Stride (LRN) AI Stock Analysis

• Market Cap: $2.88B
• Dividend Yield: N/A
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.47
• 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: 5,692,258
• 30 Day Avg. Volume: 2,407,473
• 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: 2.50
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 7.43
• Enterprise Value/Ebitda: 14.10
• 1Y Price Target: $115.50
• Price Target Upside: 76.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 8.02
• Revenue Forecast (FY): $2.67B

• Rating: 71 Outperform
• Price Target: $72.00 ▲(9.74% Upside)

Stride's overall stock score is driven by strong financial performance and attractive valuation. However, technical analysis indicates bearish momentum, and platform implementation issues present near-term challenges. The earnings call provided mixed signals, with strong growth tempered by operational hurdles.

Positive Factors

Revenue Growth

Stride's consistent revenue growth reflects strong market demand and effective business strategies, indicating potential for sustained expansion.

Enrollment Increase

Record enrollment growth demonstrates Stride's competitive position in the online education sector, supporting long-term revenue potential.

Career Learning Growth

Significant growth in Career Learning indicates successful product diversification, enhancing Stride's market presence and resilience.

Negative Factors

Platform Implementation Issues

Platform issues could undermine customer satisfaction and retention, posing risks to Stride's growth and brand reputation.

Enrollment Growth Challenges

Missed enrollment targets due to platform and strategic issues may impact revenue growth and market confidence in the near term.

Gross Margin Decline

Declining gross margins suggest rising costs or pricing pressures, which could affect profitability if not addressed.

Stride Business Overview & Revenue Model

Company Description

Stride (LRN) is an education technology company that focuses on providing digital learning solutions and educational resources for K-12 students. The company operates primarily in the online education sector, offering a range of products and services including online school management, curriculum development, and personalized learning platforms. Stride partners with various educational institutions to enhance student engagement and learning outcomes through innovative technologies and resources.

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 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	970.19M	943.92M	763.60M	647.07M	596.48M	534.90M
EBITDA	510.82M	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	410.81M	389.40M	386.08M
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	361.80M	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: 65.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 65.61 is below the 20-day moving average (MA) of 105.29, below the 50-day MA of 130.97, and below the 200-day MA of 138.55, indicating a bearish trend. The MACD of -21.65 indicates Positive momentum. The RSI at 19.26 is Positive, neither overbought nor oversold. The STOCH value of 15.96 is Positive, 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
EDU	77 Outperform	$9.13B	24.30	9.28%	―	7.22%	-2.84%
TAL	75 Outperform	$7.07B	39.82	4.77%	―	44.57%	147.78%
ATGE	73 Outperform	$3.46B	14.49	17.38%	―	12.24%	52.97%
LAUR	73 Outperform	$4.37B	21.71	20.15%	―	2.01%	-13.82%
LRN	71 Outperform	$2.88B	10.13	23.04%	―	17.25%	30.15%
LOPE	68 Neutral	$4.75B	22.91	27.77%	―	7.05%	-2.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Stride Corporate Events

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.

The most recent analyst rating on (LRN) stock is a Hold with a $77.00 price target. To see the full list of analyst forecasts on Stride stock, see the LRN Stock Forecast page.

Stride, Inc. Earnings Call: Growth Amid Challenges

Stride, Inc. Earnings Call Reveals Mixed Sentiment Amidst Growth and Challenges

Stride, Inc. Reports Strong Q1 2026 Financial Growth

Stride, Inc. is a leading technology-based education company that offers innovative learning solutions across primary, secondary, and postsecondary settings, serving learners in all 50 states and over 100 countries. In its first quarter of fiscal year 2026, Stride, Inc. reported robust financial results driven by strong demand, with revenue reaching $620.9 million, marking a 12.7% increase compared to the previous year. The company also saw significant improvements in income from operations and net income, which rose by 45.7% and 68.3%, respectively.

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.

The most recent analyst rating on (LRN) stock is a Hold with a $153.00 price target. To see the full list of analyst forecasts on Stride stock, see the LRN Stock Forecast page.