Strong Demand Drives Record Enrollment
Stride, Inc. (NYSE: LRN) reported strong first quarter fiscal 2025 results, with revenue increasing 14.8% to $551.1 million compared to the same period last year. The company saw significant growth in enrollments, up 18.5% to 222,600 students, driven by a 30.4% increase in Career Learning enrollments. Key financial highlights include:
- Net income of $40.9 million, up from $4.9 million
- Diluted earnings per share of $0.94, compared to $0.11
- Adjusted EBITDA of $83.9 million, up from $39.8 million
Stride's General Education revenue grew 10%, while Career Learning revenue increased 22.6%. The company maintains a strong cash position of $539.4 million and forecasts full fiscal year 2025 revenue between $2.225 billion and $2.300 billion.
Stride, Inc. (NYSE: LRN) ha riportato risultati robusti per il primo trimestre dell'anno fiscale 2025, con un aumento del fatturato del 14,8% a 551,1 milioni di dollari rispetto allo stesso periodo dell'anno precedente. L'azienda ha registrato una crescita significativa delle iscrizioni, con un aumento del 18,5% a 222.600 studenti, sostenuto da un aumento del 30,4% nelle iscrizioni ai corsi di apprendimento professionale. I principali punti salienti finanziari includono:
- Utile netto di 40,9 milioni di dollari, rispetto ai 4,9 milioni di dollari dell'anno precedente
- Utile per azione diluito di 0,94 dollari, rispetto a 0,11 dollari
- EBITDA rettificato di 83,9 milioni di dollari, rispetto ai 39,8 milioni di dollari
Le entrate dell'istruzione generale di Stride sono cresciute del 10%, mentre le entrate dai corsi di apprendimento professionale sono aumentate del 22,6%. L'azienda mantiene una solida posizione di liquidità di 539,4 milioni di dollari e prevede un fatturato totale per l'anno fiscale 2025 compreso tra 2,225 miliardi e 2,300 miliardi di dollari.
Stride, Inc. (NYSE: LRN) informó resultados sólidos para el primer trimestre del año fiscal 2025, con un aumento de ingresos del 14.8% a 551.1 millones de dólares en comparación con el mismo período del año pasado. La compañía experimentó un crecimiento significativo en las inscripciones, con un aumento del 18.5% a 222,600 estudiantes, impulsado por un aumento del 30.4% en las inscripciones de Aprendizaje Profesional. Los principales aspectos financieros incluyen:
- Ingreso neto de 40.9 millones de dólares, en comparación con 4.9 millones de dólares
- Utilidad por acción diluida de 0.94 dólares, respecto a 0.11 dólares
- EBITDA ajustado de 83.9 millones de dólares, en comparación con 39.8 millones de dólares
Los ingresos de Educación General de Stride crecieron un 10%, mientras que los ingresos de Aprendizaje Profesional aumentaron un 22.6%. La empresa mantiene una sólida posición de efectivo de 539.4 millones de dólares y pronostica ingresos totales para el año fiscal 2025 entre 2.225 mil millones y 2.300 mil millones de dólares.
Stride, Inc. (NYSE: LRN)은 2025 회계연도 1분기 실적을 발표했으며, 수익이 14.8% 증가하여 5억 5천 11만 달러에 달했습니다 지난해 같은 기간과 비교할 때. 이 회사는 학생 수가 18.5% 증가한 222,600명에 이르렀으며, 이는 경력 학습 등록 수가 30.4% 증가한 것에 기인합니다. 주요 재무 하이라이트는 다음과 같습니다:
- 순이익 4천 9백만 달러로, 작년의 4백 9십만 달러에서 증가
- 희석주당순이익 0.94달러로, 0.11달러에서 증가
- 조정된 EBITDA 8천 3백 9십만 달러로, 3천 9백 8십만 달러에서 증가
Stride의 일반 교육 수익은 10% 증가했으며, 경력 학습 수익은 22.6% 증가했습니다. 이 회사는 5억 3천 9백 4십만 달러의 강력한 현금 포지션을 유지하며, 2025 회계연도의 전체 수익을 22억 2천 5백만 달러에서 23억 달러로 예측하고 있습니다.
