Stride (LRN) AI Stock Analysis

• Market Cap: $3.12B
• Dividend Yield: N/A
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.49
• Revenue Growth: 17.25%
• EPS Growth: 30.15%
• Country: US
• Employees: 7,800
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 1.40
• Shares Outstanding: 43,858,627
• 10 Day Avg. Volume: 4,826,746
• 30 Day Avg. Volume: 2,160,468
• PEG Ratio: 0.55
• Price to Book (P/B): 4.22
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 14.50
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 7.43
• Enterprise Value/Ebitda: 13.36
• 1Y Price Target: $122.00
• Price Target Upside: 69.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 8.02
• Revenue Forecast (FY): $2.67B

• Rating: 70 Outperform
• Price Target: $77.00 ▲(7.09% Upside)

Stride's overall score reflects strong financial performance and attractive valuation, tempered by technical indicators showing bearish momentum and challenges highlighted in the earnings call. The company's solid financial foundation and undervaluation are significant strengths, but platform issues and cautious growth outlook present risks.

Positive Factors

Revenue Growth

Stride's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Cash Generation

Strong cash generation enhances financial flexibility, allowing Stride to invest in growth opportunities and weather economic fluctuations.

Enrollment Increase

Record enrollment growth reflects increasing demand for Stride's educational offerings, strengthening its market position and revenue base.

Negative Factors

Platform Implementation Issues

Platform issues can harm customer satisfaction and retention, potentially impacting future enrollment and revenue growth.

Enrollment Growth Challenges

Falling short of enrollment targets could indicate strategic missteps, affecting growth projections and investor confidence.

Gross Margin Decline

Declining gross margins suggest rising costs or pricing pressures, which could erode profitability if not addressed.

Stride Business Overview & Revenue Model

Company Description

Stride (LRN) is an education technology company that focuses on providing digital learning solutions and educational resources for K-12 students. The company operates primarily in the online education sector, offering a range of products and services including online school management, curriculum development, and personalized learning platforms. Stride partners with various educational institutions to enhance student engagement and learning outcomes through innovative technologies and resources.

How the Company Makes Money

Stride generates revenue through a combination of tuition fees from students enrolled in its online schools, sales of educational products and services to school districts, and software licensing fees for its learning management systems. The company also benefits from partnerships with local and state education agencies, allowing it to expand its reach and influence in the education sector. Additionally, Stride may receive funding from grants and educational initiatives aimed at improving online learning opportunities.

Stride Financial Statement Overview

Summary

Stride exhibits strong financial performance across all statements. The income statement shows robust growth and profitability, the balance sheet reflects a stable financial position with effective leverage management, and the cash flow statement highlights strong cash generation and management. The company is well-positioned for continued growth in the Education & Training Services industry.

Income Statement

Stride has demonstrated strong revenue growth with a 5.23% increase in TTM, supported by a solid gross profit margin of 39.08%. The net profit margin has also improved to 13.10%, indicating enhanced profitability. EBIT and EBITDA margins are healthy at 17.84% and 22.71%, respectively, showcasing efficient operational management. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.40, indicating a stable leverage position. Return on equity is strong at 23.36%, reflecting effective use of equity to generate profits. The equity ratio stands at 64.50%, suggesting a solid capital structure. Overall, the balance sheet is stable with a good balance between debt and equity.

