Earnings release
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EXHIBIT 99.1 K12 Demand Remains Strong RESTON, Va., Jan. 27, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the second quarter of fiscal year 2026 ended December 31, 2025. Second Quarter Fiscal 2026 Highlights Compared to 2025 Revenue of $631.3 million, compared with $587.2 million Income from operations of $146.9 million, compared with $125.1 million Net income of $99.5 million, compared with $96.4 million Diluted net income per share of $2.12, compared with $2.03 Adjusted operating income of $159.0 million, compared with $135.6 million (1) Adjusted EBITDA of $188.1 million, compared with $160.4 million (1) Adjusted earnings per share of $2.50, compared with $2.37 (1) Core platform issues stabilized; enhancements ongoing Second Quarter Fiscal 2026 Summary Financial Metrics Three Months Ended December 31, Change 2025/2024 2025 2024 $ % (In thousands, except percentages and per share data) Revenues $ 631,261 587,211 $ 44,050 7.5% Income from operations 146,852 125,100 21,752 17.4% Adjusted operating income (1) 158,997 135,570 23,427 17.3% Net income 99,477 96,393 3,084 3.2% Net income per share, diluted 2.12 2.03 0.09 4.4% Adjusted earnings per share (1) 2.50 2.37 0.13 5.5% EBITDA (1) 177,805 152,495 25,310 16.6% Adjusted EBITDA (1) 188,072 160,420 27,652 17.2% (1) To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share. Management believes that these additional measures provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. Six Month Fiscal 2026 Highlights Compared to 2025 Revenue of $1,252.1 million, compared with $1,138.3 million Income from operations of $215.8 million, compared with $172.4 million Net income of $168.3 million, compared with $137.3 million Diluted net income per share of $3.49, compared with $2.93 Adjusted operating income of $240.1 million, compared with $193.9 million (1) Adjusted EBITDA of $296.5 million, compared with $244.3 million (1) Adjusted earnings per share of $3.95, compared with $3.50 (1)
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Six Month Fiscal 2026 Summary Financial Metrics Six Months Ended December 31, Change 2025/2024 2025 2024 $ % (In thousands, except percentages and per share data) Revenues $1,252,145 1,138,295 113,850 10.0% Income from operations 215,835 172,444 43,391 25.2% Adjusted operating income (1) 240,135 193,930 46,205 23.8% Net income 168,277 137,275 31,002 22.6% Net income per share, diluted 3.49 2.93 0.56 19.1% Adjusted earnings per share (1) 3.95 3.50 0.45 12.9% EBITDA (1) 276,022 227,973 48,049 21.1% Adjusted EBITDA (1) 296,511 244,347 52,164 21.3% Revenue Data Three Months Ended Six Months Ended December 31, Change 2025 / 2024 December 31, Change 2025 / 2024 2025 2024 $ % 2025 2024 $ % (In thousands, except percentages) General Education $341,397 $354,315 $(12,918) (3.6%) $ 704,513 683,722 $ 20,791 3.0% Career Learning Middle – High School 275,590 213,079 62,511 29.3% 517,090 411,965 105,125 25.5% Adult 14,274 19,817 (5,543) (28.0%) 30,542 42,608 (12,066) (28.3%) Total Career Learning 289,864 232,896 56,968 24.5% 547,632 454,573 93,059 20.5% Total Revenues $631,261 $587,211 $ 44,050 7.5% $1,252,145 1,138,295 $113,850 10.0% Enrollment and Revenue Per Enrollment Data Second quarter enrollments were 248.5K, up 7.8% compared to 230.6K enrollments in the second quarter of fiscal year 2025. Of the total enrollments, 111.5K were Career Learning enrollments, up 17.6% compared to 94.8K Career Learning enrollments in the second quarter of fiscal 2025. Enrollments only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, and instructional and support services, inclusive of administrative support and may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollments for our Adult Learning business. Revenue per enrollment for the second quarter was $2,437, up 1.8% compared to $2,395 in the second quarter of fiscal year 2025. General Education revenue per enrollment was $2,407, down 3.6% compared to the second quarter of fiscal year 2025, and Career Learning revenue per enrollment was $2,473, up 10.0%, compared to the second quarter of fiscal year 2025. Cash Flow and Capital Allocation
