Strategic Education delivered 4% year-over-year revenue growth and a 25% increase in operating income for full-year 2025, expanding operating margin by 260 basis points to 15.5%. Adjusted EPS rose 28% to $6.21, while fourth-quarter revenue climbed 4%, operating expenses declined 1%, operating income jumped 35%, margin reached 16.9%, and adjusted EPS hit $1.75.

CFO Daniel Jackson highlighted a back-office tool automating transcript intake and evaluation, now rolled out across most of the platform with full deployment planned by year-end. Front-end admissions processes have also been optimized using AI, contributing to productivity gains that supported $30 million in expense reductions during 2025.

The Education Technology Services segment achieved record revenue of nearly $150 million, up over 40%, and operating income of $59 million, up 38%, yielding a 40% operating margin. Sophia Learning subscribers increased 47% in Q4 and 42% for the full year, while Workforce Edge employer-affiliated enrollment reached an all-time high of 33.5% of U.S. Higher Education.

Management expects at least $70 million of additional expense savings by end-2027 to reinvest in growth and further margin expansion. U.S. Higher Education saw a 6% rise in revenue per student and record 88% retention, while the Australia/New Zealand segment anticipates total enrollment growth returning by late 2026.