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Home Artificial Intelligence

Stride reports first quarter 2027 financial results

October 21, 2026
in Artificial Intelligence, GlobeNewswire, Web3
Reading Time: 127 mins read
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RESTON, Va., Oct. 20, 2026 (GLOBE NEWSWIRE) — St ide, I c. (NYSE: LRN), o e of the atio ’s most successful tech ology-based educatio compa ies, today a ou ced its esults fo the fi st qua te of fiscal yea 2027 e ded Septembe 30, 2026.

Fi st Qua te Fiscal 2027 Highlights Compa ed to 2026

  • Reve ue of $639.4 millio , compa ed with $620.9 millio
  • I come f om ope atio s of $84.3 millio , compa ed with $69.0 millio
  • Net i come of $64.9 millio , compa ed with $68.8 millio
  • Diluted et i come pe sha e of $1.45, compa ed with $1.40
  • Adjusted ope ati g i come of $78.6 millio , compa ed with $81.1 millio (1)
  • Adjusted EBITDA of $111.8 millio , compa ed with $108.4 millio (1)
  • Adjusted ea i gs pe sha e of $1.37, compa ed with $1.52 (1)

Fi st Qua te Fiscal 2027 Summa y Fi a cial Met ics

 Th ee Mo ths E ded Septembe 30, Cha ge 2026/2025 2026 2025 $ % (I  thousa ds, except pe ce tages a d pe sha e data)Reve ues$639,378 $620,884 $18,494 3.0%           I come f om ope atio s 84,268  68,983  15,285 22.2%Adjusted ope ati g i come (1) 78,646  81,138  (2,492) (3.1)%           Net i come 64,919  68,800  (3,881) (5.6)%Net i come pe sha e, diluted 1.45  1.40  0.05 3.6%Adjusted ea i gs pe sha e (1) 1.37  1.52  (0.15) (9.9)%           EBITDA (1) 119,202  98,217  20,985 21.4%Adjusted EBITDA (1) 111,810  108,439  3,371 3.1%           

(1)   To suppleme t ou fi a cial stateme ts p ese ted i acco da ce with U.S. ge e ally accepted accou ti g p i ciples (GAAP), we also p ese t o -GAAP fi a cial measu es i cludi g adjusted ope ati g i come (loss), EBITDA, adjusted EBITDA, a d adjusted ea i gs pe sha e. Ma ageme t believes that these additio al measu es p ovide useful i fo matio to i vesto s elati g to ou fi a cial pe fo ma ce. A eco ciliatio of these o -GAAP fi a cial measu es to the most di ectly compa able GAAP fi a cial measu es is p ovided below.

Reve ue Data

 Th ee Mo ths E ded Septembe 30, Cha ge 2026/2025 2026 2025 $ % (I  thousa ds, except pe ce tages)Ge e al Educatio $356,606 $363,116 $(6,510) (1.8)%Ca ee Lea i g          Middle – High School 272,098  241,500  30,598 12.7%Adult 10,674  16,268  (5,594) (34.4)%Total Ca ee Lea i g 282,772  257,768  25,004 9.7%Total Reve ues 639,378  620,884  18,494 3.0%           

E ollme t a d Reve ue Pe E ollme t Data

Fi st qua te e ollme ts ave aged 241.4K, dow (2.5)% compa ed to 247.7K e ollme ts i the fi st qua te of fiscal yea 2026. Of the total e ollme ts, 112.2K we e Ca ee Lea i g e ollme ts, up 2.0% compa ed to 110.0K Ca ee Lea i g e ollme ts i the fi st qua te of fiscal 2026.

E ollme ts i clude those stude ts i full se vice public o p ivate p og ams whe e St ide p ovides a combi atio of cu iculum, tech ology, a d i st uctio al a d suppo t se vices, i clusive of admi ist ative suppo t a d may i clude e ollme ts fo which St ide eceives o public fu di g o eve ue. St ide does ot epo t e ollme ts fo ou Adult Lea i g busi ess.

Reve ue pe e ollme t fo the fi st qua te was $2,556, up 7.0% compa ed to $2,388 i the fi st qua te of fiscal yea 2026. Ge e al Educatio eve ue pe e ollme t was $2,670, up 5.0%, a d Ca ee Lea i g eve ue pe e ollme t was $2,425, up 10.4%, compa ed to fiscal yea 2026. If the mix of e ollme ts cha ges, ou eve ues will be impacted to the exte t the ave age eve ues pe e ollme t a e sig ifica tly diffe e t.

