Stride Q3 Revenue Rises 2.7% to $629.9M, Net Income Falls 10.9%
Stride reported Q3 revenue of $629.9 million, up 2.7% year-over-year, while net income fell 10.9% to $88.5 million and adjusted EBITDA rose 1.8% to $171.3 million. The company narrowed full-year 2026 revenue forecast to $2.49–2.52 billion and expects $490–500 million in adjusted operating income.
1. Q3 Financial Performance
Stride delivered Q3 fiscal 2026 revenue of $629.9 million, up 2.7% from $613.4 million a year earlier, while income from operations dipped 1.3% to $129.1 million. Net income declined 10.9% to $88.5 million, or $1.93 per diluted share, as adjusted operating income fell 0.9% to $140.4 million and adjusted EBITDA rose 1.8% to $171.3 million.
2. Segment and Enrollment Trends
Total Q3 enrollments reached 244.5 thousand, a 1.8% increase, led by Career Learning enrollments jumping 11.6% to 110.1 thousand. Revenue per enrollment climbed 2.9% to $2,485, driven by gains in both General Education and Career Learning segments.
3. Cash Flow and Capital Allocation
As of March 31, cash, equivalents and marketable securities totaled $856.0 million, down from $1,011.4 million at last fiscal year end. Capital expenditures rose to $18.5 million, including $12.8 million in software development and $5.2 million in curriculum development.
4. Fiscal Year 2026 Outlook
Management narrowed full-year revenue guidance to $2.49–2.52 billion, adjusted operating income to $490–500 million and capital expenditures to $75–80 million, with an effective tax rate forecast of 24%–25%.