Stride, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 28 April 2026: press release. Guidance figures: 2 raised, 2 lowered, 3 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Quarter revenue up, net income down: Revenue rose 2.7% to $629.9 million. Income from operations fell 1.3% to $129.1 million, and net income fell 10.9% to $88.5 million. Diluted EPS was $1.93, against $2.02. Source
• Adjusted measures near prior year: Adjusted operating income was $140.4 million, down 0.9%. Adjusted EBITDA rose 1.8% to $171.3 million. Adjusted EPS was $2.30, against $2.33. Source
• Career Learning revenue up 12.3%: Total Career Learning revenue was $272.4 million, against $242.6 million, up 12.3%. For the nine months it rose 17.6% to $820.0 million. Source
• Career Learning enrollments up 11.6%: Career Learning enrollments were 110.1 thousand, up 11.6% from 98.7 thousand. They made up about 45% of total enrollments. Source
• Gross margin fell on higher instructional costs: Instructional costs and services rose to $398.3 million from $364.1 million, and gross margin fell to $231.6 million from $249.3 million. Computed on revenue, gross margin was about 36.8%, against 40.6%. Source
• Cash and securities fell to $856.0 million: Cash and securities were stated at $856.0 million at March 31, 2026, and $1,011.4 million at June 30, 2025. Balance sheet cash plus marketable securities sums to $805.8 million and $985.3 million. Source

“Management believes that these additional measures provide useful information to investors relating to our financial performance.”

Stride, Inc., press release

Guidance

What changed from last quarter

• Guidance lowered: Full-year revenue range narrowed to $2.490 billion to $2.520 billion, from $2.480 billion to $2.555 billion. Midpoint is lower. Source
• Guidance raised: Capital expenditures range narrowed to $75 million to $80 million, from $70 million to $80 million. Floor raised, ceiling unchanged. Source
• Guidance kept: Adjusted operating income range narrowed to $490 million to $500 million, from $485 million to $505 million. Midpoint unchanged at $495 million. Source
• Guidance kept: Effective tax rate range of 24% to 25% is kept from the January release. Source
• Guidance raised: Income from operations range narrowed to $443.0 million to $450.0 million, from $437.0 million to $454.0 million. Midpoint is $446.5 million, against $445.5 million. Source
• Ended: Third-quarter fiscal 2026 forecast from January is not restated in this release, since the quarter is now reported.

Results and growth drivers

• Quarter revenue up, net income down: Revenue rose 2.7% to $629.9 million. Income from operations fell 1.3% to $129.1 million, and net income fell 10.9% to $88.5 million. Diluted EPS was $1.93, against $2.02. Source
• Nine-month revenue up 7.4%: For the nine months, revenue rose 7.4% to $1,882.0 million and income from operations rose 13.7% to $344.9 million. Diluted EPS was $5.39, against $4.95. Source
• Adjusted measures near prior year: Adjusted operating income was $140.4 million, down 0.9%. Adjusted EBITDA rose 1.8% to $171.3 million. Adjusted EPS was $2.30, against $2.33. Source

Segments and revenue mix

• Career Learning revenue up 12.3%: Total Career Learning revenue was $272.4 million, against $242.6 million, up 12.3%. For the nine months it rose 17.6% to $820.0 million. Source
• Middle-High School revenue up 15.9%: Middle-High School revenue was $259.5 million, up 15.9% from $223.9 million. Nine-month Middle-High School revenue rose 22.1% to $776.6 million. Source
• General Education revenue down 3.6%: General Education revenue was $357.5 million, against $370.8 million, down 3.6%. Nine-month General Education revenue rose 0.7% to $1,062.0 million. Source
• Adult learning revenue down 31.0%: Adult revenue was $12.9 million, against $18.7 million, down 31.0%. Nine-month Adult revenue fell 29.1% to $43.4 million. Stride does not report Adult enrollments. Source

“Management uses these non-GAAP financial measures: as additional measures of operating performance because they assist in comparing the Company’s performance on a consistent basis”

Stride, Inc., press release

Enrollments and revenue per enrollment

• Total enrollments up 1.8%: Third-quarter enrollments were 244.5 thousand, up 1.8% from 240.2 thousand. Enrollments count full-service programs, including some with no public funding or revenue. Source
• Career Learning enrollments up 11.6%: Career Learning enrollments were 110.1 thousand, up 11.6% from 98.7 thousand. They made up about 45% of total enrollments. Source
• Revenue per enrollment up 2.9%: Revenue per enrollment was $2,485 in the third quarter, up 2.9% from $2,415 a year earlier. Source
• Segment revenue per enrollment compared: General Education revenue per enrollment was $2,407 in the second quarter and $2,590 in the third. Career Learning went from $2,473 to $2,356 over the same two quarters.

