By Emon Reiser

Shares for Stride tumbled despite posting strong results after the online education company's outlook missed analysts' estimates following a misstep that led to fewer enrollments.

The stock fell 39% to $96 in after-hours trading on Tuesday. Shares finished the market session up less than 1% at $153.53, and have gained 47% this year.

Company executives said on a call with analysts that investments in third-party platforms to upgrade its online learning platform didn't go as smoothly as expected. That and other factors led to about 10,000 to 15,000 fewer enrollments. Poor customer experience resulted in some higher withdrawal rates and lower conversion rates than expected, the company said, hurting its outlook.

Stride guided for second quarter revenue of $620 million to $640 million, below the $649.3 million analysts polled by FactSet expect. For the 2026 fiscal year the company expects revenue of $2.48 billion to $2.56 billion, short of the $2.67 billion analysts had forecast.

That outlook outweighed strong results for the first quarter that ended Sept. 30.

Stride reported net income of $68.8 million, or $1.40 a share, up from $47.3 million, or 94 cents a share, in the year-ago period.

Adjusted earnings were $1.52 a share. Analysts polled by FactSet expected $1.25.

Revenue rose to $620.9 million, compared with $551.1 million in the year-ago quarter. Analysts expected $613.3 million.

Write to Emon Reiser at emon.reiser@wsj.com

(END) Dow Jones Newswires

October 28, 2025 19:17 ET (23:17 GMT)

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