• Netflix for K-12 schooling
• Shopify for online schools
• Amazon for K-12 education

• Online Public & Private Schools: Provides comprehensive, full-time virtual education from kindergarten through high school, often in partnership with school districts or as standalone private institutions.
• Curriculum and Technology Solutions: Offers its proprietary online curriculum, learning platforms, and educational tools to public schools, private schools, and individual learners.
• Career Learning Programs: Delivers career-focused education, vocational training, and industry certification programs for high school students and adult learners to prepare them for specific job fields.

Stride (LRN) serves a diverse customer base, primarily through partnerships with educational institutions and direct-to-consumer career learning, as well as business-to-business (B2B) engagements. While a significant portion of its revenue comes from contracts with public and private K-12 schools, Stride's financial filings indicate that no single customer accounts for 10% or more of its total revenue, and its primary customers in the K-12 space are government-funded school entities rather than publicly traded companies. Given this, Stride's customer base is best described by the following categories:

• K-12 Educational Institutions: This category includes public and private schools, school districts, and charter schools across various U.S. states. Stride partners with these institutions to provide comprehensive online and blended learning solutions, curriculum, technology, and support services for students from kindergarten through 12th grade.

• Individual Learners (Post-Secondary & Career): Stride directly serves adults and some school-age students who enroll in its career learning programs. These include vocational training, technology bootcamps, and certification programs offered through divisions like MedCerts, Galvanize, and Tech Elevator.

• Employers and Government Agencies: Stride collaborates with businesses to provide workforce development, upskilling, and reskilling programs for their employees. Additionally, it partners with government agencies, such as state workforce development programs, to offer funded or sponsored career readiness and vocational training to eligible individuals.

• Amazon.com, Inc. (AMZN)
• Microsoft Corporation (MSFT)

James Rhyu, Chief Executive Officer

James Rhyu joined Stride in June 2013 and assumed the role of CEO in January 2021. He has over 30 years of operational, financial, and public company experience. Before becoming CEO, Mr. Rhyu held positions at Stride including President of Corporate Strategy, Marketing, and Technology, Chief Financial Officer, and President of Product and Technology, where he spearheaded product development, marketing, and merger and acquisition opportunities. Prior to Stride, he served as CFO and Chief Administrative Officer of Match.com, a subsidiary of IAC/InterActiveCorp. He was also an SVP of Finance at Dow Jones & Company, managing its global financial function. His past experience includes serving as Corporate Controller for Sirius XM Radio Inc. (and its predecessor XM Satellite Radio) and Graftech International. Mr. Rhyu began his career with Ernst & Young LLP.

Donna Blackman, Chief Financial Officer

Donna Blackman became Stride's Chief Financial Officer in July 2022, having joined the company in 2020. She brings over 20 years of experience in accounting, finance, and strategic planning. Before her current role, she served as Stride's Chief Accounting Officer and Treasurer. Prior to joining Stride, Ms. Blackman was the Senior Vice President of Business Operations at BET Networks, a Viacom subsidiary, where she oversaw finance, strategy, research, live events, security, facilities, and operations. She also held roles as SVP and Head of Finance, SVP, Financial Planning and Analysis, and SVP Finance and Controller at BET. Earlier in her career, Ms. Blackman worked in various accounting and finance leadership positions at Marriott International and KPMG. She is also on the Board of Directors for The NEA Foundation and Nepris, Inc.

Levon Hooks, Chief Information Officer

Levon Hooks serves as Stride's Chief Information Officer, where he is recognized for his ability to scale, evolve, and modernize businesses across diverse industries through strategic leadership in technology, analytics, service, and enterprise strategy. He applies his background as both a technologist and a global business strategist to deliver innovative solutions for Stride. Before joining Stride, Mr. Hooks held the position of Chief Information Officer at the Krause Group.

Deb Hannah, Chief Marketing Officer

Deb Hannah is Stride's Chief Marketing Officer. She has over 20 years of experience in marketing, merchandising, and management within the consumer-packaged goods and retail sectors. Her career includes roles at prominent companies such as Kellogg's, Starbucks Coffee Company, and Kimberly-Clark Corporation. Prior to Stride, Ms. Hannah was the Senior Vice President of Marketing at Shoe Carnival.

Niyoka McCoy, Chief Learning Officer

Niyoka McCoy, Stride's Chief Learning Officer, possesses decades of experience in developing robust academic programs, leading initiatives to promote academic equity, and creating professional development opportunities for educators and school leaders. In previous roles at Stride, she served as Chief Academic Officer and Senior Vice President of Academic Services, where she directed programs and initiatives focused on student, administrator, and school leader achievement and growth.

The key risks to Stride (LRN) primarily stem from recent operational missteps, legal challenges, and the inherent regulatory landscape of the education sector.