Costs, margins and earnings items

• Gross margin fell on higher instructional costs: Instructional costs and services rose to $398.3 million from $364.1 million, and gross margin fell to $231.6 million from $249.3 million. Computed on revenue, gross margin was about 36.8%, against 40.6%. Source
• Selling and admin costs declined: Selling, general and administrative expenses were $102.5 million, down from $118.5 million. Nine-month expenses were $388.4 million, against $401.8 million. Source
• Other income turned to expense: Other income (expense), net was a $5.3 million expense, against $7.4 million of income a year earlier. Interest expense, net was $3.0 million, against $2.8 million. Source
• Diluted share count fell: Diluted weighted average shares were 45.8 million, against 49.2 million. The capped call effect removed 2.8 million shares for adjusted EPS, against 2.1 million a year earlier. Source
• Income tax expense fell: Income tax expense was $31.5 million, against $35.5 million a year earlier. Nine-month tax expense was $79.9 million, against $80.1 million. Source

Cash flow and balance sheet

• Cash and securities fell to $856.0 million: Cash and securities were stated at $856.0 million at March 31, 2026, and $1,011.4 million at June 30, 2025. Balance sheet cash plus marketable securities sums to $805.8 million and $985.3 million. Source
• Operating cash flow lower for nine months: Net cash provided by operating activities was $117.0 million for the nine months, against $134.5 million a year earlier. Source
• Receivables rose from June 30: Accounts receivable, net was $854.9 million, up from $559.6 million at June 30, 2025. Accounts receivable used $305.9 million of operating cash in the nine months. Source
• Long-term debt little changed: Long-term debt was $417.6 million, against $416.3 million at June 30, 2025. Current finance lease liability was $58.5 million. Source

Capital expenditure mix

• Quarter capital expenditures rose: Capital expenditures were $18.5 million for the quarter, against $15.8 million a year earlier. Source
• Capex mostly capitalized development: Of the $18.5 million, $0.5 million was property and equipment, $12.8 million capitalized software development and $5.2 million capitalized curriculum development. Source
• Nine-month capitalized spending rose: Nine-month capitalized software development was $37.5 million, against $28.6 million. Capitalized curriculum development was $18.2 million, against $15.5 million. Source

Shareholder returns and share count

• Treasury purchases unchanged year to date: Nine-month purchase of treasury stock was $88.6 million, the same figure reported for six months in the January release. Source
• Withholding repurchases of restricted stock rose: Repurchases of restricted stock for income tax withholding were $36.2 million for nine months, against $20.7 million. The six-month figure was $32.2 million. Source
• Shares outstanding and treasury stock: Shares outstanding were 42,526,280 at March 31, 2026, against 43,517,676 at June 30, 2025. Treasury stock was 6,607,533 shares, at cost of $191.1 million. Source

Strategy, investment and non-GAAP measures

• Other acquisitions and investments: Other acquisitions, loans and investments, net of distributions used $54.3 million for the nine months, against $1.7 million. The release does not describe these items. Source
• Property and equipment rose: Property and equipment, net rose to $103.3 million from $78.6 million at June 30, 2025. Capitalized software, net was $82.7 million. Source
• Non-GAAP measures reconcile to GAAP: Adjusted operating income, adjusted EBITDA and adjusted EPS remove stock-based compensation, amortization and one-time items. Adjusted EPS also reflects a capped call share offset. Source

Figures management reported

Earlier plans management reported on

• Not stated: Management says the release narrows its earlier fiscal 2026 forecast for revenue, adjusted income and capital expenditures. Source

Other quarters

• Q4 FY2026 earnings call
• Q2 FY2026 earnings call
• Q1 FY2026 results
• Q4 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.