INDEX TO CONSOLIDATED FINANCIAL STATEMENTS ​ Page Reports of Independent Registered Public Accounting Firm (PCAOB ID: 185) 57 Report of Independent Registered Public Accounting Firm (PCAOB ID: 243) 61 Consolidated Balance Sheets as of June 30, 2026 and 2025 62 Consolidated Statements of Operations for the years ended June 30, 2026, 2025 and 2024 63 Consolidated Statements of Comprehensive Income for the years ended June 30, 2026, 2025 and 2024 64 Consolidated Statements of Stockholders’ Equity for the years ended June 30, 2026, 2025 and 2024 65 Consolidated Statements of Cash Flows for the years ended June 30, 2026, 2025 and 2024 66 Notes to Consolidated Financial Statements 67 Schedule II—Valuation and Qualifying Accounts 99 ​ ​ ​ 56 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Stride, Inc.: ​ Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Stride, Inc. and subsidiaries (the Company) as of June 30, 2026 and 2025, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended June 30, 2026, and the related notes and financial statement schedule II (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the two-year period ended June 30, 2026, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated August 4, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenues from certain funding-based contracts As discussed in Note 3 to the consolidated financial statements, the Company’s General Education and Middle - High School Career Learning revenues are primarily from funding-based contracts. The Company estimates funding-based contract revenue from state governments or school districts based upon the amount of expected funds each school will receive. Total funds for a school are primarily a function of the number of students enrolled in the school and established per enrollment funding levels, which are generally published on an annual basis by the state or school district. 57 Table of Contents We identified the evaluation of revenue from certain funding-based contracts as a critical audit matter. Subjective auditor judgment was required to evaluate the nature of audit evidence obtained to evaluate the number of students enrolled in each school and the established per enrollment funding levels. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s process to estimate funding-based contract revenue, including the determination of number of students enrolled at each school and per enrollment funding levels. For certain funding-based contracts, we obtained admissions records detailing the number of students enrolled to evaluate the established per enrollment funding levels based on the respective state or school district requirements. We evaluated the revenue from certain funding-based contracts recorded by recalculating funding levels in accordance with the respective state or school district requirements. ​ ​ ​ /s/ KPMG LLP​​ ​ We have served as the Company’s auditor since 2024. ​ McLean, Virginia August 4, 2026 ​ ​ ​ 58 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Stride, Inc.: Opinion on Internal Control over Financial Reporting We have audited Stride, Inc. and subsidiaries' (the Company) internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of June 30, 2026 and 2025, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended June 30, 2026, and the related notes and financial statement schedule II (collectively, the consolidated financial statements), and our report dated August 4, 2026 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. ​ 59 Table of Contents Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. ​ ​ ​ /s/ KPMG LLP McLean, Virginia August 4, 2026 ​ 60 Table of Contents Report of Independent Registered Public Accounting Firm Shareholders and Board of Directors Stride, Inc. Reston, Virginia ​ Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows of Stride, Inc. (the “Company”) for the year ended June 30, 2024, and the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the results of its operations and its cash flows for the year ended June 30, 2024, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. ​ ​ ​ /s/ BDO USA, P.C.​​ ​ We served as the Company’s auditor from 2005 to 2024. ​ Potomac, Maryland August 6, 2024 ​ ​ ​ 61 Table of Contents STRIDE, INC. CONSOLIDATED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (In thousands except share and per share data) ASSETS ​ ​ ​ ​ ​ ​ Current assets ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 754,501 ​ $ 782,497 Accounts receivable, net of allowance of $31,302 and $31,124 ​ ​ 664,788 ​ ​ 559,646 Inventories, net ​ ​ 38,250 ​ ​ 37,570 Prepaid expenses ​ ​ 43,052 ​ ​ 35,579 Marketable securities ​ ​ 203,499 ​ ​ 202,769 Other current assets ​ ​ 12,033 ​ ​ 14,673 Total current assets ​ ​ 1,716,123 ​ ​ 1,632,734 Property and equipment, net ​ ​ 102,042 ​ ​ 78,582 Capitalized software, net ​ ​ 95,002 ​ ​ 75,314 Capitalized curriculum development costs, net ​ ​ 56,895 ​ ​ 58,584 Intangible assets, net ​ ​ 10,876 ​ ​ 18,227 Goodwill ​ ​ 246,676 ​ ​ 246,676 Deferred tax asset ​ ​ — ​ ​ 26,377 Deposits and other assets ​ ​ 207,938 ​ ​ 157,465 Total assets ​ $ 2,435,552 ​ $ 2,293,959 LIABILITIES AND STOCKHOLDERS' EQUITY ​ ​ ​ ​ ​ ​ Current liabilities ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 46,742 ​ $ 43,962 Accrued liabilities ​ ​ 95,446 ​ ​ 103,276 Accrued compensation and benefits ​ ​ 62,896 ​ ​ 74,939 Deferred revenue ​ ​ 20,553 ​ ​ 26,995 Current portion of finance lease liability ​ ​ 60,477 ​ ​ 42,316 Current portion of operating lease liability ​ ​ 2,737 ​ ​ 11,391 Total current liabilities ​ ​ 288,851 ​ ​ 302,879 Long-term finance lease liability ​ ​ 56,455 ​ ​ 44,567 Long-term operating lease liability ​ ​ 8,316 ​ ​ 35,164 Long-term debt ​ ​ 417,995 ​ ​ 416,322 Deferred tax liability ​ ​ 13,033 ​ ​ — Other long-term liabilities ​ ​ 18,573 ​ ​ 15,408 Total liabilities ​ ​ 803,223 ​ ​ 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; 49,126,917 and 48,852,419 shares issued; and 41,477,230 and 43,517,676 shares outstanding, respectively ​ ​ 4 ​ ​ 4 Additional paid-in capital ​ ​ 739,829 ​ ​ 735,711 Accumulated other comprehensive loss ​ ​ (59) ​ ​ (67) Retained earnings ​ ​ 1,184,645 ​ ​ 846,453 Treasury stock of 7,649,687 and 5,334,743 shares at cost, respectively ​ ​ (292,090) ​ ​ (102,482) Total stockholders’ equity ​ ​ 1,632,329 ​ ​ 1,479,619 Total liabilities and stockholders' equity ​ $ 2,435,552 ​ $ 2,293,959 See accompanying notes to consolidated financial statements. 62 Table of Contents ​ STRIDE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ (In thousands except share and per share data) Revenues ​ ​ ​ $ 2,518,081 ​ $ 2,405,317 ​ $ 2,040,069 Instructional costs and services ​ ​ ​ ​ 1,567,481 ​ ​ 1,461,398 ​ ​ 1,276,466 Gross margin ​ ​ ​ ​ 950,600 ​ ​ 943,919 ​ ​ 763,603 Selling, general, and administrative expenses ​ ​ ​ ​ 499,833 ​ ​ 524,347 ​ ​ 514,003 Impairment of long-lived assets ​ ​ ​ ​ — ​ ​ 59,478 ​ ​ — Income from operations ​ ​ ​ ​ 450,767 ​ ​ 360,094 ​ ​ 249,600 Interest expense, net ​ ​ ​ ​ (11,778) ​ ​ (10,504) ​ ​ (8,812) Other income, net ​ ​ ​ ​ 2,173 ​ ​ 33,629 ​ ​ 26,900 Income before income taxes and income (loss) from equity method investments ​ ​ ​ ​ 441,162 ​ ​ 383,219 ​ ​ 267,688 Income tax expense ​ ​ ​ ​ (102,765) ​ ​ (93,007) ​ ​ (64,482) Income (loss) from equity method investments ​ ​ ​ ​ (205) ​ ​ (2,271) ​ ​ 977 Net income attributable to common stockholders ​ ​ ​ $ 338,192 ​ $ 287,941 ​ $ 204,183 Net income attributable to common stockholders per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ ​ $ 7.92 ​ $ 6.69 ​ $ 4.79 Diluted ​ ​ ​ $ 7.14 ​ $ 5.95 ​ $ 4.69 Weighted average shares used in computing per share amounts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ ​ ​ 42,717,156 ​ ​ 43,041,274 ​ ​ 42,626,588 Diluted ​ ​ ​ ​ 47,332,855 ​ ​ 48,413,717 ​ ​ 43,535,441 See accompanying notes to consolidated financial statements. ​ 63 Table of Contents STRIDE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ 2025 ​ 2024 ​ ​ ​ ​ (In thousands) Net income ​ ​ ​ $ 338,192 ​ $ 287,941 ​ $ 204,183 Other comprehensive income (loss), net of tax: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency translation adjustment ​ ​ ​ ​ 8 ​ ​ (25) ​ ​ (7) Comprehensive income attributable to common stockholders ​ ​ ​ $ 338,200 ​ $ 287,916 ​ $ 204,176 See accompanying notes to consolidated financial statements. ​ ​ 64 Table of Contents STRIDE, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stride, Inc. Stockholders' Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Paid-in ​ Comprehensive ​ Retained ​ Treasury Stock ​ ​ ​ (In thousands except share data) ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Income (Loss) ​ ​ ​ Earnings ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, June 30, 2023 48,339,048 ​ $ 4 ​ $ 695,480 ​ $ (35) ​ $ 354,329 (5,334,743) ​ $ (102,482) ​ $ 947,296 Net income — ​ ​ — ​ ​ — ​ ​ — ​ ​ 204,183 ​ — ​ ​ — ​ ​ 204,183 Foreign currency translation adjustment — ​ ​ — ​ ​ — ​ ​ (7) ​ ​ — ​ — ​ ​ — ​ ​ (7) Stock-based compensation expense — ​ ​ — ​ ​ 32,810 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ 32,810 Vesting of performance share units, net of tax withholding 31,426 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ — Issuance of restricted stock awards 507,443 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — Forfeiture of restricted stock awards (153,728) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — Repurchase of restricted stock for tax withholding (148,025) ​ ​ — ​ ​ (8,257) ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ (8,257) Balance, June 30, 2024 48,576,164 ​ $ 4 ​ $ 720,033 ​ $ (42) ​ $ 558,512 (5,334,743) ​ $ (102,482) ​ $ 1,176,025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 287,941 ​ — ​ ​ — ​ ​ 287,941 Foreign currency translation adjustment ​ — ​ ​ — ​ ​ — ​ ​ (25) ​ ​ — ​ — ​ ​ — ​ ​ (25) Stock-based compensation expense ​ — ​ ​ — ​ ​ 37,295 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ 37,295 Vesting of performance share units, net of tax withholding ​ 173,804 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — Issuance of restricted stock awards ​ 317,490 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — Forfeiture of restricted stock awards ​ (84,389) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — Repurchase of restricted stock for tax withholding (130,650) ​ ​ — ​ ​ (21,617) ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ (21,617) Balance, June 30, 2025 ​ 48,852,419 ​ $ 4 ​ $ 735,711 ​ $ (67) ​ $ 846,453 ​ (5,334,743) ​ $ (102,482) ​ $ 1,479,619 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 338,192 ​ — ​ ​ — ​ ​ 338,192 Foreign currency translation adjustment ​ — ​ ​ — ​ ​ — ​ ​ 8 ​ ​ — ​ — ​ ​ — ​ ​ 8 Stock-based compensation expense ​ — ​ ​ — ​ ​ 40,370 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ 40,370 Purchase of treasury stock, net of tax ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ (2,314,944) ​ ​ (189,608) ​ ​ (189,608) Vesting of performance share units, net of tax withholding ​ 245,412 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — Issuance of restricted stock awards ​ 206,518 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — Forfeiture of restricted stock awards ​ (64,562) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — Repurchase of restricted stock for tax withholding ​ (112,870) ​ ​ — ​ ​ (36,252) ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ (36,252) Balance, June 30, 2026 ​ 49,126,917 ​ $ 4 ​ $ 739,829 ​ $ (59) ​ $ 1,184,645 ​ (7,649,687) ​ $ (292,090) ​ $ 1,632,329 ​ See accompanying notes to consolidated financial statements. ​ 65 Table of Contents STRIDE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ 2024 ​ ​ (In thousands) Cash flows from operating activities ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 338,192 ​ $ 287,941 ​ $ 204,183 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization expense ​ ​ 126,562 ​ ​ 114,669 ​ ​ 109,683 Stock-based compensation expense ​ ​ 40,255 ​ ​ 36,794 ​ ​ 31,462 Deferred income taxes ​ ​ 39,993 ​ ​ (17,783) ​ ​ 2,890 Provision for credit losses ​ ​ 16,463 ​ ​ 15,267 ​ ​ 22,844 Amortization of fees on debt ​ ​ 1,673 ​ ​ 1,647 ​ ​ 1,640 Noncash operating lease expense ​ ​ 5,063 ​ ​ 12,265 ​ ​ 14,246 Impairment of long-lived assets ​ ​ — ​ ​ 59,478 ​ ​ — Other ​ ​ 20,514 ​ ​ (596) ​ ​ 849 Changes in assets and liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable ​ ​ (121,370) ​ ​ (102,188) ​ ​ (32,056) Inventories, prepaid expenses, deposits and other current and long-term assets ​ ​ 6,538 ​ ​ (6,239) ​ ​ (8,877) Accounts payable ​ ​ 2,164 ​ ​ 310 ​ ​ (6,844) Accrued liabilities ​ ​ (10,188) ​ ​ 40,915 ​ ​ (16,556) Accrued compensation and benefits ​ ​ (11,828) ​ ​ 9,913 ​ ​ 7,394 Operating lease liability ​ ​ (16,943) ​ ​ (12,396) ​ ​ (14,990) Deferred revenue and other liabilities ​ ​ (3,274) ​ ​ (7,181) ​ ​ (37,071) Net cash provided by operating activities ​ ​ 433,814 ​ ​ 432,816 ​ ​ 278,797 Cash flows from investing activities ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchase of property and equipment ​ ​ (587) ​ ​ (1,781) ​ ​ (2,270) Capitalized software development costs ​ ​ (61,591) ​ ​ (36,428) ​ ​ (40,653) Capitalized curriculum development costs ​ ​ (16,668) ​ ​ (21,801) ​ ​ (18,666) Other acquisitions, loans and investments, net of distributions ​ ​ (55,538) ​ ​ (20,682) ​ ​ (5,196) Proceeds from the maturity of marketable securities ​ ​ 279,497 ​ ​ 252,930 ​ ​ 204,487 Purchases of marketable securities ​ ​ (324,941) ​ ​ (260,233) ​ ​ (277,573) Net cash used in investing activities ​ ​ (179,828) ​ ​ (87,995) ​ ​ (139,871) Cash flows from financing activities ​ ​ ​ ​ ​ ​ ​ ​ ​ Repayments on finance lease obligations ​ ​ (56,856) ​ ​ (41,469) ​ ​ (40,919) Purchase of treasury stock ​ ​ (188,659) ​ ​ — ​ ​ — Repurchase of