1. Legal and Regulatory Scrutiny: Stride is facing multiple securities class action lawsuits and reported Securities and Exchange Commission (SEC) investigations. These legal actions allege that the company misled investors regarding key metrics and compliance between October 2024 and October 2025. Specifically, allegations include inflating enrollment numbers with "ghost students" and illegally cutting staffing costs by assigning teacher caseloads beyond statutory limits. This has led to a "credibility crisis" and significant stock price drops.
2. Operational Failures and Enrollment Headwinds: A botched technology platform upgrade in the first quarter of fiscal year 2026 resulted in a poor customer experience, leading to higher withdrawal rates and lower conversion rates than expected. This operational issue is estimated to have cost Stride between 10,000 and 15,000 enrollments, directly impacting revenue in its General Education segment and slowing near-term growth. This failure was allegedly concealed, contributing to the legal challenges.
3. Dependency on Regulatory Changes and Market Competition: Stride's business is vulnerable to legislative shifts in school choice funding and broader changes in education policy at both state and federal levels, as its revenue largely comes from state-level government funding that follows the student. Additionally, the online education market is becoming increasingly crowded and competitive, posing challenges to maintaining market share and revenue streams.

The rapid emergence and advancement of AI-driven personalized learning platforms and AI tutors poses a clear emerging threat to Stride. These technologies offer highly individualized instruction, adaptive curricula, and instant feedback, potentially at a significantly lower cost and with greater efficacy than traditional human-led online schooling models. As these AI-powered platforms mature and gain wider acceptance, they could directly compete with and undermine the value proposition of Stride's existing online K-12 and career learning programs by offering a superior, more flexible, and more affordable alternative for many learners.

Stride, Inc. (LRN) operates in the education services industry, primarily offering online and blended education programs. Its main product categories include K-12 education, career learning programs, and adult learning services.

K-12 Education Market

• U.S. Market: The U.S. K-12 education market was valued at approximately $4 billion in 2023. It is projected to expand significantly to $31 billion by 2032, demonstrating an anticipated annual growth rate of around 21% from 2024 to 2032. Annual expenditure on K-12 schools in the U.S. is nearly $700 billion.
• Global Market: The global K-12 education market is estimated at $3.23 trillion in 2025 and is forecast to grow to $5.24 trillion by 2030, with a Compound Annual Growth Rate (CAGR) of 10.15%. North America held a 34.9% share of the K-12 EdTech market in 2024.

Career Learning Market

• U.S. Market: The demand for occupations in the U.S. requiring non-degree post-secondary education is estimated to grow by 6.7% by 2031. This segment for Stride, encompassing middle and high school programs as well as adult certification programs, has shown robust growth, with enrollments increasing by 33.7% year-over-year in Q3 fiscal year 2025 and 32% in the first nine months of fiscal year 2025. In Q4 fiscal year 2025, the Career Learning segment contributed 38.7% of Stride's revenue.

Adult Learning Market

• U.S. Market: Stride's Adult Learning business has experienced a slowdown, with revenue declining. In Q1 fiscal year 2025, revenue was $22.8 million, and in Q2 fiscal year 2025, it was $19.8 million, both lower than the previous year. The segment also saw a 19.4% decline in enrollment in Q4 fiscal year 2025.

Overall Online Education (EdTech) Market

• Global Market: The global EdTech market is expected to reach $185.2 billion in revenue in 2024, representing an 11.2% increase from 2023. It is projected to reach $257.7 billion by 2028, with a CAGR of 8.61%.
• U.S. Market: The U.S. is anticipated to be a leading region in global online education revenue, potentially reaching $87.5 billion by 2024. The K-12 segment is expected to constitute 40% of the global EdTech market share in 2023.

Stride (LRN) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Strong Growth in Career Learning Programs: Stride's Career Learning segment, particularly its middle and high school programs, is consistently highlighted as a significant growth engine. This segment has shown robust enrollment increases, with revenue growth exceeding 30% year-over-year in recent periods. Stride views this segment as crucial for its future trajectory.
2. Sustained Demand for Virtual Education and School Choice: The company has experienced record enrollments, fueled by the strong and ongoing demand for virtual education and the broader school choice movement. Secular trends, including the post-pandemic legacy of hybrid schooling, are expected to continue supporting Stride's growth towards its FY2028 targets.
3. Investments in Technology Platforms and Enhanced Learning Solutions: Stride is investing in new technology platforms and expanding its offerings to include enhanced learning solutions, such as free ELA tutoring for younger students. While recent platform implementation issues caused a short-term dip in enrollment growth, their resolution is anticipated to restore the company's growth trajectory.
4. Expansion in Online and Blended Education Markets: Stride's strategy focuses on the increasing acceptance of full-time online and blended education. The company is well-positioned to expand its reach in these markets by providing comprehensive curriculum packages and platforms, capitalizing on the growing need for flexible and accessible education solutions.
5. Improved Operating Leverage and Profitability: Although not a direct revenue driver, Stride has demonstrated significant improvements in its operating margin, indicating better cost management and operational efficiency. This enhanced profitability and operating leverage can support future revenue growth by allowing for greater investment in strategic initiatives and market expansion.

Share Repurchases

• On November 3, 2025, Stride, Inc. authorized a stock repurchase program for up to $500 million of its common stock.
• The program is authorized until October 31, 2026.
• The company cited strong cash flow, a robust balance sheet, and confidence in its long-term outlook as reasons for the authorization.

Capital Expenditures

• Capital expenditures for the fiscal year ended June 30, 2025, amounted to $60.0 million.
• In fiscal year 2025, capital expenditures were primarily focused on capitalized software development ($36.4 million) and capitalized curriculum development ($21.8 million).
• For the full fiscal year 2026, Stride forecasts capital expenditures to be in the range of $70 million to $80 million, with a continued focus on upgrading learning and technology platforms.