Revenue growth has significantly decelerated from 13.1% in 2024Q1 to a marginal 0.8% in 2026Q1, while operating margins remain pressured within a 11.6% to 17.9% range.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.27B | 1.27B | 1.22B | 1.13B | 1.07B | 1.13B | 1.03B | 997.14M | 634.18M | 454.85M | 441.09M | 434.44M | 446.04M | 503.6M | 561.98M | 627.43M | 636.73M | 511.96M | 396.27M | 318.01M | 263.65M | 220.51M | 183.19M | 147.03M | 116.71M | 92.88M | 78.21M | 69.8M | 62.9M | 53.1M | 45M |
| Revenue Growth % | 3.02% | 3.96% | 7.68% | 6.33% | -5.85% | 10.12% | 3.06% | 57.23% | 39.43% | 3.12% | 1.53% | -2.6% | -11.43% | -10.39% | -10.43% | -1.46% | 24.37% | 29.19% | 24.61% | 20.62% | 19.56% | 20.37% | 24.6% | 25.97% | 25.66% | 18.75% | 12.05% | 10.97% | 18.46% | 18% | - |
| Cost of Goods Sold | 488.82M | 647.11M | 650.5M | 623.9M | 597.32M | 608.26M | 532.66M | 530.6M | 340.08M | 245.18M | 241.03M | 234.1M | 236.3M | 310.45M | 300.1M | 292M | 205.21M | 166.6M | 130.84M | 108.85M | 91.12M | 76.98M | 63.86M | 53.12M | 41.6M | 33.7M | 28.19M | 25.1M | 22.4M | 19.7M | 16.8M |
| COGS % of Revenue | - | 51.03% | 53.32% | 55.07% | 56.06% | 53.75% | 51.83% | 53.21% | 53.62% | 53.9% | 54.64% | 53.89% | 52.98% | 61.65% | 53.4% | 46.54% | 32.23% | 32.54% | 33.02% | 34.23% | 34.56% | 34.91% | 34.86% | 36.13% | 35.64% | 36.28% | 36.04% | 35.96% | 35.61% | 37.1% | 37.33% |
| Gross Profit | 475.81M | 621.11M | 569.43M | 509.02M | 468.16M | 523.42M | 494.99M | 466.53M | 294.11M | 209.67M | 200.06M | 200.34M | 209.74M | 193.15M | 261.88M | 335.43M | 431.52M | 345.36M | 265.44M | 209.16M | 172.53M | 143.53M | 119.33M | 93.91M | 75.11M | 59.18M | 50.03M | 44.7M | 40.5M | 33.4M | 28.2M |
| Gross Margin % | 37.45% | 48.97% | 46.68% | 44.93% | 43.94% | 46.25% | 48.17% | 46.79% | 46.38% | 46.1% | 45.36% | 46.11% | 47.02% | 38.35% | 46.6% | 53.46% | 67.77% | 67.46% | 66.98% | 65.77% | 65.44% | 65.09% | 65.14% | 63.87% | 64.36% | 63.72% | 63.96% | 64.04% | 64.39% | 62.9% | 62.67% |
| Gross Profit Growth % | - | 9.07% | 11.87% | 8.73% | -10.56% | 5.74% | 6.1% | 58.63% | 40.27% | 4.8% | -0.14% | -4.48% | 8.59% | -26.24% | -21.93% | -22.27% | 24.95% | 30.11% | 26.91% | 21.23% | 20.2% | 20.28% | 27.07% | 25.03% | 26.92% | 18.29% | 11.92% | 10.37% | 21.26% | 18.44% | - |
| Operating Expenses | 338.41M | 424.97M | 413.81M | 413.7M | 397.4M | 449.51M | 385.61M | 356M | 251.19M | 157.47M | 142.59M | 130.64M | 127.99M | 160.45M | 148.29M | 156.29M | 215.75M | 173M | 269.42M | 129.62M | 92.99M | 68.67M | 53.85M | 41.01M | 33.88M | 25.67M | 19.1M | 17.2M | 14.3M | 12.7M | 12.2M |
| OpEx % of Revenue | - | 33.51% | 33.92% | 36.52% | 37.3% | 39.72% | 37.52% | 35.7% | 39.61% | 34.62% | 32.33% | 30.07% | 28.69% | 31.86% | 26.39% | 24.91% | 33.88% | 33.79% | 67.99% | 40.76% | 35.27% | 31.14% | 29.4% | 27.89% | 29.03% | 27.64% | 24.42% | 24.64% | 22.73% | 23.92% | 27.11% |