restricted stock for income tax withholding ​ ​ (36,467) ​ ​ (21,469) ​ ​ (8,200) Net cash used in financing activities ​ ​ (281,982) ​ ​ (62,938) ​ ​ (49,119) Net change in cash, cash equivalents and restricted cash ​ ​ (27,996) ​ ​ 281,883 ​ ​ 89,807 Cash, cash equivalents and restricted cash, beginning of period ​ ​ 782,497 ​ ​ 500,614 ​ ​ 410,807 Cash, cash equivalents and restricted cash, end of period ​ $ 754,501 ​ $ 782,497 ​ $ 500,614 See accompanying notes to consolidated financial statements. ​ ​ 66 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements ​ 1. Description of the Business Stride, Inc., together with its subsidiaries (“Stride” or the “Company”), is a technology company providing an educational platform to deliver online learning to students throughout the U.S. The brand reflects the Company’s continued growth into lifelong learning, regardless of a student’s age or location. The Company’s platform hosts products and services to attract, enroll, educate, track progress, and support students. These products and services, spanning curriculum, systems, instruction, and support services, are designed to help learners of all ages reach their full potential through inspired teaching and personalized learning. The Company’s clients are primarily public and private schools, school districts, and charter boards. Additionally, it provides solutions to employers, government agencies and consumers. These products and services are provided through two lines of revenue: ​ ● General Education products and services are predominantly focused on core subjects, including math, English, science and history, for kindergarten through twelfth grade students to help build a common foundation of knowledge. These programs provide an alternative to traditional school options and address a range of student needs. Products and services are delivered as a comprehensive school-as-a-service offering for schools or as stand-alone products and services. A student enrolled in a school that offers Stride’s General Education program may elect to take career courses, but that student and the associated revenue is reported as a General Education enrollment and General Education revenue. ​ ● Career Learning products and services are focused on developing skills to enter and succeed in careers in high-growth, in-demand industries—including information technology, healthcare and general business. The Company provides middle and high school students with Career Learning programs that complement their core general education coursework. Stride offers multiple career pathways through a broad catalog of courses. The middle school program exposes students to a variety of career options and introduces career skill development. In high school, students may engage in industry content pathway courses, project-based learning in virtual teams, and career development services. High school students have the opportunity to progress toward certifications, connect with industry professionals, earn college credits while in high school, and participate in job shadowing and/or work-based learning experiences that facilitate success in today’s digital, tech-enabled economy. A student is reported as a Career Learning enrollment and associated Career Learning revenue only if the student is enrolled in a Career Learning program. Like General Education products and services, the products and services for Career Learning are sold as a comprehensive school-as-a-service offering or as stand-alone products and services. The Company also provides focused post-secondary career learning programs to adult learners, for the software engineering, healthcare, and medical fields. These programs are sold directly to consumers, employers and government agencies. ​ 2. Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. 3. Summary of Significant Accounting Policies Recent Accounting Pronouncements ​ Accounting Standards Adopted ​ In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and for interim periods for 67 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ fiscal years beginning after December 15, 2025. The Company adopted this guidance prospectively, as permitted by ASU 2023-09, in the fourth quarter of 2026. The adoption is reflected in Note 5, “Income Taxes.” ​ Accounting Standards Not Yet Adopted ​ In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) ("ASU 2024-03"). This update provides investors with enhanced detail regarding components of expenses presented in the income statement, aiming to improve transparency and enable precise understanding of a company’s cost structure. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company will review the extent of new disclosures necessary in the coming quarters, prior to implementation during fiscal year 2028. Other than additional disclosure, the Company does not expect a change to its consolidated financial statements. ​ In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The update provides an optional practical expedient for public companies to estimate expected credit losses on current accounts receivable and contract assets arising from ASC 606 transactions by assuming that conditions at the balance sheet date remain unchanged over the assets’ remaining lives. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025 (including interim periods), with early adoption permitted. The Company is assessing the impact of the ASU and whether to elect the practical expedient upon adoption in fiscal year 2027. ​ In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 is intended to modernize and clarify the accounting for internal-use software, including updates to capitalization guidance that removes references to project stages and replaces them with the concept of a probable-to-complete recognition threshold. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and early adoption is permitted as of the beginning of an annual period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. ​ Segment Reporting Stride, Inc. operates in one operating and reportable business segment as a technology company providing an educational platform to deliver proprietary and third-party curriculum, software systems and educational services designed to facilitate individualized learning for students and adults. The Company’s primary revenue source is derived from educational products and services provided through its General Education and Career Learning lines of revenue. Operating as a cohesive technology company, the Company offers its products and services across the United States via an integrated online platform, using a centralized management approach for all educational and support functions. The Chief Executive Officer (“CEO”) serves as the Chief Operating Decision Maker (“CODM”). The CODM evaluates the Company’s performance based on consolidated net income. This measure aligns with Stride’s consolidated financial statements and serves as the basis for resource allocation and performance assessment. The measure of segment assets is reported on the balance sheet as total consolidated assets. The CODM monitors profitability and strategic growth initiatives on a consolidated basis without disaggregating profit or loss into separate operating segments. The Company determined there are no significant segment expenses that require a separate disclosure. The consolidated net income is used to assess overall company performance, benchmark against industry standards, and identify profitability trends, which guides resource allocation and investment in expansion and technology upgrades. The CODM also evaluates company performance using operating income. Operating income provides the CODM with a focused view of the company’s profitability excluding the effects of financing activities, tax strategies, and other non-operating items. This measure enables the CODM to assess operational efficiency, monitor performance trends, and evaluate the effectiveness of strategies aimed at revenue generation and cost management. 68 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to the allowance for credit losses, inventory reserves, amortization periods, the allocation of the purchase price to the fair value of net assets and liabilities acquired in business combinations, fair values used in asset impairment evaluations, valuation of long-lived assets, accrual for incurred but not reported (“IBNR”) claims, contingencies, income taxes, fair value of contingent consideration, and stock-based compensation expense. The Company bases its estimates on historical experience and various assumptions that it believes are reasonable under the circumstances. The results of the analysis form the basis for making assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Revenue Recognition ​ Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services using the following steps: ​ ● identify the contract, or contracts, with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to the performance obligations in the contract; and ● recognize revenue when, or as, the Company satisfies a performance obligation. ​ Revenues related to the products and services that the Company provides to students in kindergarten through twelfth grade or adult learners are considered to be General Education or Career Learning based on the school or adult program in which the student is enrolled. General Education products and services are focused on core subjects, including math, English, science and history, for kindergarten through twelfth grade students to help build a common foundation of knowledge. Career Learning products and services are focused on developing skills to enter and succeed in careers in high-growth, in-demand industries—including information technology, healthcare and general business, for students in middle school through high school and adult learners. ​ The majority of the Company’s contracts are with the following types of customers: ​ ● a virtual or blended school whereby the amount of revenue is primarily determined by funding the school receives; ● a school or individual who licenses certain curriculum on a subscription or course-by-course basis; or ● an enterprise that contracts with the Company to provide online job training. ​ Funding-based Contracts ​ The Company provides an integrated package of systems, services, products, and professional expertise that is administered together to support a virtual or blended public school. Contracts generally span multiple years with performance obligations being isolated to annual periods which generally coincide with the fiscal year. Customers of these programs can obtain administrative support, information technology, academic support services, online curriculum, learning systems platforms and instructional services under the terms of a negotiated service agreement. The schools receive funding on a per student basis from the state in which the public school or school district is located. Shipments of materials for schools that occur in the fourth fiscal quarter and the upcoming school year are recorded in deferred revenue. ​ The Company generates revenues under contracts with virtual and blended public schools and includes the 69 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ following components, where required: ​ ● providing each of a school’s students with access to the Company’s online school and lessons; ● offline learning kits, which include books and materials to supplement the online lessons; ● the use of a personal computer and associated reclamation services; ● internet access and technology support services; ● instruction by a state-certified teacher; and ● management and technology services necessary to support a virtual or blended school. In certain contracts, revenues are determined directly by per enrollment funding. ​ To determine the ratable amount of revenue to recognize in a fiscal quarter, the Company estimates the total expected funds each school will receive in a particular school year. Total funds for a school are primarily a function of the number of students enrolled in the school and established per enrollment funding levels, which are generally published on an annual basis by the state or school district. The Company reviews its estimates of funding periodically, and updates as necessary, by adjusting its year-to-date earned revenues to be proportional to the total expected revenues to be earned during the fiscal year. Actual school funding may vary from these estimates and the impact of these differences could impact the Company’s results of operations. Since the end of the school year coincides with the end of the fiscal year, annual revenues are generally based on actual school funding and actual costs incurred (including costs for the Company’s services to the schools plus other costs the schools may incur). The Company’s reported results are subject to annual school district financial audits, which incorporate enrollment counts, funding and other routine financial audit considerations. The results of these audits are incorporated into the Company’s monthly funding estimates. Historically, aggregate funding estimates have differed from actual reimbursements, generally in the range of 2% of annual revenue or less, which may vary from year to year. For the years ended June 30, 2025, 2024 and 2023, the Company’s aggregate funding estimates differed from actual reimbursements impacting total reported revenue by approximately 0.8%, 1.8%, and 2.8%, respectively. Each state and/or school district has variations in the school funding formulas and methodologies that it uses to estimate funding for revenue recognition at its respective schools. As the Company estimates funding for each school, it takes into account the state definition for count dates on which reported enrollment numbers will be used for per pupil