Cash Flow a d Capital Allocatio

As of Septembe 30, 2026, the Compa y’s cash a d cash equivale ts a d ma ketable secu ities totaled $884.2 millio , compa ed with $1,034.1 millio epo ted at Ju e 30, 2026.

Capital expe ditu es fo the th ee mo ths e ded Septembe 30, 2026 we e $24.5 millio , compa ed to $21.7 millio i the th ee mo ths e ded Septembe 30, 2025, a d we e comp ised of $17.9 millio of capitalized softwa e developme t a d $6.6 millio of capitalized cu iculum developme t.

Fiscal Yea 2027 Outlook

The Compa y is fo ecasti g the followi g fo the full fiscal yea 2027:

  • Reve ue i the a ge of $2.530 billio to $2.610 billio
  • Capital expe ditu es i the a ge of $70 millio to $80 millio . Note that capital expe ditu es i clude the pu chase of p ope ty a d equipme t, a d capitalized softwa e a d cu iculum developme t costs as defi ed o ou Stateme t of Cash Flows
  • Effective tax ate of 24% to 26%
  • Adjusted ope ati g i come i the a ge of $500 millio to $530 millio (2)

The Compa y is fo ecasti g the followi g fo the seco d qua te of fiscal yea 2027:

  • Reve ue i the a ge of $625 millio to $645 millio
  • Capital expe ditu es i the a ge of $19 millio to $21 millio . Note that capital expe ditu es i clude the pu chase of p ope ty a d equipme t, a d capitalized softwa e a d cu iculum developme t costs as defi ed o ou Stateme t of Cash Flows
  • Adjusted ope ati g i come i the a ge of $135 millio to $145 millio (2)

(2)   I additio to p ovidi g a outlook fo eve ue a d capital expe ditu es, adjusted ope ati g i come is p ovided as a suppleme tal o -GAAP fi a cial measu e as ma ageme t believes that it p ovides useful i fo matio to ou i vesto s. A eco ciliatio of these o -GAAP fi a cial measu es to the most di ectly compa able GAAP fi a cial measu es is p ovided below. Please also see Special Note o Fo wa d-Looki g Stateme ts below.

Co fe e ce Call

The Compa y will discuss its fi st qua te fiscal yea 2027 fi a cial esults du i g a co fe e ce call scheduled fo Tuesday, Octobe 20, 2026 at 5:00 p.m. Easte Time (ET).

A live webcast of the call will be available at i vesto s.st idelea i g.com/eve ts-a d-p ese tatio s. To pa ticipate i the live call, i vesto s a d a alysts should dial (833) 461-5787 (domestic) o  +1 (585) 542-9983 (i te atio al) a d p ovide the co fe e ce ID umbe 305 592 627. Please access the website at least 15 mi utes p io to the sta t of the call.

A eplay of the call will be posted at i vesto s.st idelea i g.com/eve ts-a d-p ese tatio s.

About St ide I c.

St ide I c. (NYSE: LRN) is edefi i g lifelo g lea i g with i ovative, high-quality educatio solutio s. Se vi g lea e s i p ima y, seco da y, a d postseco da y setti gs, St ide p ovides a wide a ge of se vices i cludi g K-12 educatio , ca ee lea i g, p ofessio al skills t ai i g, a d tale t developme t. St ide eaches lea e s i all 50 states a d ove 100 cou t ies. Lea mo e at st idelea i g.com.

