LRN Stride Inc

$LRN Q1 '27 Earnings Results & Recap • Reported GAAP EPS of $1.37 down -9.87% YoY • Reported revenue of $639.38M up 2.98% YoY • Stride forecasts FY2027 revenue of $2.53B to $2.61B and adjusted operating income of $500M to $530M; Q2 FY2027 revenue is forecast at $625M to $645M.

$LRN is ranked #14 in consumer defensive quality with a score of 82. I used Stock Meadow’s scoring model to review the results.

$LRN Stride Form 4, Director Buy Dylan G. Haggart (Director), through Fivespan Partners, LP, Buys 154,196 @ $78.98

$LRN Follow-up: Stride, a tech-based K-12 and career education company, set first FY2027 (to June 2027) guidance: revenue $2.530-2.610B, up 0.5-3.7% on FY2026's $2,518.1M, and adjusted operating income $500-530M vs $498.4M. Its Oct 9 8-K said a target capital structure is due within ~3 months; at Sept 30, cash and securities were $884.2M and the $418.4M of debt is now current, vs a ~$3.28B market value at $78.9 (16:00 ET Oct 20). Q1 revenue rose 3.0% to $639.4M, but net income fell to $64.9M from $68.8M and adjusted EPS to $1.37 from $1.52.

$LRN Stride, an online K-12 school operator, settled with holder Fivespan, which dropped its board nominations, a stockholder proposal and a books-and-records demand for two board seats. Fivespan founder Dylan Haggart will co-chair a new Capital Allocation Committee with director Brian Shepherd once it takes effect on Oct 30. Stride held $1,034.1M cash and securities vs $418.0M long-term debt at June 30; cash is ~31% of its ~$3.3B market value at the Oct 7 close of $79.755. Fivespan accepts a standstill; a target capital structure is due in ~3 months.

$LRN is ranked #14 in consumer defensive quality. I used Stock Meadow’s scoring model to review the scores. What do you think?

$LRN any thoughts about LRN after earnings? On the one hand growth is slowing, but then the balance sheet is solid and the fundamentals are better than before. It's P/E is still attractive. I think it's fine long term but tempted to sell at a small profit and invest elsewhere.

$LRN revenue rose 3.0% to 639.4 million dollars even though enrollments fell 2.5% to 241.4K. Revenue per enrollment was up 7.0% to 2,556 dollars, and Career Learning did the work, revenue up 9.7% while General Education fell 1.8%. FY27 revenue guide held at 2.53 to 2.61 billion dollars.