Strategic Education, Inc. reported a slight increase in revenue for the first quarter of 2026, generating $305.9 million compared to $303.6 million in the same period of 2025. The company's net income rose to $32.8 million, or $1.48 per diluted share, up from $29.7 million, or $1.24 per diluted share, in the prior year. This growth in profitability was attributed to higher revenues in the Education Technology Services (ETS) segment, which saw a 21% increase to $41.5 million, driven by growth in Sophia Learning subscriptions and increased employer partnerships. However, the U.S. Higher Education (USHE) segment experienced a revenue decline of 3.8% to $212.6 million, primarily due to a decrease in enrollment.
In terms of operational metrics, total enrollment in the USHE segment decreased by 0.8% to 87,165 students, while the Australia/New Zealand (ANZ) segment saw a 2.5% decline in enrollment to 19,570. The company noted that trailing four-quarter student persistence in the USHE segment improved to 88.5%, up from 87.2% in the previous year. The overall instructional and support costs decreased to $154.8 million, reflecting lower bad debt expenses and personnel-related costs, which contributed to a reduction in these costs as a percentage of revenue from 52.1% to 50.6%.
Strategically, the company has been focusing on enhancing its educational offerings and expanding its market presence. The ETS segment's growth is indicative of successful partnerships with employers, which are crucial for driving student enrollment. Additionally, the company continues to invest in branding initiatives and technology to support its educational programs. The Board of Directors declared a quarterly cash dividend of $0.60 per share, reflecting the company's commitment to returning value to shareholders.
Looking ahead, Strategic Education remains optimistic about its growth trajectory, despite challenges in enrollment numbers in certain segments. The company is actively monitoring regulatory changes and market conditions that could impact its operations, particularly in the international education sector. With a strong cash position of $162.6 million as of March 31, 2026, the company is well-positioned to meet its operational needs and pursue strategic initiatives. The management believes that ongoing investments in technology and educational offerings will continue to drive long-term growth and enhance student success.
About Strategic Education, Inc.
Strategic Education, Inc. is an education services company providing online and campus-based post-secondary programs in the U.S., Australia, and New Zealand. Its core offerings include degree, certificate, and workforce training programs through subsidiaries like Capella, Strayer, and Torrens University. The company focuses on adult learners, employer partnerships, and innovative, flexible learning models to deliver practical, career-relevant education.
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