Stride, Inc. (NYSE: LRN) a annoncé de solides résultats pour le premier trimestre de l'exercice 2025, avec une augmentation du chiffre d'affaires de 14,8 % à 551,1 millions de dollars par rapport à la même période l'année dernière. L'entreprise a connu une forte croissance des inscriptions, en hausse de 18,5 % pour atteindre 222 600 étudiants, soutenue par une augmentation de 30,4 % des inscriptions en formation professionnelle. Les principaux faits marquants financiers comprennent :
- Un bénéfice net de 40,9 millions de dollars, contre 4,9 millions de dollars l'année précédente
- Un bénéfice par action dilué de 0,94 dollar, comparé à 0,11 dollar
- Un EBITDA ajusté de 83,9 millions de dollars, en hausse par rapport à 39,8 millions de dollars
Les revenus de l'éducation générale de Stride ont augmenté de 10 %, tandis que les revenus de la formation professionnelle ont crû de 22,6 %. L'entreprise maintient une solide position de liquidité de 539,4 millions de dollars et prévoit des revenus totaux pour l'exercice 2025 entre 2,225 milliards et 2,300 milliards de dollars.
Stride, Inc. (NYSE: LRN) berichtete über starke Ergebnisse im ersten Quartal des Geschäftsjahres 2025, mit einem Umsatzanstieg von 14,8 % auf 551,1 Millionen US-Dollar im Vergleich zum gleichen Zeitraum des Vorjahres. Das Unternehmen verzeichnete ein signifikantes Wachstum der Anmeldungen, die um 18,5 % auf 222.600 Studierende anstiegen, angetrieben von einem Anstieg der Anmeldungen im Bereich Berufsausbildung um 30,4 %. Wichtige finanzielle Highlights sind:
- Nettogewinn von 40,9 Millionen US-Dollar, ein Anstieg von 4,9 Millionen US-Dollar
- Verwässertes Ergebnis je Aktie von 0,94 US-Dollar, im Vergleich zu 0,11 US-Dollar
- Bereinigtes EBITDA von 83,9 Millionen US-Dollar, im Vergleich zu 39,8 Millionen US-Dollar
Die Einnahmen aus allgemeiner Bildung von Stride stiegen um 10 %, während die Einnahmen aus Berufsausbildung um 22,6 % zunahmen. Das Unternehmen hält eine starke Liquiditätsposition von 539,4 Millionen US-Dollar und prognostiziert für das gesamte Geschäftsjahr 2025 Einnahmen zwischen 2,225 Milliarden und 2,300 Milliarden US-Dollar.
- Revenue increased 14.8% year-over-year to $551.1 million
- Enrollments grew 18.5% to 222,600 students
- Career Learning enrollments increased 30.4% to 91,700
- Net income rose significantly from $4.9 million to $40.9 million
- Diluted earnings per share increased from $0.11 to $0.94
- Adjusted EBITDA more than doubled from $39.8 million to $83.9 million
- Strong cash position of $539.4 million as of September 30, 2024
- Adult Career Learning revenue decreased 23.7% year-over-year
Insights
Stride's Q1 FY2025 results showcase impressive growth and financial strength. Revenue increased by
Profitability metrics are particularly noteworthy. Income from operations skyrocketed from
The company's outlook for FY2025 is optimistic, projecting revenue between
Investors should note the strong cash position of
Stride's remarkable growth in enrollments, particularly in Career Learning, underscores the increasing demand for alternative education models and skills-based learning. The
The company's success in maintaining revenue per enrollment while significantly expanding its student base demonstrates scalability and efficient operations. This is important in the ed-tech sector, where many companies struggle to balance growth with profitability.
Stride's strong performance amid challenging times for traditional education highlights the resilience and potential of tech-enabled learning platforms. The company's ability to adapt to market demands, evidenced by the growth in both General Education and Career Learning segments, positions it well in the evolving education landscape.
However, the
Enrollments Grow
RESTON, Va., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the first fiscal quarter ended September 30, 2024.
First Quarter Fiscal 2025 Highlights Compared to 2024
- Revenue of
$551.1 million , compared with$480.2 million . - Income from operations of
$47.3 million , compared with$3.3 million . - Net income of
$40.9 million , compared with$4.9 million . - Diluted net income per share of
$0.94 , compared with$0.11 . - Adjusted operating income of
$58.4 million , compared with$14.8 million . (1) - Adjusted EBITDA of
$83.9 million , compared with$39.8 million . (1)
First Quarter Fiscal 2025 Summary Financial Metrics
| Three Months Ended September 30, | Change 2024/2023 | |||||||||||
| 2024 | 2023 | $ | % | |||||||||
| (In thousands, except percentages and per share data) | ||||||||||||
| Revenues | $ | 551,084 | $ | 480,181 | $ | 70,903 | 14.8 | % | ||||
| Income from operations | 47,344 | 3,320 | 44,024 | 1326.0 | % | |||||||
| Adjusted operating income (1) | 58,360 | 14,761 | 43,599 | 295.4 | % | |||||||
| Net income | 40,882 | 4,878 | 36,004 | 738.1 | % | |||||||
| Net income per share, diluted | 0.94 | 0.11 | 0.83 | 754.5 | % | |||||||
| EBITDA (1) | 75,478 | 31,337 | 44,141 | 140.9 | % | |||||||
| Adjusted EBITDA (1) | 83,927 | 39,763 | 44,164 | 111.1 | % | |||||||
(1) To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA and adjusted EBITDA. Management believes that these additional metrics provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.
