Stride vs. Strategic Education: Which Education Stock to Bet on Now?

By Sraddha Singha | January 30, 2026, 10:22 AM

The shifting interests of students and parents toward online education alternatives, especially for career learning, have altered the perspective of the education market and the firms operating in it. This focal shift is proving beneficial for education providers like Stride, Inc. LRN and Strategic Education, Inc. STRA, whose product offerings sit at the juncture where digital education and the demand for adult learning meet.

Stride’s operations primarily focus on the United States market, offering K-12 virtual schooling and career-learning programs. Conversely, Strategic Education provides a range of post-secondary education and other academic programs, including business administration, information technology and nursing, through physical campuses as well as online platforms.

Besides, the recent formation of the Accreditation, Innovation and Modernization (AIM) committee, which was announced by the U.S. Department of Education on Jan. 26, 2026, advocates long-term growth. The primary purpose of forming the AIM committee is to reform the country’s higher education accreditation system, ensuring students are more exposed to high-quality and data-driven programs and reducing bureaucratic barriers. This strategic move by the government is expected to boost workforce skills, thus increasing the demand for services offered by the companies mentioned above.

Let’s decode and closely compare the fundamentals of the two education stocks to determine which one is the better investment now.

The Case for Stride Stock

The sustained secular shift toward virtual and alternative education models is fueling Stride’s prospects in the education market. Parents' dissatisfaction with traditional K-12 education remains high, while concerns about safety, mental well-being and the need for flexibility continue to drive enrollment toward online options. This backdrop supports the company’s core value proposition and underpins management’s confidence in long-term growth.

Amid this favorable backdrop, the Career Learning segment has become the primary growth booster for LRN. During the first six months of fiscal 2026, this segment’s enrollments have increased year over year by 18.1% to 111,100 students, with revenues growing 20.5% to $547.6 million. The numbers highlight the company’s success in aligning offerings with workforce-oriented education trends. Importantly, withdrawal rates have stabilized after earlier technical volatility, suggesting that retention initiatives and academic quality investments are beginning to show results.

Besides favorable market trends, LRN’s operating leverage and disciplined cost management are taking the limelight. During the first six months of fiscal 2026, its adjusted operating income and adjusted EBITDA grew year over year by 23.8% and 21.3%, respectively. Despite temporary headwinds from platform implementation challenges, Stride reaffirmed its full-year revenue guidance and raised its adjusted operating income outlook, signaling confidence in execution for the remainder of fiscal 2026. For fiscal 2026, the company now expects adjusted operating income to be in the range of $485-$505 million, up from the $475- $500 million range expected earlier.

Notably, on Nov. 3, 2025, Stride’s board of directors authorized a stock repurchase program for the purchase of up to $500 million of its common stock until Oct. 31, 2026. This underscores the management’s confidence in long-term value creation for its shareholders. During the six months ended Dec. 31, 2025, LRN repurchased 1,272,790 shares of its common stock at an average price of $69.65 per share.

The Case for Strategic Education Stock

Strategic Education is gaining from robust employer-affiliated enrollment trends. During the third quarter of 2025, employer-affiliated enrollment hit a record of 32.7% of the U.S. Higher Education (USHE) segment’s enrollment, up from 29.8% in the year-ago quarter, attributable to the ongoing focus on employers that are aiding in generating consistent growth in the employer-affiliated enrollment. Besides, an increase in Workforce Edge revenues from new employer partnerships, growth in Sophia Learning subscriptions and higher employer-affiliated enrollment boosted the Education Technology Services (ETS) segment’s revenues in the first nine months of 2025 by 46.8% year over year.

Continuous innovation and course updates expand STRA’s product portfolio, which, in turn, boosts enrollments and drives long-term growth. The company is focusing on providing programs based on a “competency-based learning model and direct assessment capabilities”. One of these innovations is FlexPath. FlexPath allows students to move through coursework at their own pace by demonstrating mastery of specific skills and competencies. Its format aligns well with Strategic Education’s employer-affiliated enrollments, making it easier for companies to support employee upskilling and for employees to advance their education on their own schedules.

Other programs like Workforce Edge and RightSkill are other notable offerings of STRA that contribute handily to its growth prospects. Workforce Edge manages education benefits programs for corporate clients, allowing companies to provide employees with access to educational opportunities. On the other hand, RightSkill is a skills-based training program that trains students for roles in high-demand areas, helping students find immediate work and helping employers get job-ready candidates.

With growing skill-based program demand for enriching the workforce, these diversified product offerings are proving incremental for STRA’s near and long-term growth. With increased revenue generation, the company will be able to create value for its shareholders. During the first nine months of 2025, Strategic Education paid $43.4 million in cash dividends and $94.3 million through the repurchase of shares, creating shareholder value. Notably, STRA had no long-term debt as of the third quarter of 2025, making its financial position healthy in the current risky market scenario.

Stock Performance & Valuation

As witnessed from the chart below, in the past three months, Stride’s share price performance stands well above that of Strategic Education and the Zacks Schools industry.