Online education Stride (NYSE:LRN) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 7.5% year on year to $631.3 million. Guidance for next quarter’s revenue was better than expected at $630 million at the midpoint, 1.9% above analysts’ estimates. Its non-GAAP profit of $2.50 per share was 7.8% above analysts’ consensus estimates.
Is now the time to buy LRN? Find out in our full research report (it’s free for active Edge members).
Stride (LRN) Q4 CY2025 Highlights:
- Revenue: $631.3 million vs analyst estimates of $627.9 million (7.5% year-on-year growth, 0.5% beat)
- Adjusted EPS: $2.50 vs analyst estimates of $2.32 (7.8% beat)
- Adjusted EBITDA: $188.1 million vs analyst estimates of $166.9 million (29.8% margin, 12.7% beat)
- The company reconfirmed its revenue guidance for the full year of $2.52 billion at the midpoint
- Operating Margin: 23.3%, up from 21.3% in the same quarter last year
- Enrollments: 248,500, up 17,900 year on year
- Market Capitalization: $3.13 billion
StockStory’s Take
Stride’s fourth quarter results drew a significant positive reaction from the market, reflecting management’s focus on profitable growth and operational efficiency. CEO Badri emphasized the “consistent execution” that allowed Stride to expand operating leverage, noting that the company’s service levels and timing of launches have helped it maintain a premium position even amid heightened competition. The quarter also benefited from strong momentum in other regulated and growth markets, where Stride achieved double-digit growth and crossed key revenue thresholds.
Key Insights from Management’s Remarks
Stride’s management attributed the quarter’s performance to a mix of disciplined product strategies and expanded growth in regulated international markets, while maintaining tight control over profitability.
- Operating leverage gains: Operating margin and gross margin expansion were driven by efficiency initiatives and steady operating costs, with CFO Vikesh Kumar highlighting improvements in both metrics and a healthy conversion of EBITDA to net profit.
- International market momentum: Growth accelerated in other regulated markets, particularly in Europe and emerging “growth markets,” where Stride onboarded new partners and benefited from regulatory investments. CEO Badri pointed out that these regions formed a “new base” for the company and are expected to contribute meaningfully to future revenue.
Stride currently trades at $98.50, up from $72.43 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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