Short answer
Strategic Education, Inc. (STRA) filed its fiscal 2025 10-K annual report with the SEC on Feb 27, 2026. It reported revenue of $1.3B (+4.0% year over year) and net income of $127M.
- Top risk flagged: Regulatory risk: Australian government proposed 2024 legislation limiting international student enrollments, impacting ANZ segment goodwill $510.3M and intangible assets $64.6M
FY2025 key financial metrics · XBRL
- Revenue
- $1.3B
- +4.0% YoY
- Net income
- $127M
- +12.4% YoY
- Operating margin
- 13.7%
- +1.0 pp YoY
- EPS (diluted)
- $5.41
- +15.8% YoY
- ROE
- 7.7%
- +0.9 pp YoY
- Operating cash flow
- $198M
- +17.0% YoY
Source: XBRL data from the Strategic Education, Inc. (STRA) FY2025 10-K on SEC EDGAR. USD.
Strategic Education, Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Postsecondary education and job-ready skills training via Capella University, Strayer University, Torrens University, and related education technology services
- New 2025 addition: Media Design School (MDS) became a wholly owned subsidiary of Strayer University with NZQA approval, adding creative/technology courses in New Zealand
- Strategic shift: Integration of MDS under Strayer's Middle States accreditation while retaining ANZ segment reporting for MDS
- Quantitative metric: Total USHE students 85,306 with 70% age 31 or older; ANZ students 19,514 with 45% international; Revenue $1.3 billion in 2025
- Noteworthy fact: Introduction of tuition cap pricing at Capella University and expanded student success scholarships to promote affordability and retention
Risk Factors
- Regulatory risk: Australian government proposed 2024 legislation limiting international student enrollments, impacting ANZ segment goodwill $510.3M and intangible assets $64.6M
- Geopolitical/macro risk: ANZ segment enrollment down 1.8% YoY to 19,232 in 2025, driven by international enrollment constraints and FX headwinds
- Operational/supply chain risk: ETS segment heavily dependent on employer partnerships for 32.3% of USHE enrollment, exposing revenue to contract renewal risks
- Competitive/market disruption risk: Growth in Sophia Learning subscriptions challenging traditional degree programs, shifting revenue mix in ETS segment (+41.4% revenue growth in 2025)
- Financial/structural risk: Restructuring costs rose to $21.9M in 2025 from $1.6M in 2024 due to severance and asset impairments affecting operating margins
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