The earnings call reflects a strong financial performance and record enrollment growth, driven by robust demand and effective management. Despite some challenges such as the loss of ESSER funding and a decline in Adult Learning revenue, the company remains optimistic with positive financial guidance for the year.

Company Guidance

In the Q1 2025 earnings call for Stride, Inc., the executives provided robust guidance, underscored by strong financial and operational metrics. The company reported a 15% increase in revenue to $551.1 million compared to Q1 FY '24, with an adjusted operating income up by 295% to $58.4 million. Diluted earnings per share surged to $0.94, a $0.83 increase from the previous year. Notably, total enrollments exceeded 222,000, marking significant growth since pre-pandemic levels, driven by a record 18.5% year-over-year enrollment increase. Capital expenditures for the quarter were $14.8 million, slightly down from last year. Guidance for Q2 FY 2025 projects revenue between $560 million and $580 million, with adjusted operating income expected to be between $115 million and $125 million. For the full fiscal year, Stride anticipates revenue in the range of $2.225 billion to $2.3 billion, adjusted operating income between $395 million and $425 million, and capital expenditures between $60 million and $65 million. The company remains optimistic about achieving its fiscal 2028 targets, supported by sustained demand, particularly in Career Learning, which saw a 30.4% enrollment increase.

Record Enrollment Growth

Stride, Inc. announced record enrollments for the first quarter with an 18.5% year-over-year growth, marking the highest recorded year of gross enrollment growth since the company became publicly traded.

Strong Financial Performance

Revenue for the quarter was $551.1 million, up 15% from the first quarter of fiscal year '24. Adjusted operating income was $58.4 million, an increase of 295% from last year.

Career Learning Revenue Surge

Career Learning middle and high school revenue for the quarter was $198.9 million, up more than 30% from last year, with Career Learning enrollments growing 30.4% to 91,700.

Improved Gross Margins

Gross margin for the quarter was 39.2%, up 320 basis points from last year, with expectations for further improvements of 100 to 200 basis points for the full year.

Positive Financial Guidance

Guidance for the full year includes revenue in the range of $2.225 billion to $2.3 billion and adjusted operating income between $395 million and $425 million.

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Stride (LRN) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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LRN Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 28, 2025	2025 (Q2)	1.92 / -	1.54	―	―	―
Oct 22, 2024	2025 (Q1)	0.22 / 0.94	0.11	754.55% (+0.83)
Aug 06, 2024	2024 (Q4)	1.27 / 1.42	1.01	40.59% (+0.41)
Apr 23, 2024	2024 (Q3)	1.43 / 1.60	1.3	23.08% (+0.30)
Jan 23, 2024	2024 (Q2)	1.31 / 1.54	1.19	29.41% (+0.35)
Oct 24, 2023	2024 (Q1)	-0.37 / 0.11	-0.54	120.37% (+0.65)
Aug 15, 2023	2023 (Q4)	0.87 / 1.01	0.66	53.03% (+0.35)
Apr 25, 2023	2023 (Q3)	1.07 / 1.30	1.02	27.45% (+0.28)
Jan 24, 2023	2023 (Q2)	1.05 / 1.19	1	19.00% (+0.19)
Oct 25, 2022	2023 (Q1)	-0.13 / -0.54	-0.15	-260.00% (-0.39)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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LRN Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 22, 2024	$64.49	$89.71	+39.11%
Aug 06, 2024	$71.42	$78.03	+9.26%
Apr 23, 2024	$58.20	$63.23	+8.64%
Jan 23, 2024	$62.09	$60.82	-2.05%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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