# EDGAR Filing Document

**Accession Number:** 0001157408
**File Stem:** 0001171843-25-005051
**Filing Date:** 2025-8
**Character Count:** 35294
**Document Hash:** f7e462434aa49e0b59293a089b7fdd99
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171843-25-005051.hdr.sgml**: 20250805

**ACCESSION NUMBER**: 0001171843-25-005051

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250805

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250805

**DATE AS OF CHANGE**: 20250805

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Stride, Inc.
- **CENTRAL INDEX KEY:** 0001157408
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EDUCATIONAL SERVICES [8200]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 954774688
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33883
- **FILM NUMBER:** 251185188

**BUSINESS ADDRESS:**
- **STREET 1:** 11720 PLAZA AMERICA DRIVE
- **STREET 2:** 9TH FLOOR
- **CITY:** RESTON
- **STATE:** VA
- **ZIP:** 20190
- **BUSINESS PHONE:** 7034837000

**MAIL ADDRESS:**
- **STREET 1:** 11720 PLAZA AMERICA DRIVE
- **STREET 2:** 9TH FLOOR
- **CITY:** RESTON
- **STATE:** VA
- **ZIP:** 20190

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** K12 INC
- **DATE OF NAME CHANGE:** 20010813

?xml version='1.0' encoding='ASCII'? Form 8-K

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

### Washington, D.C. 20549
_________________

### FORM 8-K
_________________

#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

#### Date of Report (Date of earliest event reported): August 5, 2025
_______________________________

#### Stride, Inc.
(Exact name of registrant as specified in its charter)

_______________________________

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-33883** | **95-4774688** |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

#### 11720 Plaza America Drive, 9th Floor

#### Reston, Virginia 20190
(Address of Principal Executive Offices) (Zip Code)

(703) 483-7000

(Registrant's telephone number, including area code)

#### NA
(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.0001 par value per share | LRN | New York Stock Exchange (NYSE) |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02. Results of Operations and Financial Condition.**

On August 5, 2025, Stride, Inc. (the "Company") issued a press release announcing its financial results for the fourth quarter and full fiscal year ended June 30, 2025. A copy of the Company's press release is furnished herewith as Exhibit 99.1.

The information contained in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject to the liabilities of that Section. The information in this Item 2.02, including Exhibit 99.1, shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits

---

| | |
|:---|:---|
| <u>Exhibit No.</u> | <u>Description</u> |
| [99.1](exh_991.htm) | [Press Release regarding financial results for the quarter and year ended June 30, 2025](exh_991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

#### SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Stride, Inc.** | **Stride, Inc.** |
| Date: August 5, 2025 | By: | <u>/s/ Greerson McMullen&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> |
|  |  | Greerson McMullen |
|  |  | EVP, General Counsel & Secretary |

---

## Exhibit 99.1

**EXHIBIT 99.1**

**Stride Achieves Another Record Year**

**Demand Trends Support Continued Momentum into FY26**

RESTON, Va., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation's most successful technology-based education companies, today announced its results for the fourth quarter and full fiscal year ended June 30, 2025.

**Fiscal 2025 Highlights Compared to 2024**

* Revenue of $2,405.3 million, compared with $2,040.1 million

* Income from operations of $360.1 million, compared with $249.6 million

* Net income of $287.9 million, compared with $204.2 million

* Diluted net income per share of $5.95, compared with $4.69

* Adjusted operating income of $466.2 million, compared with $293.9 million (1)

* Adjusted EBITDA of $571.0 million, compared with $390.7 million (1)

* Adjusted earnings per share of $8.10, compared with $5.49 (1)

During the quarter ended June 30, 2025, the Company incurred one-time charges totaling $59.5 million, related to an impairment expense for our Galvanize business; these charges are excluded from adjusted operating income, adjusted EBITDA, and adjusted earnings per share.

