| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 158.29 | 87 |
| Intrinsic value (DCF) | 264.44 | 213 |
| Graham-Dodd Method | 62.10 | -27 |
| Graham Formula | 169.58 | 100 |
Stride, Inc. (NYSE: LRN) is a leading technology-based education service company specializing in K-12 and career learning solutions. Formerly known as K12 Inc., the company rebranded in 2020 to reflect its expanded focus on lifelong learning. Stride provides proprietary and third-party online curriculum, software systems, and educational services to facilitate individualized learning for students across the U.S. and internationally. Its offerings include virtual and blended public school programs, supplemental courses, and career-focused training in high-demand fields like IT, healthcare, and business through brands such as Galvanize, Tech Elevator, and MedCerts. Serving public and private schools, districts, employers, and government agencies, Stride leverages technology to enhance educational accessibility and workforce readiness. Headquartered in Reston, Virginia, the company operates in the growing edtech sector, benefiting from increasing demand for flexible, personalized learning solutions.
Stride, Inc. presents an attractive investment opportunity in the expanding edtech market, supported by its diversified revenue streams and strong positioning in K-12 and career education. The company's robust financials, including $2.04 billion in revenue and $204.2 million in net income for FY 2024, reflect its operational efficiency. With a low beta of 0.365, Stride offers relative stability in the volatile education sector. However, risks include regulatory changes in online education funding and competition from traditional and digital education providers. The lack of dividends may deter income-focused investors, but growth potential in career learning and international expansion could drive long-term value.
Stride, Inc. holds a competitive edge through its integrated technology platform and comprehensive K-12 and career learning solutions. Its ability to serve both institutional and individual learners differentiates it from pure-play K-12 or higher education providers. The company's strong relationships with public school districts and charter boards provide a stable revenue base, while its career-focused brands (Galvanize, Tech Elevator, MedCerts) tap into the growing demand for upskilling. Stride's proprietary curriculum and adaptive learning technologies enhance student engagement and outcomes, creating switching costs for institutional clients. However, competition is intensifying as traditional education companies expand digitally and tech giants enter the edtech space. Stride's focus on compliance with state education standards and accreditation gives it an advantage in regulated markets, but scaling internationally remains a challenge due to varying educational frameworks.