Strategic Education, Inc.
- Open
- 82.48
- Day high
- 83.09
- Day low
- 82.48
- Prev close
- 82.84
- Volume
- 7K
- Mkt cap
- $1.8B
- P/E (TTM)
- 13.5
- EPS (TTM)
- $6.15
- P/B
- 1.1
- P/S
- 1.4
- Yield
- 1.44%
- Per share
- $1.20
- ▼Insiders net selling -$160K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
Strategic Education, Inc. (STRA) is a Consumer Defensive company listed on NASDAQ. The stock is up 1% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4). Drillr has 1 published research article covering STRA.
Strategic Education, Inc. (STRA) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
STRA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $1.80 | $1.76 | -2.2% | $330M | +0.8% |
| Apr 23, 2026 | $1.51 | $1.42 | -6.0% | $306M | -1.2% |
| Nov 6, 2025 | $1.30 | $1.63 | +25.6% | $320M | -0.7% |
| Jul 30, 2025 | $1.42 | $1.52 | +7.0% | $321M | +1.7% |
| Apr 24, 2025 | $1.02 | $1.30 | +27.6% | $304M | -5.8% |
| Feb 27, 2025 | $1.41 | $1.27 | -9.7% | $311M | -1.5% |
| Nov 7, 2024 | $0.83 | $1.16 | +39.8% | $306M | -2.9% |
| Jul 31, 2024 | $1.20 | $1.33 | +10.8% | $312M | +1.2% |
| Apr 25, 2024 | $0.58 | $1.11 | +89.7% | $290M | +6.1% |
| Feb 29, 2024 | $1.33 | $1.68 | +26.5% | $303M | +2.1% |
| Nov 2, 2023 | $0.81 | $0.97 | +19.8% | $286M | +2.2% |
| Jul 27, 2023 | $0.66 | $0.82 | +24.8% | $288M | +3.1% |
STRA insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 5, 2026 | Hokenson Christaofficer: CHIEF HUMAN RESOURCES OFFICER | Sell | 2,000 | $80.00 |
| May 5, 2026 | WAITE G THOMAS IIIdirector | Sell | 666 | $77.68 |
| Apr 24, 2026 | McRobbie Michael A.director | Grant | 1,436 | — |
| Apr 24, 2026 | Sasse Benjamin Edirector | Grant | 957 | $83.62 |
| Apr 24, 2026 | DINH VIET Ddirector | Grant | 957 | $83.62 |
| Apr 24, 2026 | BROGLEY RITA Ddirector | Grant | 1,436 | — |
| Apr 24, 2026 | Cappelli Gregory Williamdirector | Grant | 1,436 | — |
| Apr 24, 2026 | Slocum William Jdirector | Grant | 1,436 | — |
| Apr 24, 2026 | WAITE G THOMAS IIIdirector | Grant | 1,436 | — |
| Apr 24, 2026 | DINH VIET Ddirector | Grant | 1,436 | — |
| Apr 24, 2026 | Thawley Michaeldirector | Buy | 665 | $72.71 |
| Apr 24, 2026 | GRUSKY ROBERT Rdirector | Grant | 1,436 | — |
| Apr 24, 2026 | BEASON CHARLOTTE Fdirector | Grant | 1,436 | — |
| Apr 24, 2026 | Sasse Benjamin Edirector | Grant | 1,436 | — |
| Apr 24, 2026 | Thawley Michaeldirector | Grant | 1,436 | — |
Source: STRA SEC Form 4 filings, latest Jun 5, 2026. For informational purposes only — not investment advice.
See the full STRA insider & 13F page →Strategic Education, Inc. company profile
Overview
Strategic Education, Inc. (NASDAQ:STRA) is a diversified education services company founded in 1892 and headquartered in Herndon, Virginia. The company has evolved from its origins as a traditional higher education institution into a comprehensive education services provider operating across three continents. Strategic Education went public in 1996 and has since expanded through acquisitions and organic growth to become a significant player in the post-secondary education market, serving both individual students and corporate clients through campus-based and online learning platforms.
Business
Strategic Education operates in the post-secondary education and workforce development industry through three primary business segments that collectively generated approximately $1.22 billion in revenue for fiscal 2024. **U.S. Higher Education (approximately 75% of revenue):** This segment includes Strayer University and Capella University, both accredited institutions offering undergraduate and graduate degree programs primarily to working adults. Strayer University operates physical campuses in the eastern United States while also providing online education, focusing on business administration, accounting, information technology, education, and health services administration. Capella University operates as a fully online institution offering bachelor's, master's, and doctoral programs across various fields including business, psychology, nursing, and public service leadership. The segment also includes the Jack Welch Management Institute, which provides executive MBA programs online. Additionally, this segment operates coding bootcamps through Hackbright Academy and Devmountain, offering intensive, job-focused training in web and mobile application development. **Education Technology Services (approximately 8% of revenue):** This rapidly growing segment includes Sophia Learning, a platform that provides lower-cost, self-paced online courses that can transfer to degree programs, and Workforce Edge, a comprehensive education benefits administration platform for employers. Workforce Edge helps companies manage and deliver education benefits to their employees, facilitating partnerships between corporations and educational institutions. This segment has experienced significant growth, with revenue increasing over 30% in 2024. **Australia/New Zealand (approximately 17% of revenue):** This international segment operates Torrens University in Australia, offering undergraduate and graduate programs in business, design, health, hospitality, and education through both online and physical campuses. Think Education provides vocational training, while Media Design School in New Zealand specializes in creative and technical programs including 3D animation, game development, and digital media.