funding. The parameters the Company considers in estimating funding for revenue recognition purposes include school district count definitions, withdrawal rates, new registrations, average daily attendance, special needs enrollment, academic progress, historical completion, student location, funding caps and other state specified categorical program funding. Under the contracts where the Company provides products and services to schools, the Company is responsible for substantially all of the expenses incurred by the school and has generally agreed to absorb any operating losses of the schools in a given school year. These school operating losses represent the excess of costs incurred over revenues earned by the virtual or blended public school (the school’s expected funding), as reflected in its respective financial statements, including Company charges to the schools. To the extent a school does not receive sufficient funding for each student enrolled in the school, the school would still incur costs associated with serving the unfunded enrollment. If losses due to unfunded enrollments result in a net operating loss for the year that loss is reflected as a reduction in the revenues and net receivables that the Company collects from the school. A school net operating loss in one year does not necessarily mean the Company anticipates losing money on the entire contract with the school. However, a school’s net operating loss may reduce the Company’s ability to collect its management fees in full and revenues recognized are constrained to reflect the expected cash collections from such schools. The Company records the school’s estimated net operating loss against revenues based upon the percentage of actual revenues in the period to total estimated revenues for the fiscal year. Actual school net operating losses may vary from these estimates or revisions, and the impact of these differences could have a material impact on results of operations. For the years ended June 30, 2026, 2025 and 2024, the Company’s revenues included an adjustment for net school operating losses at the schools of $17.2 million, $14.5 million, and $17.0 million, respectively. Because the Company has agreed to absorb any operating losses of the schools, the Company records the expenses incurred by the school as both revenue and expense in the consolidated statements of operations. For the years ended June 30, 2026, 2025 and 2024, the Company recognized revenue associated with these schools of $683.6 million, $662.6 million and $576.4 million, respectively. ​ 70 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ Subscription-based Contracts ​ The Company provides certain online curriculum and services to schools and school districts under subscription agreements. Revenues from the licensing of curriculum under subscription arrangements are recognized on a ratable basis over the subscription period. Revenues from professional consulting, training and support services are deferred and recognized ratably over the service period. ​ In addition, the Company contracts with individual customers who have access for one to two years to company-provided online curriculum and generally prepay for services to be received. Adult learners enroll in courses that provide specialized training in a specific industry. Each of these contracts is considered to be one performance obligation. The Company recognizes these revenues ratably over the maximum term of the customer contract based on the defined contract price. ​ Enterprise Contracts ​ The Company provides online job training over a specified contract period to enterprises. Each of these contracts is considered to be one performance obligation. The Company recognizes these revenues based on the number of students trained during the term of the contract based on the defined contract price. ​ Disaggregated Revenues ​ The revenue recognition related to the types of contracts discussed above can span both of the Company’s lines of revenue as shown below. For example, a funding-based contract may include both General Education and Career Learning students. In total, there is one performance obligation and revenue is recognized over the fiscal year. The revenue is then disaggregated between General Education and Career Learning based on the Company’s estimated full-year enrollment totals of each category. During the years ended June 30, 2026, 2025 and 2024, approximately 96%, 95%, and 93%, respectively, of the Company’s General Education revenues, and 100%, 100% and 100%, respectively, of the Company’s Middle – High School Career Learning revenues, were from funding-based contracts. ​ The following table presents the Company’s revenues disaggregated based on its two lines of revenue for the years ended June 30, 2026, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (In thousands) General Education ​ $ 1,417,785 ​ $ 1,448,676 ​ $ 1,289,193 Career Learning ​ ​ ​ ​ ​ ​ ​ ​ ​ Middle - High School ​ ​ 1,043,726 ​ ​ 876,287 ​ ​ 651,191 Adult ​ ​ 56,570 ​ ​ 80,354 ​ ​ 99,685 Total Career Learning ​ ​ 1,100,296 ​ ​ 956,641 ​ ​ 750,876 Total Revenues ​ $ 2,518,081 ​ $ 2,405,317 ​ $ 2,040,069 ​ Concentration of Customers ​ During each of the years ended June 30, 2026, 2025 and 2024, the Company had no contracts that represented greater than 10% of total revenues. ​ 71 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ Contract Balances ​ The timing of revenue recognition, invoicing, and cash collection results in accounts receivable, unbilled receivables (a contract asset) and deferred revenue (a contract liability) in the consolidated balance sheets. Accounts receivable are recorded when there is an executed customer contract and the customer is billed. An allowance is recorded to reflect expected losses at the time the receivable is recorded. The collectability of outstanding receivables is evaluated regularly by the Company to determine if additional allowances are needed. Unbilled receivables are created when revenue is earned prior to the customer being billed. Deferred revenue is recorded when customers are billed or cash is collected in advance of services being provided. ​ The opening and closing balances of the Company’s accounts receivable, unbilled receivables and deferred revenue are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (In thousands) Accounts receivable ​ $ 664,788 ​ $ 559,646 ​ $ 472,754 Unbilled receivables (included in accounts receivable) ​ ​ 24,351 ​ ​ 19,902 ​ ​ 19,499 Deferred revenue ​ ​ 20,553 ​ ​ 26,995 ​ ​ 35,742 Deferred revenue, long-term (included in other long-term liabilities) ​ ​ 58 ​ ​ 327 ​ ​ 1,097 ​ The difference between the opening and closing balance of the accounts receivable and unbilled receivables relates to the timing of the Company’s billing in relation to month end and its contracts. The difference between the opening and closing balance of the deferred revenue relates to the timing difference between billings to customers and the term of the contract, as well as changes in the estimates of variable consideration. Typically, each of these balances is at its highest during the first quarter of the fiscal year and lowest at the end of the fiscal year. The amount of revenue recognized during the years ended June 30, 2026, 2025 and 2024, that was included in the previous July 1st deferred revenue balance was $25.8 million, $32.0 million, and $74.4 million, respectively. During the years ended June 30, 2026, 2025 and 2024, the Company recorded revenues of $18.4 million, $35.9 million and $51.0 million, respectively, related to performance obligations satisfied in prior periods. ​ Performance Obligations ​ A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For the majority of its contracts, the Company’s performance obligations are satisfied over time, as the Company delivers, and the customer receives the services, over the service period of the contract. The Company’s payment terms are generally net 30 or net 45, but can vary depending on the customer or when the school receives its funding from the state. ​ The Company has elected, as a practical expedient, not to report the value of unsatisfied performance obligations for contracts with customers that have an expected duration of one year or less. The amount of unsatisfied performance obligations for contracts with customers which extend beyond one year as of June 30, 2026 was $0.1 million. ​ Significant Judgments ​ The Company determined that the majority of its contracts with customers contain one performance obligation. The Company markets the products and services as an integrated package building off its curriculum offerings. It does not market distinct products or services to be sold independently from the curriculum offering. The Company provides the significant service of integrating the goods and services into the operation of the school and education of its students, for which the customer has contracted. ​ 72 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ The Company has determined that the time elapsed method is the most appropriate measure of progress towards the satisfaction of the performance obligation. Generally, the Company delivers the integrated products and services package over the course of the Company’s fiscal year. This package includes enrollment, marketing, teacher training, etc. in addition to the core curriculum and instruction. All of these activities are necessary and contribute to the overall education of its students, which occurs evenly throughout the year. Accordingly, the Company recognizes revenue on a straight-line basis. ​ The Company determined that the expected value method is the most appropriate method to account for variable consideration and the Company’s forecasting method is an estimation process that uses probability to determine expected funding. On a monthly basis, the Company estimates the total funds each school will receive in a particular school year and the amount of full-year school revenues and operating expenses to determine the amount of revenue the Company will recognize. Enrollment and state funding rates are key inputs to this estimate. The estimates are adjusted monthly, and a cumulative catch-up adjustment is recorded to revenue as necessary to reflect the total revenues earned to date to be proportional to the total revenues to be earned in the fiscal year. The Company builds in known constraints (i.e., enrollment, funding, net operating losses, etc.) into the estimate of the variable consideration to record the most probable amount. ​ Sales Taxes Sales tax collected from customers is excluded from revenues. Collected but unremitted sales tax is included as part of accrued liabilities in the consolidated balance sheets. Revenues do not include sales tax as the Company considers itself a pass-through conduit for collecting and remitting sales tax. ​ Shipping and Handling Costs Shipping and handling costs are expensed when incurred and are classified as instructional costs and services in the consolidated statements of operations. Shipping and handling charges invoiced to a customer are included in revenues. Research and Development Costs All research and development costs, including patent application costs, are expensed as incurred. Research and development costs totaled $22.0 million, $16.6 million and $16.7 million for the years ended June 30, 2026, 2025 and 2024, respectively, and are included within selling, general and administrative expenses in the consolidated statements of operations. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents generally consist of cash on hand and cash held in money market and demand deposit accounts. The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company periodically has cash balances which exceed federally insured limits. Investments in Marketable Securities The Company’s marketable securities generally consist of bonds and other securities which are classified as held-to-maturity. The securities with maturities between three months and one year are classified as short-term and are included in marketable securities on the consolidated balance sheets. The securities with maturities greater than one year are classified as long-term and are included in deposits and other assets on the consolidated balance sheets. Held-to-maturity securities are recorded at their amortized cost. The Company recorded interest income of $30.4 million, $31.6 million and $25.6 million for the years ended June 30, 2026, 2025 and 2024, respectively. This activity is recorded within other income (expense) within the consolidated statements of operations. The Company reviews the held-to-maturity debt securities for declines in fair value below the amortized cost basis under the credit loss model of Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments – Credit Losses (“ASC 326”). Any decline in fair value related to a credit loss is recognized in the consolidated statements 73 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ of operations, with the amount of the loss limited to the difference between fair value and amortized cost. As of June 30, 2026 and 2025, the allowance for credit losses recognized related to held-to-maturity debt securities was $0.2 million and zero, respectively. As of June 30, 2026, the Company’s marketable securities consisted of investments in corporate bonds, U.S. Treasury notes and commercial paper. The short-term and long-term portions were $203.6 million and $76.2 million, respectively. The maturities of the Company’s long-term marketable debt securities range from one to two years. The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for ​ ​ Net Carrying ​ ​ Gross Unrealized ​ ​ ​ ​ ​ Amortized Cost ​ ​ Credit Losses ​ ​ Amount ​ ​ Gains (Losses) ​ ​ Fair Value Corporate Bonds $ 112,160 ​ $ (160) ​ $ 112,000 ​ $ (269) ​ $ 