Revenue Data
| Three Months Ended | ||||||||||||||
| September 30, | Change 2024 / 2023 | |||||||||||||
| 2024 | 2023 | $ | % | |||||||||||
| (In thousands, except percentages) | ||||||||||||||
| General Education | $ | 329,407 | $ | 299,338 | $ | 30,069 | 10.0 | % | ||||||
| Career Learning | ||||||||||||||
| Middle - High School | 198,885 | 150,974 | 47,911 | 31.7 | % | |||||||||
| Adult | 22,792 | 29,869 | (7,077 | ) | (23.7 | %) | ||||||||
| Total Career Learning | 221,677 | 180,843 | 40,834 | 22.6 | % | |||||||||
| Total Revenues | $ | 551,084 | $ | 480,181 | $ | 70,903 | 14.8 | % | ||||||
Enrollment and Revenue Per Enrollment Data
First quarter enrollments were 222.6K, up
Enrollments only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, and instructional and support services, inclusive of administrative support and may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollments for our Adult Learning business.
Revenue per enrollment for the first quarter was
Cash Flow and Capital Allocation
As of September 30, 2024, the Company’s cash and cash equivalents and marketable securities totaled
Capital expenditures for the three months ended September 30, 2024 were
Fiscal Year 2025 Outlook
The Company is forecasting the following for the full fiscal year 2025:
- Revenue in the range of
$2.22 5 billion to$2.30 0 billion. - Capital expenditures in the range of
$60 million to$65 million . Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows. - Effective tax rate of
24% to26% . - Adjusted operating income in the range of
$395 million to$425 million . (1)
The Company is forecasting the following for the second quarter of fiscal year 2025:
- Revenue in the range of
$560 million to$580 million . - Capital expenditures in the range of
$13 million to$15 million . Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows. - Adjusted operating income in the range of
$115 million to$125 million . (1)
(1) In addition to providing an outlook for revenue and capital expenditures, adjusted operating income is provided as a supplemental non-GAAP financial measure as management believes that it provides useful information to our investors. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. Please also see Special Note on Forward-Looking Statements below.
Conference Call
The Company will discuss its first quarter of fiscal year 2025 financial results during a conference call scheduled for Tuesday, October 22, 2024 at 5:00 p.m. eastern time (ET).
A live webcast of the call will be available at https://events.q4inc.com/attendee/118785460. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call.
A replay of the call will be posted at https://events.q4inc.com/attendee/118785460 as soon as it is available.
About Stride Inc.
Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.
Investor Contact
Timothy Casey
Vice President, Investor Relations
Stride, Inc.
tcasey@k12.com
Special Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements. We have tried, whenever possible, to identify these forward-looking statements using words such as “anticipates,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends” and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve or us to comply with federal, state and local regulations, resulting in a loss of funding, an obligation to repay funds previously received, or contractual remedies; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve as curriculum standards, testing programs and state accountability metrics evolve; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school in which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud systems and facilities, resulting from cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems; and risks related to artificial intelligence; and other risks and uncertainties associated with our business described in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this press release is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
Financial Statements
The financial statements set forth below are not the complete set of Stride, Inc.’s financial statements for the three months ended September 30, 2024 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Quarterly Report on Form 10-Q for the three months ended September 30, 2024, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC’s website at www.sec.gov or from Stride Inc.’s website at www.stridelearning.com.
