Valuation Update With 7 Day Price Move • Jun 21
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to €71.50, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 16x in the Consumer Services industry in Europe. Total returns to shareholders of 104% over the past three years. Duyuru • Apr 29
Stride, Inc. Provides Earnings Guidance for Full Fiscal Year Ending June 30, 2026 Stride, Inc. provided earnings guidance for full fiscal year ending June 30, 2026. For the year, the company is narrowing revenue in the range of $2.490 billion to $2.520 billion. Income from operations expected to be $443.0 million to $450.0 million. Duyuru • Jan 28
Stride, Inc. Provides Earnings Guidance for the Third Quarter and Full Fiscal Year 2026 Stride, Inc. provided earnings guidance for the third quarter and full fiscal year 2026. For the quarter, the company expects revenue in the range of $615 million to $645 million.
For the full fiscal year, the company expects revenue in the range of $2.480 billion to $2.555 billion. Duyuru • Nov 12
Scott+Scott Attorneys At Law LLP Files Securities Class Action Against Stride, Inc Scott+Scott Attorneys at Law LLP has filed a securities class action lawsuit in the United States District Court for the Eastern District of Virginia against Stride, Inc. and certain of its directors and officers (collectively, “Defendants”). The Class Action asserts claims under §§10(b) and 20(a) of the Securities Exchange Act of 1934 (15 U.S.C. §§78j(b) and 78t(a)) and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder (17 C.F.R. §240.10b-5) on behalf of all persons and entities other than Defendants who purchased or otherwise acquired Stride securities between October 22, 2024 and October 28, 2025, inclusive (the “Class Period”), and were damaged thereby (the “Class”). The Class Action filed by Scott+Scott is captioned: MacMahon v. Stride, Inc., et al., Case No. 1:25-cv-02019. The Class Action alleges that, during the Class Period, Defendants made misleading statements and omissions regarding the Company’s products and services to public and private schools, school districts, and charter boards. Throughout the Class Period, Stride represented to investors that “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.” Unbeknownst to investors, Stride was inflating enrollment numbers, cutting staff costs beyond required statutory limits, ignoring compliance requirements, and losing existing and potential enrollments. Defendants’ materially false and misleading statements during the Class Period resulted in members of the Class purchasing or otherwise acquiring the Company’s securities at artificially inflated prices, thus causing damages when the truth was revealed. Duyuru • Nov 04
Stride, Inc. (NYSE:LRN) announces an Equity Buyback for $500 million worth of its shares. Stride, Inc. (NYSE:LRN) announces a share repurchase program. Under the program, the company will repurchase up to $500 million worth of its shares. The program will be valid till October 31, 2026. Duyuru • Oct 29
Stride, Inc. Provides Earnings Guidance for the Second Quarter and Full Fiscal Year 2026 Stride, Inc. provided earnings guidance for the second quarter and full fiscal year 2026. For the quarter, the company expects revenue in the range of $620 million to $640 million.
For the full year, the company expects revenue in the range of $2.480 billion to $2.555 billion. Duyuru • Oct 27
Stride, Inc., Annual General Meeting, Dec 04, 2025 Stride, Inc., Annual General Meeting, Dec 04, 2025. Location: law firm of latham & watkins llp, 555 eleventh street, nw, suite 1000, washington, dc 20004-1304, United States Duyuru • Sep 20
Stride, Inc. Appoints Robert E. Knowling, Jr. to Serve as Member of the Board, Effective September 16, 2025 On September 16, 2025, the Board of Directors of Stride, Inc. elected, upon the recommendation of the Nominating and Corporate Governance Committee of the Board, Robert E. Knowling, Jr. to serve as a member of the Board, effective immediately. The Board also appointed Mr. Knowling to serve as a member of the Audit Committee of the Board and the Compensation Committee of the Board. In connection with the election, the Board approved an increase in the size of the Board from seven members to eight members. There are no arrangements or understandings between Mr. Knowling and any other person pursuant to which Mr. Knowling was selected as a director of the Company. Mr. Knowling will serve as a director of the Company until the next annual meeting of stockholders of the Company and until his respective successor is elected and qualified or until his earlier resignation, death or removal. Duyuru • Sep 10