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As of December 31, 2025, the Company’s cash and cash equivalents and marketable securities totaled $676.0 million, compared with $1,011.4 million reported at June 30, 2025. Capital expenditures for the three months ended December 31, 2025 were $16.0 million, compared to $14.8 million in the three months ended December 31, 2024, and were comprised of ($0.2) million of property and equipment, $11.0 million of capitalized software development and $5.2 million of capitalized curriculum development. Fiscal Year 2026 Outlook The Company is forecasting the following for the full fiscal year 2026: Revenue in the range of $2.480 billion to $2.555 billion. Capital expenditures in the range of $70 million to $80 million. Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows. Effective tax rate of 24% to 25%. Adjusted operating income in the range of $485 million to $505 million. (1) The Company is forecasting the following for the third quarter of fiscal year 2026: Revenue in the range of $615 million to $645 million. Capital expenditures in the range of $16 million to $21 million. Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows. Adjusted operating income in the range of $130 million to $140 million. (1) (1) In addition to providing an outlook for revenue and capital expenditures, adjusted operating income is provided as a supplemental non-GAAP financial measure as management believes that it provides useful information to our investors. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. Please also see Special Note on Forward-Looking Statements below. Conference Call The Company will discuss its second quarter of fiscal year 2026 financial results during a conference call scheduled for Tuesday, January 27, 2026 at 5:00 p.m. eastern time (ET). A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call. A replay of the call will be posted at investors.stridelearning.com/events-and-presentations. About Stride Inc. Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com. Investor Contact ir@k12.com Media Contact press@k12.com Special Note on Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including FY 2026 outlook. We have tried, whenever possible, to identify these forward-looking statements using words such as “outlook,”
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“forecasts,” “anticipates,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends,” “should,” “would” and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model or meet guidance; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve, our vendors, or us to comply with our contracts, or federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, contractual remedies, or actions or proceedings against us; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve, including due to the evolution of curriculum standards, testing programs and state accountability metrics; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school which we operate legal and regulatory challenges from opponents of virtual public education or for-profit education companies; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction or termination in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies (including artificial intelligence) and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud systems and facilities, resulting from cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems; problems in the implementation of new IT systems and technology; failure by us or third parties to maintain and support information technology systems, including addressing quality issues and timely delivering new products and enhancements; risks related to artificial intelligence; and other risks and uncertainties associated with our business described in the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequently filed Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this press release is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. Financial Statements The financial statements set forth below are not the complete set of Stride, Inc.’s financial statements for the three and six months ended December 31, 2025 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Quarterly Report on Form 10-Q for the three and six months ended December 31, 2025, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC’s website at www.sec.gov or from Stride Inc.’s Investor Relations website at investors.stridelearning.com. STRIDE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 (In thousands except share and per share data) Revenues $ 631,261 $ 587,211 $ 1,252,145 $ 1,138,295 Instructional costs and services 371,630 347,353 750,391 682,584 Gross margin 259,631 239,858 501,754 455,711
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Selling, general, and administrative expenses 112,779 114,758 285,919 283,267 Income from operations 146,852 125,100 215,835 172,444 Interest expense, net (2,814) (2,670) (5,888) (5,023) Other income (expense), net (10,764) 7,330 6,148 16,108 Income before income taxes and income (loss) from equity method investments 133,274 129,760 216,095 183,529 Income tax expense (33,966) (33,361) (48,388) (44,638) Income (loss) from equity method investments 169 (6) 570 (1,616) Net income attributable to common stockholders $ 99,477 $ 96,393 $ 168,277 $ 137,275 Net income attributable to common stockholders per share: Basic $ 2.31 $ 2.24 $ 3.89 $ 3.20 Diluted $ 2.12 $ 2.03 $ 3.49 $ 2.93 Weighted average shares used in computing per share amounts: Basic 43,074,993 43,017,190 