# Strategic Education, Inc. (STRA)

> Source: Nexqual · https://nexqual.com/STRA · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Strategic Education, Inc. (STRA), nexqual.com/STRA" · informational, not investment advice.

**Price:** USD 81.59 (+2.56% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 79.55 · day 79.59–81.63 · 52w 69.7–89.73 · market cap $1.81B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $1.29B, net income $135M (10.5% margin), free cash flow $169M (SEC filings).
- Valuation: P/E 13.5x (avg 22.2x at the last 3 fiscal year-ends).
- Insider open-market sales, last ~7 months: 2 Form 4 filings, $212K; 1 not under a Rule 10b5-1 plan ($52K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 1 Form 4 filing, $48K; 0 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 2.00 on a 1–5 scale) (3 analysts), mean target USD 96.67 (range 90–105).
- Total return with dividends: 1Y +0.5% vs S&P 500 +14.9%; 5Y +33.4% vs S&P 500 +80.3%.
- Next earnings: 2026-11-05, EPS estimate USD 1.95, revenue estimate $327M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.13B | $1.07B | $1.13B | $1.22B | $1.27B | $1.29B |
| Operating income | $73.9M | $70.8M | $95.3M | $156M | $174M | $180M |
| Net income | $55.1M | $46.7M | $69.8M | $113M | $127M | $135M |
| EPS (diluted) | $2.28 | $1.94 | $2.91 | $4.67 | $5.41 | — |
| Free cash flow | $131M | $82.9M | $80.2M | $129M | $154M | $169M |
| Operating margin | 6.5% | 6.6% | 8.4% | 12.8% | 13.7% | 14.0% |
| Net margin | 4.9% | 4.4% | 6.2% | 9.2% | 10.0% | 10.5% |
| Revenue growth | +10.1% | -5.9% | +6.3% | +7.7% | +4.0% | — |
| Cash + short-term investments | $275M | $223M | $208M | $184M | $148M | — |
| Total debt | $142M | $101M | $61.4M | $0K | — | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 13.5x · P/S 1.4x · P/FCF 10.7x · P/B 1.1x · FCF yield 9.30% · Earnings yield 7.42% · Dividend yield (paid, TTM) 3.05% · Buyback yield (TTM) 8.37%
P/E at fiscal year-ends: Dec 2025 14.8x, Dec 2024 20.0x, Dec 2023 31.7x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
1 of 2 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-06-04 | Hokenson Christa | CHIEF HUMAN RESOURCES OFFICER | 2,000 | $160K | 3% | Yes (adopted December 12, 2025) | Too little history (no open-market trades in 2023–2025) |
| 2026-05-05 | Waite G Thomas Iii | Director | 666 | $52K | 3.8% | No | Too little history (no open-market trades in 2023 or 2024) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
1 purchase, $48K. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-04-24 | Thawley Michael | Director | 665 | $48K | 72.71 | Too little history (no open-market trades in 2023 or 2024) |

## Analysts
Consensus Buy (mean 2.00 on a 1–5 scale), 3 analysts; mean target USD 96.67 (low 90, high 105).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-05 | BMO Capital | Target lowered | Outperform | $100 → $95 |
| 2026-07-30 | Truist Securities | Target raised | Hold | $80 → $90 |
| 2026-07-06 | BMO Capital | Target raised | Outperform | $86 → $91 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +0.5% | +33.4% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +0.5% | +5.9% |
| Volatility (annualized) | 36.0% | 34.1% |
| Max drawdown | -15.8% (Jan 2026→Apr 2026) | -36.1% (Apr 2024→Jul 2025) |

## Peers (Education & Training Services)
PRDO (Perdoceo Education Corporation) USD 33.82 +3.14% · COUR (Coursera, Inc.) USD 5.07 +2.01% · DAO (Youdao, Inc.) USD 19.35 +4.59% · AFYA (Afya Limited) USD 14.91 +0.07% · UTI (Universal Technical Institute I) USD 21.66 +4.13% · MH (McGraw Hill, Inc.) USD 14.8 +1.93%

## More
Full page: https://nexqual.com/STRA · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| U.S. Higher Education | $220.5M | 65.4% | +2.3% | $32.4M | 14.7% |
| Australia / New Zealand | $74.4M | 22.1% | +7.6% | $1.0M | 1.3% |
| Education Technology Services | $42.4M | 12.6% | +15.4% | $19.6M | 46.2% |
| Total revenue | $337.3M | 100% | — | $50.5M | 15.0% |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Tuition, net of discounts, grants and scholarships | $207.3M | 61.5% | +0.3% |
| Other | $13.2M | 3.9% | +47.8% |
| Total revenue | $337.3M | 100% | — |
The lines above cover 65.4% of total revenue.

## Revenue by region (fiscal year ended 2025-12-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $1.02B | 80.2% | +5.6% |
| Non Us | $251.6M | 19.8% | -2.2% |
| Total revenue | $1.27B | 100% | — |

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $1.95 | $1.91 | +2.4% | $326.7M | 3 |
| Next quarter (ends 2026-12-31) | $2.08 | $2.07 | +0.5% | $330.2M | 3 |
| Current fiscal year (ends 2026-12-31) | $7.21 | $7.19 | +0.3% | $1.30B | 3 |
| Next fiscal year (ends 2027-12-31) | $8.45 | $8.09 | +4.4% | $1.34B | 3 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-05): ±10.6%; last 8 reports averaged ±7%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 47.2% | ±10.6% |
| 2026-12-18 | 56 | 36.3% | ±11.5% |
| 2027-01-15 | 84 | 30.3% | ±12.9% |
| 2027-04-16 | 175 | 33.0% | ±18.0% |
| 2027-05-21 | 210 | 35.1% | ±20.9% |