends remain robust

Previous FY26

Guidance

Updated FY26

Guidance1

($, M)

Low High

Revenue

$2.480B $2.555B

$2.490B $2.520B

Adjusted Operating Income

$485M $505M

$490M $500M

Capital Expenditures

$70M $80M

$75M $80M

Effective Tax Rate

24% 25%

Guidance mid-points

FY26 Revenue: +4% YoY

Midpoint of Guidance

FY26 AOI: +6% YoY

Midpoint of guidance

1. Guidance as of April 28, 2026 8

Cash position, low leverage ratio, and consistent cash flows provide options for capital allocation

Select balance sheet and other information

as of March 31, 2026 ($M)

Cash, Cash Equivalents

& Marketable Securities

$856.0

Accounts Receivable, Net

854.9

Accounts Payable

45.1

Total Debt Obligations

$535.4

1. Leverage ratio is a non-GAAP measure defined as Net Debt (total debt obligations of $535.4M less cash and cash

Leverage

ratio1 of (0.13)x

Prioritizing organic growth, new product and technology development, and synergistic M&A

Organic Growth

Invest in academic quality and student / customer experience supporting outcomes / retention

Technology advancements to improve personalization and outcomes

Implement innovative products across portfolio

Strategic Acquisitions

Leverage platform across verticals

High-growth, high-margin targets providing synergies

Capital Return

Evaluate approaches to return cash to stockholders over the long term

$500M share repurchase program authorized through October 31, 2026

Remain on track for FY2028 targets

Total Revenue ($B)

Adj. Operating Income ($M) Diluted EPS ($)

$3.50B

$3.00B

$2.50B

$2.00B

$1.50B

$1.00B

$0.50B

10% CAGR

to mid-point (FY23-28)

$3.30B

$2.41B

$2.04B

$1.84B

$2.70B

$800M

$600M

$400M

$200M

20% CAGR

to mid-point (FY23-28)

$585M

$466M

$294M

$201M

$415M

$9.00

$8.00

$7.00

$6.00

$5.00

$4.00

$3.00

$2.00

$1.00

20% CAGR

$0.00B

FY2023 FY2024 FY2025 FY2028

Target

$0M

FY2023 FY2024 FY2025 FY2028

Target

$6.15

to mid-point (FY23-28)

$8.35

$5.95

$4.69

$2.97

FY2023 FY2024 FY2025 FY2028

Target

Three months ended March 31,

Nine months ended March 31,

LTM ended March 31,

($, M)

2026

2025

2026

2025

2026

Net income

$88.5

$99.3

$256.8

$236.6

$308.1

Interest expense, net

3.0

2.8

8.9

7.8

11.6

Other (income) expense, net

5.4

(7.4)

(0.8)

(23.5)

(11.0)

Income tax expense

31.5

35.5

79.9

80.1

92.9

Loss from equity method investments

0.7

0.6

0.1

2.2

0.2

Depreciation and amortization

32.6

28.9

92.8

84.5

123.0

EBITDA

161.7

159.7

437.7

387.7

524.8

Stock-based compensation expense

9.6

8.6

30.1

24.9

41.9

Impairment of long-lived assets

59.5

Adjusted EBITDA

$171.3

$168.3

$467.8

$412.6

$626.2

Three months ended March 31,

Nine months ended March 31,

($, M) 2026

2025

2026

2025

Income from operations $129.1

$130.8

344.9

$303.2

Amortization of intangible 1.7

2.3

5.6

7.6

Stock-based compensation 9.6

8.6

30.1

24.9

Adjusted operating income $140.4

$141.7

$380.6

$335.7

assets expense

Reconciliation of Income from Operations to Adjusted Operating Income

Year ended June 30,

($, M)

2020

2021

2022

2023

2024

2025

Income from operations

$32.5

$110.5

$156.6

$165.5

$249.6

$360.1

Amortization of intangible assets

6.0

11.6

13.0

15.2

12.9

9.9

Stock-based compensation expense

23.6

39.3

18.6

20.3

31.4

36.7

Impairment of long-lived assets

59.5

Adjusted operating income

$62.1

$161.4

$188.2

$201.0

$293.9

$466.2

Reconciliation of Income from Operations to Adjusted Operating Income

Three months ended

($, M)

Sept. 30,

2023

Dec. 31,

2023

March

31, 2024

June 30,

2024

Sept. 30,

2024

Dec. 31,

2024

March

31, 2025

June 30,

2025

Sept. 30,

2025

Dec. 31,

2025

Income from operations

$3.3

$84.3

$88.3

$73.7

$47.3

$125.1

$130.8

$56.9

$69.0

$146.9

Amortization of intangible assets

3.0

2.9

4.0

2.7

2.6

2.3

2.4

1.9

1.8

Stock-based compensation expense

8.5

7.6

5.2

10.2

8.4

7.9

8.6

11.8

10.2

10.3

Impairment of long-lived assets

59.5

Adjusted operating income

$14.8

$94.9

$96.4

$87.9

$58.4

$135.6

$141.7

$130.6

$81.1

$159.0

Reconciliation of Income from Operations to Adjusted Operating Income

Three months ended March 31,

Nine months ended March 31,

($, M)

