Stride's stock has surged 344% since 2023, driven by robust enrollment growth and secular trends favoring online and homeschool education. The company boasts strong financials, with a 14% revenue CAGR and a 33% adjusted operating income CAGR over the past two years, supporting my buy rating. Risks include potential 6.94% share dilution from convertible notes and limited pricing power, due to reliance on district funding per student.
Stride is capitalizing on the structural shift toward online and career-focused education, with strong enrollment and financial results supporting continued growth. The company's integrated full-school model, state-level partnerships, and minimal reliance on federal funding position it well amid favorable policy trends and decentralization. Stride's robust balance sheet, high retention, and multi-year contracts provide stability and flexibility for future investments or acquisitions.
Stride is a leader in the booming EdTech sector, capitalizing on the surging demand for flexible, personalized education solutions. Financial performance is outstanding: record revenue, rapid EPS growth, expanding margins, and strong free cash flow highlight operational excellence. Enrollment growth is robust, with rising parental interest in online schooling and career-focused programs driving future upside.
21 Apr 2025 Date | | - Cons. EPS | - EPS |
21 Jan 2025 Date | | 1.87 Cons. EPS | 2.03 EPS |
22 Oct 2024 Date | | 0.22 Cons. EPS | 0.94 EPS |
13 Aug 2024 Date | | 1.27 Cons. EPS | - EPS |
6 Aug 2024 Date | | 1.27 Cons. EPS | 1.42 EPS |
21 Apr 2025 Date | | - Cons. EPS | - EPS |
21 Jan 2025 Date | | 1.87 Cons. EPS | 2.03 EPS |
22 Oct 2024 Date | | 0.22 Cons. EPS | 0.94 EPS |
13 Aug 2024 Date | | 1.27 Cons. EPS | - EPS |
6 Aug 2024 Date | | 1.27 Cons. EPS | 1.42 EPS |
Education & Training Services Industry | Consumer Defensive Sector | Mr. James J. Rhyu CEO | NYSE Exchange | 86333M108 Cusip |
US Country | 7,800 Employees | - Last Dividend | - Last Split | 13 Dec 2007 IPO Date |
Stride, Inc. is a leading technology-based education service company that offers innovative and comprehensive solutions aimed at enhancing individualized learning for students from kindergarten through 12th grade (K-12), both in the United States and internationally. Initially founded as K12 Inc. in 2000 and rebranded to Stride, Inc. in December 2020, its headquarters are located in Reston, Virginia. The core mission of Stride, Inc. revolves around leveraging technology to provide proprietary and third-party online curriculum, software systems, and educational services. These offerings are designed to support the educational journey of students by facilitating personalized learning experiences, monitoring progress, and ensuring substantial support. The company caters to a wide range of clients including public and private schools, school districts, charter boards, consumers, employers, as well as government agencies.
Stride, Inc. has established a comprehensive portfolio of products and services tailored to fill various educational needs from K-12 to adult learning and career development. These offerings include: