Shares of online education services provider Stride, Inc. (NYSE: LRN) surged 5.08% in the Thursday morning trading session, following the company's impressive second quarter fiscal 2025 earnings report and positive growth outlook.
Stride reported a 16% year-over-year increase in revenue to $587.2 million for the second quarter, beating analyst estimates. Net income also saw a significant jump of 44% to $96.4 million, and earnings per share of $2.24 exceeded expectations.
The strong financial performance was driven by higher revenue and improved profit margins, which rose to 16% from 13% a year ago. Looking ahead, Stride forecasts revenue growth of 8.2% annually over the next three years, outpacing the projected 9.9% growth for the U.S. Consumer Services industry.
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