Gallup-Mckinley County Schools File Fraud Complaint Against Stride, Inc. Alleging Profit-Driven Abuse of Minority-Majority Public School District The Gallup-McKinley County Schools (GMCS) Board of Education has filed a verified complaint against Stride, Inc., charging the publicly traded for-profit virtual education provider with fraud, deceptive trade practices, systemic violations of law, and intentional and tortious misconduct designed to maximize profit margins at the expense of students and their education, in which a vast majority of students are Native American. Allegations of Profit Before Students; The complaint, filed in New Mexico's11th Judicial District Court, asserts that Stride executives knowingly: Inflated enrollment numbersby retaining "ghost students" on rolls to secure state funding per student. Cut staffing costs by assigning teachers' caseloads far beyond the required statutory limits, some exceeding 200 students each. Ignored compliance requirements, including background checks and licensure laws for its employees, and ignored federally mandated special education services to students. Suppressed whistleblowers who documented financial directives from Stride's leadership to delay hiring and deny services to preserve profit margins. According to whistleblower testimony cited in the complaint, senior Stride finance executives explicitly rejected requests to hire additional teachers, even when warned that the company violated a New Mexico statute. Instead, executives ordered additional staff cuts to ensure profit targets were met. Stride continues to assert legal claims against the School District despite admissions from its corporate leadership to the misconduct and has relied on a disinformation strategy to distract from its misdeeds. GMCS's lawsuit contends that Stride's practices, while boosting short-term profitability, came at enormous long-term cost: a 27.67% graduation rate in 2024 (down from 54% in 2023), substandard test scores in every subject, and widespread loss of public trust. The complaint calls for compensatory and punitive damages, triple damages under New Mexico's Unfair Trade Practices Act, and restitution of taxpayer funds. More broadly, the case highlights the inherent risks in publicly traded education models that tie shareholder value to cost-cutting in already under-resourced schools and school districts. Duyuru • Aug 06
Stride, Inc. Reports Impairment Charges Results for the Fourth Quarter Ended June 30, 2025 Stride, Inc. reported impairment charges results for the fourth quarter ended June 30, 2025. For the quarter, the company reported impairment of long-lived assets of $59,478,000. Duyuru • Apr 30
Stride, Inc. Revises Earnings Guidance for the Fiscal Year 2025 Stride, Inc. revised Earnings Guidance for the Fiscal Year 2025. For the period, the Company raised Revenue forecast to be in the range of $2.370 billion to $2.385 billion. Duyuru • Apr 19
Stride, Inc. Announces Resignation of Robert E. Knowling Jr. from the Board, Effective April 15, 2025 On April 15, 2025, Robert E. Knowling Jr. notified the Board of Directors of Stride, Inc. of his decision to resign from the Board and all committees on which he served, effective immediately. Mr. Knowling’s resignation is not the result of any disagreement between Mr. Knowling and the Company on any matter relating to the operations, policies or practices of the Company. Duyuru • Jan 15
Stride, Inc. to Report Q2, 2025 Results on Jan 28, 2025 Stride, Inc. announced that they will report Q2, 2025 results on Jan 28, 2025 Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment improves as stock rises 43% After last week's 43% share price gain to €84.50, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 10x in the Consumer Services industry in Europe. Total returns to shareholders of 161% over the past three years. Recent Insider Transactions • Oct 29
Insider recently sold €679k worth of stock On the 25th of October, Todd Goldthwaite sold around 8k shares on-market at roughly €84.59 per share. This transaction amounted to 8.6% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of €1.9m more than they bought in the last 12 months. Duyuru • Oct 28
Stride, Inc., Annual General Meeting, Dec 05, 2024 Stride, Inc., Annual General Meeting, Dec 05, 2024. Location: latham & watkins llp, 555 eleventh street , nw, suite 1000, dc 20004-1304, washington United States Reported Earnings • Oct 23
First quarter 2025 earnings released: EPS: US$0.95 (vs US$0.12 in 1Q 2024) First quarter 2025 results: EPS: US$0.95 (up from US$0.12 in 1Q 2024). Revenue: US$551.1m (up 15% from 1Q 2024). Net income: US$40.9m (up US$36.0m from 1Q 2024). Profit margin: 7.4% (up from 1.0% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Duyuru • Oct 23
Stride, Inc. Provides Earnings Guidance for the Second Quarter Ending December 31, 2024 and Full Fiscal Year Ending June 30, 2025 Stride, Inc. provided earnings guidance for the second quarter ending December 31, 2024 and full fiscal year ending June 30, 2025. For the quarter, the revenue in the range of $560 million to $580 million. Income from operations of $104.3 million to $112.3 million.
