By Nate Wolf
Shares of Stride plummeted Wednesday after the online education company beat earnings expectations but posted disappointing enrollment numbers and guidance.
Stride reported adjusted earnings of $1.52 a share on $621 million in revenue for its fiscal first quarter, above analysts' estimates of $1.25 a share and $613 million, respectively. Enrollment totaled 247,700 students, up 11% from the prior year but below the 249,200 Wall Street firms had anticipated.
The company expects revenue of $620 million to $640 million for the second quarter. That guidance fell short of analysts' forecasts for $648 million heading into the quarterly print.
Stride stock fell 42% in premarket trading Wednesday, wiping out nearly all of the company's 2025 gains.
"While demand, as indicated by application volumes, remains healthy, overall growth was tempered," said CEO James Rhyu on a conference call.
Stride has invested in new learning and technology platforms, but the implementations haven't gone smoothly, leading to negative customer feedback, the company said.
"This poor customer experience has resulted in some higher withdrawal rates and lower conversion rates than we expected," Rhyu added.
Write to Nate Wolf at nate.wolf@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
October 29, 2025 07:27 ET (11:27 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.