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A technology-based education company that runs online K-12 schools and career-training programs for adults, serving public school districts across the US. Founded in 2000 as K12 Inc. by former banker Ronald Packard, it rebranded to Stride in 2020 to reflect its growth beyond grade school into adult learning through brands like Galvanize, Tech Elevator, and MedCerts. The name "Stride" was chosen to symbolize learners making progress through life.
10-K · Fiscal year ended Jun 30, 2026 · SEC filing ↗
General Education enrollment fell 5.0% in Q3, its first decline since FY2024, while FY2026 operating income rose 25.2% on cost cuts.
General Education enrollment reversed its two-year recovery, falling 5.0% in the third quarter. Full-year rose 4.7% to $2.52 billion and increased 25.2% to $450.8 million as selling, general and administrative expenses dropped 4.7%, more than offsetting a decline to 37.8%. The company enters FY2027 with its largest contracting again, a $500 million underway, and $420 million in due in 2027.
Key takeaways
General Education enrollment fell 5.0% in Q3 FY2026, the first decline since the returned to growth in Q1 FY2024, and full-year General Education fell 2.1% to $1,417.8 million.
Career Learning rose 15.0% to $1,100.3 million for the full year, driven by a 13.9% enrollment increase in Middle-High School programs, while Adult Learning revenue fell 29.6% to $56.6 million.
rose 25.2% to $450.8 million and widened 2.9 points to 17.9%, as selling, general and administrative expenses fell 4.7% to $499.8 million, primarily from lower personnel costs.
Section summaries
Business
Stride operates a technology-based educational platform delivering K-12 and adult career learning programs primarily to U.S. public schools.
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The company reports two K-12 markets: General Education (core subjects) and Career Learning (skills for high-demand industries), both sold as comprehensive school-as-a-service or standalone products.
Adult Learning, built through acquisitions of Galvanize, Tech Elevator, and MedCerts, provides training in software engineering and healthcare to consumers, employers, and government agencies.
The majority of comes from multi-year school-as-a-service agreements with public school governing authorities, averaging over five years with automatic renewals.
contracted 1.5 points to 37.8% as instructional costs and services rose 7.3%, driven by hiring, salary increases, and technology , outpacing the 4.7% increase.
The company repurchased $188.7 million in stock under a new $500 million authorization and held $754.5 million in cash and equivalents at year-end, while of $418.0 million includes $420.0 million in due 2027.
KPMG issued an on internal control over financial reporting as of June 30, 2026, indicating the first disclosed in FY2023 has been remediated.
What changed
General Education enrollment growth, flagged as a key watch item after the 13.2% FY2025 recovery, decelerated to 5.2% in Q1, 1.9% in Q2, and then turned negative with a 5.0% decline in Q3 — the first contraction since the returned to expansion in FY2024.
The in internal control over financial reporting, flagged across multiple prior filings as unaddressed, was remediated: KPMG issued an on internal controls as of June 30, 2026.
The $59.5 million Galvanize recorded in FY2025 did not recur; no long-lived asset impairments were recorded in FY2026, and Adult Learning continued to decline, falling 29.6%.
The $500 million authorization, flagged as a watch item after the Q2 announcement, saw $188.7 million deployed in FY2026, with $311.3 million remaining available at year-end.
What to watch
General Education enrollment for the 2026-2027 school year to see whether the 5.0% Q3 decline deepens or stabilizes, now that the two-year recovery has reversed and the still generates 56% of total .
Whether the 7.3% rise in instructional costs moderates or continues to outpace growth, given that the 1.5-point contraction to 37.8% was the largest annual decline in the periods shown.
Pace and total spend under the remaining $311.3 million authorization, and whether the program meaningfully reduces the share count ahead of the $420 million in due in 2027.
Career Learning enrollment growth rate as the base of comparison rises further, and whether the 13.9% pace can be sustained to offset further General Education declines.
During the 2025-2026 school year, Stride served 92 General Education schools and 57 Career Learning schools or programs across numerous states.
The company competes on factors like virtual education experience, integrated curriculum and platform, student outcomes, and regulatory expertise against other online curriculum and school support providers.
Stride employs approximately 9,200 people and manages roughly 9,600 teachers, with operations supported by cloud infrastructure from AWS and Microsoft Azure.
Revenue heavily depends on per-pupil public funding and contract renewals; regulatory, political, and operational risks could materially reduce funding or disrupt services.
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The majority of comes from school-as-a-service offerings tied to per-pupil public funding, making the business vulnerable to legislative cuts, delayed payments, or formula changes.