| Selling, General & Admin | 207.19M | 310.79M | 412.16M | 384.44M | 379.82M | 361.35M | 295.23M | 272.41M | 194.03M | 137.97M | 124.76M | 114.34M | 111.33M | 140.06M | 121.92M | 156.29M | 215.75M | 173M | 138.59M | 111.6M | 92.99M | 68.67M | 53.85M | 42.78M | 33.88M | 25.67M | 19.1M | 17.2M | 14.3M | 12.7M | 11.2M |
| SG&A % of Revenue | - | 24.51% | 33.79% | 33.93% | 35.65% | 31.93% | 28.73% | 27.32% | 30.6% | 30.33% | 28.28% | 26.32% | 24.96% | 27.81% | 21.69% | 24.91% | 33.88% | 33.79% | 34.97% | 35.09% | 35.27% | 31.14% | 29.4% | 29.1% | 29.03% | 27.64% | 24.42% | 24.64% | 22.73% | 23.92% | 24.89% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 114.18M | 1.65M | 29.26M | 17.58M | 88.17M | 90.38M | 83.59M | 3.6M | 19.49M | 17.83M | 16.3M | 16.66M | 20.39M | 26.37M | 0 | 0 | 0 | 0 | 18.02M | 0 | 0 | 0 | -1.77M | 0 | 0 | 0 | 0 | 0 | 0 | 1M |
| Operating Income | 178.48M | 196.14M | 155.63M | 95.32M | 70.76M | 73.91M | 109.38M | 110.53M | -22.74M | 52.21M | 57.47M | 69.7M | 81.75M | 32.7M | 113.59M | 179.14M | 215.77M | 172.35M | 126.85M | 79.54M | 79.54M | 74.86M | 65.48M | 52.9M | 41.23M | 33.51M | 30.93M | 27.5M | 26.2M | 20.7M | 16M |
| Operating Margin % | 14.05% | 15.47% | 12.76% | 8.41% | 6.64% | 6.53% | 10.64% | 11.08% | -3.59% | 11.48% | 13.03% | 16.04% | 18.33% | 6.49% | 20.21% | 28.55% | 33.89% | 33.67% | 32.01% | 25.01% | 30.17% | 33.95% | 35.75% | 35.98% | 35.33% | 36.08% | 39.54% | 39.4% | 41.65% | 38.98% | 35.56% |
| Operating Income Growth % | - | 26.03% | 63.27% | 34.71% | -4.26% | -32.43% | -1.04% | 586.07% | -143.56% | -9.16% | -17.54% | -14.74% | 149.98% | -71.21% | -36.59% | -16.98% | 25.19% | 35.87% | 59.49% | 0% | 6.24% | 14.33% | 23.79% | 28.31% | 23.05% | 8.34% | 12.46% | 4.96% | 26.57% | 29.38% | - |
| EBITDA | 215.7M | 244.55M | 200.01M | 152.63M | 133.88M | 177.33M | 218.54M | 215.39M | 31.8M | 70.94M | 75.29M | 87.8M | 102.38M | 68.26M | 137.56M | 200.67M | 232.8M | 186.01M | 136.81M | 87.8M | 86.78M | 81.71M | 71.47M | 57.6M | 44.78M | 36.15M | 32.99M | 29.4M | 27.8M | 21.9M | 17M |
| EBITDA Margin % | 16.98% | 19.28% | 16.39% | 13.47% | 12.57% | 15.67% | 21.27% | 21.6% | 5.01% | 15.6% | 17.07% | 20.21% | 22.95% | 13.56% | 24.48% | 31.98% | 36.56% | 36.33% | 34.52% | 27.61% | 32.92% | 37.06% | 39.01% | 39.18% | 38.37% | 38.92% | 42.18% | 42.12% | 44.2% | 41.24% | 37.78% |
| EBITDA Growth % | 8.63% | 22.27% | 31.04% | 14% | -24.5% | -18.86% | 1.46% | 577.27% | -55.17% | -5.77% | -14.25% | -14.24% | 49.97% | -50.38% | -31.45% | -13.8% | 25.15% | 35.97% | 55.82% | 1.16% | 6.21% | 14.33% | 24.07% | 28.64% | 23.87% | 9.58% | 12.21% | 5.76% | 26.94% | 28.82% | - |
| D&A (Non-Cash Add-back) | 37.22M | 48.41M | 44.38M | 57.31M | 63.12M | 103.42M | 109.15M | 104.86M | 54.54M | 18.73M | 17.82M | 18.1M | 20.63M | 35.56M | 23.97M | 21.52M | 17.03M | 13.66M | 9.96M | 8.26M | 7.25M | 6.85M | 5.99M | 4.7M | 3.55M | 2.64M | 2.06M | 1.9M | 1.6M | 1.2M | 1M |