I vesto Co tacti @k12.comMedia Co tactp ess@k12.com  

Special Note o Fo wa d-Looki g Stateme ts

This p ess elease co tai s ce tai fo wa d-looki g stateme ts withi the mea i g of the P ivate Secu ities Litigatio Refo m Act of 1995 that i volve substa tial isks a d u ce tai ties. All stateme ts othe tha stateme ts of histo ical facts co tai ed i this p ess elease a e fo wa d-looki g stateme ts, such as a y stateme ts that look to futu e eve ts a d i clude, amo g othe thi gs, ou expectatio s ega di g: mix of e ollme t, eve ue pe e ollme t, futu e fi a cial a d othe t e ds, fo ecasts, assumptio s a d guida ce, a d futu e sha e epu chases. We have t ied, whe eve possible, to ide tify these fo wa d-looki g stateme ts usi g wo ds such as “outlook,” “fo ecasts,” “a ticipates,” “t e ds,” “believes,” “estimates,” “co ti ues,” “likely,” “may,” “oppo tu ity,” “pote tial,” “p ojects,” “will,” “will be,” “expects,” “pla s,” “i te ds,” “should,” “would” a d simila exp essio s to ide tify fo wa d-looki g stateme ts, whethe i the egative o the affi mative. These stateme ts eflect ou cu e t beliefs a d a e based upo i fo matio cu e tly available to us. Acco di gly, such fo wa d-looki g stateme ts i volve k ow a d u k ow isks, u ce tai ties a d othe facto s which could cause ou actual esults, pe fo ma ce o achieveme ts to diffe mate ially f om those exp essed i , o implied by, such stateme ts. These isks, u ce tai ties, facto s a d co ti ge cies i clude, but a e ot limited to: eductio of pe pupil fu di g amou ts at the schools we se ve; i ability to achieve a sufficie t level of ew e ollme ts to sustai ou busi ess model o to meet fi a cial o ope atio al guida ce; limitatio s of the e ollme t data we p ese t, which may ot fully captu e t e ds i the pe fo ma ce of ou busi ess; failu e to e te i to ew school co t acts o e ew existi g co t acts, i pa t o i thei e ti ety; failu e of the schools we se ve, ou ve do s, o us to comply with ou co t acts, o fede al, state a d local laws a d egulatio s, esulti g i a loss of fu di g, a obligatio to epay fu ds p eviously eceived, co t actual emedies, o actio s o p oceedi gs agai st us; gove me tal i vestigatio s that could esult i fi es, pe alties, settleme ts, o i ju ctive elief; decli es o va iatio s i academic pe fo ma ce outcomes of the stude ts a d schools we se ve, i cludi g due to the evolutio of cu iculum sta da ds, testi g p og ams a d state accou tability met ics; ha m to ou eputatio esulti g f om poo pe fo ma ce o misco duct by ope ato s o us i a y school i ou i dust y a d/o i a y school which we ope ate; legal a d egulato y challe ges f om oppo e ts of vi tual public educatio o fo -p ofit educatio compa ies; pote tial violatio of laws a d egulatio s elati g to p ivacy a d data p otectio , i cludi g such laws a d egulatio s as may apply to child e ’s data; cha ges i atio al a d local eco omic a d busi ess co ditio s a d othe facto s, such as atu al disaste s, pa demics a d outb eaks of co tagious diseases a d othe adve se public health developme ts; disc epa cies i i te p etatio of legislatio by egulato y age cies that may lead to payme t o fu di g disputes; te mi atio of ou co t acts, o a eductio o te mi atio i the scope of se vices, with schools; failu e to develop the Ca ee Lea i g busi ess; e t y of ew competito s with supe io tech ologies (i cludi g a tificial i tellige ce (“AI”)) a d lowe p ices; u successful i teg atio of me ge s, acquisitio s a d joi t ve tu es; failu e to fu the develop, mai tai a d e ha ce ou tech ology, p oducts, se vices a d b a ds; i adequate ec uiti g, t ai i g a d ete tio of effective teache s a d employees; i f i geme t of ou i tellectual p ope ty; dis uptio s to ou I te et-based lea i g a d delive y systems, i cludi g, but ot limited to, ou data sto age systems a d thi d-pa ty cloud i f ast uctu e, systems a d facilities, i cludi g as a esult of cybe secu ity attacks; misuse o u autho ized disclosu e of stude t a d pe so al data; failu e to p eve t o mitigate a cybe secu ity i cide t that affects ou systems o ou data; p oblems i the impleme tatio of ew i fo matio tech ology systems a d tech ology; failu e by us o thi d pa ties to mai tai a d suppo t i fo matio tech ology systems, i cludi g add essi g quality issues a d timely delive i g ew p oducts a d e ha ceme ts; isks elated to the use, impleme tatio a d egulatio of AI a d othe eme gi g tech ologies, i cludi g i the educatio of child e , a d thei use by thi d-pa ty ve do s; isks elated to ou stock epu chase p og am; the exte t to which we acqui e busi esses o cha ge ou capital allocatio st ategy o the impleme tatio the eof; cha ges i ou effective tax ate a d additio al liabilities; a d othe isks a d u ce tai ties associated with ou busi ess desc ibed i the isk facto s discussed i the Compa y’s A ual Repo t o Fo m 10-K fo the yea e ded Ju e 30, 2026 a d a y subseque tly filed A ual Repo ts o Fo m 10-K, Qua te ly Repo ts o Fo m 10-Q o the Compa y’s othe fili gs with the Secu ities a d Excha ge Commissio . Fo wa d-looki g stateme ts eflect ou ma ageme t’s expectatio s o p edictio s of futu e co ditio s, eve ts o esults based o va ious assumptio s a d estimates. They a e ot gua a tees of futu e pe fo ma ce. Ou actual esults a d fi a cial co ditio may diffe , possibly mate ially, f om the a ticipated esults a d fi a cial co ditio i dicated i these fo wa d-looki g stateme ts. Reade s a e cautio ed ot to place u due elia ce o fo wa d-looki g stateme ts i this p ess elease o that we make f om time to time, a d to co side ca efully the facto s discussed above. All i fo matio i this p ess elease is as of today’s date, a d the Compa y u de takes o obligatio to update a y fo wa d-looki g stateme t as a esult of ew i fo matio , futu e eve ts o othe wise, except whe e we a e exp essly equi ed to do so by law.

