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Strategic Education, Inc. (NASDAQ:STRA), a company specializing in educational services, has made a significant change to its financial oversight team. On February 27, 2025, the company’s Audit Committee decided to replace PricewaterhouseCoopers LLP (PwC) with Deloitte & Touche LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2025.
This decision was part of the company’s regular review of its accounting firm arrangements. The dismissal of PwC, which took effect on February 27, followed a period during which there were no reported disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedures that would have required mention in PwC’s reports for the fiscal years 2023 and 2024. The company’s solid financial position is reflected in its low debt-to-equity ratio of 0.08 and healthy Altman Z-Score of 6.62, indicating strong financial stability.
Strategic Education confirmed that in the time leading up to the switch, no "reportable events" occurred, which typically refer to significant issues that could raise concerns about the company’s financial statements. PwC has provided a letter, dated today, affirming their agreement with the company’s statements regarding their dismissal.
The selection of Deloitte as the new auditor was approved by the Audit Committee on February 25, pending standard client acceptance procedures and the execution of an engagement letter. Prior to this decision, neither Strategic Education nor its representatives had consulted Deloitte on any accounting principles or auditing matters that would have influenced the company’s financial decision-making.
This change in certifying accountant is an important step for Strategic Education as it moves forward into the 2025 fiscal year. The information provided in this article is based on a recent SEC filing by the company. For deeper insights into Strategic Education’s financial health and comprehensive analysis, including additional ProTips and detailed metrics, check out the full company research report available on InvestingPro, where you can access expert analysis on over 1,400 US stocks.
In other recent news, Strategic Education reported fourth-quarter earnings that did not meet analyst expectations. The company posted adjusted earnings per share of $1.27, falling short of the consensus estimate of $1.43. Revenue for the quarter was $311.5 million, which was below analyst projections of $315.58 million, although it marked a modest year-over-year increase of 2.9%. The U.S. Higher Education segment experienced a revenue decline of 1.5% to $214.3 million, despite a 3% rise in student enrollment to 88,860. The segment’s operating income margin saw a significant contraction, dropping to 8.3% from 15.1% in the same quarter the previous year. In contrast, the Education Technology Services segment experienced robust growth, with revenue increasing by 39.3% to $30.5 million, fueled by Sophia Learning subscriptions and employer partnerships. For the full year 2024, Strategic Education reported a 7.7% increase in revenue to $1.22 billion and adjusted earnings per share of $4.87, up from $3.72 in 2023. Additionally, the company announced a quarterly cash dividend of $0.60 per share, payable on March 17, 2025.
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