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Stride (LRN) Q3 FY25 earnings results (third quarter fiscal 2025)

10-Q filed Apr 30, 2025

Stride (LRN) reported revenue of $613M for the third quarter fiscal 2025 (Q3 FY25), +18% from a year earlier and +4% from the quarter before. Operating margin was 21.3%, net earnings $99.3M (16.2% of revenue).

Revenue$613M
Year over year+18%
Quarter over quarter+4%
Operating margin21.3%
Net earnings$99.3M

Stride, Q3 FY25: revenue $613M (+18% year over year), operating margin 21.3%, net earnings $99.3M, operating cash flow $53.1M. The chart follows the revenue to costs, profit and cash.

Q3 FY25AmountQ/QY/Y
Revenue$613M+4%+18%
Gross profit$249M+4%+24%
Operating profit$131M+5%+48%
Net earnings$99.3M+3%+43%
Operating cash flow$53.1M-76%-23%
Free cash flow$52.9M-76%-23%

What changed

Revenue was $613.4M in Q3 FY25, up 18% year over year and up 4% from the previous quarter. General Education was the largest line at 60% of revenue. Middle - High School added $55.9M year over year (up 33%), 60% of the total change. Adult declined 22%.

Gross margin was 40.6%, up 2.0 points from a year earlier. Operating profit was $130.8M, a 21.3% margin (up 4.4 points year over year). Of the extra revenue versus a year earlier, 46% reached operating profit, above the 17% margin then. Operating expenses grew 5% against revenue growth of 18%. Net earnings were $99.3M, up 43% year over year. The effective tax rate was 26.3%.

Operating cash flow was $53.1M (down 23% year over year), 53% of net earnings. Non-cash charges added back $28.9M of depreciation and amortization and $8.5M of share-based compensation. Working capital and other items used $83.7M. Capital expenditures of $197K left free cash flow of $52.9M.

Questions

What was Stride's revenue in the third quarter fiscal 2025?

Stride (LRN) reported revenue of $613M for the third quarter fiscal 2025 (Q3 FY25), +18% from a year earlier and +4% from the quarter before.

Was Stride profitable in the third quarter fiscal 2025?

Operating profit was $131M (21.3% of revenue) and net earnings $99.3M.

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Source: Stride 10-Q on SEC EDGAR.