Slide 1: Q3 FY2025 Earnings Presentation
Q3 FY2025 Earnings Presentation April 29, 2025
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, such as statements about future revenue, adjusted operating income, capital expenditures, FY2028 targ
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 Q3 Highlights
FY2025 Q3 Highlights 01 02 03 04 Record Enrollment and Increasing Full Year On Track to Achieve FY2028 Organic and Strong In-Year Trends Guidance Targets Inorganic Opportunities Average Q3 enrollments of Most profitable quarter in Trends keep Stride on track to Strong balance sheet and 240.2K, up 21
Slide 5: Growth in Key Financial Metrics
Growth in Key Financial Metrics Revenue ($M) Adjusted Operating Income ($M) $700 $160 $613 $142 $136 $587 $140 $600 $551 $521 $534 $505 $120 $470 $483 $480 $500 $458 $96 $95 $425 $100 $88 $76 $80 $400 $80 $64 $58 $300 $60 $40 $200 $15 $20 $100 1 1 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $0 $(20) Q1 Q2 Q
Slide 6: Strong Enrollment Trends Continue
Strong Enrollment Trends Continue Three Months Ended Mar. 31, 2025 2024 Change Revenue ($M) General Education 370.8 328.9 ↑ 12.7% Enrollments Trends Career Learning • In-year enrollment growth • Middle – High School 223.9 167.9 ↑ 33.4% continues – exceeded 240K total average enrollments • Adult 18.7
Slide 7: Increased Revenue and Profitability Guidance
Increased Revenue and Profitability Guidance Previous FY25 Updated FY25 Guidance Guidance1 Guidance Mid-Points Low High Low High • FY25 Revenue: +17% Y-O-Y Revenue $2.320B $2.355B $2.370B $2.385B Mid-point of Guidance Adj. Operating Income $430M $450M $455M $465M • FY25 AOI: +57% Y-O-Y Mid-point of
Slide 8: Strong Balance Sheet with Low Debt
Strong Balance Sheet with Low Debt Cash position, low leverage ratio, and consistent cash flows provide options for capital allocation Select balance sheet and other information as of March 31, 2025 ($M) Cash, Cash Equivalents $754.6 & Marketable Securities Accounts Receivable, Net 699.8 Leverage ra
Slide 9: Disciplined Capital Allocation
Disciplined Capital Allocation Prioritizing organic growth, new product and technology development and synergistic M&A • Invest in academic quality and student/customer experience to support outcomes and Organic retention Growth • Technology advancements to improve personalization and outcomes • Imp
Slide 10: Compelling Long-Term Growth Targets
Compelling Long-Term Growth Targets Total Revenue ($B) Adj. Operating Income ($M) Diluted EPS ($) 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 $5.
Slide 11: Appendix
Appendix Stride 11
Slide 12: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Trailing twelve Three months ended Nine months ended months ended March 31, March 31, March 31, ($, M) 2025 2024 2025 2024 2025 Net income $99.3 $69.7 $236.6 $141.4 $299.4 Interest expense, net 2.8 2.4 7.8 6.5 10.1 Other (income) expense, ne
Slide 13: Reconciliation of Income from Operations to Adjusted Operating Income
Reconciliation of Income from Operations to Adjusted Operating Income Three months ended Nine months ended March 31, March 31, ($, M) 2025 2024 2025 2024 Income from operations $130.8 $88.3 $303.2 $175.9 Amortization of intangible assets 2.3 2.9 7.6 8.8 Stock-based compensation expense 8.6 5.2 24.9
Slide 14: Reconciliation of Income from Operations to Adjusted Operating Income
Reconciliation of Income from Operations to Adjusted Operating Income Three Months Ended Sept. 30, Dec. 31, Mar. 31, Jun. 30, Sept. 30, Dec. 31, Mar. 31, Jun. 30, Sept. 30, Dec. 31, ($, M) 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 Income (loss) from (28.7) 68.1 72.2 53.9 3.3 84.3 88.3 73.7 4
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 March 31, ($, M) 2025 2024 Net Cash Provided by Operating Activities $53.1 $68.6 Purchases of property and equipment (0.2) 0.2 Capitalized software development costs (10.0) (11.7) Capitalized curriculum
Slide 16: Reconciliation of Income from Operations to Adjusted Operating Income
Reconciliation of Income from Operations to Adjusted Operating Income Previous Guidance Updated Guidance (as of January 28, 2025) (as of April 29, 2025) Year ended Year ended June 30, 2025 June 30, 2025 ($, M) Low High Low High Income from operations $387.5 $402.5 $411.2 $417.7 Amortization of intan
Slide 17: Effect of Convertible Notes on Share Dilution
Effect of Convertible Notes on Share Dilution Convertible Senior Notes (Illustrative Dilution Example) • Stride Convertible Notes: $420M principal (7.9M shares underlying) • Irrevocably elected that all future conversions of the notes will be settled pursuant to combination settlement, generally req