111,731 U.S. Treasury Notes ​ 141,689 ​ ​ (50) ​ ​ 141,639 ​ ​ (259) ​ ​ 141,380 Commercial Paper ​ 25,956 ​ ​ (12) ​ ​ 25,944 ​ ​ - ​ ​ 25,944 Total $ 279,805 ​ $ (222) ​ $ 279,583 ​ $ (528) ​ $ 279,055 ​ As of June 30, 2025, the Company’s marketable securities consisted of investments in corporate bonds, U.S. Treasury notes, and commercial paper. The short-term and long-term portions were $202.8 million and $26.1 million, respectively. The maturities of the Company’s long-term marketable debt securities range from one to two years. The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for ​ ​ Net Carrying ​ ​ Gross Unrealized ​ ​ ​ ​ ​ Amortized Cost ​ ​ Credit Losses ​ ​ Amount ​ ​ Gains (Losses) ​ ​ Fair Value Corporate Bonds $ 48,837 ​ $ - ​ $ 48,837 ​ $ 97 ​ $ 48,934 U.S. Treasury Notes ​ 35,816 ​ ​ - ​ ​ 35,816 ​ ​ 27 ​ ​ 35,843 Commercial Paper ​ 144,257 ​ ​ - ​ ​ 144,257 ​ ​ (6) ​ ​ 144,251 Total $ 228,910 ​ $ - ​ $ 228,910 ​ $ 118 ​ $ 229,028 ​ In addition to bonds and other held-to-maturity securities, the Company’s marketable securities also include investments in publicly held equity securities. The publicly held equity securities have readily determinable fair values, are included in deposits and other assets on the consolidated balance sheets, and are measured at fair value with changes recognized in other income (expense) within the consolidated statement of operations. As of June 30, 2026 and 2025, the Company’s investments in publicly held equity securities were $42.3 million and $19.9 million, respectively. For the years ended June 30, 2026, 2025 and 2024, the Company recorded a net unrealized (losses) gains of ($24.0) million, $1.0 million, and zero, respectively, related to changes in the fair value of the underlying securities of its publicly held equity securities. Allowance for Credit Losses The Company maintains an allowance for credit losses primarily for estimated losses resulting from the inability or failure of individual customers to make required payments. The Company maintains an allowance under ASC 326 based on historical losses, changes in payment history, customer-specific information, current economic conditions, and reasonable and supportable forecasts of future economic conditions. The allowance under ASC 326 is updated as additional losses are incurred or information becomes available related to the customer or economic conditions. ​ The Company’s allowance for credit losses increased from $31.1 million as of June 30, 2025 to $31.3 million as of June 30, 2026. The increase of $0.2 million is due primarily to a $16.4 million current year provision, less $16.2 million in adjustments and amounts written off. The Company’s allowance for credit losses decreased from $31.3 million as of June 30, 2024 to $31.1 million as of June 30, 2025. The decrease of $0.2 million is due primarily to a $15.3 million current 74 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ year provision, less $15.5 million in amounts written off. ​ The Company writes off accounts receivable based on the age of the receivable and the facts and circumstances surrounding the customer and reasons for non-payment. Actual write-offs might differ from the recorded allowance. Inventories Inventories consist primarily of textbooks and curriculum materials, a majority of which are supplied to virtual and blended public schools, and utilized directly by students. Inventories represent items that are purchased and held for sale and are recorded at the lower of cost (first-in, first-out method) or net realizable value. The Company classifies its inventory as current or long-term based on the holding period. As of June 30, 2026 and 2025, $14.7 million and $13.6 million, respectively, of inventory, net of reserves, was deemed long-term and included in deposits and other assets on the consolidated balance sheets. The provision for excess and obsolete inventory is established based upon the evaluation of the quantity on hand relative to demand. The excess and obsolete inventory reserve was $9.4 million and $6.8 million at June 30, 2026 and 2025, respectively. Other Current Assets Other current assets primarily include textbooks, curriculum materials and other supplies which are expected to be returned upon the completion of the school year. Materials not returned are expensed as part of instructional costs and services. Capitalized Software-as-a-Service Costs The Company capitalizes Software-as-a-Service (“SaaS”) license and implementation costs incurred in cloud computing contracts that are service contracts if they meet certain requirements. Those requirements are similar to the requirements for capitalizing costs incurred to develop internal-use software. Capitalization of SaaS costs ceases once the project is substantially complete and the software is ready for its intended purpose. Amortization is computed using the straight-line method over the term of the associated hosting contract, usually between three and five years. The Company classifies its SaaS implementation costs as current or long-term based on the terms of the associated hosting contract. SaaS implementation costs deemed short-term are included in prepaid expenses, and those deemed long-term are included in deposits and other assets, on the consolidated balance sheets. Impairment is recognized when it is no longer probable that the SaaS project will be completed and placed in service. As of June 30, 2026 and 2025, the Company recorded $18.0 million and $17.5 million, respectively, of costs related to SaaS implementation within prepaid expenses in the consolidated balance sheets. As of June 30, 2026 and 2025, the Company recorded $28.1 million and $43.3 million, respectively, of costs related to SaaS implementation within deposits and other assets in the consolidated balance sheets. ​ During the years ended June 30, 2026, 2025 and 2024, the Company amortized $13.8 million, $3.4 million, and zero, respectively, of SaaS implementation costs to instructional costs and services. SaaS implementation costs amortized to selling, general and administrative expenses were $17.3 million, $16.0 million, and $15.8 million, during the years ended June 30, 2026, 2025 and 2024, respectively. There were no material impairments of SaaS implementation costs for the years ended June 30, 2026, 2025 and 2024. ​ Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is calculated using the straight-line method over the estimated useful life of the asset (or the lesser of the term of the lease and the estimated useful life of the asset under the finance lease). Amortization of assets capitalized under finance lease arrangements is included in depreciation expense. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the asset. The determination of the lease term is discussed below under “Leases.” 75 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ Property and equipment are depreciated over the following useful lives: ​ ​ ​ ​ ​ ​ ​ ​ Useful Life Computer hardware ​ 3 - 5 years Computer software ​ 3 - 5 years Financed computers and printers ​ 3 years Web site development ​ 3 - 5 years Office equipment ​ 3 years Furniture and fixtures ​ 5 - 7 years Leasehold improvements ​ Shorter of useful life or term of the lease ​ The Company makes an estimate of unreturned student computers and printers based on an analysis of recent trends of returns. The Company recorded accelerated depreciation of $5.4 million, $4.3 million and $4.0 million for the years ended June 30, 2026, 2025 and 2024, respectively, related to unreturned student computers and printers. The Company fully expenses computer peripheral equipment (e.g., keyboards, mouses) upon purchase as recovery has been determined to be uneconomical. These expenses totaled $4.4 million, $3.8 million and $4.0 million for the years ended June 30, 2026, 2025 and 2024, respectively, and are recorded as instructional costs and services. Capitalized Software Costs The Company develops software for internal use. Software development costs incurred during the application development stage are capitalized. The Company amortizes these costs over the estimated useful life of the software, which is generally three years. Capitalized software development costs are stated at cost less accumulated amortization. Capitalized software additions totaled $61.6 million, $36.4 million and $40.7 million for the years ended June 30, 2026, 2025 and 2024, respectively. There were no material write-downs of capitalized software projects for the years ended June 30, 2026, 2025 and 2024. Capitalized Curriculum Development Costs The Company internally develops curriculum, which is primarily provided as online content and accessed via the Internet. The Company also creates textbooks and other materials that are complementary to online content. ​ The Company capitalizes curriculum development costs incurred during the application development stage, as well as the design and deployment phases of the project. As a result, a significant portion of the Company’s courseware development costs qualify for capitalization due to the concentration of its development efforts on the content of the courseware. Capitalization ends when a course is available for general release to its customers, at which time amortization of the capitalized costs begins. The period of time over which these development costs are amortized is generally five years. Total capitalized curriculum development additions were $16.7 million, $21.8 million and $18.7 million for the years ended June 30, 2026, 2025 and 2024, respectively. These amounts are recorded on the consolidated balance sheets, net of amortization charges. There were no material write-downs of capitalized curriculum development costs for the years ended June 30, 2026, 2025 and 2024. Leases ​ The Company’s principal leasing activities include computers and peripherals, classified as finance leases, and facilities, classified as operating leases. ​ Leases are classified as operating leases unless they meet any of the criteria below to be classified as a finance lease: 76 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ ● the lease transfers ownership of the asset at the end of the lease; ● the lease grants an option to purchase the asset which the lessee is expected to exercise; ● the lease term reflects a major part of the asset’s economic life; ● the present value of the lease payments equals or exceeds the fair value of the asset; or ● the asset is specialized with no alternative use to the lessor at the end of the term. ​ Finance Leases ​ The Company enters into agreements to finance the purchase of computers and peripherals. Individual leases typically include 3-year payment terms. The Company pledges the assets financed to secure the outstanding leases. ​ Operating Leases ​ The Company enters into agreements for facilities that serve as offices for its headquarters and school operations. Lease terms vary between 1 and 7 years. Certain leases include renewal options, usually based upon current market rates, as well as termination rights. The Company performs an evaluation of each lease to determine if the lease payments included in the renewal option should be included in the initial measurement of the lease liability. Discount Rate ​ The present value of the lease payments is calculated using either the rate implicit in the lease, or the lessee’s incremental borrowing rate, over the lease term. For the majority of the Company’s finance and operating leases, the stated rate is not defined within the lease terms. Therefore, the Company uses its incremental borrowing rate as the discount rate. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment and is calculated using comparative credit ratings. ​ Policy Elections ​ Short-term Leases ​ The Company has elected as an ongoing accounting policy election not to record a right-of-use asset or lease liability on its short-term facility leases of 12 months or less, and will expense its lease payments on a straight-line basis over the lease term. The accounting policy election is made by class of underlying asset to which the right of use relates. The Company has elected to apply the accounting policy election only to operating leases. Goodwill and Intangible Assets The Company records as goodwill the excess of the purchase price over the fair value of the identifiable net assets acquired. Finite-lived intangible assets acquired in business combinations subject to amortization are recorded at their fair value. Finite-lived intangible assets include trade names, acquired customers and distributors, developed technology, and non-compete agreements. Such intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense for the years ended June 30, 2026, 2025 and 2024 was $7.4 million, $9.9 million and $12.9 million, respectively, and is included within selling, general, and administrative expenses in the consolidated statements of operations. Future amortization of intangible assets is expected to be $5.9 million, $4.1 million, $0.3 million, $0.2 million and $0.1 million in the fiscal years ending June 30, 2027 through June 30, 2031, respectively, and $0.1 million thereafter. The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset. As part of the Company’s review of its long-lived assets for impairment (discussed in more detail in Note 3, “Summary of Significant Accounting Policies – Impairment of Long-Lived Assets”) during the year ended June 30, 2025, the Company recorded an aggregate impairment loss of $32.2 million, of which $32.0 77 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ million related to trade names and $0.2 million related to developed technology. The $32.2 million is recorded under impairment of long-lived assets within the consolidated statements of operations. The Company has one reporting unit. The process for testing goodwill and intangible assets with indefinite lives for impairment is performed annually, as well as when an event triggering impairment may have occurred. Companies are also allowed to qualitatively assess goodwill impairment through a screening process which would permit companies to forgo the quantitative impairment test as part of their annual goodwill impairment process. The Company performs its annual assessment on May 31st, which is then updated for any changes in condition as of June 30th. ​ During the years ended June 30, 2026, 2025 and 2024, there were no events or changes in circumstances that would indicate that the carrying amount of the goodwill was impaired. ​ The following table represents the balance of the Company’s goodwill for the years ended June 30, 2026, 2025 and 2024: ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ Amount Goodwill ​ ​ ​ Balance as of June 30, 2024 ​ $ 246.7 ​ ​ ​ ​ Balance as of June 30, 2025 ​ $ 246.7 ​ ​ ​ — Balance as of June 30, 2026 ​ $ 246.7 ​ The following table represents the balance of the Company’s intangible assets as of June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ June 30, 2025 ($ in millions) ​ ​ ​ Gross Carrying Amount ​ ​ ​ Accumulated Amortization and Impairment ​ ​ ​ Net Carrying Value ​ ​ ​ Gross Carrying Amount ​ ​ ​ Accumulated Amortization and Impairment ​ ​ ​ Net Carrying Value Trade names ​ ​ ​ $ 70.6 ​ ​ ​ $ (63.8) ​ ​ ​ $ 6.8 ​ $ 70.6 ​ $ (60.4) ​ $ 10.2 Customer and distributor relationships ​ ​ 37.1 ​ ​ (35.8) ​ ​ 1.3 ​ ​ 37.1 ​ ​ (33.7) ​ ​ 3.4 Developed technology ​ ​ 21.7 ​ ​ (19.1) ​ ​ 2.6 ​ ​ 21.7 ​ ​ (17.3) ​ ​ 4.4 Other ​ ​ 1.4 ​ ​ (1.2) ​ ​ 0.2 ​ ​ 1.4 ​ ​ (1.2) ​ ​ 0.2 Total ​ $ 130.8 ​ $ (119.9) ​ $ 10.9 ​ $ 130.8 ​ $ (112.6) ​ $ 18.2 ​ Impairment of Long-Lived Assets Long-lived assets include property, equipment, right-of-use assets, capitalized curriculum and software developed or obtained for internal use. Management reviews the Company’s recorded long-lived assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company determines the extent to which an asset may be impaired based upon its expectation of the asset’s future usability as well as reasonable assurance that the future cash flows associated with the asset will be in excess of its carrying amount. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset. ​ During the year ended June 30, 2025, the Company reviewed an asset group unrelated to its core operations, comprised entirely of Galvanize, a wholly-owned subsidiary, for impairment and determined that the carrying value exceeded its fair value. This review was prompted by changes in the expected use of certain long-lived assets as the Company decided to exit specific leased facilities. The fair value of the asset group was determined using a discounted cash flow methodology based on expected future cash flows. The Company recorded an impairment loss of $59.5 million, which is separately disclosed in the consolidated statements of operations under impairment of long-lived assets and 78 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ included in income from operations. This loss comprises $32.2 million associated with intangible assets and $27.3 million related to operating lease right-of-use assets. ​ During the years ended June 30, 2026 and 2024, there were no events or changes in circumstances that may indicate that the carrying amount of the long-lived assets may not be recoverable. Income Taxes Deferred tax assets and liabilities are computed based on the difference between the financial reporting and income tax bases of assets and liabilities using the enacted marginal tax rate. The net deferred tax asset is reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the net deferred tax asset will not be realized. Stock-Based Compensation The Company estimates the fair value of share-based awards on the date of grant. The fair value of restricted stock awards is based on the closing price of the Company’s common stock on the date of grant. Certain restricted stock awards with a market-based performance component are valued using a Monte Carlo simulation model that considers a variety of factors, including, but not limited to, the Company’s common stock price, risk-free rate, and expected stock price volatility over the expected life of awards. The Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture. Advertising and Marketing Costs Advertising and marketing costs consist primarily of internet advertising and online marketing, and are expensed when incurred. Advertising costs totaled $92.1 million, $103.6 million and $96.5 million for the years ended June 30, 2026, 2025 and 2024, respectively, and are included within selling, general, and administrative expenses in the consolidated statements of operations. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. Measurements are described in a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ​ The three levels of inputs used to measure fair value are: ​ Level 1: Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date; ​ Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and ​ Level 3: Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. ​ The carrying values reflected in the consolidated balance sheets for cash and cash equivalents, receivables, and short-term obligations approximate their fair values, as they are largely short-term in nature. As of June 30, 2026, the estimated fair value of the long-term debt was $747.6 million. The Company estimated the fair value based on the quoted 79 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ market prices in an inactive market (Level 2). The long-term debt, comprised of the Company’s convertible senior notes due 2027, is recorded at face value less the unamortized debt issuance costs on its consolidated balance sheet, and is discussed in more detail in Note 7, “Debt.” As of June 30, 2026, the estimated fair value of the Company’s held-to-maturity marketable securities based on the quoted market prices in an inactive market (Level 2) was $266.2 million. As of June 30, 2026, the estimated fair value of the Company’s held-to-maturity marketable securities based on quoted prices in an active market (Level 1) was $12.9 million. As of June 30, 2026, the fair value of the Company’s publicly held equity securities was $42.3 million. The fair value was determined using quoted prices in an active market (Level 1). The held-to-maturity marketable securities and publicly held equity securities are discussed in more detail in Note 3, “Summary of Significant Accounting Policies - Investments in Marketable Securities.” ​ There was no activity related to the Company’s fair value measurements categorized as Level 3 in the valuation hierarchy, valued on a recurring basis, for the years ended June 30, 2026, 2025 and 2024. ​ Net Income (Loss) Per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The weighted average number of shares of common stock outstanding includes vested restricted stock awards. Diluted net income (loss) per share (“EPS”) reflects the potential dilution that could occur assuming vesting of all dilutive unvested restricted stock awards. The dilutive effect of restricted stock awards is determined using the treasury stock method. Under the treasury stock method, the proceeds received from the vesting of restricted stock awards, the amount of compensation cost for future service not yet recognized by the Company and the amount of tax benefits that would be recorded as income tax expense when the stock options become deductible for income tax purposes are all assumed to be used to repurchase shares of the Company’s common stock. Restricted stock awards are not included in the computation of diluted net income (loss) per share when they are anti-dilutive. Common stock outstanding reflected in the Company’s consolidated balance sheets includes restricted stock awards outstanding. The dilutive effect of the Company’s convertible debt is determined using the if-converted method when the Company’s stock is trading above the conversion price. However, based on the structure of the instrument and how it is settled upon conversion, it would produce a similar result as the previously applied treasury stock method. The dilutive effect of the Company’s employee stock purchase plan shares is also determined by the treasury stock method. Under the treasury stock method, the total expected employee payroll contributions and unrecognized compensation cost are assumed to be used to repurchase shares of the Company’s common stock. 80 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ The following schedule presents the calculation of basic and diluted net income (loss) per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ ​ ​ 2026 ​ 2025 ​ 2024 ​ ​ ​ ​ (In thousands except share and per share data) Basic net income per share computation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to common stockholders ​ ​ ​ $ 338,192 ​ $ 287,941 ​ $ 204,183 Weighted average common shares — basic ​ ​ ​ ​ 42,717,156 ​ ​ 43,041,274 ​ ​ 42,626,588 Basic net income per share ​ ​ ​ $ 7.92 ​ $ 6.69 ​ $ 4.79 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income per share computation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to common stockholders ​ ​ ​ $ 338,192 ​ $ 287,941 ​ $ 204,183 Share computation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares — basic ​ ​ ​ ​ 42,717,156 ​ ​ 43,041,274 ​ ​ 42,626,588 Effect of dilutive restricted stock, convertible debt, and the employee stock purchase plan ​ ​ ​ ​ 4,615,699 ​ ​ 5,372,443 ​ ​ 908,853 Weighted average common shares — diluted ​ ​ ​ ​ 47,332,855 ​ ​ 48,413,717 ​ ​ 43,535,441 Diluted net income per share ​ ​ ​ $ 7.14 ​ $ 5.95 ​ $ 4.69 ​ For the years ended June 30, 2026, 2025 and 2024, shares issuable in connection with restricted stock, convertible debt, and the 2025 Employee Stock Purchase Plan (the “2025 ESPP”) of 2,778,431, 2,400,621 and 7,658 respectively, were excluded from the diluted income per common share calculation because the effect would have been anti-dilutive. In connection with the issuance of the 1.125% Convertible Senior Notes due 2027 (“Notes”), the Company entered into capped call transactions (the “Capped Call Transactions”) as described further in Note 7, “Debt.” The Capped Call Transactions are intended to reduce the potential dilution to the Company’s common stock upon conversion of the Notes and/or to offset any cash payments the Company may be required to make in excess of the principal amount of the Notes. Reclassification Certain previous year amounts have been reclassified to conform with current year presentation, as related to the balance sheets. ​ 81 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ 4. Property and Equipment and Capitalized Software and Curriculum Property and equipment consists of the following at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ 2026 ​ 2025 ​ ​ (In thousands) Financed computers and printers ​ $ 225,777 ​ $ 173,009 Computer software ​ 3,927 ​ 5,568 Computer hardware ​ 3,722 ​ 4,604 Leasehold improvements ​ 8,587 ​ 10,327 State testing computers ​ ​ 7,149 ​ ​ 7,151 Furniture and fixtures ​ 2,252 ​ 3,107 Office equipment ​ 79 ​ 129 Web site development ​ ​ 2,626 ​ ​ 436 ​ ​ 254,119 ​ 204,331 Less accumulated depreciation and amortization ​ (152,077) ​ (125,749) ​ ​ $ 102,042 ​ $ 78,582 ​ The Company recorded depreciation expense related to property and equipment reflected in selling, general, and administrative expenses of $3.0 million, $2.8 million and $3.8 million during the years ended June 30, 2026, 2025 and 2024, respectively. Depreciation expense of $54.6 million, $39.3 million and $32.9 million related to property and equipment is reflected in instructional costs and services during the years ended June 30, 2026, 2025 and 2024, respectively. The Company incurs maintenance and repair expenses, which are expensed as incurred, and are generally recorded in selling, general, and administrative expenses. Capitalized software costs consist of the following at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ 2026 ​ 2025 ​ ​ (In thousands) Capitalized software ​ $ 276,089 ​ $ 323,782 Less accumulated depreciation and amortization ​ (181,087) ​ (248,468) ​ ​ $ 95,002 ​ $ 75,314 ​ The Company recorded amortization expense of $29.8 million, $35.6 million and $34.4 million related to capitalized software reflected in instructional costs and services and $13.0 million, $9.5 million and $7.9 million reflected in selling, general, and administrative expenses during the years ended June 30, 2026, 2025 and 2024, respectively. Capitalized curriculum development costs consist of the following at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (In thousands) Capitalized curriculum development costs ​ $ 204,674 ​ $ 187,641 Less accumulated depreciation and amortization ​ (147,779) ​ (129,057) ​ ​ $ 56,895 ​ $ 58,584 ​ The Company recorded amortization expense of $18.9 million, $17.5 million and $17.7 million related to 82 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ capitalized curriculum development costs reflected in instructional costs and services during the years ended June 30, 2026, 2025 and 2024, respectively. 