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Strategic Education (STRA)
NASDAQ:STRA
Earnings Data
Report Date
Apr 23, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
1.52Last Year’s EPS
1.3Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong financial performance story with multi‑segment growth, significant margin expansion, record results in several businesses (ETS, Workforce Edge, Sophia Learning), and meaningful AI-driven productivity savings that funded share repurchases and dividends. Key challenges remain around unaffiliated U.S. higher education enrollment declines and regulatory headwinds in Australia/New Zealand, but management expects those trends to normalize over time and reiterated a multi-year notional model for modest revenue growth and continued margin improvement.Company Guidance
Quarterly and Full-Year Revenue Growth
Revenue increased 4% in Q4 2025 (adjusted, constant currency) and 4% for full year 2025.
Strong Margin Expansion and Earnings Growth
Operating expenses declined 1% in Q4, producing operating income growth of 35% and a 390 basis point expansion in operating margin to 16.9%. Adjusted EPS was $1.75 in Q4 (+38%). Full-year operating income increased 25% with operating margin up 260 basis points to 15.5% and adjusted EPS $6.21 (+28%).
AI-Driven Productivity Savings
AI and productivity initiatives generated approximately $30 million of expense reductions in 2025, with management targeting at least an additional $70 million of savings through end of 2027.
Education Technology Services (ETS) Outperformance
ETS revenue grew more than 40% to nearly $150 million in 2025; operating income increased 38% to $59 million with a 40% operating margin. ETS contributed roughly one-third of consolidated operating income.
Rapid Growth at Sophia Learning
Sophia Learning grew average total subscribers 47% and revenue 41% in Q4; for the full year subscribers rose 42% and revenue rose 40% — driven by consumer and employer-affiliated subscribers.
Record Workforce Edge Performance and Employer Partnerships
Workforce Edge had a record year: employer-affiliated enrollment grew 6% for the quarter and ended 2025 at 33.5% of total U.S. higher education enrollment. Employer-affiliated mix of new students was 40%. Workforce Edge closed 2025 with 80 corporate agreements covering more than 3.9 million employees.
U.S. Higher Education Margin and Retention Gains
U.S. Higher Education revenue rose 2% in Q4 and 1% for the year (driven by a 6% increase in revenue per student). Operating expenses fell 3% in Q4 and 2% for the year, yielding operating income increases of 58% (Q4) and 32% (full year) and operating margin expansion of 470 bps (Q4) and 270 bps (full year). Average student retention reached a record 88% for the year.
Strong Cash Generation and Capital Return
Generated $247 million pretax cash from operations; distributable free cash flow approx. $154 million after taxes and capex. Returned ~$58 million via dividend and just under $140 million in share repurchases (1.7 million shares, ~7% of outstanding). Ended 2025 with $153 million cash and marketable securities and no debt; >$200 million remaining on buyback authorization.
2026 Plan Aligned with Notional Model
Management expects 2026 performance broadly in line with the 2023 notional model (revenue CAGR 4%–6% and adjusted operating income margins expanding ~200 bps per year), with ETS and ANZ contributing to growth.
STRA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
STRA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 26, 2026 | $78.41 | ― | ― |
Nov 06, 2025 | $74.21 | $74.73 | +0.70% |
Jul 30, 2025 | $78.27 | $73.15 | -6.54% |
Apr 24, 2025 | $78.42 | $78.29 | -0.17% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Strategic Education (STRA) report earnings?
Strategic Education (STRA) is schdueled to report earning on Apr 23, 2026, Before Open (Confirmed).
What is Strategic Education (STRA) earnings time?
Strategic Education (STRA) earnings time is at Apr 23, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is STRA EPS forecast?
STRA EPS forecast for the fiscal quarter 2026 (Q1) is 1.52.