For the year, the revenue in the range of $2.225 billion to $2.300 billion. Income from operations of $351.5 million to $375.5 million. Duyuru • Oct 17
Stride, Inc. to Report Q1, 2025 Results on Oct 22, 2024 Stride, Inc. announced that they will report Q1, 2025 results on Oct 22, 2024 Reported Earnings • Aug 07
Full year 2024 earnings released: EPS: US$4.79 (vs US$3.00 in FY 2023) Full year 2024 results: EPS: US$4.79 (up from US$3.00 in FY 2023). Revenue: US$2.04b (up 11% from FY 2023). Net income: US$204.2m (up 61% from FY 2023). Profit margin: 10.0% (up from 6.9% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.8% p.a. on average during the next 2 years, compared to a 4.9% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 38% per year whereas the company’s share price has increased by 33% per year. Duyuru • May 18
Stride, Inc. Announces Board Changes Stride, Inc. announced On May 15, 2024, Dr. Craig R. Barrett notified the company of his decision not to stand for re-election to the board of directors of the Company (the “Board”) at the 2024 annual meeting of stockholders (“Annual Meeting”) and will retire from the Board and from the role of Chair of the Board, effective at the conclusion of the Annual Meeting. Dr. Barrett confirmed to the Board that his decision not to stand for re-election was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices. On May 15, 2024, the Company determined that the Company’s Chief Executive Officer, James J. Rhyu, will succeed Dr. Barrett as Chair of the Board and that Steven B. Fink will be appointed as the Company’s lead independent director, both effective at the conclusion of the Annual Meeting. Duyuru • Apr 24
Stride, Inc. Provides Earnings Guidance for the Full Year Ended June 30, 2024 Stride, Inc. provided earnings guidance for the full year ended June 30, 2024. For the year, the revenue in the range of $2.025 billion to $2.040 billion. Income from operations in the range of $240.5 million to $247.0 million. Reported Earnings • Apr 24
Third quarter 2024 earnings released: EPS: US$1.63 (vs US$1.31 in 3Q 2023) Third quarter 2024 results: EPS: US$1.63 (up from US$1.31 in 3Q 2023). Revenue: US$520.8m (up 11% from 3Q 2023). Net income: US$69.7m (up 26% from 3Q 2023). Profit margin: 13% (up from 12% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 35% per year whereas the company’s share price has increased by 30% per year. Duyuru • Mar 15
Stride, Inc. Terminates Les Ottolenghi from His Position At the Company On March 8, 2024, Stride, Inc. terminated Les Ottolenghi from his position at the Company, effectively immediately. Duyuru • Feb 10
Stride, Inc. Announces Resignation of Robert L. Cohen from the Board, Nominating and Corporate Governance Committee and Audit Committee On February 8, 2024, Robert L. Cohen notified the Board of Directors of Stride, Inc. of his decision to resign from the Board, the Nominating and Corporate Governance Committee and the Audit Committee of the Board, effective immediately. Board Change • Feb 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. 2 highly experienced directors. CEO & Director James Rhyu was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Jan 24
Second quarter 2024 earnings released: EPS: US$1.57 (vs US$1.20 in 2Q 2023) Second quarter 2024 results: EPS: US$1.57 (up from US$1.20 in 2Q 2023). Revenue: US$504.9m (up 10% from 2Q 2023). Net income: US$66.8m (up 32% from 2Q 2023). Profit margin: 13% (up from 11% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Jan 24
Stride, Inc. Provides Earnings Guidance for the Third Quarter and Full Fiscal Year 2024 Stride, Inc. provided earnings guidance for the third quarter and full fiscal year 2024. For the quarter, the company expects revenue in the range of $500 million to $520 million. For the full year, the company expects revenue in the range of $1.99 billion to $2.04 billion. Recent Insider Transactions • Dec 14
Insider recently sold €246k worth of stock On the 11th of December, Robert Cohen sold around 4k shares on-market at roughly €56.37 per share. This transaction amounted to 31% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth €632k. Insiders have been net sellers, collectively disposing of €1.7m more than they bought in the last 12 months. Duyuru • Dec 08
Stride, Inc. Elects Liza Mcfadden to the Board of Directors Stride, Inc. announced that at the AGM held on December 7, 2023, approved to elect Liza Mcfadden to the Board of Directors. Recent Insider Transactions • Nov 24
Independent Director recently sold €632k worth of stock On the 21st of November, Eliza McFadden sold around 12k shares on-market at roughly €52.80 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of €1.5m more than they bought in the last 12 months. Recent Insider Transactions • Nov 10
Insider recently sold €325k worth of stock On the 7th of November, Les Ottolenghi sold around 6k shares on-market at roughly €52.79 per share. This transaction amounted to 9.2% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth €538k. Insiders have been net sellers, collectively disposing of €863k more than they bought in the last 12 months. Recent Insider Transactions • Nov 02
Executive VP recently sold €538k worth of stock On the 27th of October, Vincent Mathis sold around 11k shares on-market at roughly €50.80 per share. This transaction amounted to 20% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to €51.50, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 11x in the Consumer Services industry in Europe. Total returns to shareholders of 158% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €90.94 per share. Duyuru • Oct 25
