Strategic Education remains a 'Strong Buy' with reaffirmed FY 2025 guidance and a medium-term price target of $100–$105 per share. EdTech drives margin expansion, now contributing nearly a third of operating profit with 41.7% margins and 45.6% revenue growth year-over-year. Capital returns are robust: buybacks and dividends together yield double-digit annual shareholder returns, supported by strong FCF and an asset-light model.
Strategic Education (STRA) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
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Strategic Education, Inc. ( STRA ) Q3 2025 Earnings Call November 6, 2025 10:00 AM EST Company Participants Terese Wilke - Director of Investor Relations Karl McDonnell - President, CEO & Director Daniel Jackson - CFO & Chief Administrative Officer Conference Call Participants Jasper Bibb - Truist Securities, Inc., Research Division Jeffrey Silber - BMO Capital Markets Equity Research Presentation Operator Welcome to Strategic Education's Third Quarter 2025 Results Conference Call. I will now turn the call over to Terese Wilke, Senior Director of Investor Relations for Strategic Education.
The headline numbers for Strategic Education (STRA) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Strategic Education (STRA) came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.3 per share. This compares to earnings of $1.16 per share a year ago.
The headline numbers for Strategic Education (STRA) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Strategic Education's Q2 showed healthy revenue and margin growth, driven by EdTech and Sophia Learning, despite weakness in Australia/NZ and flat U.S. Higher Ed. EdTech's rapid expansion and B2B partnerships are offsetting declines elsewhere, with Sophia Learning subscriber growth accelerating and WorkForce Edge scaling quickly. Shareholder returns remain robust, with buybacks and dividends on track to deliver a 10%+ yield in FY 2025, supported by a strong balance sheet.