Stride (LRN) stock has decreased by 54.4% in a single day, despite the company posting better-than-expected Q1 earnings, as investors focused on its weak outlook and operational hiccups. While adjusted EPS of $1.52 and a 12.7% revenue jump to $620.9 million topped estimates, management's guidance for next-quarter and full-year sales—both below Wall Street forecasts—sparked concerns about slowing momentum.
LRN's Q1 FY26 earnings and revenues top estimates, rising year over year as demand for its flexible, tech-driven education offerings strengthened.
Here is how K12 (LRN) and MasterCraft Boat Holdings, Inc. (MCFT) have performed compared to their sector so far this year.
Stride shares plunged ~35% post-earnings due to conservative FY26 guidance and technical issues, erasing year-to-date gains. Despite near-term growth concerns, LRN's history of conservative outlooks and strong Q1 results suggest potential for outperformance versus guidance. At current valuations, LRN trades at just 6.8x FY26 adjusted EBITDA, offering compelling value after the earnings-driven selloff.
While the top- and bottom-line numbers for K12 (LRN) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Stride, Inc. (NYSE:LRN ) Q1 2026 Earnings Call October 28, 2025 5:00 PM EDT Company Participants Timothy Casey - Vice President of Investor Relations James Rhyu - Chair of the Board & CEO Donna Blackman - Executive VP & CFO Conference Call Participants Jeffrey Silber - BMO Capital Markets Equity Research Jason Tilchen - Canaccord Genuity Corp., Research Division Gregory Parrish - Morgan Stanley, Research Division Matthew Filek - William Blair & Company L.L.C., Research Division Alexander Paris - Barrington Research Associates, Inc., Research Division Presentation Operator Thank you for standing by.
K12 (LRN) came out with quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $0.94 per share a year ago.
Stride, Inc. LRN is scheduled to report its first-quarter fiscal 2026 results on Oct. 28, after market close. In the last reported quarter, the company's adjusted earnings per share (EPS) and total revenues topped the Zacks Consensus Estimate by 25.1% and 3.9%, respectively.
Investors with an interest in Schools stocks have likely encountered both K12 (LRN) and Grand Canyon Education (LOPE). But which of these two stocks is more attractive to value investors?
Stride, Inc.'s LRN main focus lies in offering online and hybrid education models that align with the growing demand for flexibility, accessibility and personalized learning. In the current education market, students and parents are actively shifting toward virtual education alternatives, AI-based solutions and more career-focused programs.
LRN's push into AI-driven learning, tutoring and career initiatives can determine if its double-digit EPS growth endures.
Stride, Inc. LRN is currently trading at a premium compared with the Schools industry peers but is undervalued in contrast to the broader Consumer Discretionary sector. The company's forward 12-month price-to-earnings (P/E) ratio is 15.98, slightly above the industry average of 15.18 but below the sector's valuation of 19.35.