| EBIT | 138.49M | 177.39M | 157.28M | 113.12M | 73.99M | 110.58M | 135.54M | 132.46M | -19.14M | 56.58M | 54.26M | 70.12M | 81.75M | 87.1M | 113.59M | 179.29M | 217M | 172.35M | 126.85M | 104.05M | 84.08M | 77.85M | 67.08M | 52.9M | 41.23M | 33.51M | 30.93M | 27.5M | 26.3M | 20.7M | 16M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 1.2M | 3.4M | 0 | -642K | -642K | -3.57M | -5.13M | -5.42M | -4.62M | -3.77M | 1.23M | 1.41M | 4.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 2.6M | 3.4M | 0 | 0 | 0 | 283K | 117K | 0 | 0 | 0 | 1.23M | 1.41M | 4.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 1.4M | 0 | 0 | 642K | 642K | 3.85M | 5.25M | 5.42M | 4.62M | 3.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -805K | -18.75M | 5.8M | 5.41M | -1.19M | 2.69M | 4.57M | 13.19M | 3.6M | 437K | -180K | -3.57M | -5.13M | -5.42M | -4.61M | -3.62M | 1.23M | 1.41M | 4.53M | 6.5M | 4.54M | 2.98M | 1.59M | 2.42M | 1.28M | 3.79M | 4.76M | 4.3M | 3.2M | 2.7M | 1M |
| Pretax Income | 177.68M | 177.39M | 161.43M | 100.73M | 69.57M | 76.6M | 113.96M | 123.72M | -19.14M | 52.65M | 57.29M | 66.13M | 76.62M | 27.28M | 108.97M | 175.52M | 217M | 173.76M | 131.38M | 104.05M | 84.08M | 77.85M | 67.08M | 55.32M | 42.51M | 37.3M | 35.68M | 31.8M | 29.4M | 23.4M | 17M |
| Pretax Margin % | 13.98% | 13.99% | 13.23% | 8.89% | 6.53% | 6.77% | 11.09% | 12.41% | -3.02% | 11.57% | 12.99% | 15.22% | 17.18% | 5.42% | 19.39% | 27.97% | 34.08% | 33.94% | 33.15% | 32.72% | 31.89% | 35.3% | 36.62% | 37.63% | 36.43% | 40.16% | 45.62% | 45.56% | 46.74% | 44.07% | 37.78% |
| Income Tax | 48M | 50.78M | 48.75M | 30.93M | 22.9M | 21.51M | 27.69M | 42.59M | -3.47M | 32.03M | 22.49M | 26.11M | 30.26M | 10.86M | 43.05M | 69.48M | 85.74M | 68.68M | 50.57M | 39.12M | 31.77M | 29.78M | 25.84M | 21.65M | 16.73M | 14.49M | 13.97M | 12.5M | 11.4M | 9M | 2.7M |
| Effective Tax Rate % | 27.01% | 28.63% | 30.2% | 30.71% | 32.92% | 28.08% | 24.3% | 34.42% | 18.12% | 60.85% | 39.26% | 39.48% | 39.5% | 39.8% | 39.5% | 39.58% | 39.51% | 39.53% | 38.49% | 37.59% | 37.79% | 38.26% | 38.52% | 39.13% | 39.35% | 38.85% | 39.16% | 39.31% | 38.78% | 38.46% | 15.88% |
| Net Income | 129.68M | 126.61M | 112.68M | 69.79M | 46.67M | 55.09M | 86.27M | 81.14M | -15.67M | 20.61M | 34.8M | 40.02M | 46.36M | 16.43M | 65.93M | 106.04M | 131.26M | 105.08M | 80.81M | 64.94M | 52.31M | 48.06M | 41.24M | 33.67M | 25.78M | 22.81M | 21.71M | 19.3M | 17.9M | 14.4M | 14.3M |
| Net Margin % | 10.21% | 9.98% | 9.24% | 6.16% | 4.38% | 4.87% | 8.39% | 8.14% | -2.47% | 4.53% | 7.89% | 9.21% | 10.39% | 3.26% | 11.73% | 16.9% | 20.61% | 20.52% | 20.39% | 20.42% | 19.84% | 21.8% | 22.51% | 22.9% | 22.09% | 24.56% | 27.76% | 27.65% | 28.46% | 27.12% | 31.78% |
| Net Income Growth % | 15.04% | 12.36% | 61.46% | 49.54% | -15.28% | -36.14% | 6.32% | 617.76% | -176.03% | -40.77% | -13.05% | -13.66% | 182.23% | -75.09% | -37.83% | -19.21% | 24.92% | 30.03% | 24.44% | 24.15% | 8.83% | 16.55% | 22.47% | 30.6% | 13.04% | 5.07% | 12.48% | 7.82% | 24.31% | 0.7% | - |
