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Strategic Education Inc

Strategic Education Inc

STRA
$76.53USD↓-1.49%-1.16 today

MARKET CAP

1.7B

P/E (TTM)

12.1x

FWD P/E

9.8x

DAY RANGE

$76 – $78

52W RANGE

$70
$87

AI Summary

Stalk
TrimMedium

After a decisive support failure on high volume and price acceptance below prior lows, the chart shows declining EMAs and no signs of short-term exhaustion. Medium-term tradability is biased bearish, with execution deferred until a retracement into the broken support area acting as resistance. Short-term conditions remain neutral, offering no immediate sell entry. The long-term trend is down, reinforcing a bearish posture across horizons.

  • ↑EdTech Services revenue grew 21% YoY to $42M, driven by 40% subscriber growth.
  • ↑Employer-affiliated enrollment rose 10% to 34.5% of U.S. total.
  • ↓Total Q1 revenue fell 1% YoY to $218M due to unaffiliated declines.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Strategic Education, Inc. (NASDAQ: STRA) is a leading provider of post-secondary education services focused on colleges and universities, including Strayer University and Capella University. The company has strategically positioned itself within the education technology sector and emphasizes partnerships with employers to enhance student enrollment and career-oriented education. Recent trends indicate a shift towards corporate partnerships and technology-based solutions as key drivers for revenue growth, particularly through their Education Technology Services segment.

Bull says

  • ↑EdTech Services revenue grew 21% YoY to $42M, driven by 40% subscriber growth.
  • ↑Employer-affiliated enrollment rose 10% to 34.5% of U.S. total.
  • ↑Repurchased 493K shares for $40M, leaving $200M buyback capacity.
  • ↑Adjusted operating income increased 3% to $31M via 2% expense cuts.
  • ↑High earnings yield and strong quality metrics underpin valuation appeal.
  • ↑2.88% dividend yield boosts attractiveness for income investors.

Bear says

  • ↓Total Q1 revenue fell 1% YoY to $218M due to unaffiliated declines.
  • ↓International enrollment declined 3% as Australian regulations tighten.
  • ↓Negative profitability factor signals margin pressure despite cost cuts.
  • ↓Rising marketing spend risks margin contraction if enrollments stall.
  • ↓Dependence on employer partnerships may weaken during economic downturns.
  • ↓Negative growth factor and high short interest reflect investor skepticism.

Investment themes with STRA

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 04-24-2026neutral

Transcript signals

Bull points

  • Education technology services grew revenue 21% to $42 million, driven by Sophia Learning subscriptions, higher employer-affiliated enrollment, and new Workforce Edge partnerships.
  • employer-affiliated enrollment grew 10% and reached a new all-time high of 34.5% of total U.S. higher education enrollment, an increase of more than 300 basis points from the prior year.
  • U.S. higher education also set a new record for average student retention at 89%.

Bear points

  • expenses for Strayer, though we're pretty close to right-sizing them, there's still opportunities when it comes to some of the productivity work that Carl referenced and continued real estate rationalization. So I think the Strayer margin will improve, but it's unlikely to get to where Capella is.
  • For the first quarter, SEI revenue declined 1% year-over-year, driven by a slight decrease in consolidated enrollment.
  • healthcare enrollment now represents more than half of all U.S. higher education enrollment.
Read full transcript analysis ›