Strategic Education releases 2024 annual report

HERNDON, Va. - Strategic Education, Inc. (NASDAQ: STRA), an educational services provider with a market capitalization of $2 billion, has released its 2024 Annual Report and Letter to Shareholders. According to InvestingPro analysis, the company maintains strong financial health with a GOOD overall rating and currently trades near its 52-week low, potentially presenting an opportunity for value investors. The report is now accessible on the company’s website in the Investor Relations section.

The company also confirmed that its 2025 Annual Meeting of Stockholders is scheduled to be held via webcast on April 23, 2025, at 8:00 a.m. ET. Shareholders who were on record as of March 3, 2025, will have the right to vote at the meeting. The proxy materials providing details about the Annual Meeting can be found on the company’s website or at the Securities and Exchange Commission’s website.

Strategic Education is known for providing educational opportunities designed to support economic mobility through higher education. The company, which generated revenue of $1.22 billion in the last twelve months with a healthy gross margin of 46.68%, caters primarily to working adults and operates through three core focus areas: U.S. Higher Education, Education Technology Services, and its institutions in Australia/New Zealand.

In the U.S., Strategic Education runs Capella University and Strayer University, both of which are institutionally accredited and offer a range of degree programs, including those from the Jack Welch Management Institute at Strayer University. Additionally, the company offers non-degree web and mobile application development courses through Strayer’s Hackbright Academy and Devmountain.

The Education Technology Services division works to create partnerships with employers to develop education benefits programs. These programs provide employees with affordable and relevant training, certificate, and degree programs. Workforce Edge, a full-service education benefits administration solution, and Sophia Learning, which offers low-cost online courses for college credit, are part of this division.

In Australia and New Zealand, Strategic Education’s portfolio includes Torrens University, Think Education, and Media Design School, which offer a variety of certificate and degree programs.

The release of the annual report and the shareholder letter is a standard disclosure practice for publicly traded companies, providing investors with an overview of the company’s performance and strategic direction. The company maintains a consistent 2.9% dividend yield and has maintained dividend payments for nine consecutive years. For deeper insights into Strategic Education’s financial health and future prospects, including access to 10+ additional ProTips and comprehensive valuation analysis, investors can explore InvestingPro’s detailed research report, part of its coverage of over 1,400 US equities. The information is based on a press release statement from Strategic Education, Inc.

In other recent news, Strategic Education reported fourth-quarter earnings that fell short of analyst expectations, with adjusted earnings per share at $1.27 compared to the anticipated $1.43. Revenue for the quarter was $311.5 million, slightly below the projected $315.58 million, marking a 2.9% increase year-over-year. The U.S. Higher Education segment experienced a 1.5% revenue decline despite a 3% rise in student enrollment, while operating income margin dropped to 8.3% from 15.1% in the previous year. However, the Education Technology Services segment showed promise with a 39.3% revenue increase driven by Sophia Learning subscriptions and employer partnerships. For the full year 2024, revenue rose 7.7% to $1.22 billion, and adjusted earnings per share increased to $4.87 from $3.72 in 2023.

Strategic Education’s Audit Committee has appointed Deloitte & Touche LLP as the new independent auditor for the fiscal year ending December 31, 2025, replacing PricewaterhouseCoopers LLP. This change follows a regular review of accounting firm arrangements, with no disagreements reported on accounting principles or practices. Meanwhile, Truist Securities has maintained its Buy rating on Strategic Education, viewing the recent 17% stock decline after mixed fourth-quarter results as an overreaction. They see the current valuation, which is at a 43% discount compared to peers, as a potential opportunity for investors. Truist analysts are optimistic that skepticism around the company’s long-term targets will diminish in the coming quarters.

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