EarningsQ2 2026 Earnings Report
DE:SQE Q2 2026 EPS Results
Actual EPS€1.57
Consensus EPS€1.61
Beat/MissMissed by -€0.04
One Year Ago EPS€1.36
DE:SQE Q2 2026 Revenue Results
Actual Revenue€300.98M
Expected Revenue€292.30M
Beat/MissBeat by +€8.67M
YoY Revenue Growth+4.91%
Earnings Announcement Details
QuarterQ2 2026
Date07/29/2026
TimeBefore Open
Conference CallWednesday, July 29, 2026
DE:SQE Upcoming Earnings
Strategic Education's next earnings date is estimated for November 5, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:SQE Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed solid operating momentum and margin expansion driven by Education Technology Services and U.S. Higher Education (notably employer-affiliated and healthcare enrollment), strong cash flow and share repurchases, and continued scale at Sophia and Workforce Edge. That said, a material $13 million Australia labor charge, ANZ enrollment declines and visa processing headwinds, and academic integrity/AI concerns at Sophia are notable near-term challenges. Management expects margin improvement and has mitigation plans for ANZ instructional costs, but revenue could be pressured in 2026 relative to the notional model.Company Guidance
Consolidated Revenue and Profitability Improvement
Second quarter revenue increased ~3% year-over-year to $330 million. Operating income was $53 million, up 9% year-over-year, and operating margin improved to 16%, a 90 basis point increase versus prior year. Adjusted EPS was $1.76, a 16% increase year-over-year.
Improved Cash Flow
Year-to-date cash flow from operations increased 18% year-over-year to $117 million, indicating stronger underlying cash generation.
Education Technology Services (ETS) Strong Growth
ETS revenue grew 15% to $42 million and operating income increased 30% to $20 million. ETS operating margin rose to 46.2%, up 520 basis points, and ETS now represents nearly 40% of consolidated income from operations.
Sophia Learning Scale and Momentum
Sophia Learning total average subscribers grew 32% and revenue increased 27% to $21 million, demonstrating accelerating scale and monetization.
Workforce Edge Expansion and Recognition
Workforce Edge now has 81 corporate agreements covering 4 million employees; enrollments from Workforce Edge into Strayer or Capella grew 21% to roughly 4,000 students. Workforce Edge won the Professional Development Solution Provider of the Year award.
U.S. Higher Education Margin and Retention Gains
U.S. Higher Education revenue increased 2%, driven by higher revenue per student and lower scholarships/discounts. Operating income rose 56% to $32 million and operating margin expanded by 500 basis points to 15%. Student retention reached an all-time high of 89%.
Productivity and Cost Control
Company-wide operating expenses rose ~1.5% year-over-year; however, excluding a $13 million one-time Australia charge, operating expenses would have been $265 million, a 3% reduction year-over-year, reflecting effective cost control and productivity initiatives.
Capital Allocation — Share Repurchases
Repurchased approximately 421,000 shares for $33 million during the quarter and retains about $141 million of share repurchase authorization remaining for the year.
DE:SQE Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed