Strategic Education, Inc., through its subsidiaries, provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. It operates through three segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. The company operates Strayer University that offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, public administration, and criminal justice at physical campuses located in the eastern United States, as well as through online; non-degree web and mobile application development courses through Hackbright Academy and Devmountain; and an executive MBA online through its Jack Welch Management Institute. It also operates Capella University, an online post-secondary education institution that provides various bachelor's, master's, and doctoral degree programs to working adults in arts and sciences, business and technology, counseling and human services, education, nursing and health sciences, psychology, and public service leadership. The company operates Torrens University, which offers undergraduate, graduate, higher degree by research, and specialized degree courses primarily in business, design and creative technology, health, hospitality, and education fields through online and on physical campuses located in Australia; Think Education, a vocational training organization; and Media Design School, which provides industry-endorsed courses in 3D animation and visual effects, game art and programming, graphic and motion design, digital media artificial intelligence, and creative advertising in New Zealand. It also offers Workforce Edge, a platform to employers that provides education benefits administration solutions; and Sophia Learning, which enables lower cost education benefits programs. The company was founded in 1892 and is headquartered in Herndon, Virginia.
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Here are 1-3 brief analogies for Strategic Education (STRA):
- It's like the Amazon for online university degrees, offering a broad range of accredited programs entirely online.
- Think of it as the Netflix for higher education, making accredited university degrees accessible and convenient online for working adults.
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- Undergraduate Degree Programs: Strategic Education offers online and hybrid bachelor's degree programs across diverse fields, catering primarily to working adults.
- Graduate Degree Programs: The company provides online master's and doctoral degree programs designed for professionals seeking to advance their careers and leadership capabilities.
- Competency-Based Education (CBE): Through institutions like Capella University, it delivers flexible online programs where students progress by demonstrating mastery of skills rather than traditional credit hours.
- Vocational and Technical Education: Its international segment, including Torrens University Australia, offers diplomas and certificates focused on practical skills for direct entry into various industries.
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Strategic Education (STRA) primarily sells its educational services to **individuals**.
Here are up to three categories of customers that it serves:
Strategic Education, Inc. (STRA) operates institutions like Capella University, Strayer University, and the Jack Welch Management Institute, which primarily cater to adult learners seeking higher education and professional development. Their main customer categories include:
- Working Adults Pursuing Undergraduate Degrees: These are individuals, often older than traditional college age, who are seeking their first bachelor's degree or completing one they may have started previously. They typically enroll to enhance their career prospects, gain new skills, or achieve personal educational goals while balancing work and family responsibilities.
- Working Professionals Pursuing Graduate Degrees: This category comprises individuals who already hold a bachelor's degree and are seeking master's or doctoral degrees. They typically enroll to achieve significant career advancement, specialize in a particular field, meet requirements for professional licensure, or pursue leadership roles.
- Military-Affiliated Students: Strategic Education has a significant focus on serving active-duty military personnel, veterans, and their families. These students often utilize specific military education benefits (like Tuition Assistance or the GI Bill) and value the flexibility and support services tailored to their unique circumstances.
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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. Prior to joining the company, he served as chief operating officer of InteliStaf Healthcare, Inc., a privately held healthcare staffing firm. He also held the position of vice president of the Investment Banking Division at Goldman, Sachs & Co. His career includes senior management positions at several Fortune 100 companies, such as The Walt Disney Co., and he began his career at FedEx. Mr. McDonnell holds an MBA from Duke University.
Daniel W. Jackson Chief Financial Officer and Chief Administrative Officer
Daniel W. Jackson has been with Strategic Education since 2003. He previously served as treasurer and senior vice president of finance for Strayer Education, Inc., and held various financial and operational roles, including regional vice president of operations, director of business operations, and campus director for Strayer University. Before joining Strayer, Mr. Jackson held financial and operational roles with Legg Mason Wood Walker and Fairmont Schools Inc. He earned his MBA from Georgetown University and his undergraduate degree from the University of Colorado Boulder.
Robert S. Silberman Chairman
Robert S. Silberman joined Strategic Education in 2001. He served as President and Chief Executive Officer from 2001 to 2003, Chairman of the Board and Chief Executive Officer from 2003 to 2013, Executive Chairman of the Board from 2013 to 2023, and currently serves as Chairman of the Board. Earlier in his career, Mr. Silberman was President and Chief Operating Officer of CalEnergy Company, a subsidiary of Berkshire Hathaway, Inc. He is also a Managing Director of Equity Group Investments.
Lizette B. Herraiz, Esq. Chief Legal Officer and General Counsel
Lizette B. Herraiz joined Strategic Education in 2013. Her previous roles include Deputy General Counsel of Strayer Education, Inc., and General Counsel of Strayer University. Before her time with 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 this, she was the Managing Director and Chief Human Resources Officer at ProShares. Ms. Hokenson also held various Human Resources leadership positions at Capital One in both Europe and the U.S.