2026

2025

2026

2025

Net income attributable to common stockholders

$88.5

$99.3

$256.8

$236.6

Amortization of intangible assets

1.7

2.3

5.6

7.6

Stock-based compensation expense

9.6

8.6

30.1

24.9

Income tax effect on adjustments above

(0.9)

(0.6)

(11.7)

(6.1)

Adjusted net income attributable to common

stockholders

$98.9

$109.6

$280.8

$263.0

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 March 31,

Nine months ended March 31,

($, per share)

2026

2025

2026

2025

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 on 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

Three months ended

($, M)

Dec. 31, 2024

Mar. 31, 2025

June 30, 2025

Sept. 30, 2025

Dec. 31, 2025

Net income attributable to common stockholders

$96.4

$99.3

$51.3

$68.8

$99.5

Amortization of intangible assets

2.5

2.3

2.4

1.9

1.8

Stock-based compensation expense

7.9

8.6

11.8

10.2

10.3

Impairment of long-lived assets

59.5

Income tax effect on adjustments above

(1.1)

(0.6)

(15.3)

(8.9)

(1.8)

Adjusted net income attributable to common stockholders

$105.7

$109.6

$109.7

$72.0

$109.8

Share computation:

Weighted average common shares - diluted

47,462,688

49,181,728

49,767,056

49,222,851

46,863,391

Effect of capped call transactions

(2,779,544)

(2,092,035)

(1,827,961)

(1,803,506)

(2,912,026)

Adjusted weighted average common shares - diluted

44,683,144

47,089,693

47,939,095

47,419,345

43,951,365

Adjusted earnings per share

$2.37

$2.33

$2.29

$1.52

$2.50

Three months ended

($, per share)

Dec. 31, 2024

March 31, 2025

June 30, 2025

Sept. 30, 2025

Dec. 31, 2025

Diluted net income per share

$2.03

$2.02

$1.03

$1.40

$2.12

Amortization of intangible assets

0.05

0.04

Stock-based compensation expense

0.17

0.24

0.20

0.22

Impairment of long-lived assets

1.20

Income tax effect on adjustments above

(0.02)

(0.01)

(0.31)

(0.18)

(0.04)

Effect of capped call transactions

0.14

0.10

0.08

0.06

0.16

Adjusted earnings per share

$2.37

$2.33

$2.29

$1.52

$2.50

Three months ended March 31,

($, M)

2026

2025

Net cash provided by operating activities

$220.9

$53.1

Purchases of property and equipment

(0.5)

(0.2)

Capitalized software development costs

(12.8)

(10.0)

Capitalized curriculum development costs

(5.2)

(5.6)

Free Cash Flow

$202.4

$37.3

Previous Guidance

(as of January 27, 2026)

Year Ended June 30, 2026

Updated Guidance

(as of April 28, 2026)

Year Ended June 30, 2026

($, M)

Low

High

Low

High

Income from operations

$ 437.0

$ 454.0

$ 443.0

$ 450.0

Stock-based compensation expense

41.0

43.0

40.0

42.0

Amortization of intangible assets

7.0

8.0

7.0

8.0

Adjusted operating income

$ 485.0

$ 505.0

$ 490.0

$ 500.0

Reconciliation of Income from Operations to Adjusted Operating Income

Convertible Senior Notes (Illustrative Dilution Example)

Stride Convertible Notes: $420M principal (7.9M shares underlying)

Irrevocably elected that all future conversions of the notes will be settled pursuant to combination settlement, generally requiring the principal amount to be settled in cash

Any excess of the conversion value over the principal amount can be settled, at Stride's election, in cash or shares of our common stock

Incremental shares are reported for GAAP purposes but are not issued at the time of reporting

Stride's capped call transactions completed at the time of the issuance of the convertible notes effectively raise the potential dilution point of the convertible notes from $52.88 to $86.17

Below some examples of potential dilution from the Notes at various share prices:

LRN Illustrative Avg.

Quarterly Stock Price

Shares owed on

Convertible Notes

Shares received from

capped call transactions

GAAP Dilution

Non-GAAP Dilution1

$70

1,942,578

$75

2,342,578

$81.112

2,764,425

$85

3,001,402

$90

3,275,911

2,937,911

338,001

$95

3,521,525

2,783,284

738,242

$100

3,742,578

2,644,119

1,098,459

$105

3,942,578

2,518,209

1,424,369

$110

4,124,396

2,403,745

1,720,651

$115

4,290,404

2,299,234

1,991,170

Non-GAAP Dilution is equal to the number of shares owed for settlement of the Convertible Notes less the shares expected to be received by Stride for the capped call transaction.

Q3 FY2026 average stock price

Disclaimer

Stride Inc. published this content on April 28, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 28, 2026 at 21:54 UTC.