Stride, Inc. Provides Revenue Guidance for the Second Quarter and Full Year of 2024 Stride, Inc. provided revenue guidance for the second quarter and full year of 2024. The Company is forecasting the following for the second quarter fiscal year 2024: Revenue in the range of 490.0 million to $510.0 million.The Company is forecasting the following for the full fiscal year 2024: Revenue in the range of $1.96 billion to $2.03 billion. Reported Earnings • Oct 25
First quarter 2024 earnings released: EPS: US$0.12 (vs US$0.54 loss in 1Q 2023) First quarter 2024 results: EPS: US$0.12 (up from US$0.54 loss in 1Q 2023). Revenue: US$480.2m (up 13% from 1Q 2023). Net income: US$4.88m (up US$27.6m from 1Q 2023). Profit margin: 1.0% (up from net loss in 1Q 2023). The move to profitability was driven by higher revenue. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 16
Full year 2023 earnings released: EPS: US$3.00 (vs US$2.58 in FY 2022) Full year 2023 results: EPS: US$3.00 (up from US$2.58 in FY 2022). Revenue: US$1.84b (up 8.9% from FY 2022). Net income: US$126.9m (up 18% from FY 2022). Profit margin: 6.9% (up from 6.4% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 27
Third quarter 2023 earnings released: EPS: US$1.31 (vs US$1.03 in 3Q 2022) Third quarter 2023 results: EPS: US$1.31 (up from US$1.03 in 3Q 2022). Revenue: US$470.3m (up 12% from 3Q 2022). Net income: US$55.5m (up 29% from 3Q 2022). Profit margin: 12% (up from 10% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €38.40, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 11x in the Consumer Services industry in Europe. Total returns to shareholders of 165% over the past three years. Reported Earnings • Jan 25
Second quarter 2023 earnings released: EPS: US$1.20 (vs US$1.01 in 2Q 2022) Second quarter 2023 results: EPS: US$1.20 (up from US$1.01 in 2Q 2022). Revenue: US$458.4m (up 12% from 2Q 2022). Net income: US$50.7m (up 21% from 2Q 2022). Profit margin: 11% (in line with 2Q 2022). Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Duyuru • Jan 25
Stride, Inc. Provides Earnings Guidance for the Third Quarter and Fiscal Year 2023 Stride, Inc. provided earnings guidance for the third quarter and fiscal year 2023. For the quarter, the company expected Revenue in the range of $445.0 million to $465.0 million. For the year, the company expects Revenue in the range of $1.775 billion to $1.815 billion. Duyuru • Jan 19
Stride, Inc. Launches New Solution to Combat Nation’s Pandemic-Era Learning Loss Stride, Inc. has launched Stride Tutoring, an innovative platform designed to get students academically on track with one-on-one support. Stride Tutoring is the only online tutoring platform that requires every tutor to be an active, state-certified teacher, giving students access to hundreds of educators no matter what school they attend or where they live. As experienced teachers, Stride’s tutors are committed to cultivating opportunities for academic achievement, regardless of a student’s location. Stride Tutoring allows students and tutors to connect from anywhere with an internet connection, and families can select from a wide pool of teachers for live, personalized sessions. Students can book recurring sessions with their favorite tutors, building lasting relationships that empower their success. Backed by more than two decades of experience in online education delivery, Stride Tutoring’s interactive communication features are built for the success and safety of students. Trained tutors provide sessions in their field of mastery – in the subjects they love, and love to teach – offering students a personalized experience to enhance their academic journey. The platform’s built-in feedback channels make it easy for student, tutor, and parents to connect, and parents have direct access to tutors through the platform’s secure messaging capabilities and post-session feedback channels. For schools and districts, Stride Tutoring offers a variety of scalable solutions for high-dosage tutoring, including the ability to schedule small-group sessions during the school day and access detailed student- and school-level reports. Valuation Update With 7 Day Price Move • Nov 02
Investor sentiment deteriorated over the past week After last week's 23% share price decline to €34.00, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 11x in the Consumer Services industry in Europe. Total returns to shareholders of 90% over the past three years. Reported Earnings • Oct 27
First quarter 2023 earnings released: US$0.54 loss per share (vs US$0.14 loss in 1Q 2022) First quarter 2023 results: US$0.54 loss per share (further deteriorated from US$0.14 loss in 1Q 2022). Revenue: US$425.2m (up 6.2% from 1Q 2022). Net loss: US$22.7m (loss widened 285% from 1Q 2022). Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 41% per year whereas the company’s share price has increased by 36% per year. Reported Earnings • Aug 11
Full year 2022 earnings released: EPS: US$2.58 (vs US$1.78 in FY 2021) Full year 2022 results: EPS: US$2.58 (up from US$1.78 in FY 2021). Revenue: US$1.69b (up 9.8% from FY 2021). Net income: US$107.1m (up 50% from FY 2021). Profit margin: 6.4% (up from 4.6% in FY 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 5.8%, compared to a 22% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improved over the past week After last week's 16% share price gain to €38.40, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 10x in the Consumer Services industry in Europe. Total returns to shareholders of 42% over the past three years. Recent Insider Transactions • Apr 30
Executive Chairman recently sold €3.9m worth of stock On the 29th of April, Nathaniel Davis sold around 105k shares on-market at roughly €37.04 per share. This was the largest sale by an insider in the last 3 months. This was Nathaniel's only on-market trade for the last 12 months. Reported Earnings • Apr 21