5. Income Taxes The provision for income taxes is based on earnings reported in the consolidated financial statements. A deferred income tax asset or liability is determined by applying currently enacted tax laws and rates to the expected reversal of the cumulative temporary differences between the carrying value of assets and liabilities for financial statement and income tax purposes. Deferred income tax expense or benefit is measured by the change in the deferred income tax asset or liability during the year. Deferred tax assets and liabilities result primarily from temporary differences in book versus tax basis accounting. Deferred tax assets and liabilities consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (In thousands) Deferred tax assets ​ ​ ​ ​ ​ ​ Net operating loss carryforward ​ $ 13,524 ​ $ 13,888 Reserves ​ 10,545 ​ 9,154 Accrued expenses ​ 11,916 ​ 15,441 Stock compensation expense ​ 7,320 ​ 6,881 Other assets ​ 2,170 ​ 3,308 Convertible debt ​ 9,085 ​ 4,059 Deferred revenue ​ 122 ​ 260 Capitalized software and website development costs ​ ​ — ​ ​ 4,680 Lease liability ​ ​ 2,659 ​ ​ 11,136 Total deferred tax assets ​ 57,341 ​ 68,807 Deferred tax liabilities ​ ​ ​ ​ ​ ​ Capitalized curriculum development ​ (9,758) ​ (10,071) Capitalized software and website development costs ​ (24,023) ​ — Property and equipment ​ (18,259) ​ (11,460) Right-of-use assets ​ ​ (1,755) ​ ​ (3,832) Returned materials ​ (2,220) ​ (2,722) Purchased intangibles ​ ​ (6,943) ​ ​ (6,717) Total deferred tax liabilities ​ (62,958) ​ (34,802) Net deferred tax (liability) asset before valuation allowance ​ (5,617) ​ 34,005 Valuation allowance ​ (7,416) ​ (7,628) Net deferred tax (liability) asset ​ $ (13,033) ​ $ 26,377 Reported as: ​ ​ ​ ​ ​ ​ Long-term deferred tax (liability) asset ​ $ (13,033) ​ $ 26,377 ​ The Company maintained a valuation allowance on net noncurrent deferred tax assets of $7.4 million and $7.6 million as of June 30, 2026 and 2025, respectively, predominantly related to foreign and state income tax net operating losses ("NOL"). At June 30, 2026, the Company had approximately $24.5 million of available federal NOL carryforwards solely related to the acquisition of Galvanize in January 2020. The available federal NOL carryforwards were generated after 2017 and have an indefinite carryforward period due to the Tax Cuts and Jobs Act (the “Tax Act”). Section 382 of the Internal Revenue Code limits the utilization of NOL carryforwards following a change of control. The Company has performed an analysis of the Section 382 ownership changes and have determined that it will be able to fully utilize its available NOLs subject to the Section 382 limitation. 83 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ At June 30, 2026, the Company had tax effected state NOL carryforwards of $1.0 million, net of valuation allowances, and will expire on various dates. The components of the income before income taxes for the years ended June 30, 2026, 2025 and 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (In thousands) Domestic ​ $ 435,108 ​ $ 374,932 ​ $ 262,802 Foreign ​ 5,850 ​ 6,016 ​ 5,863 Total income before income taxes ​ $ 440,958 ​ $ 380,948 ​ $ 268,665 ​ The components of the income tax expense (benefit) for the years ended June 30, 2026, 2025 and 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ 2026 ​ 2025 ​ 2024 ​ ​ (In thousands) Current: ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal ​ $ 47,321 ​ $ 91,696 ​ $ 52,678 State ​ 14,213 ​ 17,921 ​ 7,660 Foreign ​ 1,238 ​ 1,173 ​ 1,254 Total current ​ 62,772 ​ 110,790 ​ 61,592 Deferred: ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal ​ 38,372 ​ (16,047) ​ (667) State ​ 1,621 ​ (1,736) ​ 3,557 Total deferred ​ 39,993 ​ (17,783) ​ 2,890 Total income tax expense ​ $ 102,765 ​ $ 93,007 ​ $ 64,482 ​ 84 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ Following the adoption of ASU 2023-09, the provision for income taxes can be reconciled to the income tax that would result from applying the statutory rate to the net income before income taxes as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended June 30, 2026 ​ ​ ​ Amount ​ Percent ​ ​ ​ (In thousands) U.S. Federal Statutory Tax Rate ​ $ 92,601 ​ 21.0 % State and Local Income Tax Effects, net of federal tax benefit (a) ​ 14,705 ​ 3.3 ​ Foreign Tax Effects ​ (18) ​ - ​ Tax Credits ​ ​ ​ ​ ​ ​ Research and development tax credits ​ (2,866) ​ (0.7) ​ Changes in Valuation Allowance ​ 31 ​ - ​ Nontaxable or Nondeductible Items ​ ​ ​ ​ ​ Stock-based compensation ​ (20,007) ​ (4.5) ​ Non-deductible compensation ​ 17,329 ​ 3.9 ​ Other ​ 85 ​ - ​ Changes in Unrecognized Tax Benefits ​ 583 ​ 0.2 ​ Other Adjustments ​ 322 ​ 0.1 ​ Effective Tax Rate ​ $ 102,765 ​ 23.3 % (a) State taxes in California, Texas, and Virginia made up the majority (greater than 50 percent) of the tax effect in this category. ​ Prior to the adoption of ASU 2023-09, the provision for income taxes can be reconciled to the income tax that would result from applying the statutory rate to the net income before income taxes as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ U.S. federal tax at statutory rates ​ 21.0 % 21.0 % Lobbying - ​ 0.1 ​ Non-deductible compensation ​ 2.7 ​ 0.8 ​ State taxes, net of federal benefit 3.4 ​ 3.2 ​ Research and development tax credits (1.2) ​ (1.5) ​ Effects of foreign operations - ​ 0.1 ​ Reserve for unrecognized tax benefits 0.4 ​ 0.5 ​ Noncontrolling interests - ​ - ​ Other (0.2) ​ 0.1 ​ Stock-based compensation ​ (1.7) ​ (0.3) ​ Provision for income taxes 24.4 % 24.0 % ​ The decrease in the effective income tax rate for the year ended June 30, 2026, as compared to the effective tax rate for the year ended June 30, 2025, was primarily due to stock-based compensation. As of June 30, 2026 and 2025, the balance of income taxes payable was $27.5 million and $52.6 million, respectively. Income taxes payable is recorded within accrued liabilities on the consolidated balance sheets. Tax Uncertainties The Company follows the provisions of ASC 740, Income Taxes (“ASC 740”) which applies to all tax positions related to income taxes. ASC 740 provides a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return. ASC 740 clarifies accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. If the probability for sustaining a tax position is greater than 85 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ 50%, then the tax position is warranted and recognition should be at the highest amount which would be expected to be realized upon ultimate settlement related to unrecognized tax benefits. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As of June 30, 2026, 2025 and 2024, the Company had $0.7 million, $0.5 million and $0.4 million in accrued interest and penalties, respectively. The unrecognized tax benefits for the years ended June 30, 2026, 2025 and 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ 2026 ​ 2025 ​ 2024 ​ ​ (In thousands) Balance at beginning of the year ​ $ 5,514 ​ $ 4,286 ​ $ 3,156 Additions for prior year tax positions ​ 277 ​ 486 ​ 591 Additions for current year tax positions ​ 1,236 ​ 1,635 ​ 1,205 Reductions for prior year tax positions ​ ​ (1,047) ​ ​ (893) ​ ​ (666) Balance at end of the year ​ $ 5,980 ​ $ 5,514 ​ $ 4,286 ​ If recognized, all of the $6.0 million balance of unrecognized tax benefits as of June 30, 2026 would affect the effective tax rate. The Company does not anticipate a significant increase or decrease in unrecognized tax benefits in the next twelve months. The Company remains subject to audit by the Internal Revenue Service for federal tax purposes for tax years after June 30, 2022. Certain state and foreign tax jurisdictions are also either currently under audit or remain open under the statute of limitations for the tax years after June 30, 2021. Income Taxes Paid Disclosed below is a summary of income taxes paid by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended June 30, 2026: ​ ​ ​ ​ Year Ended June 30, 2026 ​ Amount ​ (In thousands) Federal $ 67,201 State and Local ​ 19,963 Foreign ​ 859 ​ $ 88,023 ​ Income taxes paid (net of refunds) exceed 5 percent of total income taxes paid (net of refunds) in the following jurisdictions: ​ ​ ​ ​ State ​ ​ California $ 6,475 ​ ​ ​ 86 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ 6. Finance and Operating Leases Finance Leases The Company is a lessee under finance leases for computers and peripherals under agreements with Banc of America Leasing & Capital, LLC (“BALC”) and CSI Leasing, Inc. (“CSI Leasing”). As of June 30, 2026 and 2025, the finance lease liability was $116.9 million and $86.9 million, respectively, with lease interest rates ranging from 4.12% to 6.72%. As of June 30, 2026 and 2025, the balance of the associated right-of-use assets was $95.3 million and $69.5 million, respectively. The right-of-use asset is recorded within property and equipment, net on the consolidated balance sheets. Lease amortization expense associated with the Company’s finance leases is recorded within both instructional costs and services and selling, general, and administrative expenses on the consolidated statements of operations. The Company entered into agreements with BALC and CSI Leasing in April 2020 and August 2022, respectively, to provide financing for its computers and peripherals. Individual leases with BALC include 36-month payment terms, fixed rates ranging from 4.75% to 6.72%, and a $1 purchase option at the end of each lease term. The Company has pledged the assets financed to secure the outstanding leases. Individual leases under the agreement with CSI Leasing include 36-month payment terms, but do not include a stated interest rate. The Company uses its incremental borrowing rate as the implied interest rate and the total lease payments to calculate its lease liability. ​ The following is a summary, as of June 30, 2026 and 2025, respectively, of the present value of the net minimum lease payments under the Company’s finance leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ 2026 ​ 2025 2026 ​ $ — ​ $ 45,781 2027 ​ ​ 64,471 ​ ​ 33,864 2028 ​ ​ 42,580 ​ ​ 12,095 2029 ​ ​ 15,356 ​ ​ 297 2030 ​ ​ 373 ​ ​ — Total minimum payments ​ ​ 122,780 ​ ​ 92,037 Less: imputed interest ​ ​ (5,848) ​ ​ (5,154) Finance lease liability ​ ​ 116,932 ​ ​ 86,883 Less: current portion of finance lease liability ​ ​ (60,477) ​ ​ (42,316) Long-term finance lease liability ​ $ 56,455 ​ $ 44,567 ​ Operating Leases The Company is a lessee under operating leases for various facilities to support the Company’s operations. As of June 30, 2026 and 2025, the operating lease liability was $11.1 million and $46.6 million, respectively. As of June 30, 2026 and 2025, the balance of the associated right-of-use assets was $7.3 million and $16.0 million, respectively. The right-of-use asset is recorded within deposits and other assets on the consolidated balance sheets. Lease expense associated with the Company’s operating leases is recorded within both instructional costs and services and selling, general, and administrative expenses on the consolidated statements of operations. ​ Individual operating leases range in terms of 1 to 7 years and expire on various dates through fiscal year 2034 and the minimum lease payments are discounted using the Company’s incremental borrowing rate. 87 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ The following is a summary as of June 30, 2026 and 2025, respectively, of the present value of the minimum lease payments under the Company’s operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ 2026 ​ 2025 ​ ​ (in thousands) 2026 ​ $ — ​ $ 12,957 2027 ​ ​ 3,128 ​ ​ 8,942 2028 ​ ​ 2,066 ​ ​ 7,957 2029 ​ ​ 1,684 ​ ​ 7,776 2030 ​ ​ 1,590 ​ ​ 7,878 2031 ​ ​ 1,406 ​ ​ 4,748 Thereafter ​ ​ 2,443 ​ ​ — Total minimum payments ​ ​ 12,317 ​ ​ 50,258 Less: imputed interest ​ ​ (1,264) ​ ​ (3,703) Operating lease liability ​ ​ 11,053 ​ ​ 46,555 Less: current portion of operating lease liability ​ ​ (2,737) ​ ​ (11,391) Long-term operating lease liability ​ $ 8,316 ​ $ 35,164 ​ The Company was subleasing one of its facilities through December 2025. Sublease income is recorded as an offset to the related lease expense within both instructional costs and services and selling, general, and administrative expenses on the consolidated statements of operations. In December 2025, the Company signed an agreement with the landlord of its San Francisco lease to terminate the lease prior its expiration date and recorded a lease termination gain of $14.3 million as a result of eliminating its remaining lease liability and right-of-use asset. The lease termination gain is recorded within instructional costs and services within the consolidated statements of operations. ​ 88 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ The following is a summary of the Company’s lease cost, weighted-average remaining lease term, weighted-average discount rate and certain other cash flows as it relates to its operating and finance leases for the years ended June 30, 2026, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ ​ 2026 ​ 2025 ​ 2024 ​ ​ ​ (in thousands) ​ Lease cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Instructional costs and services: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of right-of-use assets ​ $ 52,326 ​ $ 37,400 ​ $ 31,099 ​ Selling, general, and administrative expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of right-of-use assets ​ $ 918 ​ $ 237 ​ $ — ​ Interest on lease liabilities ​ ​ 5,686 ​ ​ 4,280 ​ ​ 2,639 ​ Operating lease cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Instructional costs and services: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ ​ 3,867 ​ ​ 9,154 ​ ​ 9,605 ​ Short-term lease cost ​ ​ 82 ​ ​ 83 ​ ​ 56 ​ Sublease income ​ ​ (126) ​ ​ (262) ​ ​ (328) ​ Selling, general, and administrative expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ ​ 1,318 ​ ​ 4,077 ​ ​ 6,019 ​ Short-term lease cost ​ ​ 94 ​ ​ 93 ​ ​ 150 ​ Sublease income ​ ​ — ​ ​ (149) ​ ​ (491) ​ Total lease cost ​ $ 64,165 ​ $ 54,913 ​ $ 48,749 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ (16,943) ​ $ (12,396) ​ $ (14,990) ​ Financing cash flows from finance leases ​ ​ (56,856) ​ ​ (41,469) ​ ​ (40,919) ​ Right-of-use assets obtained in exchange for new finance lease liabilities ​ ​ 82,500 ​ ​ 68,995 ​ ​ 35,652 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ 1,325 ​ ​ 1,012 ​ ​ 864 ​ Weighted-average remaining lease term - finance leases ​ ​ 2.00 yrs. ​ 2.07 yrs. ​ 2.02 yrs. Weighted-average remaining lease term - operating leases ​ ​ 5.58 yrs. ​ 5.13 yrs. ​ 5.66 yrs. Weighted-average discount rate - finance leases ​ ​ 4.71 % ​ 5.34 % ​ 5.62 % Weighted-average discount rate - operating leases ​ ​ 4.05 % ​ 2.95 % ​ 2.92 % ​ ​ 7. Debt The following is a summary, as of June 30, 2026 and 2025, respectively, of the components of the Company’s outstanding long-term debt: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ ​ 2026 ​ 2025 ​ ​ (in thousands) Convertible Senior Notes due 2027 ​ $ 420,000 ​ $ 420,000 Less: unamortized debt issuance costs ​ ​ (2,005) ​ ​ (3,678) Total debt ​ ​ 417,995 ​ ​ 416,322 Less: current portion of debt ​ ​ — ​ ​ — Long-term debt ​ $ 417,995 ​ $ 416,322 ​ 89 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ Future maturities of long-term debt are expected to be $420.0 million in the fiscal year ending June 30, 2028 and zero in each of the fiscal years ending June 30, 2027, 2029 and 2030. Convertible Senior Notes due 2027 In August and September 2020, the Company issued $420.0 million aggregate principal amount of Notes. The Notes are governed by an indenture (the “Indenture”) between the Company and U.S. Bank National Association, as trustee. The net proceeds from the offering of the Notes were approximately $408.6 million after deducting the underwriting fees and other expenses paid by the Company. The Notes bear interest at a rate of 1.125% per annum, payable semi-annually in arrears on March 1st and September 1st of each year, beginning on March 1, 2021. The Notes will mature on September 1, 2027. The Company recorded coupon interest expense of $4.7 million during each of the years ended June 30, 2026, 2025 and 2024. The Company incurred debt issuance costs of $11.4 million which are amortized over the contractual term of the Notes. The Company recorded interest expense of $1.7 million, $1.6 million, and $1.6 million, respectively, related to the amortization of the debt issuance costs during each of the years ended June 30, 2026, 2025 and 2024. Before June 1, 2027, noteholders will have the right to convert their Notes only upon the occurrence of certain events. After June 1, 2027, noteholders may convert their Notes at any time at their election until two days prior to the maturity date. The Company will settle conversions by paying cash up to the outstanding principal amount, and at the Company’s election, will settle the conversion spread by paying or delivering cash or shares of its common stock, or a combination of cash and shares of its common stock. The initial conversion rate is 18.9109 shares of common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $52.88 per share of common stock (lower strike price). The Notes are redeemable at the Company’s option at any time after September 6, 2024 at a cash redemption price equal to the principal amount of the Notes, plus accrued and unpaid interest, subject to certain stock price hurdles as discussed in the Indenture. In connection with the Notes, the Company entered into privately negotiated Capped Call Transactions with certain counterparties. The Capped Call Transactions are expected to cover the aggregate number of shares of the Company’s common stock that initially underlie the Notes, and are expected to reduce potential dilution to the Company’s common stock upon any conversion of Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Notes. The upper strike price of the Capped Call Transactions is $86.174 per share. The cost of the Capped Call Transactions was $60.4 million and was recorded within additional paid-in capital. ​ ​ 8. Equity Incentive Plan On December 4, 2025, the Company’s stockholders approved a second amendment and restatement of the 2016 Equity Incentive Award Plan (the “amended and restated 2016 Plan”). The amended and restated 2016 Plan reflects an additional increase in the number of shares of common stock available for issuance by 740,000 shares and an extension of the term of the amended and restated 2016 Plan to October 17, 2035. ​ The amended and restated 2016 Plan is designed to attract, retain and motivate employees who make important contributions to the Company by providing such individuals with equity ownership opportunities. Awards granted under the amended and restated 2016 Plan may include stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards. Under the amended and restated 2016 Plan, unissued shares related to forfeited or canceled awards granted under the amended and restated 2016 Plan or awards granted under the Company’s 2007 Equity Incentive Award Plan (the “Prior Plan”) (to the extent such awards granted under the Prior Plan were outstanding as of December 15, 2016 and were forfeited or canceled prior to September 19, 2022), will again be available for issuance under the amended and restated 2016 Plan. Notwithstanding the foregoing, shares tendered to pay the exercise price or tax withholding with respect to a stock option, or shares that are not issued in connection with the settlement of a stock appreciation right on exercise thereof, or shares purchased on the open market with the cash proceeds from the exercise of 90 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ options will not again be available for issuance under the amended and restated 2016 Plan. ​ At June 30, 2026, the remaining aggregate number of shares of the Company’s common stock authorized for future issuance under the amended and restated 2016 Plan was 2,406,929. At June 30, 2026, there were 1,106,316 shares of the Company’s common stock that remain outstanding or nonvested under the amended and restated 2016 Plan and Prior Plan. Compensation expense for all equity-based compensation awards is based on the grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The vesting of performance-based awards is contingent on the achievement of certain performance metrics. Compensation expense is recognized retroactively, through a cumulative catch-up adjustment, when the performance conditions are satisfied or when the Company determines that it is probable that the performance conditions will be satisfied. The amount of compensation expense recognized for a performance-based award is affected by the level of achievement attained. Management has established three levels of attainment: threshold, target, and outperform. Stock-based compensation expense is recorded within selling, general, and administrative expenses on the consolidated statements of operations. Restricted Stock Awards The Company has approved grants of restricted stock awards (“RSA”) pursuant to the amended and restated 2016 Plan and Prior Plan. Under the amended and restated 2016 Plan and Prior Plan, employees, outside directors and independent contractors are able to participate in the Company’s future performance through the awards of restricted stock. Each RSA vests pursuant to the vesting schedule set forth in the restricted stock agreement granting such RSAs, generally over three years. Restricted stock award activity during the years ended June 30, 2026, 2025 and 2024 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ ​ Grant-Date ​ ​ Shares ​ Fair Value Nonvested, June 30, 2023 815,233 ​ $ 36.91 Granted ​ 507,443 ​ ​ 43.43 Vested ​ (437,724) ​ ​ 36.36 Canceled ​ (153,728) ​ ​ 37.37 Nonvested, June 30, 2024 ​ 731,224 ​ $ 40.60 Granted ​ 317,490 ​ ​ 85.79 Vested ​ (387,471) ​ ​ 42.79 Canceled ​ (84,389) ​ ​ 49.39 Nonvested, June 30, 2025 ​ 576,854 ​ $ 62.72 Granted ​ 206,518 ​ ​ 137.82 Vested ​ (317,612) ​ ​ 59.04 Canceled ​ (64,562) ​ ​ 82.44 Nonvested, June 30, 2026 ​ 401,198 ​ $ 101.11 ​ Summary of All Restricted Stock Awards As of June 30, 2026, there was $28.2 million of total unrecognized compensation expense related to nonvested restricted stock awards. The cost is expected to be recognized over a weighted average period of 1.4 years. The fair value of restricted stock awards granted for the years ended June 30, 2026, 2025 and 2024, was $28.5 million, $27.2 million and $22.0 million, respectively. The total fair value of shares vested for the years ended June 30, 2026, 2025 and 2024, was $38.5 million, $43.6 million and $23.3 million, respectively. During the years ended June 30, 2026, 2025 and 2024, the Company recognized $21.5 million, $19.8 million and $16.0 million, respectively, of stock-based compensation expense 91 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ related to restricted stock awards. Performance Share Units The Company has approved grants of performance share units (“PSUs”) pursuant to the amended and restated 2016 Plan. Each PSU is earned through the achievement of a performance-based metric, combined with the continuation of employee service over a defined period. The level of performance determines the number of PSUs earned, and is generally measured against threshold, target and outperform achievement levels of the award. Each PSU represents the right to receive one share of the Company’s common stock, or at the option of the Company, an equivalent amount of cash, and is classified as an equity or liability award. When the grant is a fixed monetary amount, and the number of shares is not determined until achievement and the value of the Company’s stock on that day, the PSU is a liability-classified award. Each PSU vests pursuant to the vesting schedule found in the respective PSU agreement. ​ In addition to the performance conditions of the PSUs, there is a service vesting condition which is dependent upon continuing service by the grantee as an employee of the Company, unless the grantee is eligible for earlier vesting upon a change in control and qualifying termination, as defined by the PSU agreement. PSUs are generally subject to graduated vesting schedules and stock-based compensation expense is computed by tranche and recognized on a straight-line basis over the tranches’ applicable vesting period based on the expected achievement level. ​ Performance share unit activity during the years ended June 30, 2026, 2025 and 2024 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ ​ Grant-Date ​ ​ ​ ​ Shares ​ ​ ​ Fair Value Nonvested, June 30, 2023 ​ 496,869 ​ $ 34.99 Granted ​ 375,725 ​ ​ 41.85 Vested ​ (22,468) ​ ​ 49.62 Canceled ​ (90,595) ​ ​ 36.94 Nonvested, June 30, 2024 ​ 759,531 ​ $ 37.73 Granted ​ 299,908 ​ ​ 71.40 Vested ​ (223,241) ​ ​ 37.44 Canceled ​ (134,291) ​ ​ 42.60 Nonvested, June 30, 2025 ​ 701,907 ​ $ 51.27 Granted ​ 354,664 ​ ​ 83.87 Vested ​ (413,681) ​ ​ 34.90 Canceled ​ (18,875) ​ ​ 80.15 Nonvested, June 30, 2026 ​ 624,015 ​ $ 79.78 ​ The Company has granted PSUs under a Long-Term Incentive Plan (“LTIP”) which are tied to operating income targets (“Tranche #1”) and compounded annual stock price growth (“Tranche #2”) over a three-year performance period. The level of performance will determine the number of PSUs earned as measured against threshold (50%), target (100%) and outperform (200%) achievement levels. The Company begins to amortize the fair value of Tranche #1 over the vesting period when it assesses that achievement is probable at the threshold level. The fair value of Tranche #2 is determined using a Monte Carlo simulation model and is amortized over the vesting period. Tranche #2 is a market-based award and therefore is not subject to any probability assessment by the Company. The following table is a summary of the PSUs 92 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year ​ Grant Date Fair Value ​ Number of Target Shares ​ Weighted Average Grant Date Fair Value ​ Tranche #1 ​ ​ Tranche #2 ​ ​ Vest Date ​ ​ Tranche #1 Probability Assessment Fiscal Year 2026 ​ $22.2 million ​ 146,911 ​ $151.16 ​ 81,093 shares based on FY28 Operating Income ​ ​ 65,818 shares based on Stock Price Growth in September 2029 ​ ​ First Quarter of Fiscal Year 2029 ​ ​ Not Yet Determinable Fiscal Year 2025 ​ $17.0 million ​ 210,620 ​ $80.89 ​ 158,470 shares based on FY27 Operating Income ​ ​ 52,150 shares based on Stock Price Growth in September 2028 ​ ​ First Quarter of Fiscal Year 2028 ​ ​ Outperform Fiscal Year 2024 ​ $14.4 million ​ 354,090 ​ $40.84 ​ 265,630 shares based on FY26 Operating Income ​ ​ 88,460 shares based on Stock Price Growth in September 2027 ​ ​ First Quarter of Fiscal Year 2027 ​ ​ Outperform Fiscal Year 2023 ​ $10.0 million ​ 289,640 ​ $34.41 ​ 144,820 shares based on FY25 Operating Income ​ ​ 144,820 shares based on Stock Price Growth in September 2026 ​ ​ First Quarter of Fiscal Year 2026 ​ ​ Achieved Fiscal Year 2022 ​ $9.1 million ​ 250,250 ​ $36.30 ​ 125,125 shares based on FY24 Gross Margin ​ ​ 125,125 shares based on Stock Price Growth in September 2025 ​ ​ First Quarter of Fiscal Year 2025 ​ ​ Achieved ​ Fiscal Year 2023 LTIP ​ In July 2025, achievement was certified at 200% of target for Tranche #1, which resulted in the vesting of 204,340 shares. In September 2025, achievement was certified at 200% of target for Tranche #2, which resulted in the vesting of 204,340 shares. ​ Fiscal Year 2022 LTIP ​ In July 2024, achievement was certified at 70% of target for Tranche #1, which resulted in the vesting of 62,379 shares. In September 2024, achievement was certified at 175.0% of target for Tranche #2, which resulted in the vesting of 155,946 shares. ​ Fiscal Year 2021 Tech Elevator MIP ​ During fiscal year 2021, the Company granted to the executive team of Tech Elevator a time-based award with a value of $4.0 million and a performance-based award with a target value of $4.0 million under a Management Incentive 93 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ Plan (“MIP”). The time-based award vests equally over three years on the anniversary of the closing date of the acquisition of Tech Elevator which was November 30, 2020. During the second