Strategic Education Inc

Latest Results (10.10.2025):

Strategic Education Inc. reported its financial results for the first quarter of 2025, showcasing a 4.6% increase in revenue to $303.6 million compared to the same period in 2024. The company maintained steady net income and demonstrated growth across its key segments, particularly in Education Technology Services, while continuing to invest in its operations and returning value to shareholders through a quarterly dividend.

Revenue Growth

Revenue for Strategic Education Inc. increased by 4.6% to $303.6 million in Q1 2025 compared to $290.3 million in Q1 2024. On a constant currency basis, revenue grew by 5.3% to $305.7 million, driven by higher first-quarter revenue per student.

Operating and Net Income

Income from operations stood at $39.8 million, representing 13.1% of revenue, slightly down from $41.4 million or 14.2% of revenue in Q1 2024. Adjusted income from operations improved to $41.7 million with an adjusted operating income margin of 13.7%. Net income remained steady at $29.7 million, while adjusted net income increased to $31.2 million.

Segment Performance

The U.S. Higher Education segment saw a slight increase in student enrollment to 87,854 and a 0.8% rise in revenue to $221.0 million. The Education Technology Services segment experienced significant growth with a 45.2% increase in revenue to $34.3 million, driven by higher subscriptions and new employer partnerships. Conversely, the Australia/New Zealand segment reported a minor decline in student enrollment by 0.6% but achieved a 1.9% increase in revenue to $48.3 million.

Balance Sheet and Shareholder Returns

As of March 31, 2025, Strategic Education Inc. held $197.6 million in cash, cash equivalents, and marketable securities with no outstanding debt. The company repurchased 391,302 shares for $32.0 million during the quarter and declared a regular quarterly cash dividend of $0.60 per share, payable on June 2, 2025.

Outlook and Investments

Strategic Education Inc. continues to invest in branding and staffing to support its growth initiatives, reflected in the increased capital expenditures. The company remains focused on expanding its employer partnerships and enhancing its educational offerings to drive future growth and improve economic mobility for its students.