Fi a cial Stateme ts

The fi a cial stateme ts set fo th below a e ot the complete set of St ide, I c.’s fi a cial stateme ts fo the th ee mo ths e ded Septembe 30, 2026 a d a e p ese ted below without foot otes. Reade s a e e cou aged to obtai a d ca efully eview St ide I c.’s Qua te ly Repo t o Fo m 10-Q fo the th ee mo ths e ded Septembe 30, 2026, i cludi g all fi a cial stateme ts co tai ed the ei a d the foot otes the eto, filed with the SEC, which may be et ieved f om the SEC’s website at www.sec.gov o f om St ide I c.’s I vesto Relatio s website at i vesto s.st idelea i g.com.

 STRIDE, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS   Th ee Mo ths E ded  Septembe 30, 2026 2025 (I thousa ds except sha e a d pe sha e data)Reve ues$639,378  $620,884 I st uctio al costs a d se vices 398,261   378,761 G oss ma gi  241,117   242,123 Selli g, ge e al, a d admi ist ative expe ses 156,849   173,140 I come f om ope atio s  84,268   68,983 I te est expe se, et (2,906)  (3,075)Othe i come, et 1,477   16,914 I come befo e i come taxes a d i come (loss) f om equity method i vestme ts 82,839   82,822 I come tax expe se (17,840)  (14,423)I come (loss) f om equity method i vestme ts (80)  401 Net i come att ibutable to commo stockholde s$64,919  $68,800 Net i come att ibutable to commo stockholde s pe sha e:     Basic$1.57  $1.59 Diluted$1.45  $1.40 Weighted ave age sha es used i computi g pe sha e amou ts:     Basic 41,479,826   43,371,952 Diluted 44,828,092   49,222,851         

 STRIDE, INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS     Septembe 30, Ju e 30, 2026 2026   (audited)ASSETS(I  thousa ds except sha e a d pe  sha e data)      Cu e t assets     Cash a d cash equivale ts$547,750  $754,501 Accou ts eceivable, et of allowa ce of $31,751 a d $31,302 854,808   664,788 I ve to ies, et 22,665   38,250 P epaid expe ses 75,345   43,052 Ma ketable secu ities 241,425   203,499 Othe cu e t assets 12,414   12,033 Total cu e t assets  1,754,407   1,716,123 P ope ty a d equipme t, et 172,974   102,042 Capitalized softwa e, et 101,916   95,002 Capitalized cu iculum developme t costs, et 59,963   56,895 I ta gible assets, et 9,106   10,876 Goodwill 246,676   246,676 Deposits a d othe assets 185,914   207,938 Total assets $2,530,956  $2,435,552 LIABILITIES AND STOCKHOLDERS’ EQUITY     Cu e t liabilities     Accou ts payable$75,884  $46,742 Acc ued liabilities 68,400   95,446 Acc ued compe satio a d be efits 28,220   62,896 Defe ed eve ue 6,817   20,553 Cu e t po tio of fi a ce lease liability 85,463   60,477 Cu e t po tio of ope ati g lease liability 2,374   2,737 Cu e t po tio of debt 418,431   – Total cu e t liabilities  685,589   288,851 Lo g-te m fi a ce lease liability 104,661   56,455 Lo g-te m ope ati g lease liability 8,106   8,316 Lo g-te m debt —   417,995 Defe ed tax liability 41,137   13,033 Othe lo g-te m liabilities 19,698   18,573 Total liabilities  859,191   803,223 Commitme ts a d co ti ge cies     Stockholde s’ equity     P efe ed stock, pa value $0.0001; 10,000,000 sha es autho ized; ze o sha es issued o outsta di g —   — Commo stock, pa value $0.0001; 100,000,000 sha es autho ized; 49,681,525 a d 49,126,917 sha es issued; a d 42,031,838 a d 41,477,230 sha es outsta di g, espectively 4   4 Additio al paid-i capital 714,347   739,829 Accumulated othe comp ehe sive loss (60)  (59)Retai ed ea i gs 1,249,564   1,184,645 T easu y stock of 7,649,687 sha es at cost (292,090)  (292,090)Total stockholde s’ equity  1,671,765   1,632,329 Total liabilities a d stockholde s’ equity $2,530,956  $2,435,552         

