Stride (LRN) AI Stock Analysis

• Market Cap: $2.90B
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.42
• Revenue Growth: 17.25%
• EPS Growth: 30.15%
• Country: US
• Employees: 7,800
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 1.40
• Shares Outstanding: 43,858,627
• 10 Day Avg. Volume: 1,418,710
• 30 Day Avg. Volume: 1,445,834
• PEG Ratio: 0.55
• Price to Book (P/B): 4.22
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 14.50
• Enterprise Value/Market Cap: 2.48
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 7.45
• Enterprise Value/Ebitda: 13.35
• 1Y Price Target: $106.75
• Price Target Upside: 63.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 8.02
• Revenue Forecast (FY): $2.51B

• Rating: 70 Outperform
• Price Target: $68.00 ▲(3.90% Upside)

Stride's overall score is driven by strong financial performance and a positive corporate event with the stock buyback program. However, bearish technical indicators and challenges highlighted in the earnings call weigh on the score.

Positive Factors

Revenue Growth

Stride's consistent revenue growth indicates strong demand for its educational services, supporting long-term business expansion and market position.

Stock Buyback Program

The buyback program reflects management's confidence in long-term growth and financial stability, enhancing shareholder value over time.

Career Learning Growth

Strong growth in Career Learning indicates successful product offerings and positions Stride well in the evolving education sector.

Negative Factors

Platform Implementation Issues

Implementation issues can harm customer satisfaction and retention, potentially affecting future enrollment and revenue growth.

Enrollment Growth Challenges

Challenges in meeting enrollment targets could impact revenue and market share, hindering Stride's growth trajectory.

Gross Margin Decline

Declining gross margins due to platform rollout expenses may pressure profitability, affecting long-term financial health.

Stride Business Overview & Revenue Model

Company Description

Stride, Inc., a technology-based education service company, provides proprietary and third-party online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade (K-12) in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, and support students. The company offers integrated package of systems, services, products, and professional expertise to support a virtual or blended public school; individual online courses and supplemental educational products; and products and services for the general education market focused on subjects, including math, English, science, and history for kindergarten through twelfth grade students. It also provides career learning products and services that are focused on developing skills to enter in industries, including information technology, health care, and business; and focused post-secondary career learning programs, which include skills training for software engineering, healthcare, and medical fields to adult learners under Galvanize, Tech Elevator, and MedCerts brand names, as well as provides staffing and talent development services to employers. Stride, Inc. serves public and private schools, school districts, charter boards, consumers, employers, and government agencies. The company was formerly known as K12 Inc. and changed its name to Stride, Inc. in December 2020. Stride, Inc. was founded in 2000 and is headquartered in Reston, Virginia.

How the Company Makes Money

Stride generates revenue primarily through tuition fees collected from students enrolled in its online schools. These fees vary based on the specific programs and services offered. Additionally, the company earns revenue from the sale of its proprietary curriculum and educational resources to other schools and educational institutions. Stride also partners with various school districts and state education agencies, often receiving government funding based on enrollment numbers and student performance metrics. This diversified revenue model, combined with strategic partnerships and collaborations, contributes significantly to the company's overall financial performance.

Stride Financial Statement Overview

Summary

Stride exhibits strong financial health with consistent revenue and profit growth, efficient operational management, and a stable balance sheet. Despite a recent decline in free cash flow growth, the overall cash flow generation remains strong.

Income Statement

Stride has demonstrated consistent revenue growth with a TTM revenue growth rate of 2.9%. The company maintains strong profitability metrics, with a gross profit margin of 39.2% and a net profit margin of 12.8% in the TTM period. EBIT and EBITDA margins are also robust at 17.1% and 21.8%, respectively, indicating efficient operational management. Overall, Stride's income statement reflects solid growth and profitability.

