Buy, Sell or Hold Stride Stock?

Stride (NYSE: LRN) has delivered the kind of results that suggest its rally may have more room to run. Strong Q4 earnings, (June fiscal year), higher full-year guidance, new district contracts, and rising institutional interest have pushed the stock up 12% in the past week and roughly 40% year-to-date. With a profitable, steadily expanding business model and exposure to long-term shifts in education, Stride’s momentum is grounded in fundamentals rather than hype.

For investors who seek lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Separately, see What’s Happening With Joby Stock?

Image by Jagrit Parajuli from Pixabay

Why It Matters Now

Stride is positioned at the intersection of three long-term trends: the digitization of K–12 learning, workforce re-skilling, and the shift of state funding toward online and career-focused education. Its scalable, recurring-revenue model serves public school districts, private learners, and adult career changers—making it a core player in the modern education infrastructure.

Growth With Discipline

For its fiscal Q4 (ending June), Stride earned $2.29 per share, $0.46 above consensus. Revenue rose 22.4% year-over-year to $653.6 million, far outpacing the mid-single-digit growth rates seen across much of the sector. Management projected continued enrollment growth into FY2026 and secured new district contracts, including a statewide deal with New Mexico.

Stride’s three-year revenue CAGR sits at 12%, nearly triple the S&P 500’s pace. Unlike many in edtech, it’s consistently profitable, delivering a 16.5% operating margin and generating over $300 million in operating cash flow. This growth is supported by fundamentals, not just sentiment.

Proven Resilience

Stride has a track record of rebounding from market shocks. During the 2022 inflation-driven selloff, shares fell 32.8% but regained their losses within a year. In the COVID crash, the stock dropped 48.8% and recovered in seven months. Even in the 2008 financial crisis, it rebounded from a 57.6% decline by 2010.

Despite its recent stock rally, Stride trades at 24.9x earnings and 3.2x sales—only modestly above S&P 500 averages. Free cash flow commands a premium at 26.0x versus the market’s 20.4x, a spread supported by consistent growth and strong balance sheet health.

Bottom Line

Stride offers rare balance in the small-to-mid cap space: steady growth, profitability, and resilience in downturns. For investors seeking a durable, under-the-radar name in education technology, Stride’s latest results strengthen its case.

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