Stride Inc. Reports Record Quarterly Results
Stride, Inc., a leading technology-based education company, has announced its financial results for the second fiscal quarter ending December 31, 2024. The company reported significant growth across various financial metrics, showcasing its robust performance in the education sector.
Financial Highlights
Stride Inc. reported a revenue of $587.2 million for the second quarter of fiscal 2025, marking a 16.3% increase from $504.9 million in the same period last year. The company's income from operations rose by 48.4% to $125.1 million, compared to $84.3 million in the previous year. Net income also saw a substantial increase, reaching $96.4 million, up 44.2% from $66.8 million. Diluted net income per share was $2.03, compared to $1.54 in the prior year.
Business and Operational Highlights
Stride's General Education segment generated $354.3 million in revenue, a 12.9% increase from the previous year. The Career Learning segment, which includes Middle-High School and Adult Learning, reported a combined revenue of $232.9 million, up 22.0% from the previous year. Notably, Middle-High School revenue grew by 29.1%, while Adult Learning revenue decreased by 23.4%.
Average enrollments for the second quarter were 230.6K, a 19.4% increase from 193.1K in the same period last year. Career Learning enrollments saw a significant rise of 30.9%, reaching 94.8K compared to 72.4K in the previous year.
Strategic Initiatives and Corporate Developments
Stride's cash and cash equivalents and marketable securities totaled $738.1 million as of December 31, 2024, up from $714.2 million at the end of June 2024. The company also reported capital expenditures of $14.8 million for the quarter, primarily allocated to property and equipment, capitalized software development, and curriculum development.
Management's Perspective
Stride's management expressed satisfaction with the company's performance, highlighting the strong revenue growth and improved profitability. The leadership emphasized the success of the Career Learning segment and the strategic investments in technology and curriculum development as key drivers of growth.
Future Outlook
Looking ahead, Stride has raised its revenue forecast for the full fiscal year 2025 to a range of $2.320 billion to $2.355 billion. The company also projects adjusted operating income to be between $430 million and $450 million. For the third quarter of fiscal 2025, Stride anticipates revenue in the range of $585 million to $600 million and adjusted operating income between $130 million and $140 million.
SEC Filing: Stride, Inc. [ LRN ] - 8-K - Jan. 28, 2025