| STRIDE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| Three Months Ended | |||||||||
| September 30, | |||||||||
| 2024 | 2023 | ||||||||
| (In thousands except share and per share data) | |||||||||
| Revenues | $ | 551,084 | $ | 480,181 | |||||
| Instructional costs and services | 335,231 | 307,293 | |||||||
| Gross margin | 215,853 | 172,888 | |||||||
| Selling, general, and administrative expenses | 168,509 | 169,568 | |||||||
| Income from operations | 47,344 | 3,320 | |||||||
| Interest expense, net | (2,353 | ) | (2,068 | ) | |||||
| Other income, net | 8,778 | 5,165 | |||||||
| Income before income taxes and loss from equity method investments | 53,769 | 6,417 | |||||||
| Income tax expense | (11,277 | ) | (1,536 | ) | |||||
| Loss from equity method investments | (1,610 | ) | (3 | ) | |||||
| Net income attributable to common stockholders | $ | 40,882 | $ | 4,878 | |||||
| Net income attributable to common stockholders per share: | |||||||||
| Basic | $ | 0.95 | $ | 0.11 | |||||
| Diluted | $ | 0.94 | $ | 0.11 | |||||
| Weighted average shares used in computing per share amounts: | |||||||||
| Basic | 42,868,310 | 42,500,011 | |||||||
| Diluted | 43,708,967 | 42,982,385 | |||||||
| STRIDE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| September 30, | June 30, | ||||||||
| 2024 | 2024 | ||||||||
| (audited) | |||||||||
| (In thousands except share and per share data) | |||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 317,765 | $ | 500,614 | |||||
| Accounts receivable, net of allowance of | 675,709 | 472,754 | |||||||
| Inventories, net | 22,319 | 36,748 | |||||||
| Prepaid expenses | 53,902 | 29,164 | |||||||
| Marketable securities | 204,473 | 191,672 | |||||||
| Other current assets | 17,158 | 14,494 | |||||||
| Total current assets | 1,291,326 | 1,245,446 | |||||||
| Operating lease right-of-use assets, net | 51,609 | 54,503 | |||||||
| Property and equipment, net | 84,801 | 50,856 | |||||||
| Capitalized software, net | 77,181 | 81,952 | |||||||
| Capitalized curriculum development costs, net | 52,754 | 53,232 | |||||||
| Intangible assets, net | 57,714 | 60,282 | |||||||
| Goodwill | 246,676 | 246,676 | |||||||
| Deferred tax asset | — | 7,200 | |||||||
| Deposits and other assets | 109,900 | 120,318 | |||||||
| Total assets | $ | 1,971,961 | $ | 1,920,465 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable | $ | 50,057 | $ | 40,970 | |||||
| Accrued liabilities | 56,030 | 60,796 | |||||||
| Accrued compensation and benefits | 40,469 | 64,878 | |||||||
| Deferred revenue | 32,330 | 35,742 | |||||||
| Current portion of finance lease liability | 39,133 | 29,146 | |||||||
| Current portion of operating lease liability | 12,636 | 12,748 | |||||||
| Total current liabilities | 230,655 | 244,280 | |||||||
| Long-term finance lease liability | 50,994 | 26,452 | |||||||
| Long-term operating lease liability | 42,326 | 45,192 | |||||||
| Long-term debt | 415,098 | 414,675 | |||||||
| Deferred tax liability | 2,300 | — | |||||||
| Other long-term liabilities | 16,242 | 13,841 | |||||||
| Total liabilities | 757,615 | 744,440 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders’ equity | |||||||||
| Preferred stock, par value | — | — | |||||||
| Common stock, par value | 4 | 4 | |||||||
| Additional paid-in capital | 717,488 | 720,033 | |||||||
| Accumulated other comprehensive loss | (58 | ) | (42 | ) | |||||
| Retained earnings | 599,394 | 558,512 | |||||||
| Treasury stock of 5,334,743 shares at cost | (102,482 | ) | (102,482 | ) | |||||
| Total stockholders’ equity | 1,214,346 | 1,176,025 | |||||||
| Total liabilities and stockholders' equity | $ | 1,971,961 | $ | 1,920,465 | |||||
| STRIDE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| Three Months Ended | |||||||||
| September 30, | |||||||||
| 2024 | 2023 | ||||||||
| (In thousands) | |||||||||
| Cash flows from operating activities | |||||||||
| Net income | $ | 40,882 | $ | 4,878 | |||||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||||
| Depreciation and amortization expense | 28,134 | 28,017 | |||||||
| Stock-based compensation expense | 8,449 | 8,426 | |||||||
| Deferred income taxes | 10,851 | 7,901 | |||||||
| Provision for credit losses | 7,053 | 9,350 | |||||||
| Amortization of fees on debt | 423 | 416 | |||||||
| Noncash operating lease expense | 3,176 | 4,372 | |||||||
| Other | 2,328 | 853 | |||||||
| Changes in assets and liabilities: | |||||||||
| Accounts receivable | (210,028 | ) | (175,215 | ) | |||||
| Inventories, prepaid expenses, deposits and other current and long-term assets | (9,310 | ) | (14,330 | ) | |||||
| Accounts payable | 10,792 | 28,747 | |||||||
| Accrued liabilities | (6,142 | ) | (26,895 | ) | |||||
| Accrued compensation and benefits | (24,341 | ) | (17,402 | ) | |||||
