Stride, Inc. (NYSE: LRN) has demonstrated consistent revenue growth over the past several quarters, with operating revenue increasing from $421.7 million in Q3 2022 to $613.4 million in Q3 2025. This reflects an approximately 45% increase in revenue over three years, indicating strong top-line expansion.
Gross profit has shown a similar upward trend, growing from $154.8 million in Q3 2022 to $249.3 million in Q3 2025. Despite rising operating costs of revenue, the company has maintained a healthy gross margin, which suggests effective cost management relative to its revenue growth.
Operating expenses, particularly selling, general, and administrative expenses (SG&A), have increased as well but at a controlled rate compared to revenue. SG&A expenses went from around $94.2 million in Q3 2022 to about $118.5 million in Q3 2025.
Operating income improved significantly, growing from approximately $60.6 million in Q3 2022 to $130.8 million in Q3 2025, more than doubling. This progression reflects Stride's improving operational efficiencies and profitability.
Net income attributable to common shareholders increased from $42.9 million in Q3 2022 to $99.3 million in Q3 2025, demonstrating robust bottom-line growth. The company has also managed to steadily improve its earnings per share (EPS), with diluted EPS rising from $1.02 in Q3 2022 to $2.02 in Q3 2025, benefiting from both profitability increases and relatively stable share count.
Cash flow data reveals that operating cash flow has been positive and growing, with net cash from operating activities increasing from $60.2 million in Q3 2022 to $53.1 million in Q3 2025. The slight dip in operating cash flow in 2025 Q3 compared to earlier high points is partially attributable to working capital changes.
Investing cash flows indicate ongoing investment in property and equipment and significant activity in investments, with purchases generally exceeding sales, resulting in negative net cash from investing activities across quarters. This suggests a commitment to long-term asset growth.
Financing activities consistently show cash outflows due to debt repayments and repurchase of preferred equity, reflecting a focus on debt reduction and returning capital to shareholders.
Balance sheet analysis shows strong growth in total assets, increasing from approximately $1.57 billion in Q3 2022 to $2.21 billion in Q3 2025. The company holds large cash and equivalents positions, with balances rising from $308.6 million to $528.5 million over the same period, illustrating solid liquidity.
Long-term debt remained relatively stable around $410 million to $416 million, suggesting that the company is managing leverage effectively alongside asset growth.
- Steady and strong growth in operating revenue (+45% over three years), reflecting robust business expansion.
- Improving gross profit and operating income, more than doubling operating income from Q3 2022 to Q3 2025.
- Net income attributable to common shareholders has more than doubled, leading to EPS growth from $1.02 to $2.02 diluted EPS.
- Strong and consistent positive cash flow from operating activities, supporting operations and investments.
- Growing cash and equivalents balance indicates strong liquidity and financial stability.
- Investing activities involve ongoing property/equipment purchases and net investment outflows, which could support future growth but increase cash usage.
- Financing cash flows indicate debt repayments and equity repurchases, reflecting capital return and leverage management.
- Long-term debt levels maintained steady without significant increase alongside asset growth, suggesting leverage discipline.
- Working capital fluctuations lead to variable cash flow from operations, indicated by changes in operating assets and liabilities.
- Operating expenses (SG&A) have increased in absolute terms, which could pressure margins if not managed relative to growth.
Overall, Stride, Inc. exhibits solid financial performance with expanding revenues and profitability, effective leverage management, and strong liquidity. Investors may find the company’s financials supportive of continued growth potential while maintaining operational discipline.
08/03/25 03:32 AMAI Generated. May Contain Errors.