olivLaw · US equity research
Strategic Education, Inc. STRA
Services-Educational Services · SIC 8200 · Vertical: Services-Educational Services (SIC 8200)
Strategic Education, Inc. provides post-secondary education, mostly online and for working adults, through Capella University, Strayer University and Torrens University, and through its employer-focused education technology division. In the first half of 2026 revenue grew and the ETS segment accelerated, while ANZ was hit by Australian regulatory changes and a reserve of $13.9 million tied to a Fair Work Ombudsman matter.
At the close of 04 Nov 2026, Strategic Education, Inc. (STRA) stock was 74.32 USD (+0.38% on the day), with market capitalisation 1.7 bn USD, P/E 12.4 on diluted EPS of 6.00 USD over the last 12 months, dividend yield 3.23%, beta 0.48, 52-week range 72.19–87.62 USD. Latest reported quarter (Q2 2026): revenue of 337.3 m USD (+4.9% YoY), net income of 37.2 m USD (+14.9% YoY), diluted EPS 1.71 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 35.7
- weak (30–45)
- Bollinger (20, 2)
- 72.89 – 85.95
- in the lower half of the band · %B 0.11 · band width 16.4%
- SMA 50 / 200
- 80.14 / 80.26
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -1.64 / -0.82
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −6.3% | −1.1% | −5.2 pp | — |
| 3 months | −11.1% | −0.5% | −10.6 pp | — |
| 6 months | −5.4% | +4.4% | −9.8 pp | — |
| Year to date | −7.3% | +12.3% | −19.6 pp | — |
| 1 year | −0.9% | +13.5% | −14.5 pp | −30.6% |
| 3 years | −14.6% | +76.4% | −91.0 pp | −9.7% |
| 5 years | +15.7% | +63.7% | −48.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 306.0 m | 311.5 m | 303.6 m | 321.5 m | 319.9 m | 323.2 m | 305.9 m | 337.3 m |
| Operating income | 36.3 m | 36.0 m | 39.8 m | 45.8 m | 37.0 m | 51.6 m | 41.1 m | 50.5 m |
| Depreciation & amortisation | 10.8 m | 11.4 m | 11.2 m | 12.0 m | 12.0 m | 13.2 m | 10.9 m | 11.2 m |
| Pre-tax income | 38.6 m | 37.9 m | 42.0 m | 45.4 m | 36.8 m | 53.2 m | 42.3 m | 51.8 m |
| Income tax | 10.8 m | 12.6 m | 12.3 m | 13.1 m | 10.1 m | 15.3 m | 9.5 m | 14.7 m |
| Net income | 27.7 m | 25.3 m | 29.7 m | 32.3 m | 26.6 m | 37.9 m | 32.8 m | 37.2 m |
| Diluted EPS | 1.15 | 1.05 ≈ | 1.24 | 1.37 | 1.15 | 1.66 ≈ | 1.48 | 1.71 |
| Operating cash flow | 51.5 m ≈ | 15.9 m | 67.7 m | 31.2 m ≈ | 60.1 m ≈ | 39.2 m | 87.4 m | 29.2 m ≈ |
| Capex | 9.4 m ≈ | 11.2 m | 10.3 m | 10.8 m ≈ | 10.9 m ≈ | 12.2 m | 10.1 m | 14.1 m ≈ |
| Dividends paid | 14.8 m ≈ | 14.7 m | 14.8 m | 14.4 m ≈ | 14.2 m ≈ | 14.2 m | 13.6 m | 13.3 m ≈ |
| Share repurchases | 5.0 m ≈ | 6.5 m | 32.0 m | 28.0 m ≈ | 34.3 m ≈ | 44.6 m | 40.0 m | 32.8 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 35-quarter history (min 12.8, median 29.5, max 90.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 634.2 m | 997.1 m | 1.0 bn | 1.1 bn | 1.1 bn | 1.1 bn | 1.2 bn | 1.3 bn |
| Revenue YoY | +39.4% | +57.2% | +3.1% | +10.1% | −5.9% | +6.3% | +7.7% | +4.0% |
| Net income | -15.7 m | 81.1 m | 86.3 m | 55.1 m | 46.7 m | 69.8 m | 112.7 m | 126.6 m |
| Net income YoY | −176.0% | unavailable | +6.3% | −36.1% | −15.3% | +49.5% | +61.5% | +12.4% |
| Diluted EPS | -1.03 | 3.67 | 3.77 | 2.28 | 1.94 | 2.91 | 4.67 | 5.41 |
| Diluted EPS YoY | −156.0% | unavailable | +2.7% | −39.5% | −14.9% | +50.0% | +60.5% | +15.8% |
| net % | -2.5% | 8.1% | 8.4% | 4.9% | 4.4% | 6.2% | 9.2% | 10.0% |
| Free cash flow | 19.3 m | 163.5 m | 96.1 m | 131.1 m | 82.9 m | 80.2 m | 128.8 m | 153.9 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 140.8 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 1.6 bn USD
- Total assets
- 2.0 bn USD
- Debt / equity
- unavailable
- Current ratio
- 1.27x
- ROE
- 7.7%
- ROA
- 6.2%
- FCF margin
- 12.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.0 bn | 1.1 bn | 1.1 bn | 1.1 bn | 1.2 bn | 1.3 bn | SEC (XBRL)· 27 Feb 2026verified |