| Net Income (Continuing) | 129.68M | 126.61M | 112.68M | 69.79M | 46.67M | 55.09M | 86.27M | 81.14M | -15.67M | 20.61M | 34.8M | 40.02M | 46.36M | 16.43M | 65.93M | 106.04M | 131.26M | 105.08M | 80.81M | 64.94M | 52.31M | 48.06M | 41.24M | 33.67M | 25.78M | 22.81M | 21.71M | 19.3M | 17.9M | 14.4M | 14.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.85 | 5.42 | 4.67 | 2.91 | 1.94 | 2.28 | 3.77 | 3.67 | -1.03 | 1.84 | 3.21 | 3.73 | 4.35 | 1.55 | 5.76 | 8.88 | 9.70 | 7.60 | 5.67 | 4.47 | 3.61 | 3.26 | 2.74 | 2.27 | 1.78 | 1.55 | 1.41 | 1.23 | 1.12 | 0.93 | 0.55 |
| EPS Growth % | 20.94% | 16.06% | 60.48% | 50% | -14.91% | -39.52% | 2.72% | 456.31% | -155.98% | -42.68% | -13.94% | -14.25% | 180.65% | -73.09% | -35.14% | -8.45% | 27.63% | 34.04% | 26.85% | 23.82% | 10.74% | 18.98% | 20.7% | 27.53% | 14.84% | 9.93% | 14.63% | 9.82% | 20.43% | 69.09% | - |
| EPS (Basic) | - | 5.58 | 4.81 | 2.98 | 1.97 | 2.30 | 3.81 | 3.73 | -1.03 | 1.93 | 3.28 | 3.78 | 4.39 | 1.55 | 5.79 | 8.91 | 9.78 | 7.67 | 5.77 | 4.56 | 3.69 | 3.32 | 2.91 | 2.67 | 2.14 | 1.62 | 1.42 | 1.25 | 1.15 | 0.96 | 0.56 |
| Diluted Shares Outstanding | 22.17M | 22.82M | 24.14M | 23.96M | 24M | 24.12M | 22.86M | 22.1M | 15.19M | 11.2M | 10.85M | 10.74M | 10.65M | 10.62M | 11.44M | 11.94M | 13.54M | 13.82M | 14.24M | 14.52M | 14.49M | 14.74M | 15.06M | 14.86M | 10.58M | 14.74M | 15.4M | 15.69M | 15.98M | 15.48M | 16.44M |
| Basic Shares Outstanding | 21.62M | 22.18M | 23.41M | 23.4M | 23.68M | 23.95M | 22.63M | 21.73M | 15.19M | 10.68M | 10.61M | 10.59M | 10.56M | 10.58M | 11.39M | 11.91M | 13.43M | 13.7M | 14.02M | 14.25M | 14.19M | 14.47M | 13.67M | 10.69M | 8.62M | 10.97M | 15.29M | 15.44M | 15.57M | 15M | 16.44M |
| Dividend Payout Ratio | - | 45.45% | 52.33% | 84.22% | 126.93% | 107.19% | 64.86% | 57.46% | - | 55.39% | - | - | - | - | 71.79% | 46.31% | 33.93% | 30.1% | 64.26% | 29.3% | 29.22% | 18.78% | 13.69% | 17.92% | 28.79% | 22.2% | 17.3% | 17.1% | 15.64% | 17.36% | 172.03% |
Regulatory Title IV exposure
As indicated by recent financial disclosures, STRA's year-over-year revenue growth has decelerated from 13.1% in 2024Q1 to a modest 0.8% by 2026Q1, suggesting that the company's core enrollment volume is struggling to maintain the momentum observed in previous fiscal periods despite ongoing diversification efforts.
The transition from double-digit growth to near-flat performance implies that the company's primary U.S. Higher Education segment may be reaching a saturation point or facing increased competitive pressure. Investors should monitor whether the shift toward B2B channels can eventually offset the stagnation in traditional degree-seeking enrollments.
Based on reported quarterly figures, STRA has maintained gross margins hovering near the 48-50% range, which reflects a consistent ability to manage instructional costs despite the competitive landscape for student acquisition and the ongoing integration of newer, lower-cost EdTech offerings into the broader portfolio.
While these margins appear stable, they remain lower than those of peers like Adtalem, suggesting that STRA's cost structure is heavily influenced by its specific faculty-to-student ratios and the operational requirements of its online platforms. Any further compression in these margins could indicate that the company is forced to increase promotional spending to sustain enrollment levels.
According to the income statement data, operating margins have fluctuated between 11.6% and 17.9% over the last ten quarters, indicating that the company has struggled to achieve consistent operating leverage as SG&A expenses often scale in tandem with or faster than gross profit growth.
The inability to consistently expand operating margins during periods of revenue growth suggests that the company's overhead and marketing requirements are significant and potentially sticky. This trend warrants further investigation into whether the company can successfully decouple its administrative costs from its enrollment-driven revenue model.
As reported in recent filings, stock-based compensation remains a persistent expense, consistently ranging between $5M and $7M per quarter, which serves to dilute the quality of reported net income and complicates the assessment of true operational profitability for shareholders.
The consistent presence of these non-cash charges suggests that management relies heavily on equity-based incentives to retain talent, which may mask the underlying cash-generating capability of the business. Analysts should adjust for these recurring items when evaluating the sustainability of the company's EPS growth trajectory.
Based on the provided data and industry context, the most significant risk to the income statement is the potential for regulatory shifts, such as stricter 'Gainful Employment' rules, which could abruptly impair the revenue-generating capacity of the company's core U.S. Higher Education degree programs.
Short-sellers would likely focus on the company's heavy reliance on Title IV funding and the potential for margin compression if compliance costs rise or if specific programs are deemed ineligible for federal aid. This vulnerability suggests that the current valuation may not fully account for the binary risk inherent in the regulatory environment.
Quick answers to the most common questions about buying STRA stock.
For fiscal year 2025, Strategic Education, Inc. (STRA) reported total revenue of $1.27B. This represents a 2718.3% increase compared to $45.0M in 1996.
Strategic Education, Inc. (STRA) is profitable, generating $126.6M in net income for the fiscal year ending 2025 with a net profit margin of 10.0%.
Strategic Education, Inc. (STRA) reported an operating income of $196.1M, resulting in an operating profit margin of 15.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Strategic Education, Inc. (STRA) generated $621.1M in gross profit for the year, representing a gross profit margin of 49.0%. This demonstrates the company's core pricing power and production efficiency.