Overview
- Stride said summer upgrades to its learning platform created a poor customer experience that led to higher withdrawals, lower conversions, and an estimated 10,000–15,000 fewer enrollments.
- The company reported fiscal Q1 2026 revenue of $620.9 million and adjusted EPS of $1.52, topping year-ago results and Street expectations.
- Leadership guided full-year revenue to $2.48–$2.55 billion, below consensus, citing enrollment disruption and muted near-term growth.
- Law firms Bleichmar Fonti & Auld and Hagens Berman announced shareholder investigations following the disclosure and steep share-price decline.
- Morgan Stanley cut its price target to $130 from $159, kept an Equal Weight rating, and lowered FY26 revenue and adjusted operating income estimates by 7% and 12%.