10-Q - Strategic Education, Inc. (0001013934) (Filer)

Thu, Apr 24, 8:05 PM (17 days ago)

**Strategic Education, Inc. (STRA) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $303.6 million, up 4.5% YoY, driven by Education Technology Services. - **Net Income:** $29.7 million, stable YoY. - **Earnings per Share (EPS):** $1.24, up slightly from $1.23 YoY. - **Operating Income:** $39.8 million, down from $41.4 million YoY due to higher restructuring costs and operating expenses. - **Profit Margins:** Operating margin at 13.1%, down from 14.2% YoY. - **Cash Flow:** Operating cash flow at $67.7 million, down from $77.6 million YoY due to working capital changes. **Segment Performance:** - **U.S. Higher Education (USHE):** Revenue up 0.8% to $221.0 million, enrollment increased to 87,854. - **Australia/New Zealand (ANZ):** Revenue up 1.9% to $48.3 million, enrollment decreased 0.6% to 20,082. - **Education Technology Services:** Revenue up 45.2% to $34.3 million, driven by Workforce Edge and Sophia Learning. **Cash & Liquidity:** - **Cash & Cash Equivalents:** $144.2 million, down from $222.1 million YoY. - **Marketable Securities:** $38.4 million, down from $46.9 million YoY. - **Credit Facility:** $250 million revolving credit facility, no borrowings outstanding. **Trends & Uncertainties:** - **Enrollment Trends:** USHE enrollment increased, ANZ enrollment decreased slightly. - **Regulatory Risks:** Ongoing regulatory changes and legal proceedings may impact operations. - **Currency Fluctuations:** Foreign currency exchange impacts on revenue and operating income. **Future Operations:** - **Investments:** Continued investment in branding, technology, and employer partnerships. - **Share Repurchases:** $32.0 million spent on share repurchases, $196.5 million remaining in authorization. - **Dividends:** Quarterly dividend of $0.60 per share declared and paid. **Management's Outlook:** - Strategic Education aims to continue delivering high-quality, affordable education. - Focus on student success, affordable degrees, and establishing new growth platforms. - Management believes in the long-term growth strategy despite short-term challenges.