Third quarter 2022 earnings released: EPS: US$1.03 (vs US$0.59 in 3Q 2021) Third quarter 2022 results: EPS: US$1.03 (up from US$0.59 in 3Q 2021). Revenue: US$421.7m (up 7.5% from 3Q 2021). Net income: US$42.9m (up 80% from 3Q 2021). Profit margin: 10% (up from 6.1% in 3Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 5.0%, compared to a 30% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Duyuru • Apr 20
Stride, Inc. Revises Earnings Guidance for the Year 2022 Stride, Inc. revised earnings guidance for the year 2022. The company is updating and raising its forecast for the full fiscal year 2022: Revenue in the range of $1.645 billion to $1.660 billion. Reported Earnings • Jan 26
Second quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Second quarter 2022 results: EPS: US$1.01 (up from US$0.61 in 2Q 2021). Revenue: US$409.5m (up 8.9% from 2Q 2021). Net income: US$42.0m (up 71% from 2Q 2021). Profit margin: 10% (up from 6.5% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.6%. Over the next year, revenue is forecast to grow 2.1%, compared to a 20% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Duyuru • Jan 26
Stride, Inc. Provides Earnings Guidance for the Third Quarter and Full Fiscal Year 2022 Stride, Inc. provided earnings guidance for the third quarter and full fiscal year 2022. For the quarter, the company expects revenue to be range of $405 million to $415 million. The company expects income from operations to be in the range of $50.7 million to $54.7 million for the Three Months Ended March 31, 2022.For the year, the company expects revenue to be range of $1.62 billion to $1.64 billion. The company expects income from operations to be in the range of $142.0 million to $150.0 million Year Ended June 30, 2022. Reported Earnings • Oct 20
First quarter 2022 earnings released: US$0.14 loss per share (vs US$0.32 profit in 1Q 2021) The company reported a soft first quarter result with weaker earnings and weaker control over costs, although revenues improved. First quarter 2022 results: Revenue: US$400.2m (up 7.9% from 1Q 2021). Net loss: US$5.88m (down 146% from profit in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 23% per year and the company’s share price has also increased by 23% per year. Reported Earnings • Aug 12
Full year 2021 earnings released: EPS US$1.78 (vs US$0.62 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: US$1.54b (up 48% from FY 2020). Net income: US$71.5m (up 192% from FY 2020). Profit margin: 4.6% (up from 2.4% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year whereas the company’s share price has increased by 24% per year. Duyuru • May 13
Botetourt County Public Schools Selects Stride Learning Solutions to Launch Division-Wide Virtual Academy Botetourt County Public Schools announces a new education option BCPS Virtual Academy. The online K-12 school will offer district families a tuition-free online learning option based in their own community. Stride Learning Solutions, a division of Stride, Inc. will provide BCPS Virtual Academy’s customized online school platform, standards-aligned curriculum, and teacher-led instruction to students in Kindergarten through 12th grade. BCPS Virtual Academy students in grades K-12 will access a full course load across the core subjects of math, science, English/language arts, and history. Students will have the ability to connect with state-credentialed teachers during live instructional sessions. Outside of class time, students will have access to BCPS’s host of extracurricular activities, clubs, and student organizations. BCPS’s decision to open a division-based online learning option comes at a time when many parents are looking for alternative education options for their kids. According to a recent nationwide survey conducted by Stride in partnership with third party research provider Qualtrics, 91% of parents agree that it’s important for their children to have multiple school options, including full-time online or a hybrid model that blends online and in-person learning. Recent Insider Transactions • Apr 29
Executive VP recently sold €245k worth of stock On the 23rd of April, Vincent Mathis sold around 9k shares on-market at roughly €26.07 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of €661k more than they bought in the last 12 months. Reported Earnings • Apr 24
Third quarter 2021 earnings released: EPS US$0.59 (vs US$0.22 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$392.1m (up 53% from 3Q 2020). Net income: US$23.8m (up 172% from 3Q 2020). Profit margin: 6.1% (up from 3.4% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year whereas the company’s share price has increased by 27% per year. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment improved over the past week After last week's 19% share price gain to US$23.60, the stock trades at a trailing P/E ratio of 22.1x, up from the previous P/E ratio of 18.6x. Average P/E is 19x in the Consumer Services industry in Europe. Total returns to shareholders over the past three years are 96%. Duyuru • Feb 05