**Fiscal 2025 Summary Financial Metrics**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Change 2025/2024** |
|  | **2025** | **2024** | $**%** |
|  | **(In thousands, except percentages and per share data)** | **(In thousands, except percentages and per share data)** | **(In thousands, except percentages and per share data)** |
| Revenues | $2405317 | 2040069 | 17.9% |
| Income from operations | 360094 | 249600 | 44.3% |
| Adjusted operating income (1) | 466233 | 293940 | 58.6% |
| Net income | 287941 | 204183 | 41.0% |
| Net income per share, diluted | 5.95 | 4.69 | 26.9% |
| Adjusted earnings per share (1) | 8.10 | 5.49 | 47.5% |
| EBITDA (1) | 474763 | 359283 | 32.1% |
| Adjusted EBITDA (1) | 571035 | 390745 | 46.1% |

---

(1) To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share. Management believes that these additional measures provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.

**Fourth Quarter Fiscal 2025 Highlights Compared to 2024**

* Revenue of $653.6 million, compared with $534.2 million

* Income from operations of $56.9 million, compared with $73.7 million

* Net income of $51.3 million, compared with $62.8 million

* Diluted net income per share of $1.03, compared with $1.42

* Adjusted operating income of $130.6 million, compared with $87.9 million

* Adjusted EBITDA of $158.4 million, compared with $112.1 million

* Adjusted earnings per share of $2.29, compared with $1.68

 **Fourth Quarter Fiscal 2025 Summary Financial Metrics**

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Change 2025/2024** |
|  | **2025** | **2024** | **%** |
|  | **(In thousands, except percentages and per share data)** | **(In thousands, except percentages and per share data)** | **(In thousands, except percentages and per share data)** |
| Revenues | $653647 | 534183 | 22.4% |
| Income from operations | 56864 | 73678) | (22.8%) |
| Adjusted operating income | 130558 | 87896 | 48.5% |
| Net income | 51320 | 62782) | (18.3%) |
| Net income per share, diluted | 1.03 | 1.42) | (27.5%) |
| Adjusted earnings per share | 2.29 | 1.68 | 36.3% |
| EBITDA | 87063 | 101897) | (14.6%) |
| Adjusted EBITDA | 158413 | 112087 | 41.3% |

---

 **Revenue Data**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | | **Year Ended** | **Year Ended** | |
|  | **June 30,** | **June 30,** | <br>**Change 2025 / 2024** | **June 30,** | **June 30,** | <br>**Change 2025 / 2024** |
|  | **2025** | **2024** | **%** | **2025** | **2024** | **%** |
|  | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** |
| **General Education** | $394134 | 347058 | 13.6% | $1448676 | 1289193 | 12.4% |
| **Career Learning** |  |  |  |  |  |  |
| &nbsp;&nbsp;Middle - High School | 240455 | 167219 | 43.8% | 876287 | 651191 | 34.6% |
| &nbsp;&nbsp;Adult | 19058 | 19906) | (4.3%) | 80354 | 99685) | (19.4%) |
| Total Career Learning | 259513 | 187125 | 38.7% | 956641 | 750876 | 27.4% |
| **Total Revenues** | $653647 | 534183 | 22.4% | $2405317 | 2040069 | 17.9% |

---

 **Enrollment and Revenue Per Enrollment Data**

Full year enrollments averaged 234.0K, up 20.4% compared to 194.3K enrollments in fiscal year 2024. Of the total average enrollments, 96.3K were Career Learning enrollments, up 32.5% compared to 72.7K Career Learning enrollments in fiscal year 2024.

Fourth quarter enrollments averaged 235.3K, up 21.7% compared to 193.4K enrollments in the fourth quarter of fiscal year 2024. Of the total average enrollments, 97.0K were Career Learning enrollments, up 33.2% compared to 72.8K Career Learning enrollments in the fourth quarter of fiscal year 2024.

Enrollments only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, and instructional and support services, inclusive of administrative support and may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollments for our Adult Learning business.

Revenue per enrollment for the fourth quarter was $2,630, up 2.4% compared to $2,569 in the fourth quarter of fiscal year 2024. General Education revenue per enrollment was $2,736, flat compared to the fourth quarter of fiscal year 2024, and Career Learning revenue per enrollment was $2,479, up 8.1%, compared to the fourth quarter of fiscal year 2024.

