Stride (NYSE:LRN) Announces Earnings Results, Misses Estimates By $0.21 EPS

Stride (NYSE:LRN) issued its quarterly earnings data on Tuesday. The company reported $2.12 EPS for the quarter, missing the consensus estimate of $2.33 by ($0.21), Briefing.com reports. Stride had a return on equity of 26.29% and a net margin of 12.76%.The company had revenue of $631.26 million during the quarter, compared to analysts’ expectations of $627.90 million. During the same quarter last year, the business earned $2.03 earnings per share. The business’s quarterly revenue was up 7.5% on a year-over-year basis.

Here are the key takeaways from Stride’s conference call:

• Company says core platform issues are largely resolved, citing a >90% week-over-week drop in support calls after fixing a major login problem and a decline in negative social-media commentary.
• Demand remained robust with total enrollments of 248.5k (+7.8% YoY) and second-semester withdrawals reported as within historical norms, though management is prioritizing stability over growth this year.
• Strong financial quarter — revenue of $631.3M (+~8% YoY), adjusted operating income $159M (+17%), adjusted EPS $2.50 (+13%) — company reaffirmed FY revenue guidance and raised adjusted operating income guidance, and the board authorized a $500M buyback (<$strong>88.6M repurchased in Q2).
• Q2 gross margin was helped by exiting a non-core lease (about a +200 bps benefit), but management expects full-year gross margins to be similar to FY2024 due to ongoing platform implementation costs.
• Free cash flow fell to $75.9M (vs. $208.6M a year ago) due to timing of a large receivable, and the company still expects meaningful capex (~$70–$80M FY) and continued platform investment.

Stride Stock Up 1.2%

Shares of NYSE:LRN opened at $72.45 on Wednesday. The firm has a market capitalization of $3.18 billion, a PE ratio of 11.18, a price-to-earnings-growth ratio of 0.43 and a beta of 0.06. The business has a 50 day simple moving average of $66.28 and a two-hundred day simple moving average of $110.64. Stride has a 1 year low of $60.61 and a 1 year high of $171.17. The company has a debt-to-equity ratio of 0.32, a current ratio of 6.78 and a quick ratio of 6.69.

Institutional Investors Weigh In On Stride

Several large investors have recently added to or reduced their stakes in the stock. Newbridge Financial Services Group Inc. bought a new position in Stride during the 2nd quarter worth about $25,000. Northwestern Mutual Wealth Management Co. raised its holdings in Stride by 78.7% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 193 shares of the company’s stock worth $28,000 after purchasing an additional 85 shares in the last quarter. Geneos Wealth Management Inc. lifted its position in shares of Stride by 62.7% during the first quarter. Geneos Wealth Management Inc. now owns 340 shares of the company’s stock valued at $43,000 after buying an additional 131 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of Stride by 481.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 512 shares of the company’s stock valued at $74,000 after buying an additional 424 shares in the last quarter. Finally, Advisory Services Network LLC bought a new position in shares of Stride during the 3rd quarter worth approximately $78,000. 98.24% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have weighed in on LRN shares. Zacks Research lowered shares of Stride from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 30th. Canaccord Genuity Group increased their price objective on shares of Stride from $165.00 to $175.00 and gave the company a “buy” rating in a research report on Friday, October 24th. Wall Street Zen upgraded shares of Stride from a “hold” rating to a “buy” rating in a research note on Monday, January 5th. Barrington Research reaffirmed an “outperform” rating and issued a $125.00 price objective on shares of Stride in a report on Wednesday, January 21st. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Stride in a research report on Monday, December 29th. Three equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $125.75.

Key Stride News

Here are the key news stories impacting Stride this week:

• Positive Sentiment: Q2 beat on EPS and revenue — Stride reported $2.50 EPS vs. $2.33 consensus and saw revenue rise year-over-year, driving investor enthusiasm after the print and call. Stride surges as second quarter earnings soar past estimates
• Positive Sentiment: K?12 demand and enrollment gains — Management reiterated that virtual K?12 enrollment remains strong, supporting top-line momentum and helping explain the better-than-expected quarter. K12 Demand Remains Strong
• Positive Sentiment: Margin expansion drivers — Company commentary and analyses point to margin improvement driven by product discipline and growth in regulated markets, supporting higher profitability going forward. LRN Q4 deep dive: Margin expansion driven by product discipline and growth in regulated markets
• Neutral Sentiment: Updated revenue guidance — Stride issued FY?2026 revenue guidance around $2.5B–$2.6B and Q3 revenue range of $615M–$645M (consensus ~ $622.7M). The ranges roughly track expectations but leave room for mixed reactions depending on the midpoint vs. street models. Stride, Inc. 2026 Q2 – Results – Earnings Call Presentation
• Neutral Sentiment: Earnings call detail & metrics — Management presentation and transcript provide detail on enrollment trends, segment performance and KPIs (useful for modeling), but some guidance items (EPS specifics) were not clearly quantified in headlines. Stride, Inc. (LRN) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Legal and credibility overhang — Ongoing legal probes and articles alleging enrollment inflation and valuation questions continue to pressure sentiment and could lead to multiple compression if risks persist. Assessing Stride (LRN) Valuation After Legal Probes And Alleged Enrollment Inflation Claims
• Negative Sentiment: Critical third?party surveys and short-seller attention — External critical surveys and commentary linking Stride to broader scrutiny add headline risk that could amplify volatility despite the quarter’s positive metrics. China Bilingual Technology & Education Group (OTCMKTS:CATG) & Stride (NYSE:LRN) Critical Survey

Stride Company Profile

Stride, Inc (NYSE:LRN) is a technology-driven education company that designs and delivers online learning solutions for students and adult learners. Through long-term partnerships with state-authorized public school districts, Stride operates virtual academies that serve K-12 students across the United States. The company’s blended-learning model combines digital curriculum, live teaching support and data analytics to personalize instruction and monitor student progress.

In addition to its K-12 offerings, Stride provides a portfolio of career and workforce readiness programs under its Stride Career Prep division.