- Stride, Inc. recently reported fourth quarter and full-year 2025 results, showing full-year sales of US$2.41 billion and net income of US$287.94 million, with a large impairment charge of US$59.48 million recognized in the quarter.
- Chama Valley Independent Schools and Santa Rosa Consolidated Schools announced that Stride will operate Destinations Career Academy of New Mexico starting this fall, with over 3,000 students already enrolled for the 2025-2026 school year.
- We’ll examine how Stride’s robust full-year earnings and new school partnerships could impact its outlook for digital education growth.
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Stride Investment Narrative Recap
To be a shareholder of Stride, Inc., you need to believe in the ongoing shift toward digital and alternative education, alongside growing demand for flexible, career-focused learning. The recent quarterly results reinforced robust year-on-year growth in full-year revenue and earnings, but the significant impairment charge and muted fourth-quarter profit highlight that short-term margin expansion may be somewhat limited. The most important short-term catalyst remains sustained enrollment growth, while unpredictable state funding and enrollment caps still represent big risks. The size of the impairment, while notable, is not likely to materially alter the trajectory of these drivers in the near term.
Stride’s new partnership with Chama Valley Independent Schools and Santa Rosa Consolidated Schools to operate Destinations Career Academy of New Mexico stands out. With more than 3,000 students already enrolled for the 2025-2026 school year, this client win helps strengthen Stride’s presence in a market where enrollment caps and partner turnover can have outsized impacts on near-term top-line growth. But even with these wins, investors should be conscious of the ongoing risk that...
Read the full narrative on Stride (it's free!)
Stride's outlook anticipates $3.1 billion in revenue and $523.9 million in earnings by 2028. This implies a 9.3% annual revenue growth rate and a $236 million increase in earnings from the current $287.9 million level.
Uncover how Stride's forecasts yield a $163.75 fair value, a 10% upside to its current price.
Exploring Other Perspectives
Six private investors in the Simply Wall St Community estimated Stride’s fair value between US$134.63 and US$239.32 per share. With this level of debate and the ever-present risk of regulatory-driven enrollment limits, it’s worth considering how your own expectations compare to these varied opinions.
Explore 6 other fair value estimates on Stride - why the stock might be worth as much as 61% more than the current price!
Build Your Own Stride Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Stride research is our analysis highlighting 3 key rewards that could impact your investment decision.
- Our free Stride research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Stride's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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