43,223,473 42,942,750 Diluted 46,863,391 47,462,688 48,265,257 46,905,355 STRIDE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS December 31, June 30, 2025 2025 (audited) (In thousands except share and per share data) ASSETS Current assets Cash and cash equivalents $ 497,098 $ 782,497 Accounts receivable, net of allowance of $31,507 and $31,124 868,964 559,646 Inventories, net 17,942 37,570 Prepaid expenses 74,384 35,579 Marketable securities 128,615 202,769 Other current assets 13,314 14,673 Total current assets 1,600,317 1,632,734 Property and equipment, net 110,580 78,582 Capitalized software, net 79,084 75,314 Capitalized curriculum development costs, net 61,066 58,584 Intangible assets, net 14,416 18,227 Goodwill 246,676 246,676 Deferred tax asset — 26,377 Deposits and other assets 194,411 157,465 Total assets $ 2,306,550 $ 2,293,959 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 45,739 $ 43,962 Accrued liabilities 63,369 103,276 Accrued compensation and benefits 43,409 74,939 Deferred revenue 5,084 26,995
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Current portion of finance lease liability 58,459 42,316 Current portion of operating lease liability 4,073 11,391 Total current liabilities 220,133 302,879 Long-term finance lease liability 65,986 44,567 Long-term operating lease liability 10,566 35,164 Long-term debt 417,182 416,322 Deferred tax liability 26,533 — Other long-term liabilities 18,309 15,408 Total liabilities 758,709 814,340 Commitments and contingencies Stockholders’ equity Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding — — Common stock, par value $0.0001; 100,000,000 shares authorized; 49,194,315 and 48,852,419 shares issued; and 42,586,782 and 43,517,676 shares outstanding, respectively 4 4 Additional paid-in capital 724,366 735,711 Accumulated other comprehensive loss (63) (67) Retained earnings 1,014,730 846,453 Treasury stock of 6,607,533 and 5,334,743 shares at cost, respectively (191,196) (102,482) Total stockholders’ equity 1,547,841 1,479,619 Total liabilities and stockholders' equity $ 2,306,550 $ 2,293,959 STRIDE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended December 31, 2025 2024 (Inthousands) Cash flows from operating activities Net income $ 168,277 $ 137,275 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization expense 60,187 55,529 Stock-based compensation expense 20,489 16,374 Deferred income taxes 54,448 9,289 Provision for credit losses 8,318 9,624 Amortization of fees on debt 859 847 Noncash operating lease expense 3,998 6,222 Other (623) 1,869 Changes in assets and liabilities: Accounts receivable (317,628) (119,416) Inventories, prepaid expenses, deposits and other current and long- term assets (549) (4,084) Accounts payable 3,804 (8,983) Accrued liabilities (41,737) 20,248 Accrued compensation and benefits (31,315) (20,303) Operating lease liability (13,466) (6,437) Deferred revenue and other liabilities (19,006) (16,694) Net cash provided by (used in) operating activities (103,944) 81,360
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Cash flows from investing activities Purchase of property and equipment (52) (1,153) Capitalized software development costs (24,691) (18,601) Capitalized curriculum development costs (12,924) (9,841) Other acquisitions, loans and investments, net of distributions (50,294) (950) Proceeds from the maturity of marketable securities 183,426 140,740 Purchases of marketable securities (130,138) (145,865) Net cash used in investing activities (34,673) (35,670) Cash flows from financing activities Repayments on finance lease obligations (25,939) (16,714) Purchase of treasury stock (88,645) — Repurchase of restricted stock for income tax withholding (32,198) (11,963) Net cash used in financing activities (146,782) (28,677) Net change in cash, cash equivalents and restricted cash (285,399) 17,013 Cash, cash equivalents and restricted cash, beginning of period 782,497 500,614 Cash, cash equivalents and restricted cash, end of period $ 497,098 $ 517,627 Reconciliation of cash, cash equivalents and restricted cash to balance sheet as of December 31st: Cash and cash equivalents $ 497,098 515,049 Deposits and other assets (restricted cash) — 2,578 Total cash, cash equivalents and restricted cash $ 497,098 517,627 Non-GAAP Financial Measures To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share, which are not presented in accordance with GAAP. Adjusted operating income (loss) is defined as income (loss) from operations as adjusted for amortization of intangible assets, stock-based compensation, and other one-time charges or gains. EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization. Adjusted EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization, stock-based compensation, and other one-time charges or gains. Adjusted earnings per share (adjusted EPS) is defined as net income (loss) attributable to common stockholders as adjusted for the amortization of intangible assets, stock-based compensation, and other one- time charges or gains net of tax impact divided by the diluted weighted average number of common shares outstanding less the shares expected to be received for the capped call transaction related to Stride’s convertible senior notes. Adjusted operating income (loss), adjusted EBITDA, and adjusted EPS exclude stock-based compensation, which consists of expenses for restricted stock, restricted stock units, and performance stock units. Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss), adjusted EBITDA and adjusted EPS remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. Adjusted operating income (loss), adjusted EBITDA and adjusted earnings per share remove one-time charges or gains which are not related to core operating activities and are not indicative of our ongoing operating performance. Additionally, adjusted EPS includes the impact from shares expected to be received by the Company to offset potential dilution from the convertible senior notes. EBITDA and adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired. Management uses these non-GAAP financial measures:
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as additional measures of operating performance because they assist in comparing the Company’s performance on a consistent basis; and in presentations to the members of the Company’s Board of Directors to enable the Board to review the same measures used by management to compare the Company’s current operating results with corresponding prior periods. Other companies may define these non-GAAP financial measures differently and, as a result, these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although these non-GAAP financial measures are used to assess the performance of the business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items included and/or not included in the most directly comparable GAAP financial measure. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and diluted net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. Second Quarter Fiscal Year 2026 Reconciliation of Income from Operations to Adjusted Operating Income Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 (In thousands) Income from operations $ 146,852 $ 125,100 $ 215,835 $ 172,444 Amortization of intangible assets 1,878 2,545 3,811 5,112 Stock-based compensation expense 10,267 7,925 20,489 16,374 Adjusted operating income $ 158,997 $ 135,570 $ 240,135 $ 193,930 Reconciliation of Net Income to EBITDA and Adjusted EBITDA Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 (In thousands) Net income $ 99,477 $ 96,393 $ 168,277 $ 137,275 Interest expense, net 2,814 2,670 5,888 5,023 Other (income) expense, net 10,764 (7,330) (6,148) (16,108) Income tax expense 33,966 33,361 48,388 44,638 (Income) loss from equity method investments (169) 6 (570) 1,616 Depreciation and amortization 30,953 27,395 60,187 55,529 EBITDA 177,805 152,495 276,022 227,973 Stock-based compensation expense 10,267 7,925 20,489 16,374 Adjusted EBITDA $ 188,072 $ 160,420 $ 296,511 $ 244,347 Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share
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Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 (In thousands) Net income attributable to common stockholders $ 99,477 $ 96,393 $ 168,277 $ 137,275 Amortization of intangible assets 1,878 2,545 3,811 5,112 Stock-based compensation expense 10,267 7,925 20,489 16,374 Income tax effect from adjustments above (1,838) (1,143) (10,807) (5,515) Adjusted net income attributable to common stockholders $ 109,784 $ 105,720 $ 181,770 $ 153,246 Share computation: Weighted average common shares – diluted 46,863,391 47,462,688 48,265,257 46,905,355 Effect of capped call transactions (2,912,026) (2,779,544) (2,227,565) (3,067,060) Adjusted weighted average common shares – diluted 43,951,365 44,683,144 46,037,692 43,838,295 Adjusted earnings per share $ 2.50 $ 2.37 $ 3.95 $ 3.50 Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 (per share) Diluted net income per share $ 2.12 $ 2.03 $ 3.49 $ 2.93 Amortization of intangible assets 0.04 0.05 0.08 0.11 Stock-based compensation expense 0.22 0.17 0.42 0.35 Income tax effect from adjustments above (0.04) (0.02) (0.22) (0.12) Effect of capped call transactions 0.16 0.14 0.18 0.23 Adjusted earnings per share $ 2.50 $ 2.37 $ 3.95 $ 3.50 Fiscal Year 2026 Outlook Reconciliation of Income from Operations to Adjusted Operating Income (unaudited) Three Months Ended March 31, 2026 Year Ended June 30, 2026 Low High Low High (In millions) Income from operations $ 118.5 $ 127.0 $ 437.0 $ 454.0 Stock-based compensation expense 10.0 11.0 41.0 43.0 Amortization of intangible assets 1.5 2.0 7.0 8.0 Adjusted operating income $ 130.0 $ 140.0 $ 485.0 $ 505.0