Stride, Inc. Announces Appointment of Senior Vice President of K12 Learning Solutions Stride, Inc. announced that Dr. Jodi Marshall will lead the company’s efforts to partner with states, districts, and schools for their online learning solutions. Marshall’s appointment comes at a time when more than 70% of U.S. parents agree that online education should be an ongoing option after the pandemic subsides. As Stride’s new Senior Vice President of K12 Learning Solutions, Marshall will manage a diverse range of flexible, customizable academic programs that school leaders need during this unprecedented period. One of the country’s foremost online education executives with more than twenty years of experience in K-12 and higher education, Marshall will also lead initiatives that support Stride’s career learning programs and strengthen online administrator, teacher, and parent trainings. A former teacher, Marshall most recently served as Senior Vice President of Regional School Services for Stride K12-powered schools in the southern region of the country. Previously, Marshall was President and Chief Executive Officer of Florida Virtual School. At FLVS, she oversaw an organization that supported more than 300,000 full and part-time students, with revenues of more than $220 million. During her tenure at FLVS, Marshall also held roles as Executive Vice President of Business and School Solutions, Chief Academic Officer, Vice President of Instruction, Instructional Leader, as well as a variety of other positions. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improved over the past week After last week's 18% share price gain to US$23.40, the stock is trading at a trailing P/E ratio of 21.3x, up from the previous P/E ratio of 18.2x. This compares to an average P/E of 20x in the Consumer Services industry in Europe. Total returns to shareholders over the past three years are 84%. Is New 90 Day High Low • Feb 04
New 90-day high: €22.80 The company is up 10.0% from its price of €20.80 on 06 November 2020. The German market is up 14% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Consumer Services industry, which is also up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €93.54 per share. Duyuru • Jan 28
Stride, Inc. Announces Chief Executive Officer Changes Stride, Inc. announced that Nathaniel (Nate) A. Davis is retiring from his role as Chief Executive Officer. He will remain active in the business as the Executive Chairman of Stride's Board of Directors. Replacing Mr. Davis as Chief Executive Officer is James J. Rhyu who has served in a variety of roles during his eight-year tenure at Stride, including Chief Financial Officer, President of Product and Technology, and most recently as President of Corporate Strategy, Marketing, and Technology. Prior to joining Stride, Mr. Rhyu served as Chief Financial Officer and Chief Administrative Officer of Match.com . Reported Earnings • Jan 28
Second quarter 2021 earnings released: EPS US$0.61 (vs US$0.52 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: US$376.1m (up 46% from 2Q 2020). Net income: US$24.5m (up 19% from 2Q 2020). Profit margin: 6.5% (down from 8.0% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Jan 28
Revenue beats expectations Revenue exceeded analyst estimates by 3.4%. Over the next year, revenue is forecast to grow 18%, compared to a 9.4% growth forecast for the Consumer Services industry in Germany. Valuation Update With 7 Day Price Move • Jan 18
Investor sentiment improved over the past week After last week's 16% share price gain to US$20.49, the stock is trading at a trailing P/E ratio of 20.2x, up from the previous P/E ratio of 17.3x. This compares to an average P/E of 17x in the Consumer Services industry in Europe. Total returns to shareholders over the past three years are 50%. Duyuru • Jan 15
K12 Inc. Sued for Violations of the Federal Securities Laws; Investors Should Contact Block & Leviton LLP Due to the global COVID-19 pandemic, school districts nationwide were forced to cancel or limit in-person classes and shift to online and virtual learning. K12 Inc. appeared primed to benefit from this shift and embarked on a campaign to portray itself as capable and ready to take advantage of the shift to virtual instruction. In reality, K12 was neither ready nor capable. As this became clear to the market, the stock price plunged over 50% from its 2020 peak price of over $50.00 per share. A lawsuit has been filed against K12 and certain of its executives in the U.S. District Court for the Eastern District of Virginia. The lawsuit is captioned Lee v. K12 Inc., et al., No. 1:20-cv-01419 (E.D. Va.). The suit alleges that K12 issued false and misleading statements concerning, among other things, K12’s technological capabilities, infrastructure, and expertise to support the increased demand for virtual and blended education necessitated by the COVID-19 pandemic. The suit further asserts that K12 lacked adequate cybersecurity protocols and protections to prevent the disabling of its computer systems, yet misrepresented its data security strength. On August 26, 2020, reports emerged that K12’s training for teachers in Miami-Dade County Public Schools, one of the nation’s school districts, had been ineffective. On this news, K12’s stock fell by 7% over two days. Then on August 31, 2020, K12’s platform experienced major technical issues, disruptions, and a series of cyberattacks. The Miami-Dade superintendent revealed that the district had never signed its $15.3 million contract with K12. In mid-September, Miami-Dade County and the Beaufort County School Board both voted to terminate their contracts with K12. Duyuru • Jan 04
Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Stride, Inc. f/k/a K12 Inc. of Class Action Lawsuit and Upcoming Deadline Pomerantz LLP announced that a class action lawsuit has been filed against Stride, Inc. f/k/a K12 Inc. and certain of its officers. The class action, filed in United States District Court for the Eastern District of Virginia, Alexandria Division, and docketed under 20-cv-01528, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired K12 securities between April 27, 2020 and September 18, 2020, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violation of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials. Deadline is until January 18, 2021. Is New 90 Day High Low • Dec 31
