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Here are 1-3 brief analogies to describe Strategic Education (STRA):

• Imagine the "Amazon of education services," providing a broad range of online and campus-based degrees, vocational training, and corporate education benefits.

• It's like the "General Motors of education," operating a portfolio of diverse university and vocational training brands for different learning needs and career paths.

• Consider it a comprehensive online university system, similar to a large-scale Coursera or edX that grants full, accredited degrees and specialized job-ready skills training.

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• Strayer University Programs: Undergraduate and graduate degree programs across various fields, offered both on-campus and online.
• Capella University Programs: Online bachelor's, master's, and doctoral degree programs tailored for working adults in diverse disciplines.
• Hackbright Academy & Devmountain Courses: Non-degree web and mobile application development courses.
• Jack Welch Management Institute Executive MBA: An online executive Master of Business Administration program.
• Torrens University Programs: Undergraduate, graduate, and specialized degree courses primarily in business, design, health, and education in Australia.
• Think Education Vocational Training: Vocational training services in Australia.
• Media Design School Courses: Industry-endorsed courses in 3D animation, visual effects, game design, and creative advertising in New Zealand.
• Workforce Edge Platform: An education benefits administration solution provided to employers.
• Sophia Learning Platform: A platform that enables lower-cost education benefits programs.

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Strategic Education (STRA) primarily serves individual learners across various stages of their educational and career journeys. The company's major customers fall into the following categories:

• Students pursuing higher education degrees: This category includes individuals enrolling in undergraduate, master's, and doctoral degree programs offered by institutions such as Strayer University, Capella University, and Torrens University. These students seek qualifications across a wide range of fields including business, technology, education, health sciences, and arts.

• Individuals seeking career-focused skills and vocational training: This segment comprises individuals looking to develop job-ready skills through non-degree programs, bootcamps, or specialized vocational courses. Examples include learners at Hackbright Academy and Devmountain (for web/mobile development), Think Education (for vocational training), and Media Design School (for creative technology and digital media).

• Working professionals and adult learners: This category encompasses individuals already in the workforce who are seeking to enhance their careers, gain new competencies, or advance professionally through flexible online learning options or executive education. This includes participants in programs like the Jack Welch Management Institute's Executive MBA and other professional development offerings tailored for working adults.

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Karl McDonnell, President and Chief Executive Officer

Karl McDonnell joined Strategic Education in 2006 as Chief Operating Officer and was named President and Chief Executive Officer in 2013. He previously served as chief operating officer of InteliStaf Healthcare, Inc. and as vice president of the Investment Banking Division at Goldman, Sachs & Co. McDonnell also held senior management positions with several Fortune 100 companies, including The Walt Disney Co., where he was general manager of the Walt Disney World theme park from 1995 to 2000. Before the merger that formed Strategic Education, he was president and CEO of Strayer Education. During his tenure at Strayer Education, between 2001 and 2005, the company had significant ownership from private equity firms New Mountain Capital and a private equity unit of Deutsche Bank, DB Capital.

Daniel W. Jackson, Chief Financial Officer and Chief Administrative Officer

Daniel W. Jackson joined the company in 2003 and has served as CFO since March 2015. He previously held roles as treasurer and senior vice president of finance for Strayer Education, Inc., as well as regional vice president of operations, director of business operations, and campus director for Strayer University. Prior to joining Strayer, Mr. Jackson held financial and operational positions with Legg Mason Wood Walker and Fairmont Schools Inc.

Robert S. Silberman, Chairman

Robert S. Silberman joined the company in 2001. He served as President and Chief Executive Officer from 2001 to 2003, as Chairman of the Board and Chief Executive Officer from 2003 to 2013, and as Executive Chairman of the Board from 2013 to 2023, before becoming Chairman of the Board. Earlier in his career, he was President and Chief Operating Officer of CalEnergy Company, a subsidiary of Berkshire Hathaway, Inc. Mr. Silberman is a Managing Director of Equity Group Investments, a private equity firm, and also serves as the Chairman of the Board of Par Pacific Holdings, Inc. During his time as CEO and Chairman of Strayer Education, Inc., the company's main owners included private equity firms New Mountain Capital and a private equity unit of Deutsche Bank.

Lizette B. Herraiz, Esq., Chief Legal Officer and General Counsel

Lizette B. Herraiz joined Strategic Education in 2013. She previously served as Deputy General Counsel of Strayer Education, Inc. and as General Counsel of Strayer University. Before her time at Strayer, Ms. Herraiz served in the United States Department of Justice as a Deputy Assistant Attorney General in the Office of Justice Programs and as Counsel in the Office of Legal Policy.

Christa E. Hokenson, Chief Human Resources Officer

Christa E. Hokenson joined Strategic Education in 2018. Prior to her current role, she was Managing Director and Chief Human Resources Officer at ProShares. Ms. Hokenson also held Human Resources leadership positions at Capital One in both Europe and the U.S.

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The key risks to Strategic Education, Inc. (STRA) primarily revolve around the highly regulated nature of the education industry, intense competition, and the critical importance of student enrollment and public perception.

