Stride, Inc. (LRN)

The past six months have seen significant events impacting Stride, Inc.'s stock price. On October 28, 2025, Stride reported its Q1 FY2026 earnings, with an EPS of $1.40 and a 13% increase in revenue, but provided muted guidance for in-year enrollment growth for FY2026. A platform upgrade issue in Q1 FY2026 led to an estimated loss of 10,000-15,000 enrollments, causing the stock to crash by 54% in a single day in late 2025, leading to a 60% valuation drop by December 2025. As of January 2, 2026, the share price was $64.61. On January 12, 2026, a securities class action lawsuit reminder was issued to investors regarding alleged "Ghost Students" and the platform failure. Stride announced its Q2 FY2026 earnings call for January 27, 2026.

Demand for Stride, Inc.'s products and services exhibits seasonality, particularly around the academic calendar. The new school year enrollment, which typically occurs in calendar Q3 (July-September), is a critical period. The first fiscal quarter (July-September) is often seasonally negative for free cash flow due to school onboarding processes. Stock prices in the education sector can be volatile during enrollment seasons. Seasonal analysis suggests a period of strength for Stride's stock from January to April. Stride has been gaining market share, indicating a sustained demand for online and career-oriented education.

Stride, Inc. is a for-profit education company operating in the Education Services industry and Consumer Services sector, specifically EdTech. It provides online education solutions for students from kindergarten through 12th grade, offering full-time online K-12 schools, curriculum, and specialized programs. Stride has expanded into career learning through programs like Destinations Career Academies and acquisitions like Galvanize, Tech Elevator, and MedCerts, and also provides corporate training solutions.

Stride, Inc. is headquartered in Reston, Virginia, and serves learners in all 50 states and over 100 countries. The company's business model relies on digital infrastructure and partnerships with U.S. school districts to operate virtual public schools.

In the past year, Stride's brand reputation has seen both positive developments and significant challenges. The company experienced record enrollments in Q1 FY2025, with an 18.5% year-over-year growth, reflecting strong demand for educational choice. However, the platform upgrade issue in Q1 FY2026, which resulted in "poor customer experience" and enrollment losses, negatively impacted its reputation. Furthermore, a securities class action lawsuit filed in January 2026, alleging "Ghost Students" and the platform failure, has also affected the company's public image.

Stride, Inc. has significant institutional ownership, ranging from approximately 58.04% to 98.24% of its outstanding shares. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, iShares Core S&P Small-Cap ETF, Invesco Ltd., State Street Corp, William Blair Investment Management, Llc, Janus Henderson Group Plc, American Century Companies Inc, and Dimensional Fund Advisors Lp. Key individual owners and initial investors include Lowell J. Milken and Michael R. Milken. James Jeaho Rhyu, the CEO, is also listed as an insider owner.