 STRIDE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS     Th ee Mo ths E ded  Septembe 30,  2026 2025  (I  thousa ds)Cash flows f om ope ati g activities      Net i come $64,919  $68,800 Adjustme ts to eco cile et i come to et cash used i ope ati g activities:      Dep eciatio a d amo tizatio expe se  34,934   29,234 Stock-based compe satio expe se  (7,392)  10,222 Defe ed i come taxes  29,425   49,472 P ovisio fo c edit losses  2,143   3,377 Amo tizatio of fees o debt  435   429 No cash ope ati g lease expe se  352   2,661 Othe  8,092   (3,989)Cha ges i assets a d liabilities:      Accou ts eceivable  (191,894)  (253,026)I ve to ies, p epaid expe ses, deposits a d othe cu e t a d lo g-te m assets  (18,356)  (36,322)Accou ts payable  27,881   15,716 Acc ued liabilities  (28,566)  (45,356)Acc ued compe satio a d be efits  (33,257)  (30,882)Ope ati g lease liability  (899)  (879)Defe ed eve ue a d othe liabilities  (12,604)  (5,237)Net cash used i ope ati g activities   (124,787)  (195,780)Cash flows f om i vesti g activities      Pu chase of p ope ty a d equipme t  (4)  (306)Capitalized softwa e developme t costs  (17,911)  (13,713)Capitalized cu iculum developme t costs  (6,567)  (7,677)Sale of othe i vestme ts  35,110   – Othe acquisitio s, loa s a d i vestme ts, et of dist ibutio s  (886)  (2,574)P oceeds f om the matu ity of ma ketable secu ities  61,638   61,767 Pu chases of ma ketable secu ities  (117,295)  (62,220)Net cash used i i vesti g activities   (45,915)  (24,723)Cash flows f om fi a ci g activities      Repayme ts o fi a ce lease obligatio s  (16,540)  (11,961)Repu chase of est icted stock fo i come tax withholdi g  (19,509)  (31,594)Net cash used i fi a ci g activities   (36,049)  (43,555)Net cha ge i cash, cash equivale ts a d est icted cash  (206,751)  (264,058)Cash, cash equivale ts a d est icted cash, begi i g of pe iod  754,501   782,497 Cash, cash equivale ts a d est icted cash, e d of pe iod $547,750  $518,439          

No -GAAP Fi a cial Measu es

To suppleme t ou fi a cial stateme ts p ese ted i acco da ce with GAAP, we have p ese ted adjusted ope ati g i come (loss), EBITDA, adjusted EBITDA, a d adjusted ea i gs pe sha e, which a e ot p ese ted i acco da ce with GAAP.

  • Adjusted ope ati g i come (loss) is defi ed as i come (loss) f om ope atio s as adjusted fo amo tizatio of i ta gible assets, stock-based compe satio , a d othe o e-time cha ges o gai s.
  • EBITDA is defi ed as i come (loss) f om ope atio s as adjusted fo dep eciatio a d amo tizatio .
  • Adjusted EBITDA is defi ed as i come (loss) f om ope atio s as adjusted fo dep eciatio a d amo tizatio , stock-based compe satio , a d othe o e-time cha ges o gai s.
  • Adjusted ea i gs pe sha e (adjusted EPS) is defi ed as et i come (loss) att ibutable to commo stockholde s as adjusted fo the amo tizatio of i ta gible assets, stock-based compe satio , a d othe o e-time cha ges o gai s et of tax impact divided by the diluted weighted ave age umbe of commo sha es outsta di g less the sha es expected to be eceived fo the capped call t a sactio elated to St ide’s co ve tible se io otes.

