- Strategic Education, Inc. (NASDAQ: STRA) reports a 4.6% increase in revenue to $303.6 million for Q1 2025.
- Adjusted net income rises to $31.2 million from $26.7 million in Q1 2024.
- U.S. Higher Education segment sees a 0.8% increase in revenue driven by employer-affiliated enrollment reaching an all-time high.
Strategic Education, Inc. (STRA, Financial) announced its financial results for the first quarter of 2025, ending March 31, with a 4.6% increase in revenue totaling $303.6 million, as compared to $290.3 million in the same period last year. On a constant currency basis, revenue increased by 5.3% to $305.7 million.
Income from operations was reported at $39.8 million, forming 13.1% of the revenue, slightly down from $41.4 million or 14.2% of revenue in the first quarter of 2024. However, the adjusted income from operations rose to $41.7 million, improving the operating income margin to 13.7% from 12.4% in the previous year. Net income remained stable at $29.7 million while adjusted net income increased to $31.2 million from $26.7 million in Q1 2024.
The U.S. Higher Education segment, which includes Capella University and Strayer University, saw a modest increase in student enrollment to 87,854. Employer-affiliated enrollment achieved a notable milestone, accounting for 31.2% of total enrollment, up from 29.2% a year earlier. Revenue in this segment increased by 0.8% to $221 million, aided by higher revenue per student.
The Education Technology Services segment experienced robust growth with a 45.2% rise in revenue to $34.3 million, driven by a 37% increase in subscribers to Sophia Learning. The segment's income from operations climbed to $13.8 million compared to $10.1 million in the previous year.
In the Australia/New Zealand region, student enrollment decreased by 0.6% to 20,082, attributed to regulatory changes affecting international students in Australia. Nonetheless, revenue advanced by 1.9% to $48.3 million, with domestic enrollment showing potential for future growth.
Strategic Education declared a quarterly cash dividend of $0.60 per share, payable on June 2, 2025, to shareholders recorded by May 23, 2025. The company remains debt-free with cash, cash equivalents, and marketable securities amounting to $197.6 million as of March 31, 2025.