| Operating income | 109.4 m | 73.9 m | 70.8 m | 95.3 m | 155.6 m | 174.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Depreciation & amortisation | 51.8 m | 59.1 m | 52.0 m | 48.4 m | 44.4 m | 48.4 m | SEC (XBRL)· 27 Feb 2026verified |
| EBITDA | 161.2 m ≈ | 133.0 m ≈ | 122.8 m ≈ | 143.7 m ≈ | 200.0 m ≈ | 222.6 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Pre-tax income | 114.0 m | 76.6 m | 69.6 m | 100.7 m | 161.4 m | 177.4 m | SEC (XBRL)· 27 Feb 2026verified |
| Income tax | 27.7 m | 21.5 m | 22.9 m | 30.9 m | 48.7 m | 50.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Net income | 86.3 m | 55.1 m | 46.7 m | 69.8 m | 112.7 m | 126.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Diluted EPS | 3.77 | 2.28 | 1.94 | 2.91 | 4.67 | 5.41 | SEC (XBRL)· 27 Feb 2026verified |
| Weighted average diluted shares | 22.9 m | 24.1 m | 24.0 m | 24.0 m | 24.1 m | 23.4 m | SEC (XBRL)· 27 Feb 2026verified |
| Dividend per share | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 187.5 m | 268.9 m | 213.7 m | 168.5 m | 137.1 m | 140.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Receivables | 50.2 m | 51.3 m | 63.0 m | 76.1 m | 76.1 m | 78.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Current assets | 286.1 m | 367.8 m | 329.1 m | 329.1 m | 304.9 m | 277.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Property, plant & equipment, net | 158.9 m | 150.6 m | 132.8 m | 118.5 m | 111.2 m | 107.4 m | SEC (XBRL)· 27 Feb 2026verified |
| Goodwill | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.2 bn | 1.2 bn | SEC (XBRL)· 27 Feb 2026verified |
| Intangibles (excl. goodwill) | 326.4 m | 276.4 m | 260.5 m | 251.6 m | 245.1 m | 249.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Total assets | 2.3 bn | 2.3 bn | 2.2 bn | 2.1 bn | 2.0 bn | 2.0 bn | SEC (XBRL)· 27 Feb 2026verified |
| Accounts payable | 104.7 m | 95.5 m | 90.6 m | 90.9 m | 101.7 m | 105.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Long-term debt | 141.8 m | 141.6 m | 101.4 m | 61.4 m | 0 | — | SEC (XBRL)· 27 Feb 2025verified |
| Current liabilities | 200.1 m | 195.8 m | 209.9 m | 209.6 m | 216.5 m | 217.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Total liabilities | 547.5 m | 591.9 m | 526.0 m | 472.7 m | 387.2 m | 392.1 m | SEC (XBRL)· 27 Feb 2026verified |
| Equity | 1.7 bn † | 1.7 bn † | 1.6 bn † | 1.7 bn † | 1.7 bn † | 1.6 bn † | SEC (XBRL)· 27 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 142.9 m | 180.5 m | 126.1 m | 117.1 m | 169.3 m | 198.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Capex | 46.8 m | 49.4 m | 43.2 m | 36.9 m | 40.6 m | 44.3 m | SEC (XBRL)· 27 Feb 2026verified |
| Free cash flow | 96.1 m ≈ | 131.1 m ≈ | 82.9 m ≈ | 80.2 m ≈ | 128.8 m ≈ | 153.9 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Investing cash flow | -642.2 m | -33.1 m | -31.4 m | -48.5 m | -64.4 m | 8.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Financing cash flow | 279.2 m | -67.9 m | -142.4 m | -113.6 m | -136.8 m | -206.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Dividends paid | 56.0 m | 59.0 m | 59.2 m | 58.8 m | 59.0 m | 57.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Share repurchases | 247.0 k | 5.9 m | 40.1 m | 10.0 m | 11.5 m | 138.9 m | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 79 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.7 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet25
- Growth75
- Quality84
- Returns100
- Valuation80
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 31.54 – 103.25 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E39.19 – 103.25 (Mid 77.35)15 companies used · median multiple 12.9x · quartiles 6.5x – 17.2xAPEI, CVSA, IH, LAUR, LFS, LGCY, LINC, LOPE, LRN, PRDO, PXED, STG, TAL, VSA, YOUL
