Start here if you're new
what it is
Stride runs online and blended schools for kids and teens, plus career learning programs.
how it gets paid
Last year Stride made $2.4B in revenue. General education was the main engine at $1.39B, or 58% of sales.
why it's growing
Revenue grew 17.9% last year. Annual revenue rose 17.9%, and the latest quarter also showed EPS growth of 65%.
what just happened
The latest quarter printed $1.3B of revenue with 40.1% gross margin.
At a glance
B+ balance sheet — decent shape, but not bulletproof
65/100 earnings predictability — reasonably predictable
9.1x trailing p/e — the market's not buying it — or you found a deal
20.0% return on capital — nothing to write home about
xvary composite: 50/100 — below average
What they do
Stride runs online and blended schools for kids and teens, plus career learning programs.
You do not switch a child's school like an app. Stride serves 89 schools in 31 states, so leaving means paperwork, calendars, and new teachers. General education was 58% of recent sales, which gives the business a broad base before any career-learning upside.
How they make money
$2.4B
annual revenue · their business grew +17.9% last year
General education
$1.39B
+10.0%
Career learning
$0.76B
+17.9%
Curriculum & software
$0.15B
+8.0%
Instruction & support
$0.10B
+12.0%
The products that matter
core virtual K–12 programs
General Education
58% of total sales · +10%
this is still the center of gravity, accounting for 58% of sales in the latest quarter while growing 10% from last year.
largest segment
career-linked education offerings
Career Learning
+16% revenue growth · +20% enrollments
this is where the growth showed up. revenue rose 16% and enrollments climbed 20%, which is the cleanest evidence that demand did not disappear with the last revenue reset.
growth engine
full company economics
Stride Platform
$1.3B revenue · 15.3% net margin
it's a $1.3B business that still keeps about 15 cents of every revenue dollar after expenses. that profitability is why the valuation looks cheap instead of distressed.
profit matters
Key numbers
$98
18-month target
That is 47% above $66.59, so the market is not pricing this like a fast grower.
9.1x
trailing p/e
You pay 9.1 times last year's earnings for 24.0% operating margin and 20.0% return on capital.
24.0%
operating margin
A quarter of revenue turns into operating profit. That is rare for an education services name.
$2.4B
annual revenue
The business is already big, so the market cares more about retention than hype.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $486M (14% of capital)
- net profit margin 15.3% — keeps 15 cents of every dollar in revenue
- return on equity 24% — $0.24 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in LRN 3 years ago → it's now worth $21,230.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
The latest quarter printed $1.3B of revenue with 40.1% gross margin.
Annual revenue rose 17.9%, and the latest quarter also showed EPS growth of 65%. The mix still leans on general education and career learning.
$1.3B
revenue
$3.49
eps
40.1%
gross margin
the number that mattered
Revenue was the number that mattered. $1.3B shows the business is still moving at scale, even with school-budget headaches.
-
stride, inc. reported good results for the fiscal 2026 first quarter (ended september 30th).
-
revenues of $621 million were in line with our estimate and increased 13% compared to the previous-year tally.
-
the advance was supported by gains at both the general education and career learning segments.
-
the former group, which accounted for 58% of total sales for the period, posted a 10% rise in revenues, driven by a 5% increase in student enrollments and a favorable school mix.
-
the latter division reported a 16% jump in the top line largely due to a 20% rise in enrollments.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is legal scrutiny around stride's employment and competitive practices.
med
antitrust investigation
a law firm is investigating Stride for potential antitrust violations. the legal outcome matters, but so does the headline risk. education companies do not get the benefit of the doubt when regulation enters the chat.
if this escalates, you are looking at more than legal cost. it can pressure valuation, distract management, and make counterparties more cautious.
med
overtime wage lawsuit
another case alleges Stride failed to pay overtime wages tied to restricted stock units. this is less about one payment dispute and more about whether labor practices become a recurring drag.
for a company with $486M in long-term debt and a B+ balance sheet, repeated legal costs would chip away at the room you want management to keep.
med
enrollment and funding volatility
Stride's recent bright spot was a 20% enrollment jump in career learning. if that cools, the growth narrative cools with it. this is still a business tied to student counts and public-sector budgets, not a software company printing recurring revenue.
the market is already skeptical. that's why the stock sits 61% below its 52-week high even with a 9.1x p/e.
med
estimate risk
wall street is looking for $3B in fy2026 revenue after a year that showed $1.3B. that is not a small step up. that is a very specific comeback story the company now has to deliver.
if the rebound misses, the cheap multiple probably stays cheap. cheap stocks do that when the market thinks the estimate is the problem.
with the stock already 61% below its 52-week high and the company carrying $486M of long-term debt, more legal noise or a failed revenue rebound would hit a business the market is still pricing cautiously.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarter's revenue line
the simple question is whether growth from last year holds after the recent $621M quarter. one better quarter is a start. two is a trend.
trend
career learning enrollments
that business just posted +20% enrollment growth and +16% revenue growth. if those numbers cool fast, the growth story loses its main witness.
risk
legal headlines
watch for any movement on the antitrust review and overtime lawsuit. when the business is already under skepticism, headlines can move the stock faster than fundamentals.
metric
margin discipline
Stride still posts a 23.5% operating margin and 15.3% net margin. if those slip while growth stays mixed, the cheap multiple stops looking generous.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts do not expect this stock to lead from here over the next stretch.
risk profile
average
stability score 3 — middle-of-the-pack risk. not reckless, not defensive.
chart momentum
average
technical score 3 — the chart is not giving you a clean signal yet. price action still looks unconvinced.
earnings predictability
65 / 100
readable, but not clockwork. you should expect some noise around estimates.
source: institutional data
Institutional activity
254 buyers vs. 277 sellers in 3q2025. total institutional holdings: 46.9M shares.
source: institutional data
Price targets
3-5 year target range
$53
$142
$67
current price
$98
target midpoint · +47% from current · 3-5yr high: $190 (+185% · 30% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive