Stride Stock Tumbles 48%. Customers Don’t Like New Tech Updates.

Stride said growth was hindered by negative customer feedback to new technology. (Dreamstime)

Key Points

• Stride falls sharply despite beating first-quarter earnings and revenue estimates.
• Enrollment reaches 247,700 students, an 11% increase, but misses Wall Street’s expectation of 249,200 students.
• Second-quarter revenue guidance of $620 million to $640 million is below analysts’ forecasts of $648 million.

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 48% Wednesday, wiping out all of the company’s 2025 gains and putting the stock on pace for its largest single-day decline on record, according to Dow Jones Market Data.

“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