- Dividend discount (DDM)31.54 – 42.41 (Mid 36.18)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 79/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 10.5% | 68 (vs peers) | 10% |
| FCF conversion · Quality | 125.3% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 6.0% | 50 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | 40.8% | 100 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.1x | 25 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 12.4x | 63 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 10.2% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 12.5% | 100 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 32.8% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial25/100 · 1/3 factors with a value
- Growth75/100 · 2/2 factors with a value
- Quality84/100 · 2/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation80/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Strategic Education, Inc. (STRA). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.3 bn USD in 2025; YoY growth 4.0%; net margin 10.5%; ROE 8.2%.
The estimated value range is 35.37–72.83 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 56.76 USD, the price of 74.32 USD leaves a potential of -23.6% (value / price − 1) and a margin of safety of -30.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 79/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 125.3%
- EPS CAGR 3Y: 40.8%
- FCF yield: 10.2%
- Shareholder yield (distributions): 12.5%
- Payout ratio (FCF): 32.8%
What contradicts it
- Current ratio: 1.1x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Services-Educational Services (SIC 8200) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| EDUNew Oriental Education & Technology Group Inc. | 80.7 bn | 169.7 | 12.4% | 8.4% | +15.5% | +2% / −36% |
| LAURLaureate Education, Inc. | 4.8 bn | 12.9 | 34.1% | 20.3% | +8.6% | +14% / +168% |
| CVSACovista Inc. | 4.1 bn | 17.0 | 17.9% | 12.8% | +9.3% | +34% / +118% |
| COE51Talk Online Education Group | 4.1 bn | — | — | -17.6% | +88.6% | −73% / +43% |
| LOPEGrand Canyon Education, Inc. | 3.8 bn | 16.1 | 35.9% | 21.9% | +7.1% | −4% / +10% |
| LRNStride, Inc. | 3.3 bn | 10.9 | 20.9% | 13.2% | +4.7% | +25% / +31% |
| NAMIJinxin Technology Holding Company | 2.6 bn | — | -89.7% | -22.8% | +6.1% | −89% / unavailable |
| DAOYoudao, Inc. | 2.5 bn | 159.2 | — | 1.6% | +9.6% | +105% / +397% |
| PRDOPerdoceo Education Corp | 1.9 bn | 10.9 | 17.6% | 20.6% | +24.2% | +7% / +72% |
| STRAStrategic Education, Inc. | 1.7 bn | 12.4 | 8.2% | 10.5% | +4.0% | −1% / −15% |
| YQ17 Education & Technology Group Inc. | 1.5 bn | — | -46.5% | -145.6% | −41.5% | −41% / +14% |
| UTIUniversal Technical Institute, Inc | 1.2 bn | 36.3 | 10.5% | 3.9% | +14.0% | −3% / +91% |
| PXEDPhoenix Education Partners, Inc. | 794.4 m | 9.5 | 30.1% | 8.7% | +1.0% | −36% / unavailable |
| APEIAmerican Public Education, Inc. | 776.2 m | 17.5 | 15.6% | 6.8% | +3.9% | +22% / +439% |
| LINCLincoln Educational Services Corporation | 637.9 m | 28.0 | 11.9% | 4.0% | +17.8% | −2% / +117% |
| JZJianzhi Education Technology Group Company Limited | 522.3 m | — | -44.4% | -22.4% | −70.6% | −98% / −100% |
| GOTUGaotu Techedu Inc. | 373.9 m | — | -20.8% | -5.3% | +40.9% | −0% / −9% |
| IHiHuman Inc. | 245.2 m | 22.8 | 10.0% | 11.8% | −8.7% | −60% / −59% |
| FEDUFour Seasons Education (Cayman) Inc. | 210.5 m | 46.6 | 6.8% | 12.1% | +7.6% | −30% / +13% |
| LXEHLixiang Education Holding Co. Ltd. | 155.2 m | — | -83.1% | -395.4% | −1.9% | −63% / −99% |
| LGCYLegacy Education Inc. | 118.1 m | 14.0 | 19.5% | 11.4% | +24.8% | −12% / unavailable |
| EEIQEpicQuest Education Group International Limited | 93.6 m | — | -34.8% | -27.2% | +9.6% | −23% / −81% |
| VSAVisionSys AI Inc | 81.8 m | 0.3 | — | 164,963.8% | −99.9% | −97% / −100% |
| CHGGChegg, Inc | 71.1 m | — | -30.7% | -17.2% | −39.0% | −34% / −94% |