quarter of fiscal year 2022, one-third vested and was settled with the issuance of 38,575 PSUs. During the second quarter of fiscal year 2023, an additional one-third vested and was settled with the issuance of 37,886 PSUs. During the second quarter of fiscal year 2024, the final third vested and was settled with the issuance of 13,066 PSUs. The performance-based award is tied to the achievement of certain revenue and EBITDA targets of Tech Elevator. Seventy percent of the award is based on Tech Elevator’s revenues for the calendar year 2023 (“Tranche #1”) and thirty percent of the earned award is based on Tech Elevator’s EBITDA for the calendar year 2023 (“Tranche #2”), both of which were expected to vest after achievement in January 2024. The level of performance determined the number of PSUs earned as measured against threshold and target achievement levels. In all cases, vesting was dependent upon continuing service by the grantee as an employee of the Company. The MIP was a liability-classified award. In January 2024, the Company determined that the performance award metrics for calendar year 2023 were not met and Tranches #1 and #2 were forfeited. ​ Fiscal Year 2021 LTIP ​ During fiscal year 2021, the Company granted 111,450 PSUs at target under an LTIP which are tied to the achievement of certain individualized financial and non-financial performance targets. These PSUs had a grant date fair value of $2.7 million, or a weighted average grant-date fair value of $24.15 per share. In December 2022, achievement was certified related to two metrics – one at threshold and one at 123% of target. Forty percent, or 4,533 shares vested immediately and an additional sixty percent, or 6,797 shares vested in December 2023. The remaining shares tied to metrics that were not achieved were forfeited. The fiscal year 2021 LTIP is an equity-classified award. ​ Summary of All Performance Share Units ​ As of June 30, 2026, there was $18.2 million of total unrecognized compensation expense related to nonvested PSUs that are expected to vest based on the Company’s probability assumptions discussed above. The cost is expected to be recognized over a weighted average period of 1.0 years. During the years ended June 30, 2026, 2025 and 2024, the Company recognized $18.5 million, $16.9 million, and $15.4 million, respectively, of stock-based compensation expense related to PSUs. Included in the stock-based compensation expense above, for the years ended June 30, 2026, 2025 and 2024 is zero, zero, and $0.3 million, respectively, related to the Tech Elevator time-based portion of the MIP. The time-based portion of the MIP fully vested during the second quarter of fiscal year 2024 and was settled with the issuance of PSUs. Therefore, the amount recorded in accrued liabilities for future issuances is zero. ​ Deferred Stock Units (“DSUs”) ​ The DSUs vest on the grant-date anniversary and are settled in the form of shares of common stock issued to the holder upon separation from the Company. DSUs are specific only to board members. 94 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ Deferred stock unit activity during the years ended June 30, 2026, 2025 and 2024 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ ​ Grant-Date ​ ​ ​ ​ Shares ​ ​ ​ Fair Value Nonvested, June 30, 2023 ​ 99,535 ​ $ 27.38 Granted ​ 13,171 ​ ​ 59.43 Vested ​ (16,102) ​ ​ 22.91 Canceled ​ — ​ ​ — Nonvested, June 30, 2024 ​ 96,604 ​ $ 32.49 Granted ​ 6,621 ​ ​ 108.92 Vested ​ (34,446) ​ ​ 27.03 Canceled ​ — ​ ​ — Nonvested, June 30, 2025 ​ 68,779 ​ $ 42.58 Granted ​ 12,324 ​ ​ 61.22 Vested ​ — ​ ​ — Canceled ​ — ​ ​ — Nonvested, June 30, 2026 ​ 81,103 ​ $ 45.41 ​ Summary of All Deferred Stock Units ​ As of June 30, 2026, there was $0.3 million of total unrecognized compensation expense related to nonvested DSUs. The cost is expected to be recognized over a weighted average period of 0.4 years. During the years ended June 30, 2026, 2025 and 2024, the Company recognized $0.7 million, $0.8 million and $0.9 million, respectively, of stock-based compensation expense related to DSUs. 95 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ ​ ​ ​ ​ ​ ​ 9. Employee Stock Purchase Plan On December 4, 2025, the Company’s stockholders approved the 2025 ESPP, which became effective February 1, 2026 with the beginning of the first purchase period (the “enrollment date”). The 2025 ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions during 12-month offering periods with semi-annual purchase dates. The purchase price is 85% of the lower of the fair market value of the Company’s common stock on the enrollment date or the applicable purchase date. Employees may contribute up to 10% of eligible compensation, subject to plan limits. A total of 4,000,000 shares of common stock were authorized for issuance under the 2025 ESPP. No shares were purchased during the year ended June 30, 2026, as the initial purchase date had not occurred as of June 30, 2026. The impact of the 2025 ESPP purchase rights on stock-based compensation expense for the year ended June 30, 2026 was immaterial. 10. Stock Repurchase Program On November 3, 2025, the Company’s Board of Directors authorized a stock repurchase program for the purchase of up to $500 million of the Company’s common stock until October 31, 2026. Share repurchases may be made for cash in open market transactions at prevailing market prices or in privately negotiated transactions or otherwise. During the year ended June 30, 2026, the Company repurchased 2,314,944 shares of its common stock for an aggregate purchase price of approximately $188.7 million, or an average price of $ 81.50 per share. As of June 30, 2026, $311.3 million remained available for repurchases under the stock repurchase program. 11. Commitments and Contingencies Litigation ​ In the ordinary conduct of the Company’s business, the Company is subject to lawsuits, arbitrations, disputes and administrative proceedings from time to time. The Company vigorously defends these claims; however, no assurances can be given as to the outcome of any pending legal proceedings or disputes. The Company believes, based on currently available information, that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on its business, financial condition, liquidity or results of operations. Securities Litigation On November 11, 2025, a putative securities class action lawsuit captioned Vivienne MacMahon v. Stride, Inc., et al., Case No. 1:25-cv-02019 was filed against the Company and two of its officers in the United States District Court for the Eastern District of Virginia, purportedly on behalf of a class of persons who purchased or otherwise acquired the Company’s common stock between October 22, 2024 and October 28, 2025. The Court appointed lead plaintiffs filed an amended complaint on March 16, 2026. The amended complaint asserts violations by the Company and the individual defendants of Section 10(b) of the Exchange Act, and Rule 10b-5 promulgated under the Exchange Act, and violations by the individual defendants of Section 20(a) of the Exchange Act. The amended complaint alleges, among other things, that the Company and the individual defendants made false or misleading statements and/or omitted to disclose material facts concerning the Company’s legacy technology platform and the rollout of a new platform for Fiscal Year 2026. The amended complaint seeks unspecified monetary damages and other relief. The Company moved to dismiss the amended complaint on April 21, 2026. On June 18, 2026, the Court granted the Company’s motion to dismiss all claims against the Company and the individual defendants. Employment Arrangements The Company has entered into employment arrangements with certain executive officers that provide for severance payments and, in some cases, other benefits, upon certain terminations of employment. All arrangements provide for employment on an “at-will” basis. If the employee resigns for “good reason” or is terminated without cause, the 96 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ employee is entitled to salary continuation, and in some cases benefit continuation, for varying periods depending on the arrangement. Off-Balance Sheet Arrangements The Company contractually guarantees that certain schools under the Company’s management will not have annual operating deficits and the Company’s management fees from these schools may be reduced accordingly to cover any school operating deficits. Other than the operating deficit guarantees, the Company did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. ​ 12. Severance ​ During the years ended June 30, 2026, 2025 and 2024, the Company recorded severance of $3.2 million, $6.6 million and $4.6 million, respectively. Included in severance expense for the years ended June 30, 2026, 2025 and 2024 is $0.1 million, $1.6 million and $0.5 million, respectively, associated with accelerated vesting of equity awards to former executives and other employees. 13. Related Party Transactions The Company contributed to Future of School, a charity focused on access to quality education. Future of School was a related party because a former executive officer of the Company formerly served on its Board of Directors. During the years ended June 30, 2026, 2025 and 2024, contributions made by the Company to Future of School were zero. In fiscal year 2019 and 2021, the Company accrued $2.5 million and $3.5 million, respectively, for contributions to be made in subsequent years. In October 2022, a lawsuit was filed regarding future contributions, and in January 2024, a Virginia trial court found that the Company was not obligated to make any additional contributions. The trial court’s decision was affirmed by an intermediate appellate court, and in December 2025, the Supreme Court of Virginia declined Future of School’s petition for appeal, resulting in a confirmation of the trial court’s ruling. As a result, in December 2025, the Company reversed the remaining $2.3 million that had been accrued. 14. Employee Benefits The Company maintains a 401(k) salary deferral plan (the “401(k) Plan”) for its employees. Employees who have been employed for at least 30 days may voluntarily contribute to the 401(k) Plan on a pretax basis, up to the maximum allowed by the Internal Revenue Service. The 401(k) Plan provides for a matching Company contribution of 50%, up to the first 5% of each participant’s contribution. The Company expensed $9.3 million, $8.5 million and $7.7 million during the years ended June 30, 2026, 2025 and 2024, respectively, under the 401(k) Plan. 97 Table of Contents STRIDE, INC. Notes to Consolidated Financial Statements (Continued) ​ 15. Supplemental Disclosure of Cash Flow Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended June 30, ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ (In thousands) Cash paid for interest ​ $ 10,437 ​ $ 9,144 ​ $ 7,521 Cash paid for taxes (1) ​ $ — ​ ​ 67,901 ​ $ 85,228 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental disclosure of non-cash financing activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets obtained in exchange for new finance lease liabilities ​ ​ 82,500 ​ ​ 68,995 ​ ​ 35,652 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental disclosure of non-cash investing activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock-based compensation expense capitalized on software development ​ $ 774 ​ $ 551 ​ $ 816 Stock-based compensation expense capitalized on curriculum development ​ ​ 163 ​ ​ 128 ​ ​ 76 ​ (1) Cash paid for taxes for the year ended June 30, 2026 is disclosed in Note 5, “Income Taxes.” ​ 98 Table of Contents SCHEDULE II STRIDE, INC. VALUATION AND QUALIFYING ACCOUNTS Years Ending June 30, 2026, 2025 and 2024 1. ALLOWANCE FOR CREDIT LOSSES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additions ​ ​ ​ ​ ​ ​ ​ Balance at ​ Charged to ​ Deductions from ​ ​ ​ ​ ​ Beginning ​ Cost and ​ (Net Increases to) ​ Balance at ​ ​ of Period ​ Expenses ​ Allowance ​ End of Period June 30, 2026 ​ $ 31,123,755 16,430,560 16,252,780 ​ $ 31,301,535 June 30, 2025 ​ $ 31,297,967 15,266,692 15,440,904 ​ $ 31,123,755 June 30, 2024 ​ $ 30,031,273 22,843,961 21,577,267 ​ $ 31,297,967 2. INVENTORY RESERVES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Charged to ​ Deductions, ​ ​ ​ ​ ​ Beginning ​ Cost and ​ Shrinkage and ​ Balance at ​ ​ of Period ​ Expenses ​ Obsolescence ​ End of Period June 30, 2026 ​ $ 6,832,904 3,433,448 859,845 ​ $ 9,406,507 June 30, 2025 ​ $ 5,921,239 942,397 30,732 ​ $ 6,832,904 June 30, 2024 ​ $ 4,145,280 1,778,825 2,867 ​ $ 5,921,239 3. COMPUTER RESERVE (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additions ​ ​ ​ ​ ​ ​ ​ Balance at ​ Charged to ​ Deductions, ​ ​ ​ ​ ​ Beginning ​ Cost and ​ Shrinkage and ​ Balance at ​ ​ of Period ​ Expenses ​ Obsolescence ​ End of Period June 30, 2026 ​ $ 3,274,432 3,091,844 1,037,764 ​ $ 5,328,512 June 30, 2025 ​ $ 1,786,225 2,499,889 1,011,682 ​ $ 3,274,432 June 30, 2024 ​ $ 1,345,832 1,129,323 688,930 ​ $ 1,786,225 (1) A reserve account is maintained against potential obsolescence of, and damage beyond economic repair to computers. The reserve is calculated based upon several factors, including historical percentages, the net book value and the remaining useful life. During fiscal years 2026, 2025 and 2024, certain computers were written off against the reserve. 4. INCOME TAX VALUATION ALLOWANCE ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additions to ​ Deductions in ​ ​ ​ ​ ​ Balance at ​ Net Deferred ​ Net Deferred ​ ​ ​ ​ ​ Beginning ​ Tax Asset ​ Tax Asset ​ Balance at ​ ​ of Period ​ Allowance ​ Allowance ​ End of Period June 30, 2026 ​ $ 7,627,642 — 211,881 ​ $ 7,415,761 June 30, 2025 ​ $ 7,387,179 240,463 — ​ $ 7,627,642 June 30, 2024 ​ $ 6,790,724 596,455 — ​ $ 7,387,179 ​ ​ 99 Table of Contents