Failure to renew school contracts or authorizing charters could terminate streams; contracts for 92 schools across 31 states are subject to periodic renewal and non-renewal risk.
Poor academic performance, alleged misconduct, or regulatory non-compliance by the company or other virtual schools could trigger funding loss, charter revocation, or reputational harm that limits new contracts.
A single third-party logistics vendor handles all learning kit and printed material assembly and shipping, and reliance on AWS and Azure for cloud infrastructure creates concentrated operational vulnerability.
New or evolving laws—including AI regulations, data privacy rules, and accessibility standards—may increase compliance costs, restrict product offerings, or expose the company to liability.
Enrollment declines in both K-12 school-as-a-service and adult career learning programs (Galvanize, Tech Elevator, MedCerts) would directly reduce , and reported enrollment data may not fully reflect business trends.
Our headquarters is located in approximately 23,000 square feet of office space in Reston, Virginia. The facility is under a lease that expires in July 2033. In addition, we lease approximately 164,000 square feet in multiple locations throughout the United States under individu…
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Our headquarters is located in approximately 23,000 square feet of office space in Reston, Virginia. The facility is under a lease that expires in July 2033. In addition, we lease approximately 164,000 square feet in multiple locations throughout the United States under individual leases that expire between August 2026 and May 2031.
Stride revenue rose 4.7% to $2.52B in FY2026, driven by Career Learning enrollment growth, while operating income jumped 25.2% on lower SG&A.
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Total revenues increased 4.7% to $2,518.1 million, with Career Learning up 15.0% to $1,100.3 million, offsetting a 2.1% decline in General Education to $1,417.8 million.
Career Learning Middle-High School grew 19.1% on a 13.9% enrollment increase, while Adult Learning revenue fell 29.6% to $56.6 million.
rose 25.2% to $450.8 million as selling, general and administrative expenses decreased 4.7% to $499.8 million, primarily from lower personnel costs.
declined to 37.8% from 39.2% as instructional costs and services grew 7.3%, driven by hiring, salary increases, and technology .
was $433.8 million; the company repurchased $188.7 million in stock and held $754.5 million in cash and equivalents at year-end.
No long-lived asset impairments were recorded in FY2026, compared to a $59.5 million of Galvanize-related assets in the prior year.
Quantitative and Qualitative Disclosures About Market Risk
Inflation Risk Current inflation has resulted in higher personnel costs, marketing expenses and supply chain expenses. There can be no assurance that future inflation will not have an adverse or material impact on our operating results and financial condition. Interest Rate Ri…
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Inflation Risk
Current inflation has resulted in higher personnel costs, marketing expenses and supply chain expenses. There can be no assurance that future inflation will not have an adverse or material impact on our operating results and financial condition.
Interest Rate Risk
At June 30, 2026 and 2025, we had cash and cash equivalents totaling $754.5 million and $782.5 million, respectively. Our excess cash has been invested in money market funds, government securities, corporate debt securities and similar investments. At June 30, 2026, a 1% gross increase in interest rates for our variable-interest instruments would result in a $7.5 million annualized increase in interest income. Additionally, the fair value of our investment portfolio is subject to changes in market interest rates.
Foreign Currency Exchange Risk
We do not transact a material amount of business in a foreign currency. If we enter into any material transactions in a foreign currency or establish or acquire any subsidiaries that measure and record their financial condition and results of operations in a foreign currency, we will be exposed to currency transaction risk and/or currency translation risk. Exchange rates between U.S. dollars and many foreign currencies have fluctuated significantly over the last few years and may continue to do so in the future. Accordingly, we may decide in the future to undertake hedging strategies to minimize the effect of currency fluctuations on our financial condition and results of operations.
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Table of Contents
Stride's FY2026 audit reports unqualified opinions on financial statements and internal controls, with revenue from funding-based contracts identified as a critical audit matter.
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KPMG issued unqualified opinions on the consolidated financial statements for FY2025–2026 and on as of June 30, 2026.
BDO issued an on the FY2024 consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows.
The involved evaluating from certain funding-based contracts, requiring subjective judgment on student enrollment counts and per-enrollment funding levels.
Total revenues grew to $2.52 billion in FY2026 from $2.41 billion in FY2025, with rising to $338.2 million from $287.9 million.
Cash and cash equivalents decreased to $754.5 million, while the company repurchased $188.7 million of during FY2026.
The company adopted ASU 2023-09 on income tax disclosures prospectively in Q4 FY2026 and disclosed a 23.3% .