Executive Summary

Stride is a technology company that provides an educational platform to deliver online learning to students throughout the U.S. The company offers a wide range of products and services across its platform, including curriculum, systems, instruction, and support services, designed to help learners of all ages reach their full potential.

Stride operates in two main markets: General Education and Career Learning. The General Education products and services focus on core subjects like math, English, science, and history for K-12 students. The Career Learning products and services focus on developing skills for high-growth, in-demand industries like information technology, healthcare, and business.

The majority of Stride’s revenue comes from its comprehensive school-as-a-service offering, which provides an integrated package of curriculum, technology, instruction, and support services to virtual and blended public schools. Stride also generates revenue from the licensing of curriculum, professional consulting, training, and support services to schools, school districts, and individual consumers.

In fiscal year 2026, Stride’s total revenues increased 4.7% to $2,518.1 million, driven by a 15.0% increase in Career Learning revenues, partially offset by a 2.1% decrease in General Education revenues. Operating income increased 25.2% to $450.8 million, due to revenue growth and lower selling, general, and administrative expenses.

Stride’s total enrollments increased 4.2% to 243.9 thousand, with Career Learning enrollments growing 13.9% and General Education enrollments declining 2.5%. The company continues to invest in curriculum development, technology systems, and instructional services to support its growth strategy, which includes expanding its adult learning programs, private schools, and traditional public school sales.

Stride maintains a strong financial position, with $754.5 million in cash and cash equivalents and $664.8 million in accounts receivable as of June 30, 2026. The company’s working capital provides a significant source of liquidity for its operating needs. Stride also has $420 million in convertible senior notes outstanding and various finance lease agreements to fund its operations and capital expenditures.

Overall, Stride’s financial performance in fiscal year 2026 demonstrates the company’s ability to execute on its growth strategy and deliver value to its customers through its comprehensive educational platform.

Key Aspects and Trends of Our Operations

Revenues—Overview

Stride generates a significant portion of its revenues from the sale of curriculum, administration support, and technology services to virtual and blended public schools. The company anticipates these revenues will continue to represent the majority of its total revenues over the next several years. However, Stride also expects revenues from other distribution channels, adult learning programs, private schools, and traditional public school sales to increase as it executes on its growth strategy.

Factors affecting Stride’s revenues include:

• The number of enrollments
• The mix of enrollments across grades and states
• Administrative services and curriculum sales
• State or district per student funding levels and attendance requirements
• Prices for products and services
• Growth in adult learning programs
• Revenues from new initiatives, mergers, and acquisitions

Virtual Schools

The majority of Stride’s revenue is derived from school-as-a-service agreements with the governing authorities of its public school partners. These agreements provide an integrated package of systems, services, products, and professional expertise to support virtual public schools.

Traditional School Districts

Stride also distributes its educational platform to schools and school districts across the U.S., providing access to its digital content, learning software, teachers, and support services.

Consumer Sales

Stride offers tuition-based online private schools, as well as direct-to-family products and services, to address the needs of students and families in states where the company does not offer a free public option. The company also pursues international opportunities and has entered into agreements to distribute its products and services to international and domestic school partners.

Instructional Costs and Services Expenses

Instructional costs and services expenses include expenses directly attributable to the educational products and services Stride provides, such as teacher and administrator salaries and benefits, student materials, and technology costs. These costs are variable and based on the number of schools and enrollments.

Stride’s high school offering requires increased instructional costs as a percentage of revenues compared to its K-8 offering, due to factors like lower student-to-teacher ratios, higher teacher compensation, and the use of third-party courses and systems.

Selling, General and Administrative Expenses

Selling, general, and administrative expenses include the salaries and benefits of employees engaged in business development, sales and marketing, and administrative functions, as well as product development expenses.

Critical Accounting Estimates

Stride’s critical accounting policies include revenue recognition, income taxes, and the accounting for business combinations and goodwill. The company’s revenue recognition policies are complex, as they involve estimating funding for virtual and blended public schools, recognizing subscription-based and enterprise contract revenues, and accounting for the operating losses of the schools it serves.

Results of Operations

In fiscal year 2026, Stride’s total revenues increased 4.7% to $2,518.1 million, driven by a 15.0% increase in Career Learning revenues, partially offset by a 2.1% decrease in General Education revenues. Operating income increased 25.2% to $450.8 million, due to revenue growth and lower selling, general, and administrative expenses.

Total enrollments increased 4.2% to 243.9 thousand, with Career Learning enrollments growing 13.9% and General Education enrollments declining 2.5%.

Discussion of Seasonality of Financial Condition

Stride’s balance sheet is subject to seasonal fluctuations, with accounts receivable and deferred revenue balances typically highest in the first quarter of the fiscal year as the company begins billing for enrolled students and collects upfront fees.

Liquidity and Capital Resources

As of June 30, 2026, Stride had $754.5 million in cash and cash equivalents and $664.8 million in accounts receivable, providing a significant source of liquidity. The company also has $420 million in convertible senior notes outstanding and various finance lease agreements to fund its operations and capital expenditures.

Stride’s cash requirements consist primarily of day-to-day operating expenses, capital expenditures, and contractual obligations. The company believes the combination of funds generated from operations and its net working capital will be adequate to finance its ongoing operations on both a short-term and long-term basis.