Stride Inc. (NYSE: LRN), an educational services company, witnessed a substantial increase in its shares during after-hours trading on Tuesday following the release of its fiscal second-quarter 2026 financial results that surpassed analyst expectations.
The company recorded quarterly revenue of $631.26 million, edging above the forecasted $627.94 million. Stride also reported adjusted earnings per share (EPS) of $2.50, considerably higher than the anticipated $2.08. These encouraging financial figures were accompanied by an increase in enrollments, with total second-quarter enrollments reaching 248,500, representing a 7.8% rise over the same period last year.
A significant driver of enrollment growth was the Career Learning segment, which registered 111,500 enrollments, reflecting a 17.6% year-over-year increase. The average revenue generated per enrollment for the quarter rose modestly to $2,437 from $2,395 in the previous year, marking a 1.8% improvement.
During the quarter, the company allocated $16 million towards capital expenditures. At the end of the period, Stride maintained a strong liquidity position, holding $676 million in cash, cash equivalents, and marketable securities.
Looking ahead, Stride projects its fiscal third-quarter revenue to be between $615 million and $645 million, compared to the consensus estimate of $613.63 million. Furthermore, the company reaffirmed its full-year fiscal 2026 revenue guidance in the range of $2.48 billion to $2.56 billion, aligning closely with analyst estimates of $2.51 billion.
The management team scheduled a conference call at 5 p.m. Eastern Time to discuss the quarterly results and operational outlook with analysts and investors.
Following the earnings release, Stride's stock price climbed 14.03% in after-hours trading, reaching $82.59 at the time of this report.