Revenue per enrollment for the full fiscal year 2025 was $9,677, up 0.6% compared to $9,623 in fiscal year 2024. General Education revenue per enrollment was $10,077, up 0.5%, and Career Learning revenue per enrollment was $9,104, up 1.8%, compared to fiscal year 2024. If the mix of enrollments changes, our revenues will be impacted to the extent the average revenues per enrollments are significantly different.

**Cash Flow and Capital Allocation**

As of June 30, 2025, the Company's cash and cash equivalents and marketable securities totaled $1,011.4 million, compared with $714.2 million reported at June 30, 2024.

Capital expenditures for the fiscal year ended June 30, 2025 were $60.0 million, compared to $61.6 million in fiscal year 2024, and were comprised of $1.8 million of property and equipment, $36.4 million of capitalized software development and $21.8 million of capitalized curriculum development.

**Conference Call**

The Company will discuss its fourth quarter and full fiscal year 2025 financial results during a conference call scheduled for Tuesday, August 5, 2025 at 5:00 p.m. eastern time (ET).

A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call.

A replay of the call will be posted at investors.stridelearning.com/events-and-presentations as soon as it is available.

**About Stride Inc.**

Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.

***Special Note on Forward-Looking Statements***

*This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements. We have tried, whenever possible, to identify these forward-looking statements using words such as "**outlook**," "**anticipates**," "**believes**," "**estimates**," "**continues**," "**likely**," "**may**," "**opportunity**," "**potential**," "**projects**," "**will**," **"will be,"** "**expects**," "**plans**," "**intends**" and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve or us to comply with our contracts, federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, or contractual remedies; change in law, governmental policy and/or regulations; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve as curriculum standards, testing programs and state accountability metrics evolve; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school in which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud systems and facilities, resulting from cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems; risks related to artificial intelligence; and other risks and uncertainties associated with our business described in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this press release is as of today's date, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.*

**Financial Statements** 

The financial statements set forth below are not the complete set of Stride, Inc.'s financial statements for the three months and year ended June 30, 2025 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.'s Annual Report on Form 10-K for the year ended June 30, 2025, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC's website at www.sec.gov or from Stride Inc.'s Investor Relations website at investors.stridelearning.com.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **STRIDE, INC.**<br>**<br>CONSOLIDATED STATEMENTS OF OPERATIONS** | **STRIDE, INC.**<br>**<br>CONSOLIDATED STATEMENTS OF OPERATIONS** | **STRIDE, INC.**<br>**<br>CONSOLIDATED STATEMENTS OF OPERATIONS** | **STRIDE, INC.**<br>**<br>CONSOLIDATED STATEMENTS OF OPERATIONS** | **STRIDE, INC.**<br>**<br>CONSOLIDATED STATEMENTS OF OPERATIONS** |
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands except share and per share data)** | **(In thousands except share and per share data)** | **(In thousands except share and per share data)** | **(In thousands except share and per share data)** |
| **Revenues** | $653647 | 534183 | 2405317 | 2040069 |
| &nbsp;&nbsp;Instructional costs and services | 414728 | 345971 | 1461398 | 1276466 |
| **Gross margin** | 238919 | 188212 | 943919 | 763603 |
| &nbsp;&nbsp;Selling, general, and administrative expenses | 122577 | 114534 | 524347 | 514003 |
| &nbsp;&nbsp;Impairment of long-lived assets | 59478 |  | 59478 |  |
| **Income from operations** | 56864 | 73678 | 360094 | 249600 |
| &nbsp;&nbsp;Interest expense, net | (2693) | (2318) | (10504) | (8812) |
| &nbsp;&nbsp;Other income, net | 10160 | 7519 | 33629 | 26900 |
| **Income before income taxes and income (loss) from equity method investments** | 64331 | 78879 | 383219 | 267688 |
| &nbsp;&nbsp;Income tax expense | (12919) | (16099) | (93007) | (64482) |
| &nbsp;&nbsp;Income (loss) from equity method investments | (92) | 2 | (2271) | 977 |
| **Net income attributable to common stockholders** | $51320 | 62782 | 287941 | 204183 |
| **Net income attributable to common stockholders per share:** |  |  |  |  |
| &nbsp;&nbsp;Basic | $1.19 | 1.47 | 6.69 | 4.79 |
| &nbsp;&nbsp;Diluted | $1.03 | 1.42 | 5.95 | 4.69 |
| **Weighted average shares used in computing per share amounts:** |  |  |  |  |
| &nbsp;&nbsp;Basic | 43186913 | 42760745 | 43041274 | 42626588 |
| &nbsp;&nbsp;Diluted | 49767056 | 44248689 | 48413717 | 43535441 |