Balance Sheet

Stride's balance sheet shows a healthy debt-to-equity ratio of 0.38, indicating a conservative leverage position. The return on equity is strong at 22.0%, reflecting effective use of equity capital. The equity ratio stands at 65.5%, suggesting a solid equity base relative to total assets. Overall, the balance sheet is stable with a good balance between debt and equity.

Cash Flow

Stride's cash flow statement shows a decline in free cash flow growth by 9.8% in the TTM period, which could be a concern. However, the operating cash flow to net income ratio is healthy at 1.56, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also robust at 0.95. Despite the recent decline in free cash flow growth, the company maintains strong cash flow metrics overall.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.48B	2.41B	2.04B	1.84B	1.69B	1.54B
Gross Profit	966.79M	943.92M	763.60M	647.07M	596.48M	534.90M
EBITDA	539.84M	508.39M	386.18M	291.31M	253.26M	203.36M
Net Income	315.86M	287.94M	204.18M	126.87M	107.13M	71.45M
Balance Sheet
Total Assets	2.33B	2.29B	1.92B	1.76B	1.64B	1.58B
Cash, Cash Equivalents and Short-Term Investments	715.10M	985.27M	692.29M	522.73M	389.40M	386.58M
Total Debt	588.03M	549.76M	528.21M	543.81M	565.67M	466.28M
Total Liabilities	805.71M	814.34M	744.44M	813.37M	830.96M	772.65M
Stockholders Equity	1.53B	1.48B	1.18B	947.30M	812.58M	804.65M
Cash Flow
Free Cash Flow	363.45M	431.04M	217.21M	136.60M	139.26M	81.89M
Operating Cash Flow	379.04M	432.82M	278.80M	203.15M	206.88M	134.15M
Investing Cash Flow	-91.82M	-88.00M	-139.87M	-118.24M	-110.76M	-165.44M
Financing Cash Flow	-86.54M	-62.94M	-49.12M	-63.50M	-93.31M	204.58M

Stride Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRN, the sentiment is Negative. The current price of 65.45 is above the 20-day moving average (MA) of 63.67, below the 50-day MA of 83.77, and below the 200-day MA of 128.40, indicating a neutral trend. The MACD of -3.76 indicates Negative momentum. The RSI at 38.14 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LRN.

Stride Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATGE	79 Outperform	$3.73B	15.55	17.38%	―	12.24%	52.97%
STRA	73 Outperform	$1.89B	16.67	6.76%	2.99%	3.74%	-8.40%
PRDO	72 Outperform	$1.90B	12.71	16.14%	1.88%	24.23%	17.56%
LRN	70 Outperform	$2.90B	10.10	23.04%	―	17.25%	30.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
COUR	62 Neutral	$1.28B	-25.91	-7.43%	―	8.10%	43.35%
MH	60 Neutral	$3.30B	-31.88	―	―	3.19%	-6.25%

Stride Corporate Events

Stride’s Annual Meeting Approves Key Proposals

Stride held its Annual Meeting on December 4, 2025, where several key proposals were voted on by stockholders. The election of directors saw eight nominees confirmed to continue in their roles. Additionally, the appointment of KPMG LLP as the independent auditor was ratified, executive compensation was approved on an advisory basis, and amendments to the 2016 Plan and the Employee Stock Purchase Plan (ESPP) were also approved. These decisions reflect the company’s ongoing governance and operational strategies.

Stride Announces $500 Million Stock Buyback Program

On November 3, 2025, Stride, Inc. announced the approval of a stock repurchase program authorizing the buyback of up to $500 million of its common stock until October 31, 2026. This move reflects the company’s confidence in its long-term growth prospects and robust financial position, with the flexibility to repurchase shares depending on market conditions, aiming to create long-term value for shareholders.

Stride Expands Board with New Director Appointment

On September 16, 2025, Stride, Inc. announced the election of Robert E. Knowling, Jr. to its Board of Directors, expanding the board from seven to eight members. Mr. Knowling will also serve on the Audit and Compensation Committees. His compensation includes an annual restricted stock award of $250,000 and cash retainers for his board and committee roles.