Filing Flows › Strategic Education (STRA) › Q2 2025
Strategic Education (STRA) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 30, 2025
Strategic Education (STRA) reported revenue of $321M for the second quarter 2025 (Q2 2025), +3% from a year earlier and +6% from the quarter before. Operating margin was 14.2%, net earnings $32.3M (10.1% of revenue).
Strategic Education, Q2 2025: revenue $321M (+3% year over year), operating margin 14.2%, net earnings $32.3M, operating cash flow $31.2M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $321M | +6% | +3% |
| Operating profit | $45.8M | +15% | +9% |
| Net earnings | $32.3M | +9% | +8% |
| Operating cash flow | $31.2M | -54% | +28% |
| Free cash flow | $20.4M | -64% | +50% |
What changed
Revenue was $321.5M in Q2 2025, up 3% year over year and up 6% from the previous quarter. U.S. Higher Education was the largest line at 67% of revenue. Education Technology Services added $12.2M year over year (up 50%), 132% of the total change. Australia / New Zealand declined 3%.
Operating profit was $45.8M, a 14.2% margin (up 0.8 points year over year). Of the extra revenue versus a year earlier, 42% reached operating profit, above the 13% margin then. Total costs grew 2% against revenue growth of 3%. Net earnings were $32.3M, up 8% year over year. The effective tax rate was 28.9%.
Operating cash flow was $31.2M (up 28% year over year), 97% of net earnings. Non-cash charges added back $12.0M of depreciation and amortization and $5.9M of share-based compensation. Working capital and other items used $19.0M. Capital expenditures of $10.8M left free cash flow of $20.4M.
Questions
What was Strategic Education's revenue in the second quarter 2025?
Strategic Education (STRA) reported revenue of $321M for the second quarter 2025 (Q2 2025), +3% from a year earlier and +6% from the quarter before.
Was Strategic Education profitable in the second quarter 2025?
Operating profit was $45.8M (14.2% of revenue) and net earnings $32.3M.