1. Regulatory and Accreditation Risk: Strategic Education operates in a heavily regulated environment, particularly concerning federal student aid programs (Title IV of the Higher Education Act) and accreditation standards in the U.S. Changes to these regulations, such as those related to "gainful employment," the "90/10 rule," or borrower defense to repayment applications, can significantly impact the company's ability to operate, receive federal funding, and maintain profitability. Furthermore, regulatory changes in international markets, such as Australia and New Zealand, have also led to decreases in student enrollment for the company. Non-compliance with existing regulations or accreditation standards could result in severe penalties, including sanctions, fines, or limitations on student enrollment.
2. Enrollment Declines and Intense Competition: The higher education and workforce training sector is highly competitive, with Strategic Education facing rivals from traditional universities, online learning platforms, and specialized vocational training providers. The company has experienced enrollment pressures, with declines observed in its U.S. Higher Education and Australia/New Zealand segments due to competitive pressures and regulatory changes. Broader demographic challenges, such as the anticipated peak in high school graduates, and economic conditions can also influence student enrollment rates. Historically, the for-profit education sector has faced overall enrollment declines, further intensifying this risk.
3. Reputation and Student Outcomes: The for-profit education industry, including Strategic Education, often faces public scrutiny and skepticism regarding the quality of education provided and the outcomes for students. Concerns about student debt burdens, graduation rates, and post-graduation employment prospects for students from for-profit institutions can negatively impact the company's brand reputation and ability to attract and retain students. Adverse media attention or allegations of misleading practices, even if unsubstantiated, can significantly damage public perception and enrollment, as seen with other companies in the sector.

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The clear emerging threat for Strategic Education is the rapid development and increasing sophistication of **AI-powered learning platforms and tools**. These technologies are becoming capable of providing highly personalized, adaptive, and on-demand educational content, tutoring, and skill development at a significantly lower cost than traditional degree programs or structured courses. This could fundamentally shift how individuals acquire knowledge and develop job-ready skills, presenting a disruptive alternative to Strategic Education's campus-based and online universities (like Strayer and Capella), skill-based academies (like Hackbright and Devmountain), and potentially even its education technology services, by offering a superior or much cheaper substitute for portions of its offerings.

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Expected Drivers of Future Revenue Growth for Strategic Education (STRA)

• Continued Growth in Education Technology Services (ETS): The ETS segment, encompassing Sophia Learning and Workforce Edge, is a significant growth engine. Sophia Learning has demonstrated strong subscriber and revenue growth driven by both consumer and employer-affiliated learners. Workforce Edge is also experiencing substantial revenue growth through employer-affiliated enrollment, platform fees, and new corporate partnerships. Management continues to invest in this segment, anticipating its increased contribution to overall earnings.
• Expansion of Employer-Affiliated Enrollment in U.S. Higher Education: Strategic Education is focusing on increasing employer-affiliated student enrollment within its U.S. Higher Education segment (Strayer University and Capella University). Corporate partnerships are a major driver, with a significant portion of new U.S. Higher Education enrollment coming from these affiliations. The company emphasizes the strategic importance of these partnerships for driving future enrollment and revenue growth.
• Growth of the Healthcare Portfolio: The company is strategically growing its healthcare program offerings within U.S. Higher Education. This portfolio already constitutes a substantial portion of overall U.S. Higher Education enrollment and employer-affiliated enrollment, showing consistent year-over-year growth.
• Recovery and Domestic Student Growth in Australia/New Zealand (ANZ) Segment: While the ANZ segment has faced challenges due to regulatory changes affecting international students, management anticipates a return to overall enrollment growth by the end of 2026, primarily driven by progress in growing domestic enrollment. Recent guidance indicates a permissible increase in international enrollment for 2026.
• Increased Revenue per Student: The U.S. Higher Education segment has shown growth in revenue per student, attributed to factors such as fewer student drops, lower discounts, and scholarships. Initiatives like FlexPath, which allows students to leverage prior learning and skills, are contributing to this trend.

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Share Repurchases

• Strategic Education repurchased approximately $140 million in common stock during 2025, which accounted for approximately 1.7 million shares or 7% of its outstanding shares.
• As of the end of 2025, the company had over $200 million remaining on its share repurchase authorization.
• In the first nine months of 2025, Strategic Education repurchased 1,145,983 shares of common stock for $94.3 million.

Share Issuance

• There were no significant share issuances for capital raising purposes identified within the last 3-5 years. The diluted weighted average shares outstanding decreased to 23,402,000 in 2025 from 24,140,000 in 2024, reflecting a net reduction likely due to repurchases.

Capital Expenditures

• Capital expenditures for 2025 totaled $44.3 million. When including cloud computing investments, the total capital expenditures for 2025 were $61.0 million.
• In 2024, capital expenditures were $40.6 million. Including cloud computing investments, the figure was $56.8 million.
• The primary focus of capital expenditures includes cloud computing investments and supporting growth, with technology and AI-driven productivity improvements also contributing to margin performance.