Filing Flows › Strategic Education (STRA) › Q1 2025
Strategic Education (STRA) Q1 2025 earnings results (first quarter 2025)
10-Q filed Apr 24, 2025
Strategic Education (STRA) reported revenue of $304M for the first quarter 2025 (Q1 2025), +5% from a year earlier and -3% from the quarter before. Operating margin was 13.1%, net earnings $29.7M (9.8% of revenue).
Strategic Education, Q1 2025: revenue $304M (+5% year over year), operating margin 13.1%, net earnings $29.7M, operating cash flow $67.7M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $304M | -3% | +5% |
| Operating profit | $39.8M | +10% | -4% |
| Net earnings | $29.7M | +17% | +0.1% |
| Operating cash flow | $67.7M | +325% | -13% |
| Free cash flow | $57.3M | 12× | -16% |
What changed
Revenue was $303.6M in Q1 2025, up 5% year over year and down 3% from the previous quarter. U.S. Higher Education was the largest line at 73% of revenue. Education Technology Services added $10.7M year over year (up 45%), 80% of the total change.
Operating profit was $39.8M, a 13.1% margin (down 1.1 points year over year). Operating profit fell $1.6M even though revenue rose $13.3M versus a year earlier, so costs grew faster than sales. Total costs grew 6% against revenue growth of 5%. Net earnings were $29.7M, roughly flat year over year. The effective tax rate was 29.2%.
Operating cash flow was $67.7M (down 13% year over year), 227% of net earnings. Non-cash charges added back $11.2M of depreciation and amortization and $5.5M of share-based compensation. Working capital and other items added $21.2M. Capital expenditures of $10.3M left free cash flow of $57.3M.
Questions
What was Strategic Education's revenue in the first quarter 2025?
Strategic Education (STRA) reported revenue of $304M for the first quarter 2025 (Q1 2025), +5% from a year earlier and -3% from the quarter before.
Was Strategic Education profitable in the first quarter 2025?
Operating profit was $39.8M (13.1% of revenue) and net earnings $29.7M.