Cash Flow

Stride's free cash flow growth is impressive at 54.36%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.14, showing efficient cash conversion. The free cash flow to net income ratio of 1.04 further supports the company's ability to generate cash relative to its net income. Overall, the cash flow statement reflects strong cash management and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.48B	2.41B	2.04B	1.84B	1.69B	1.54B
Gross Profit	970.19M	943.92M	763.60M	647.07M	596.48M	534.90M
EBITDA	539.27M	508.39M	386.18M	291.31M	253.26M	203.36M
Net Income	315.86M	287.94M	204.18M	126.87M	107.13M	71.45M
Balance Sheet
Total Assets	2.33B	2.29B	1.92B	1.76B	1.64B	1.58B
Cash, Cash Equivalents and Short-Term Investments	715.10M	985.27M	692.29M	410.81M	389.40M	386.08M
Total Debt	588.03M	549.76M	528.21M	543.81M	565.67M	466.28M
Total Liabilities	805.71M	814.34M	744.44M	813.37M	830.96M	772.65M
Stockholders Equity	1.53B	1.48B	1.18B	947.30M	812.58M	804.65M
Cash Flow
Free Cash Flow	361.80M	431.04M	217.21M	136.60M	139.26M	81.89M
Operating Cash Flow	379.04M	432.82M	278.80M	203.15M	206.88M	134.15M
Investing Cash Flow	-91.82M	-88.00M	-139.87M	-118.24M	-110.76M	-165.44M
Financing Cash Flow	-86.54M	-62.94M	-49.12M	-63.50M	-93.31M	204.58M

Stride Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRN, the sentiment is Negative. The current price of 71.9 is below the 20-day moving average (MA) of 124.64, below the 50-day MA of 140.57, and below the 200-day MA of 139.82, indicating a bearish trend. The MACD of -20.11 indicates Positive momentum. The RSI at 18.49 is Positive, neither overbought nor oversold. The STOCH value of 7.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LRN.

Stride Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDU	77 Outperform	$9.65B	25.28	9.28%	―	7.22%	-2.84%
TAL	75 Outperform	$7.09B	40.95	4.77%	―	44.57%	147.78%
ATGE	73 Outperform	$3.35B	13.84	17.38%	―	12.24%	52.97%
LAUR	73 Outperform	$4.37B	21.71	20.15%	―	2.01%	-13.82%
LRN	70 Outperform	$3.12B	11.10	23.04%	―	17.25%	30.15%
LOPE	68 Neutral	$5.19B	22.41	30.77%	―	6.52%	11.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Stride Corporate Events

Stride, Inc. Earnings Call: Growth Amid Challenges

Stride, Inc. Earnings Call Reveals Mixed Sentiment Amidst Growth and Challenges

Stride, Inc. Reports Strong Q1 2026 Financial Growth

Stride, Inc. is a leading technology-based education company that offers innovative learning solutions across primary, secondary, and postsecondary settings, serving learners in all 50 states and over 100 countries. In its first quarter of fiscal year 2026, Stride, Inc. reported robust financial results driven by strong demand, with revenue reaching $620.9 million, marking a 12.7% increase compared to the previous year. The company also saw significant improvements in income from operations and net income, which rose by 45.7% and 68.3%, respectively.

Stride Expands Board with New Director Appointment

On September 16, 2025, Stride, Inc. announced the election of Robert E. Knowling, Jr. to its Board of Directors, expanding the board from seven to eight members. Mr. Knowling will also serve on the Audit and Compensation Committees. His compensation includes an annual restricted stock award of $250,000 and cash retainers for his board and committee roles.

The most recent analyst rating on (LRN) stock is a Hold with a $153.00 price target. To see the full list of analyst forecasts on Stride stock, see the LRN Stock Forecast page.

Stride, Inc. Reports Record Growth Amid Challenges

Stride, Inc.’s recent earnings call painted a picture of robust financial health, underscored by record revenue and operating income growth. The company reported significant enrollment increases and a generally favorable funding environment, although challenges such as an impairment charge in the Galvanize business and issues within the Adult Learning segment slightly dampened the positive sentiment. Despite a significant contract loss in New Mexico, Stride adeptly managed to secure new district partners, maintaining its momentum.

Stride, Inc. Reports Strong Fiscal Year 2025 Results

Stride, Inc. is a leading technology-based education company providing a range of learning solutions across K-12, career, and adult education sectors, serving learners in all 50 states and over 100 countries.