| AMBOAmbow Education Holding Ltd. | 62.3 m | — | -2.9% | -2.6% | +0.8% | −61% / −10% |
1- and 3-year price returns: for STRA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 45.00 Total return -37% · Per year -37% | 79.50 Total return 10% · Per year 10% | 119.67 Total return 65% · Per year 65% |
| 3 years | 44.98 Total return -32% · Per year -12% | 89.28 Total return 31% · Per year 9% | 147.38 Total return 112% · Per year 29% |
| 5 years | 44.96 Total return -26% · Per year -6% | 100.28 Total return 54% · Per year 9% | 181.52 Total return 170% · Per year 22% |
- Exit P/E± 22.32
- Net margin± 15.62
- Annual revenue growth± 12.65
- Annual dilution± 1.31
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Strategic Education, Inc. provides post-secondary education, mostly online and for working adults, through Capella University, Strayer University and Torrens University, and through its employer-focused education technology division. In the first half of 2026 revenue grew and the ETS segment accelerated, while ANZ was hit by Australian regulatory changes and a reserve of $13.9 million tied to a Fair Work Ombudsman matter 3.
SWOT
Strengths
- The company has a diversified portfolio of institutions and a strong position in employer partnerships, supported by rising ETS revenue 3.
- Limited dependence on a single program type and presence in several countries provide a stable revenue base and operating flexibility 1.
- Operating cash flow and low debt give room for investment and share repurchases 3.
Weaknesses
- The USHE segment saw a slight decline in enrollment, showing that employer growth does not always offset the loss of unaffiliated students 3.
- The ANZ segment posted low operating income in the second quarter of 2026 after a reserve tied to an Australian inquiry 3.
- Dependence on federal funding and accreditation makes the company vulnerable to regulatory changes or agency decisions 1.
Opportunities
Threats
- Congress and federal agencies are closely examining for-profit schools, which could lead to stricter rules 1.
- Lower Title IV funding could reduce enrollment and force the company to find alternative student financing 1.
- Competitive pressure from online course providers and training platforms could reduce prices and margins 1.
Risks
- Federal regulatory compliancehigh
Capella and Strayer must comply with the Higher Education Act and could lose access to federal loans and grants if they fall short 1.
- Dependence on accreditationhigh
Loss of institutional accreditation or of the accreditor's recognition would make the universities ineligible for federal funding programs 1.
- Consumer protection investigationsmedium
Federal and state agencies review marketing and loan servicing practices, and adverse findings could bring fines or restrictions 1.
- Australian regulationmedium
Policy changes in Australia reduced international enrollment and led to a reserve after a workplace compliance inquiry 3.
- Declining funding per creditlow
A continued fall in Title IV funding per credit earned could reduce revenue per student if the trend accelerates 2.
Investment thesis
What would need to be true (bull case)
- Rapid growth in ETS and Sophia Learning shows the employer partnership model can support rising revenue 3.
- Record employer affiliated enrollment and growth in healthcare could support long-term enrollment 3.
- Rising operating cash flow and share repurchases show the company's capacity to fund investment and return capital 3.
What would break the thesis
- USHE and ANZ enrollment fell in the second quarter of 2026, which could signal pressure on the underlying growth 3.
- Federal funding per credit keeps declining, and if the trend persists, revenue per student could be affected 2.
- Regulatory risks in the United States and Australia remain high, and unforeseen reserves could weigh on future profitability 3.
