Stride (LRN) AI Stock Analysis

• Market Cap: $7.01B
• Dividend Yield: N/A
• Average Volume (3M): 700.97K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.42
• Revenue Growth: 17.90%
• EPS Growth: 39.75%
• Country: US
• Employees: 7,800
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Education & Training Services
• EPS (TTM): 1.03
• Shares Outstanding: 43,626,923
• 10 Day Avg. Volume: 593,625
• 30 Day Avg. Volume: 700,967
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 7.19
• Enterprise Value/Ebitda: 13.36
• 1Y Price Target: $167.50
• Price Target Upside: 1.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $180.00 ▲(9.48% Upside)

Stride's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis suggests a bullish trend, but caution is warranted due to overbought indicators. Valuation concerns due to a high P/E ratio and lack of dividend yield slightly offset these strengths.

Positive Factors

Earnings

Stride, Inc. reported fiscal fourth quarter revenue that increased 22.4%, surpassing expectations.

Investment Rating

The analyst reiterates an OUTPERFORM investment rating and raises the 12-month price target to $185, indicating confidence in the stock's potential.

Stock Valuation

Stride, Inc.'s stock is trading at a discount compared to its Ed Tech peers, despite similar growth prospects, suggesting potential for price appreciation.

Negative Factors

Market Competition

Shares of LRN are up 20% since Stride reported the strong fiscal Q4 results and an encouraging outlook, although the valuation is still considered quite reasonable.

Market Valuation

The company's stock is trading at a significant discount compared to its peers despite its strong performance and growth prospects.

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 through a combination of tuition fees from students enrolled in its online schools, sales of educational products and services to school districts, and software licensing fees for its learning management systems. The company also benefits from partnerships with local and state education agencies, allowing it to expand its reach and influence in the education sector. Additionally, Stride may receive funding from grants and educational initiatives aimed at improving online learning opportunities.

Stride Financial Statement Overview

Summary

Stride exhibits strong financial performance across all statements. The income statement shows robust growth and profitability, the balance sheet reflects a stable financial position with effective leverage management, and the cash flow statement highlights strong cash generation and management. The company is well-positioned for continued growth in the Education & Training Services industry.

Income Statement

Stride has demonstrated strong revenue growth with a 5.23% increase in TTM, supported by a solid gross profit margin of 39.08%. The net profit margin has also improved to 13.10%, indicating enhanced profitability. EBIT and EBITDA margins are healthy at 17.84% and 22.71%, respectively, showcasing efficient operational management. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.40, indicating a stable leverage position. Return on equity is strong at 23.36%, reflecting effective use of equity to generate profits. The equity ratio stands at 64.50%, suggesting a solid capital structure. Overall, the balance sheet is stable with a good balance between debt and equity.

Cash Flow

Stride's free cash flow growth is impressive at 54.36%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.14, showing efficient cash conversion. The free cash flow to net income ratio of 1.04 further supports the company's ability to generate cash relative to its net income. Overall, the cash flow statement reflects strong cash management and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.41B	2.41B	2.04B	1.84B	1.69B	1.54B
Gross Profit	943.92M	943.92M	763.60M	647.07M	596.48M	534.90M
EBITDA	508.39M	508.39M	386.18M	291.31M	253.26M	203.36M
Net Income	287.94M	287.94M	204.18M	126.87M	107.13M	71.45M
Balance Sheet
Total Assets	2.29B	2.29B	1.92B	1.76B	1.64B	1.58B
Cash, Cash Equivalents and Short-Term Investments	985.27M	985.27M	692.29M	410.81M	389.40M	386.08M
Total Debt	549.76M	549.76M	528.21M	543.81M	565.67M	466.28M
Total Liabilities	814.34M	814.34M	744.44M	813.37M	830.96M	772.65M
Stockholders Equity	1.48B	1.48B	1.18B	947.30M	812.58M	804.65M
Cash Flow
Free Cash Flow	401.10M	431.04M	217.21M	136.60M	139.26M	81.89M
Operating Cash Flow	432.82M	432.82M	278.80M	203.15M	206.88M	134.15M
Investing Cash Flow	-88.00M	-88.00M	-139.87M	-118.24M	-110.76M	-165.44M
Financing Cash Flow	-62.94M	-62.94M	-49.12M	-63.50M	-93.31M	204.58M

Stride Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 164.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRN, the sentiment is Positive. The current price of 164.42 is above the 20-day moving average (MA) of 161.74, above the 50-day MA of 145.65, and above the 200-day MA of 133.44, indicating a neutral trend. The MACD of 5.17 indicates Positive momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 22.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LRN.

Stride Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOPE	77 Outperform	$5.74B	24.76	30.77%	―	6.52%	11.72%
LAUR	77 Outperform	$4.10B	16.43	25.81%	―	0.44%	35.19%
EDU	73 Outperform	$7.90B	21.64	10.00%	1.16%	13.72%	21.23%
ATGE	72 Outperform	$4.83B	21.70	16.60%	―	12.85%	81.69%
LRN	72 Outperform	$7.01B	26.71	21.69%	―	17.90%	39.75%
TAL	67 Neutral	$6.17B	59.68	2.88%	―	48.08%	97.15%
Sector *	63 Neutral	$20.52B	14.80	-2.68%	3.09%	1.95%	-4.76%