Overview
- The company’s market value fell about 60% following Q1 FY2026 results that guided below its historical growth pace.
- Management says recent enrollment losses stem from a temporary platform upgrade problem and expects remediation next year.
- One Seeking Alpha analysis models 2026 EBITDA margins around 20% and roughly a 19% drop in net income, with recovery anticipated in 2027.
- Other commentators argue the selloff is overdone given strong liquidity and cash conversion, with some advocating sizable share buybacks to support EPS.
- Analyst reports cite approximately 20,000 lost students and an estimated $200 million revenue impact, figures that are reported rather than independently verified.