New 90-day low: €17.04 The company is down 22% from its price of €21.80 on 02 October 2020. The German market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €32.59 per share. Recent Insider Transactions • Dec 20
Insider recently sold €416k worth of stock On the 17th of December, Kevin Chavous sold around 22k shares on-market at roughly €18.67 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of €575k more than they bought in the last 12 months. Duyuru • Dec 19
Bernstein Liebhard LLP Reminds Investors of the Deadline to File Lead Plaintiff Motion in Securities Class Action Lawsuit Against K12 Inc Bernstein Liebhard LLP reminded investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors that purchased or acquired the securities of K12 Inc., between April 27, 2020 and September 18, 2020. The lawsuit filed in the United States District Court for the Eastern District of Virginia alleges violations of the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) K12 lacked the technological capabilities, infrastructure, and expertise to support the increased demand for virtual and blended education necessitated by the global pandemic; (2) K12 lacked adequate cyberattack protocols and protections to prevent the disabling of its computer systems; (3) K12 was unable to provide the necessary levels of administrative support and training to teachers, students, and parents; (4) and K12's officers lacked a reasonable basis for their positive statements about the Company's business, operations, and prospects. Duyuru • Dec 13
Stride Names Angela Williams to its Public Affairs Team as Senior Director, External Affairs Colorado State Senator and former State Representative, Angela Williams, will join the Stride (formerly K12 Inc.) Public Affairs team as Senior Director, External Affairs. Duyuru • Dec 04
Notice of Lead Plaintiff Deadline for Shareholders in the K12 Inc. Class Action Lawsuit Robbins Geller Rudman & Dowd LLP announced that a class action lawsuit has been filed in the Eastern District of Virginia on behalf of purchasers of K12 Inc. common stock between April 27, 2020 and September 18, 2020, inclusive (the “Class Period”). The K12 class action lawsuit alleges that, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) K12 lacked the technological capabilities, infrastructure, and expertise to support the increased demand for virtual and blended education necessitated by the global pandemic; (ii) K12 lacked adequate cyber-attack protocols and protections to prevent the disabling of its computer system; (iii) K12 was unable provide the necessary levels of administrative support and training to teachers, students, and parents; and (iv) based on the foregoing, defendants lacked a reasonable basis for their positive statements about K12’s business, operations, and prospects. On August 26, 2020, teachers in the Miami-Dade County School District reported that the training provided by K12 was ineffective and “unacceptable,” as they lacked the necessary instruction to utilize K12’s platform. By the third day of classes, September 2, 2020, Miami-Dade County students and teachers reported numerous additional technical issues and a total of twelve intermittent cyber-attacks that led to K12’s learning platform being effectively dysfunctional. In response, the Miami-Dade County School District called a Board meeting to discuss K12’s many failures. During the meeting, Miami-Dade County Public Schools Superintendent Alberto Carvalho revealed that he never signed the $15.3 million no-bid contract with K12 and the school district had never paid K12 for the provision of its services and products. A week later, after another Board meeting that lasted over 13 hours and included 400 speakers, the Miami-Dade County Public School Board voted to terminate its $15.3 million contract with K12 on September 10, 2020. Finally, Beaufort County School District board member John Dowling stated that he had lost confidence in K12’s ability to provide educational solutions for the district and, on September 17, 2020, moved to terminate the district’s contract with K12. Duyuru • Dec 03
Angela Williams to Join the Stride, Inc. Public Affairs Team as Senior Director, External Affairs Colorado State Senator and former State Representative, Angela Williams, will join the Stride Inc. Public Affairs team as Senior Director, External Affairs. Williams strengthens an effective team of professionals with a track record of success advancing public policies that empower families with education options and choice. In her role, Williams will be responsible for outreach to policymakers, organizations, businesses, and other influencers to pursue policies that expand education opportunities for students. She will also work alongside the Stride Inc. national advocacy team to support the schools and education programs served by Stride, along with the company’s other lines of business. Known as a champion for education choice and racial equity, Williams will bring years of experience in advocating for parents and children, especially for those who live in disadvantaged communities. Williams served in the Colorado legislature for ten years and is retiring as a state senator at the end of the year. In 2009, Williams was elected to the Colorado State House of Representatives where she became the first African American female to serve as the House Majority Caucus Chair. In 2017, she ran successfully for the Colorado State Senate representing District 33, the most diverse Senate district in Colorado. As a Colorado State Senator, Williams was the primary sponsor of a piece of legislation that helped all Colorado public school students receive equal funding for their education regardless of what type of public school they attend. It was widely considered to be the first legislation of its kind to pass nationwide. During her time in the Legislature, Williams founded the Colorado Black Democratic Legislative Caucus and helped elect what is now known as the Historic Eight, the large number of black legislators to serve simultaneously in the history of Colorado. Duyuru • Nov 25