What to watch
- Enrollment trends in USHE and ANZ, especially international students in AustraliaQ3 2026
- Growth pace of Sophia Learning and the number of Workforce Edge agreementsQ3 2026
- Trend in Title IV funding per credit earned at USHEnext 10-Q
- Outcome of the Fair Work Ombudsman inquiry and the final financial impact of the reserve2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Strategic Education, Inc. is an education services company providing access to quality education through campus-based and online post-secondary programs, as well as programs building job-ready skills for high-demand markets 1. It operates mainly through Capella University and Strayer University, accredited in the United States, and Torrens University in Australia 1. The company generated revenue of $1.3 billion in 2025 1, and in the second quarter of 2026 revenue rose 4.9% 3.
The model relies on working adult students: in the fall of 2025, about 70% of USHE students were 31 or older and about 72% studied part-time 1. Capella delivers programs through the competency-based GuidedPath and FlexPath models, while Strayer offers online and campus programs predominantly in the eastern United States 1.
The company also invests in employer partnerships through Workforce Edge and Sophia Learning, which attract students and generate recurring revenue 13. As of June 30, 2026, Workforce Edge had 81 corporate agreements employing approximately 4,020,000 employees 3.
Segments
U.S. Higher Education (USHE)
The USHE segment offers certificate and degree programs to working adults through Capella and Strayer, including the Jack Welch Management Institute MBA 1. In the second quarter of 2026 enrollment dipped slightly, by 0.5%, to 85,894 students 3, while revenue rose 2.3% 3. The healthcare portfolio, now 52% of USHE enrollment, grew 11% 3.
Education Technology Services (ETS)
ETS develops relationships with employers to build education benefit programs, and includes Workforce Edge and Sophia Learning 1. ETS revenue rose 15.4% to $42.4 million in the second quarter of 2026 3, and Sophia Learning revenue grew 26.7% 3. Employer affiliated enrollment reached 34.7% of USHE enrollment, an all-time high 3.
Market context
The market for post-secondary education for working adults is competitive, with steady demand from employers funding staff training. Competition runs on affordability, flexibility and graduate outcomes, and federal regulatory changes in the United States and Australia directly affect access to Title IV funding and international students 12.
Sector companies depend on federal student aid programs, and congressional discussion of for-profit higher education could change access conditions. If these rules tighten, compliance costs and enrollment pressure could rise for all providers in the sector 1.
Trends
- Growth of employer partnershipstailwind
Employer affiliated enrollment keeps rising to new highs, supporting the ETS segment and diversifying enrollment sources 3. This trend could continue if employers expand their training programs.
- Declining federal funding per creditheadwind
Title IV funding per credit earned in USHE has declined for several consecutive quarters as students earn credit through lower-cost pathways 2. This could reduce revenue per student if the decline continues.
- Demand for healthcare programstailwind
Healthcare programs are growing fast in USHE and represent a rising share of enrollment, including FlexPath 3. The launch of a prelicensure nursing program in July 2026 shows the focus on this area 3.
- Australian rules for international studentsmixed
Regulatory changes in Australia reduced international enrollment and affected ANZ profitability, although domestic growth partly offsets this 3. The effect depends on future policy decisions by the Australian government.
Competitive position
The company competes with other adult education providers and with institutions offering online programs or employer partnerships. Its advantages include employer access through ETS, affordability and healthcare programs, while competitors may have broader accreditation or lower prices.
In low-cost educational content, Sophia Learning competes with platforms offering courses recognized for university credit, and in corporate training with education benefit providers. The company's position depends on maintaining quality and graduate outcomes 13.
- Adtalem Global EducationATGE
U.S. adult higher education provider with healthcare and business programs, a direct competitor in the USHE segment.
- Grand Canyon EducationLOPE
Online university operator focused on adult students, competing for the same enrollment base.
- Perdoceo EducationPRDO
Group of private institutions with online and campus programs active in the adult education market.
- Online course and corporate training platforms
Platforms offering credit-bearing courses or employer training, competing with Sophia Learning and Workforce Edge.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report29 Jul 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Quarterly report23 Apr 2026
- Current report23 Apr 2026Results of operations · Financial statements and exhibits
- Proxy statement11 Mar 2026
- Annual report27 Feb 2026
- Current report26 Feb 2026Results of operations · Financial statements and exhibits
- Quarterly report06 Nov 2025
- Current report06 Nov 2025Results of operations · Financial statements and exhibits
- Quarterly report30 Jul 2025
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Strategic Education, Inc. · 27 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Strategic Education, Inc. · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Strategic Education, Inc. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.