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Heightened Regulatory Scrutiny and Stricter "Gainful Employment" Rules: The U.S. Department of Education has finalized and implemented more stringent "Gainful Employment" regulations. These rules tie federal financial aid eligibility for programs to student debt-to-earnings ratios, directly impacting for-profit institutions like Strategic Education. Programs failing to meet these thresholds risk losing access to federal student aid, which constitutes a significant portion of revenue for many for-profit colleges. This creates a clear and present threat to enrollment and financial viability for specific programs if they cannot demonstrate sufficient value to students' post-graduation earnings.
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Accelerating Competition from Traditional Universities and Alternative Credential Providers: Traditional, non-profit universities have significantly expanded their online degree offerings, often leveraging established brand recognition and potentially lower tuition costs to attract students. Concurrently, the rise of alternative credentialing, such as specialized bootcamps and industry-recognized certifications (e.g., from tech companies), provides faster, often more affordable, and skill-specific pathways to employment. These alternative options directly compete with Strategic Education's career-focused degree programs, eroding their market share and unique value proposition by offering perceived greater flexibility, lower cost, or more targeted skill acquisition.
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Strategic Education, Inc. (STRA) operates in several key education markets. The addressable markets for their main products and services can be segmented by region and type of education provided:
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U.S. Higher Education (including online post-secondary degree programs for working adults): This segment, which includes institutions like Capella University and Strayer University, addresses a significant market. The United States higher education market was valued at approximately USD 6.0 billion in 2024 and is projected to grow to USD 16.8 billion by 2033, with a compound annual growth rate (CAGR) of 12.20% from 2025 to 2033. Additionally, the broader online education market in North America, which is a major component of U.S. higher education offerings, accounted for approximately 36% of the global online education market in 2024, with a market size of USD 83.7 billion.
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Education Technology Services (employer education benefits programs, skills training, and general education courses): This segment, which encompasses services like Workforce Edge, Sophia Learning, Hackbright Academy, and DevMountain, primarily targets the U.S. market. The U.S. continuing education market, which includes professional development and skills-based training, was valued at USD 66.91 billion in 2024 and is expected to reach USD 95.98 billion by 2030, growing at a CAGR of 6.20%. Furthermore, U.S. employers annually spend an estimated $177 billion on formal education and training.
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Australia/New Zealand Higher Education: This segment comprises Torrens University, Think Education, and Media Design School. Information on the specific market size for higher education in Australia and New Zealand for their offerings was not explicitly available in the provided search results.
Therefore, for the Australia/New Zealand Higher Education market, the market size cannot be precisely identified with the given information.
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Strategic Education (STRA) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:
- Expansion of Education Technology Services (ETS) and Employer Partnerships: The Education Technology Services segment, encompassing offerings like Workforce Edge and Sophia Learning, is a significant growth engine. The company has demonstrated continued strength in this area, with revenue increasing substantially. This growth is driven by expanding employer partnerships, which provide employees access to affordable education benefits programs, and a rise in Sophia Learning subscriptions. Strategic Education continues to invest in branding and staffing to further drive growth in this segment and strengthen corporate partnerships.
- Growth in Employer-Affiliated Enrollment in U.S. Higher Education: Within its U.S. Higher Education segment (Capella University and Strayer University), a primary driver of growth is the increase in employer-affiliated enrollment. The company has seen consistent increases in students enrolling through corporate partnerships, reflecting the ongoing strength of these collaborations. Targeted investments and an expanding employer partnership base are contributing to the enrollment and revenue growth, particularly for Capella University.
- Increase in Enrollment and Revenue Per Student in Australia/New Zealand: The Australia/New Zealand segment, primarily comprising Torrens University, is expected to contribute to revenue growth through increases in student enrollment and higher revenue per student. Despite some regulatory challenges affecting international student enrollment, the company is making progress in growing domestic enrollment, which is anticipated to be a larger driver of future growth.
- Growth of Sophia Learning Subscriptions: Sophia Learning, a direct-to-consumer platform offering college-level courses, is a key component of Strategic Education's growth strategy. It has consistently shown strong growth in both revenue and the number of paid subscribers, driven by both consumer and employer-affiliated users.
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Share Repurchases
- Strategic Education had $197 million remaining in repurchase authorization through the end of fiscal year 2025.
- Through the first nine months of 2025, the company repurchased 1,145,983 shares for $94.3 million.
- In the second quarter of 2025, Strategic Education repurchased 325,844 shares of common stock for $28.0 million.
Share Issuance
- No significant share issuances for capital raising purposes were reported within the last 3-5 years; diluted weighted average shares outstanding have decreased due to repurchases.
Outbound Investments
- On November 3, 2020, Strategic Education completed the acquisition of Torrens University and related assets in Australia and New Zealand (ANZ), which included Media Design School.
- The aggregate consideration paid for the Torrens University and ANZ assets acquisition was approximately $658.4 million in cash.
Capital Expenditures
- Strategic Education's capital expenditures for fiscal years ending December 2020 to 2024 averaged $43.388 million.
- For the first nine months of 2025, capital expenditures, including cloud computing investments, totaled $45.2 million.
- Capital expenditures for the latest twelve months ending June 30, 2025, amounted to $41.803 million.
