Stride Inc. Surpasses Expectations in Q3 2025 with Strong Enrollment Growth and Revenue Increase
Stride, Inc., a leading provider of innovative education solutions, reported a strong third quarter for fiscal year 2025, exceeding expectations with robust enrollment growth and increased revenue.
During the earnings conference call, James Rhyu, Chief Executive Officer, highlighted the favorable macro environment, citing recent polling data from the National School Choice Awareness Foundation. The survey found that over 60% of parents consider sending at least one child to a different school, with 27% considering full-time online programs. This trend is in line with Stride's thesis on increasing demand for online education.
"These trends bode well for our future prospects," Rhyu stated, emphasizing the company's position to capitalize on the growing market. "We believe we can continue to change the future of education by leveraging our core capabilities to deliver innovative outcomes-driven solutions for the 50 million-plus students across the country."
Notably, Stride's in-year application volumes have grown each year since January 1, with this year's figures almost twice those from two years ago and four times those from four years ago. Despite constraints on new enrollments due to school closures, demand for Stride's products and services remains strong.
Donna Blackman, Chief Financial Officer, attributed the company's success in Q3 to its continued execution and market conditions. "The market conditions, including demand for full-time online programs, coupled with our continued strong execution, give us confidence to again raise our FY '25 revenue and adjusted operating income guidance."
As a result of this performance, Stride has raised its fiscal year 2025 revenue and adjusted operating income guidance. The implied growth rates exceed the company's 2028 Compound Annual Growth Rate (CAGR) targets outlined in November 2023.
"We still have a lot of work to do before the next school year begins," Rhyu cautioned, "but we feel confident in our ability to continue to grow enrollments in fiscal year '26." With its strong Q3 results and optimistic outlook, Stride Inc. appears poised for continued success in the education sector.