The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against K12 Inc The Schall Law Firm, announced the filing of a class action lawsuit against K12 Inc. for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between April 27, 2020 and September 18, 2020, inclusive (the ''Class Period''), are encouraged to contact the firm before January 19, 2021. The class, in this case, has not yet been certified, and until certification occurs, are not represented by an attorney. If choose to take no action, can remain an absent class member. According to the Complaint, the Company made false and misleading statements to the market. K12 failed to build and maintain the necessary technology, infrastructure, and knowledgebase necessary to support increased demand for distance learning caused by the COVID-19 pandemic. The Company lacked the appropriate cybersecurity measures necessary to prevent its systems from being disabled by bad actors. The Company failed to provide support and training to educators, parents, and students. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about K12, investors suffered damages. Duyuru • Nov 20
Lowey Dannenberg P.C. Files Securities Class Action Lawsuit Against K12 Inc Lowey Dannenberg P.C. has filed a federal securities class action in the Eastern District of Virginia on behalf of its client and all similarly situated investors who purchased or otherwise acquired common stock of K12 Inc. (‘K12’ or the ‘Company’) from April 27, 2020 to September 18, 2020, both dates inclusive (the ‘Class Period’). The class action alleges violations of the federal securities laws. Due to the global pandemic, school districts across the country were forced to cancel in-person classes and shift to online and blended learning. K12 stood to benefit from this shift and embarked on a campaign to portray itself as technologically capable and well-positioned to take advantage of this massive transfer to online instruction. The Complaint alleges that K12 made false and misleading statements to the public throughout the Class Period and failed to disclose that: (1) K12 lacked the technological capabilities, infrastructure, and expertise to support the increased demand for virtual and blended education necessitated by the global pandemic; (2) K12 lacked adequate cyberattack protocols and protections to prevent the disabling of its computer systems; (3) K12 was unable to provide the necessary levels of administrative support and training to teachers, students, and parents; (4) and K12’s officers lacked a reasonable basis for their positive statements about the Company’s business, operations, and prospects. Duyuru • Nov 19
K12 Inc. (NYSE:LRN) entered into a definitive agreement to acquire Tech Elevator and MedCerts for $23.5 million. K12 Inc. (NYSE:LRN) entered into a definitive agreement to acquire Tech Elevator for $23.5 million on November 17, 2020. The consideration consists of cash amount. In a related transaction, K12 Inc. agreed to acquire MedCerts. Tech Elevator’s revenue for the last twelve months ending September 30, 2020 was approximately $11 million and EBITDA was approximately $2 million. The transaction was approved by the Boards Of Directors of Stride and Tech Elevator. The transaction was subjected to customary closing conditions The transaction is expected to close at the end of second quarter fiscal year 2021. K12 Inc. expects these acquisitions to be accretive to adjusted operating income in fiscal 2022. Valuation Update With 7 Day Price Move • Nov 11
Market pulls back on stock over the past week After last week's 16% share price decline to US$17.50, the stock is trading at a trailing P/E ratio of 17.8x, down from the previous P/E ratio of 21.2x. This compares to an average P/E of 16x in the Consumer Services industry in Europe. Total returns to shareholders over the past three years are 36%. Valuation Update With 7 Day Price Move • Nov 03
Market pulls back on stock over the past week After last week's 22% share price decline to US$20.40, the stock is trading at a trailing P/E ratio of 20x, down from the previous P/E ratio of 25.6x. This compares to an average P/E of 16x in the Consumer Services industry in Europe. Total returns to shareholders over the past three years are 47%. Is New 90 Day High Low • Oct 31
New 90-day low: €20.80 The company is down 46% from its price of €38.60 on 31 July 2020. The German market is down 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €48.13 per share. Reported Earnings • Oct 27
First quarter earnings released Over the last 12 months the company has reported total profits of US$46.9m, up 31% from the prior year. Total revenue was US$1.15b over the last 12 months, up 13% from the prior year. Analyst Estimate Surprise Post Earnings • Oct 27
First-quarter earnings released: Revenue beats expectations First-quarter revenue exceeded analyst estimates by 2.3% at US$371.0m. Revenue is forecast to grow 26% over the next year, compared to a 7.2% growth forecast for the Consumer Services industry in Germany. Is New 90 Day High Low • Sep 26
New 90-day low: €22.40 The company is down 3.0% from its price of €23.00 on 26 June 2020. The German market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €39.58 per share. 