---

---

| | | |
|:---|:---|:---|
| **STRIDE, INC.**<br>**<br>CONSOLIDATED BALANCE SHEETS** | **STRIDE, INC.**<br>**<br>CONSOLIDATED BALANCE SHEETS** | **STRIDE, INC.**<br>**<br>CONSOLIDATED BALANCE SHEETS** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
|  | **(In thousands except share and per share data)** | **(In thousands except share and per share data)** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $782497 | 500614 |
| &nbsp;&nbsp;Accounts receivable, net of allowance of $31,124 and $31,298 | 559646 | 472754 |
| &nbsp;&nbsp;Inventories, net | 37570 | 36748 |
| &nbsp;&nbsp;Prepaid expenses | 35579 | 29164 |
| &nbsp;&nbsp;Marketable securities | 202769 | 191672 |
| &nbsp;&nbsp;Other current assets | 14673 | 14494 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 1632734 | 1245446 |
| Operating lease right-of-use assets, net | 15960 | 54503 |
| Property and equipment, net | 78582 | 50856 |
| Capitalized software, net | 75314 | 81952 |
| Capitalized curriculum development costs, net | 58584 | 53232 |
| Intangible assets, net | 18227 | 60282 |
| Goodwill | 246676 | 246676 |
| Deferred tax asset | 26377 | 7200 |
| Deposits and other assets | 141505 | 120318 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $2293959 | 1920465 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;Accounts payable | $43962 | 40970 |
| &nbsp;&nbsp;Accrued liabilities | 103276 | 60796 |
| &nbsp;&nbsp;Accrued compensation and benefits | 74939 | 64878 |
| &nbsp;&nbsp;Deferred revenue | 26995 | 35742 |
| &nbsp;&nbsp;Current portion of finance lease liability | 42316 | 29146 |
| &nbsp;&nbsp;Current portion of operating lease liability | 11391 | 12748 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 302879 | 244280 |
| Long-term finance lease liability | 44567 | 26452 |
| Long-term operating lease liability | 35164 | 45192 |
| Long-term debt | 416322 | 414675 |
| Other long-term liabilities | 15408 | 13841 |
| &nbsp;&nbsp;**Total liabilities** | 814340 | 744440 |
| **Commitments and contingencies** |  |  |
| **Stockholders' equity** |  |  |
| &nbsp;&nbsp;Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding |  |  |
| &nbsp;&nbsp;Common stock, par value $0.0001; 100,000,000 shares authorized; 48,852,419 and 48,576,164 shares issued; and 43,517,676 and 43,241,421 shares outstanding, respectively | 4 | 4 |
| &nbsp;&nbsp;Additional paid-in capital | 735711 | 720033 |
| &nbsp;&nbsp;Accumulated other comprehensive loss | (67) | (42) |
| &nbsp;&nbsp;Retained earnings | 846453 | 558512 |
| &nbsp;&nbsp;Treasury stock of 5,334,743 shares at cost | (102482) | (102482) |
| **Total stockholders' equity** | 1479619 | 1176025 |
| **Total liabilities and stockholders' equity** | $2293959 | 1920465 |

