Slide 1: Q1 FY2025 Earnings Presentation
Q1 FY2025 Earnings Presentation October 22, 2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this presentation are forward-l
Slide 3: Compelling Long-term Investment Thesis
Compelling Innovator with the scale, expertise & long-term customer Long-term Disruptor in Education relationships to change education Investment Thesis Sustainable & Growing Accelerating secular shift toward virtual education and Virtual School Business school choice New Products & Leveraging capab
Slide 4: FY2025 Q1 Highlights
FY2025 Q1 Highlights 01 02 03 04 Record Enrollment and Strong Q1 Profitability and On track to achieve FY28 Organic and Strong Growth Trends Compelling Guidance Targets Inorganic Opportunities Total enrollments topped Q1 AOI of $58.4M, Stride’s Enrollments and guidance Strong balance sheet and 222.6
Slide 5: Growth in Key Financial Metrics
Growth in Key Financial Metrics Revenue ($M) Adjusted Operating Income ($M) $700 $140 $125 $600 $580 $120 $534 $551 $505 $521 $115 $470 $483 $480 $560 $500 $458 $100 $95 $96 $425 $88 $80 $400 $80 $76 $64 $300 $60 $58 $200 $40 $100 $20 $15 $- $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Guidance Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 6: Strong Enrollment Trends
Strong Enrollment Trends Three Months Ended Sept. 30, 2024 2023 Change Revenue ($M) General Education $329.4 $299.3 ↑ 10.1% Enrollments Trends Career Learning • Record enrollments and • Middle – High School 198.9 151.0 ↑ 31.7% highest enrollment growth rate since the pandemic • Adult 22.8 29.9 ↓ (23
Slide 7: Guiding to Strong Revenue and Profitability Growth
Guiding to Strong Revenue and Profitability Growth Q2 FY25 FY25 Guidance1 Guidance1 Guidance Mid-Points Low High Low High • FY25 Revenue: +11% Y-O-Y Revenue $560M $580M $2.225B $2.300B Mid-point of Guidance Adj. Operating Income $115M $125M $395M $425M • FY25 AOI: +39% Y-O-Y Mid-point of Guidance Ca
Slide 8: Strong Balance Sheet with Low Debt
Strong Balance Sheet with Low Debt Cash position, low leverage ratio, and consistent cash flows provide options for capital allocation Select balance sheet and other information as of September 30, 2024 ($M) Cash, Cash Equivalents $539.4 & Marketable Securities Accounts Receivable, Net 675.7 Leverag
Slide 9: Disciplined Capital Allocation
Disciplined Capital Allocation Prioritizing organic growth, new product and technology development and synergistic M&A • Invest in academic quality and student/customer experience to support outcomes and Organic retention Growth • Technology advancements to improve personalization and outcomes • Imp
Slide 10: Compelling Long-Term Growth Targets
Compelling Long-Term Growth Targets Total Revenue ($B) Adj. Operating Income ($M) EPS ($) 10% CAGR $800M 20% CAGR $9.00 20% CAGR to mid-point (FY23-28) to mid-point (FY23-28) $8.35 $3.50B $3.30B to mid-point (FY23-28) $8.00 $3.00B $585M $7.00 $600M $2.50B $2.70B $6.00 $6.15 $2.04B $1.84B $5.00 $4.69
Slide 11: Appendix
Appendix Stride 11
Slide 12: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Three months ended Trailing twelve months September 30, ended September 30, ($, M) 2024 2023 2024 Net income 40.9 4.9 240.2 Interest expense, net 2.4 2.1 9.1 Other (income) expense, net (8.8) (5.2) (30.5) Income tax expense 11.3 1.5 74.2 Los
Slide 13: Reconciliation of Income from Operations to Adjusted Operating Income
Reconciliation of Income from Operations to Adjusted Operating Income Three Months Ended Sept. 30, Dec. 31, Mar. 31, Jun. 30, Sept. 30, Dec. 31, Mar. 31, Jun. 30, ($, M) 2022 2022 2023 2023 2023 2023 2024 2024 Income (loss) from (28.7) 68.1 72.2 53.9 3.3 84.3 88.3 73.7 operations Stock-based compens
Slide 14: Reconciliation of Income from Operations to Adjusted Operating Income
Reconciliation of Income from Operations to Adjusted Operating Income Three months ended September 30, ($, M) 2024 2023 Income from operations 47.3 3.3 Amortization of intangible assets 2.7 3.0 Stock-based compensation expense 8.4 8.5 Adjusted operating income 58.4 14.8 14 14
Slide 15: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Three months ended September 30, ($, Millions) 2024 2023 Net Cash Provided by Operating Activities (142.0) (135.3) Purchases of property and equipment (0.7) (1.7) Capitalized software development costs (8.8) (10.0) Capital
Slide 16: Reconciliation of Income from Operations to Adjusted Operating Income
Reconciliation of Income from Operations to Adjusted Operating Income Three months ended Year ended December 31, 2024 June 30, 2025 (In Millions) Low High Low High Income from operations $ 104.3 $ 112.3 $ 351.5 $ 375.5 Stock-based compensation expense 8.5 10.0 34.0 39.0 Amortization of intangible as