Revenue model
Strategic Education generates revenue primarily through tuition and fees from students enrolled in its various educational programs, with different pricing models across its segments. The U.S. Higher Education segment charges traditional semester-based tuition, while the Education Technology Services segment operates on subscription-based models for Sophia Learning and transaction-based fees for Workforce Edge services. A significant portion of the company's growth strategy revolves around corporate partnerships, where employers sponsor or subsidize education for their employees. These partnerships now represent approximately 31% of U.S. Higher Education enrollment, growing from 29% in 2023. Corporate partnerships provide several advantages: they offer more predictable enrollment patterns, often result in higher completion rates, and can command premium pricing due to the value provided to both employers and employees. The company's margins are influenced by several key factors. **Positive margin drivers** include the scalability of online education platforms, which have lower incremental costs per additional student; the growing proportion of corporate-sponsored students who tend to have higher persistence rates; and the expansion of higher-margin Education Technology Services. **Margin pressures** come from competitive pricing in the education market, regulatory compliance costs, marketing expenses required to attract students, and the need for continuous technology investments to maintain competitive online platforms. The company has demonstrated margin expansion capability, achieving approximately 200 basis points of operating margin improvement in 2024, reaching 13.6% in the most recent quarter. International operations in Australia and New Zealand face additional margin pressures from currency fluctuations and regulatory changes, particularly around international student visa policies that can significantly impact enrollment patterns and revenue predictability.
Competitive moat
Strategic Education's competitive moat is moderately strong but faces ongoing challenges from both traditional competitors and new entrants. The company's primary moat derives from its **accreditation and regulatory compliance infrastructure**, which creates significant barriers to entry in the higher education space. Accreditation takes years to obtain and maintain, and the company's established relationships with accrediting bodies provide stability and credibility that new entrants cannot easily replicate. The company's **corporate partnership network** represents a growing competitive advantage, with 78 corporate partners now using Workforce Edge and strong relationships with major employers like Best Buy. These partnerships create switching costs for corporate clients and provide a differentiated distribution channel that bypasses traditional student acquisition challenges. The network effect strengthens as more employers join, making the platform more valuable to educational institutions and service providers. However, the moat faces significant competitive pressures. **Traditional universities** are increasingly offering online programs, often with stronger brand recognition and alumni networks. **Technology-enabled competitors** like Coursera, Udacity, and other online education platforms are rapidly scaling with venture capital backing and innovative delivery methods. **Corporate training providers** are expanding into degree-granting programs, potentially bypassing traditional higher education altogether. The regulatory environment presents both protection and risk. While accreditation requirements protect against new entrants, changing federal regulations around student lending, gainful employment standards, and international student policies can significantly impact the business model. The company's international exposure, particularly in Australia where recent regulatory changes have affected international student enrollment, demonstrates the vulnerability to policy shifts. Overall, Strategic Education has a moderate moat that is strengthening through corporate partnerships but remains vulnerable to technological disruption and regulatory changes in the rapidly evolving education sector.
Risks & safety
Strategic Education demonstrates a solid margin of safety with strong financial fundamentals and conservative capital structure. **Liquidity and Solvency:** • Cash and short-term investments of $144 million as of Q1 2025 • Strong free cash flow generation of $57 million in Q1 2025 and $129 million for full year 2024 • Current ratio of 1.27, indicating adequate short-term liquidity • Minimal debt with debt-to-equity ratio of only 7.3% • No significant solvency concerns given strong cash generation and low leverage **Valuation Metrics:** • Trading at 16.5x trailing P/E ratio, reasonable for a growing education services company • EV/EBITDA of 9.0x, suggesting moderate valuation • Price-to-book ratio of 1.19, indicating trading near book value • Graham number of approximately $45 suggests potential undervaluation at current levels **Other Considerations:** • Consistent profitability with improving margins • Diversified revenue streams across three segments and geographies • Regulatory risks in education sector require monitoring • Dependence on federal student aid programs creates some policy risk
Recent development
Over the past few years, Strategic Education has executed a strategic transformation focused on corporate partnerships and technology-enabled services. The company has significantly expanded its **Workforce Edge platform**, growing from 65 corporate partners in 2023 to 78 partners by early 2025, with the platform now serving over 3.7 million employees. This B2B2C model has become a key growth driver, with corporate-affiliated enrollment growing 16% in 2024 and now representing 31% of total U.S. Higher Education enrollment. The **Education Technology Services segment** has emerged as the fastest-growing part of the business, with revenue increasing over 30% in 2024 to exceed $100 million. **Sophia Learning** has been particularly successful, growing subscribers by 35% and achieving a 40% operating margin through its self-paced, competency-based learning model. The platform now serves over 42,000 paid subscribers and has become an important pathway for students to earn credits at lower costs before transferring to degree programs. The company has also made significant **operational improvements**, achieving 200 basis points of operating margin expansion in 2024 while maintaining enrollment growth. Management has focused on disciplined cost management while strategically investing in technology platforms and marketing. The company paid down all remaining debt in 2024 and has maintained a strong balance sheet with nearly $200 million in cash and marketable securities. In **international markets**, the company has navigated regulatory changes in Australia, where new visa processing policies have replaced proposed international student caps. While this has created some near-term enrollment volatility, management expects to adapt to the new regulatory environment while maintaining growth in the region.
STRA company profile · for informational purposes only — not investment advice.
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