---

---

| | | |
|:---|:---|:---|
| **STRIDE, INC.**<br>**CONSOLIDATED STATEMENTS OF CASH FLOWS** | **STRIDE, INC.**<br>**CONSOLIDATED STATEMENTS OF CASH FLOWS** | **STRIDE, INC.**<br>**CONSOLIDATED STATEMENTS OF CASH FLOWS** |
|  | **Year Ended** | **Year Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| **Cash flows from operating activities** |  |  |
| Net income | $287941 | 204183 |
| **Adjustments to reconcile net income to net cash provided by operating activities:** |  |  |
| Depreciation and amortization expense | 114669 | 109683 |
| Stock-based compensation expense | 36794 | 31462 |
| Deferred income taxes | (17783) | 2890 |
| Provision for credit losses | 15267 | 22844 |
| Amortization of fees on debt | 1647 | 1640 |
| Noncash operating lease expense | 12265 | 14246 |
| Impairment of long-lived assets | 59478 |  |
| Other | (596) | 849 |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;Accounts receivable | (102188) | (32056) |
| &nbsp;&nbsp;Inventories, prepaid expenses, deposits and other current and long-term assets | (6239) | (8877) |
| &nbsp;&nbsp;Accounts payable | 310 | (6844) |
| &nbsp;&nbsp;Accrued liabilities | 40915 | (16556) |
| &nbsp;&nbsp;Accrued compensation and benefits | 9913 | 7394 |
| &nbsp;&nbsp;Operating lease liability | (12396) | (14990) |
| &nbsp;&nbsp;Deferred revenue and other liabilities | (7181) | (37071) |
| **Net cash provided by operating activities** | 432816 | 278797 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;Purchase of property and equipment | (1781) | (2270) |
| &nbsp;&nbsp;Capitalized software development costs | (36428) | (40653) |
| &nbsp;&nbsp;Capitalized curriculum development costs | (21801) | (18666) |
| &nbsp;&nbsp;Other acquisitions, loans and investments, net of distributions | (20682) | (5196) |
| &nbsp;&nbsp;Proceeds from the maturity of marketable securities | 252930 | 204487 |
| &nbsp;&nbsp;Purchases of marketable securities | (260233) | (277573) |
| **Net cash used in investing activities** | (87995) | (139871) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;Repayments on finance lease obligations | (41469) | (40919) |
| &nbsp;&nbsp;Repurchase of restricted stock for income tax withholding | (21469) | (8200) |
| **Net cash used in financing activities** | (62938) | (49119) |
| **Net change in cash, cash equivalents and restricted cash** | 281883 | 89807 |
| **Cash, cash equivalents and restricted cash, beginning of period** | 500614 | 410807 |
| **Cash, cash equivalents and restricted cash, end of period** | $782497 | 500614 |

---

**Non-GAAP Financial Measures**

To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share, which are not presented in accordance with GAAP.

* Adjusted operating income (loss) is defined as income (loss) from operations as adjusted for amortization of intangible assets, stock-based compensation, and other one-time charges or gains.

* EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization.

* Adjusted EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization, stock-based compensation, and other one-time charges or gains.

* Adjusted earnings per share (adjusted EPS) is defined as net income (loss) attributable to common stockholders as adjusted for the amortization of intangible assets, stock-based compensation, and other one-time charges or gains net of tax impact divided by the diluted weighted average number of common shares outstanding less the shares expected to be received for the capped call transaction related to Stride's convertible senior notes.

Adjusted operating income (loss), adjusted EBITDA, and adjusted EPS exclude stock-based compensation, which consists of expenses for restricted stock, restricted stock units, and performance stock units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss), adjusted EBITDA and adjusted EPS remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. Adjusted operating income (loss), adjusted EBITDA and adjusted earnings per share remove one-time charges or gains which are not related to core operating activities and are not indicative of our ongoing operating performance. Additionally, adjusted EPS includes the impact from shares expected to be received by the Company to offset potential dilution from the convertible senior notes. EBITDA and adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired.

