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Investing.com -- Stride Inc. (NYSE:LRN) shares tumbled 34% in after-hours trading Tuesday after the education technology company’s revenue guidance for both the current quarter and fiscal year 2026 came in significantly below analyst expectations, overshadowing a strong first-quarter performance.
The company reported first-quarter adjusted earnings of $1.52 per share, handily beating the analyst estimate of $1.08. Revenue rose 12.7% YoY to $620.9 million, slightly above the consensus estimate of $615.96 million. Despite the earnings beat, investors focused on Stride’s disappointing outlook.
For the second quarter, Stride forecasts revenue between $620 million and $640 million, well below analyst expectations of $649.4 million. The company’s full-year revenue guidance of $2.48 billion to $2.555 billion also fell short of the $2.67 billion consensus estimate.
"Our first quarter results reflect strong enrollment growth across our programs," said James Rhyu, CEO of Stride. "While we’re pleased with our performance to start the fiscal year, we remain cautious about growth rates for the remainder of the year."
The company reported first-quarter enrollments of 247,700 students, up 11.3% compared to the same period last year. Career Learning enrollments showed particularly strong growth, increasing 20% YoY to 110,000 students.
Revenue per enrollment rose 3.7% to $2,388 compared to the first quarter of fiscal 2025. General Education revenue per enrollment increased 6% to $2,543, while Career Learning revenue per enrollment grew 1.4% to $2,196.
Stride’s first-quarter net income jumped 68.3% to $68.8 million, with diluted earnings per share rising to $1.40 from $0.94 in the prior-year period. Adjusted EBITDA increased 29.2% to $108.4 million.
As of September 30, 2025, the company had $749.6 million in cash and marketable securities, down from $1,011.4 million at the end of June 2025. Capital expenditures for the quarter totaled $21.7 million, up from $14.8 million in the same period last year.
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