| Operating lease liability | (3,259 | ) | (3,619 | ) | |||||
| Deferred revenue and other liabilities | (1,012 | ) | 9,196 | ||||||
| Net cash used in operating activities | (142,004 | ) | (135,305 | ) | |||||
| Cash flows from investing activities | |||||||||
| Purchase of property and equipment | (669 | ) | (1,694 | ) | |||||
| Capitalized software development costs | (8,793 | ) | (10,041 | ) | |||||
| Capitalized curriculum development costs | (5,323 | ) | (4,414 | ) | |||||
| Other acquisitions, loans and investments, net of distributions | (347 | ) | (166 | ) | |||||
| Proceeds from the maturity of marketable securities | 54,400 | 40,734 | |||||||
| Purchases of marketable securities | (60,162 | ) | (31,484 | ) | |||||
| Net cash used in investing activities | (20,894 | ) | (7,065 | ) | |||||
| Cash flows from financing activities | |||||||||
| Repayments on finance lease obligations | (8,747 | ) | (11,721 | ) | |||||
| Repurchase of restricted stock for income tax withholding | (11,204 | ) | (2,090 | ) | |||||
| Net cash used in financing activities | (19,951 | ) | (13,811 | ) | |||||
| Net change in cash, cash equivalents and restricted cash | (182,849 | ) | (156,181 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 500,614 | 410,807 | |||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 317,765 | $ | 254,626 | |||||
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, and adjusted EBITDA, which are not presented in accordance with GAAP.
- Adjusted operating income (loss) is defined as income (loss) from operations as adjusted for stock-based compensation and the amortization of intangible assets.
- EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization.
- Adjusted EBITDA is defined as income (loss) from operations as adjusted for stock-based compensation and depreciation and amortization.
- Adjusted EBITDA and adjusted operating income (loss) exclude stock-based compensation, which consists of expenses for stock options, restricted stock, restricted stock units, and performance stock units.
Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss) and Adjusted EBITDA remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and Adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. EBITDA and Adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired.
Our management uses these non-GAAP financial measures:
- as additional measures of operating performance because they assist us in comparing our performance on a consistent basis; and
- in presentations to the members of our Board of Directors to enable our Board to review the same measures used by management to compare our current operating results with corresponding prior periods.
Other companies may define these non-GAAP financial measures differently and, as a result, our use of these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although we use these non-GAAP financial measures to assess the performance of our business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items not included and/or included in the most directly comparable GAAP financial measure.
These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures.
A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.
First Quarter Fiscal Year 2025
Reconciliation of Income from Operations to Adjusted Operating Income
| Three Months Ended | ||||||
| September 30, | ||||||
| 2024 | 2023 | |||||
| (In thousands) | ||||||
| Income from operations | $ | 47,344 | $ | 3,320 | ||
| Amortization of intangible assets | 2,567 | 3,015 | ||||
| Stock-based compensation expense | 8,449 | 8,426 | ||||
| Adjusted operating income | 58,360 | 14,761 | ||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
| Three Months Ended September 30, | |||||||
| 2024 | 2023 | ||||||
| (In thousands) | |||||||
| Net income | $ | 40,882 | $ | 4,878 | |||
| Interest expense, net | 2,353 | 2,068 | |||||
| Other income, net | (8,778 | ) | (5,165 | ) | |||
| Income tax expense | 11,277 | 1,536 | |||||
| Loss from equity method investments | 1,610 | 3 | |||||
| Depreciation and amortization | 28,134 | 28,017 | |||||
| EBITDA | 75,478 | 31,337 | |||||
| Stock-based compensation expense | 8,449 | 8,426 | |||||
| Adjusted EBITDA | $ | 83,927 | $ | 39,763 | |||
Fiscal Year 2025 Outlook
Reconciliation of Income from Operations to Adjusted Operating Income (unaudited)
| Three Months Ended December 31, 2024 | Year Ended June 30, 2025 | ||||||||||
| Low | High | Low | High | ||||||||
| (In millions) | |||||||||||
| Income from operations | $ | 104.3 | $ | 112.3 | $ | 351.5 | $ | 375.5 | |||
| Stock-based compensation expense | 8.5 | 10.0 | 34.0 | 39.0 | |||||||
| Amortization of intangible assets | 2.2 | 2.7 | 9.5 | 10.5 | |||||||
| Adjusted operating income | $ | 115.0 | $ | 125.0 | $ | 395.0 | $ | 425.0 | |||
FAQ
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