Management uses these non-GAAP financial measures:

* as additional measures of operating performance because they assist in comparing the Company's performance on a consistent basis; and

* in presentations to the members of the Company's Board of Directors to enable the Board to review the same measures used by management to compare the Company's current operating results with corresponding prior periods.

Other companies may define these non-GAAP financial measures differently and, as a result, these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although these non-GAAP financial measures are used to assess the performance of the business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items included and/or not included in the most directly comparable GAAP financial measure.

These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and diluted net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures.

Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below.

**Fourth Quarter and Full Fiscal Year 2025**

***Reconciliation of Income from Operations to Adjusted Operating Income***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Income from operations | $&nbsp;&nbsp;&nbsp;&nbsp; 56864 | $&nbsp;&nbsp;&nbsp;&nbsp; 73678 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;360094 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;249600 |
| Amortization of intangible assets | 2344 | 4028 | 9867 | 12878 |
| Stock-based compensation expense | 11872 | 10190 | 36794 | 31462 |
| Impairment of long-lived assets | 59478 | - | 59478 | - |
| Adjusted operating income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130558 | $&nbsp;&nbsp;&nbsp;&nbsp; 87896 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;466233 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;293940 |

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 ***Reconciliation of Net Income to EBITDA and Adjusted EBITDA***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **June 30,** | **Three Months Ended**<br> **June 30,** | **Year Ended**<br> **June 30,** | **Year Ended**<br> **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Net income | $51320 | $62782 | $287941 | $204183 |
| Interest expense, net | 2693 | 2318 | 10504 | 8812 |
| Other income, net | (10160) | (7519) | (33629) | (26900) |
| Income tax expense | 12919 | 16099 | 93007 | 64482 |
| (Income) loss from equity method investments | 92 | (2) | 2271 | (977) |
| Depreciation and amortization | 30199 | 28219 | 114669 | 109683 |
| EBITDA | 87063 | 101897 | 474763 | 359283 |
| Stock-based compensation expense | 11872 | 10190 | 36794 | 31462 |
| Impairment of long-lived assets | 59478 | - | 59478 | - |
| Adjusted EBITDA | $158413 | $112087 | $571035 | $390745 |

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 ***Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Net income attributable to common stockholders | $&nbsp;&nbsp;&nbsp;&nbsp; 51320 | $&nbsp;&nbsp;&nbsp;&nbsp; 62782 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;287941 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;204183 |
| Amortization of intangible assets | 2344 | 4028 | 9867 | 12878 |
| Stock-based compensation expense | 11872 | 10190 | 36794 | 31462 |
| Impairment of long-lived assets | 59478 | - | 59478 | - |
| Income tax effect on adjustment above | (15309) | (2841) | (21442) | (9683) |
| Adjusted net income attributable to common stockholders | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;109705 | $&nbsp;&nbsp;&nbsp;&nbsp; 74159 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;372638 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;238840 |
| Share computation: |  |  |  |  |
| Weighted average common shares — diluted | 49767056 | 44248689 | 48413717 | 43535441 |
| Effect of capped call transactions | (1827961) | - | (2396207) | - |
| Adjusted weighted average common shares — diluted | 47939095 | 44248689 | 46017510 | 43535441 |
| Adjusted diluted net income per share | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.29 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.68 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.10 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.49 |
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(per share)** | **(per share)** | **(per share)** | **(per share)** |
| Diluted net income per share | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.03 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.42 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.95 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.69 |
| Amortization of intangible assets | 0.05 | 0.09 | 0.20 | 0.30 |
| Stock-based compensation expense | 0.24 | 0.23 | 0.76 | 0.72 |
| Impairment of long-lived assets | 1.20 | - | 1.23 | - |
| Income tax effect on adjustment above | (0.31) | (0.06) | (0.44) | (0.22) |
| Effect of capped call transactions | 0.08 | - | 0.40 | - |
| Adjusted earnings per share | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.29 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.68 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.10 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.49 |

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Investor Contact

Timothy Casey

Vice President, Investor Relations

Stride, Inc.

ir@k12.com

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