Quality Investor

Stride, Inc.

Rank #142Hypergrowth

LRN · NYSE · Consumer Defensive

Stride, Inc. (LRN) — Rank #142 by gross profitability (GP/assets 0.39) · ROE 20.7% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001157408 · all metrics point-in-time as of the filing date.

About

Stride, Inc., a technology company, provides an educational platform to deliver proprietary and third-party curriculum, software systems, and educational services in the United States.

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The company offers online coursework and content in software engineering, healthcare, and medical fields, as well as state customized versions of those courses, electives, and instructional supports; end-to-end platform includes single sign-on capability for content management, learning management, student information, data reporting and analytics, and various support systems that provides an educational experience for students; and stand-alone products and services which can provide curriculum and content hosting on customers' learning management systems, or integration with customers' student information systems. It also provides instructional services that includes customer support for instructional teams comprising recruitment of state-certified teachers, training in research-based online instruction methods and Stride systems, oversight and evaluation services, and ongoing professional development; training options, such as hands-on training, on-demand courses, and support materials. In addition, the company offers support services, including marketing and enrollment, supporting prospective students through the admission process, assessment management, administrative support, technology, and materials support services. The company provides its products and services through virtual schools, traditional school districts, and consumer. It serves public and private schools, school districts, and charter boards, as well as employers, government agencies, and consumers. The company was formerly known as K12 Inc. and changed its name to Stride, Inc. in December 2020.

The company was incorporated in 1999 and is headquartered in Reston, Virginia.

Industry
Education & Training Services
Sector
Consumer Defensive
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
June 30

Price History

LRN+140.8% · +19.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$3.47B

P/E (annual)

11.7

P/S (annual)

1.4

P/B

2.1

P/OCF (annual)

8.0

Shareholder Yield

-19.8%

Employees

9,200

Industry

Education & Training Services

Exchange

NYSE

Signal Flags

2 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.39
Return on equity
20.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.49
Current ratio
5.94×
Net cash
$540.00M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.6%

Growth

1/2 pass
Revenue growth
183.4%
Piotroski F-Score
N/A
Share dilution
19.8%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-3.1%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 19.8% — per-share value needs a total required return of 16.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 3.2%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-6.8%

r = 10% (base)

-3.1%

r = 12%

0.0%

Net debt / market cap: -13.7%

Base FCF: $433.2M3Y mean FCF: $99.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

26.5xCheap
26.5xmed 47.5x1682.0x

P / S

Price / revenue per share

0.8xFair
0.5xmed 0.8x1.7x

P / B

Price / book value per share

1.2xFair
0.8xmed 1.5x2.9x

P / FCF

Price / free cash flow per share

7.7xExpensive
3.8xmed 7.2x16.0x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.39

Primary signal (Novy-Marx).

3rd of 8 SIC 8200 peers

Return on equity

20.7%

Gross margin

37.8%

7th of 8 SIC 8200 peers

Revenue growth (YoY)

183.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2015201620172018
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

38.7%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.49

1st of 8 SIC 8200 peers (best = lowest)

Current ratio

5.94×

1st of 8 SIC 8200 peers

Quick ratio

5.62×

Net cash

$540.00M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$433.23M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.28

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.6%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20132018
Op. Leverage
Value
Capital Return
Decline