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

Stride (NYSE:LRN) released its quarterly earnings data on Tuesday. The company reported $2.12 earnings per share for the quarter, missing analysts’ consensus estimates of $2.33 by ($0.21), Briefing.com reports. Stride had a net margin of 12.76% and a return on equity of 26.29%. The company had revenue of $631.26 million for the quarter, compared to analysts’ expectations of $627.90 million. During the same quarter in the previous year, the business posted $2.03 EPS. 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%

LRN opened at $72.45 on Wednesday. The company has a market cap 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. Stride has a twelve month low of $60.61 and a twelve month high of $171.17. The company has a 50-day moving average price of $66.28 and a 200 day moving average price of $110.64. The company has a quick ratio of 6.69, a current ratio of 6.78 and a debt-to-equity ratio of 0.32.

Analysts Set New Price Targets

LRN has been the subject of a number of analyst reports. Morgan Stanley decreased their price target on Stride from $130.00 to $95.00 and set an “equal weight” rating for the company in a report on Wednesday, December 17th. Barrington Research reaffirmed an “outperform” rating and issued a $125.00 price objective on shares of Stride in a report on Wednesday, January 21st. Wall Street Zen upgraded shares of Stride from a “hold” rating to a “buy” rating in a research report on Monday, January 5th. Weiss Ratings restated a “hold (c+)” rating on shares of Stride in a research report on Monday, December 29th. Finally, Canaccord Genuity Group lifted their price target on Stride from $165.00 to $175.00 and gave the company a “buy” rating in a research note on Friday, October 24th. Three equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $125.75.

Hedge Funds Weigh In On Stride

Hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC increased its position in shares of Stride by 67.3% during the first quarter. AQR Capital Management LLC now owns 28,547 shares of the company’s stock worth $3,611,000 after purchasing an additional 11,481 shares in the last quarter. NewEdge Advisors LLC boosted its stake in Stride by 80.9% during the 1st quarter. NewEdge Advisors LLC now owns 5,124 shares of the company’s stock worth $648,000 after purchasing an additional 2,291 shares during the last quarter. Empowered Funds LLC grew its holdings in shares of Stride by 12.4% during the first quarter. Empowered Funds LLC now owns 18,202 shares of the company’s stock worth $2,303,000 after buying an additional 2,008 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Stride by 31.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 134,455 shares of the company’s stock valued at $17,009,000 after buying an additional 32,470 shares during the last quarter. Finally, Geneos Wealth Management Inc. raised its position in shares of Stride by 62.7% in 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. Institutional investors and hedge funds own 98.24% of the company’s stock.

Key Headlines Impacting Stride

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.