Adjusted ope ati g i come (loss), adjusted EBITDA, a d adjusted EPS exclude stock-based compe satio , which co sists of expe ses fo est icted stock, est icted stock u its, a d pe fo ma ce stock u its.

Ma ageme t believes that the p ese tatio of these o -GAAP fi a cial measu es p ovides useful i fo matio to i vesto s elati g to ou fi a cial pe fo ma ce. Adjusted ope ati g i come (loss), adjusted EBITDA a d adjusted EPS emove stock-based compe satio , which is a o -cash cha ge that va ies based o ma ket volatility a d the te ms a d co ditio s of the awa ds. EBITDA a d adjusted EBITDA emove dep eciatio a d amo tizatio , which ca va y depe di g upo accou ti g methods a d the book value of assets. Adjusted ope ati g i come (loss), adjusted EBITDA a d adjusted ea i gs pe sha e emove o e-time cha ges o gai s which a e ot elated to co e ope ati g activities a d a e ot i dicative of ou o goi g ope ati g pe fo ma ce. Additio ally, adjusted EPS i cludes the impact f om sha es expected to be eceived by the Compa y to offset pote tial dilutio f om the co ve tible se io otes. EBITDA a d adjusted EBITDA p ovide a measu e of co po ate pe fo ma ce exclusive of capital st uctu e a d the method by which assets we e acqui ed.

Ma ageme t uses these o -GAAP fi a cial measu es:

  • as additio al measu es of ope ati g pe fo ma ce because they assist i compa i g the Compa y’s pe fo ma ce o a co siste t basis; a d
  • i p ese tatio s to the membe s of the Compa y’s Boa d of Di ecto s to e able the Boa d to eview the same measu es used by ma ageme t to compa e the Compa y’s cu e t ope ati g esults with co espo di g p io pe iods.

Othe compa ies may defi e these o -GAAP fi a cial measu es diffe e tly a d, as a esult, these o -GAAP fi a cial measu es may ot be di ectly compa able to simila o -GAAP fi a cial measu es used by othe compa ies. Although these o -GAAP fi a cial measu es a e used to assess the pe fo ma ce of the busi ess, the use of o -GAAP fi a cial measu es is limited as they i clude a d/o do ot i clude ce tai items i cluded a d/o ot i cluded i the most di ectly compa able GAAP fi a cial measu e.

These o -GAAP fi a cial measu es should be co side ed i additio to, a d ot as a substitute fo , eve ues, i come (loss) f om ope atio s, et i come (loss) a d diluted et i come (loss) pe sha e o othe elated fi a cial i fo matio p epa ed i acco da ce with GAAP. Adjusted EBITDA is ot i te ded to be a measu e of liquidity. You a e cautio ed ot to place u due elia ce o these o -GAAP fi a cial measu es.

Reco ciliatio s of these o -GAAP fi a cial measu es to the most di ectly compa able GAAP fi a cial measu es a e p ovided below.

Fi st Qua te Fiscal Yea 2027

Reco ciliatio of I come f om Ope atio s to Adjusted Ope ati g I come

 Th ee Mo ths E ded Septembe 30, 2026 2025 (I thousa ds) I come f om ope atio s$84,268  $68,983 Amo tizatio of i ta gible assets 1,770   1,933 Stock-based compe satio expe se (7,392)  10,222 Adjusted ope ati g i come$78,646  $81,138      

Reco ciliatio of Net I come to EBITDA a d Adjusted EBITDA

 Th ee Mo ths E dedSeptembe 30,  2026 2025 (I thousa ds)Net i come$64,919  $68,800 I te est expe se, et 2,906   3,075 Othe i come, et (1,477)  (16,914)I come tax expe se 17,840   14,423 (I come) loss f om equity method i vestme ts 80   (401)Dep eciatio a d amo tizatio 34,934   29,234 EBITDA 119,202   98,217 Stock-based compe satio expe se (7,392)  10,222 Adjusted EBITDA$111,810  $108,439         

Reco ciliatio of Net I come Att ibutable to Commo Stockholde s a d Diluted Net I come Pe Sha e to Adjusted Ea i gs Pe Sha e

 Th ee Mo ths E ded  Septembe 30, 2026 2025 (I thousa ds)Net i come att ibutable to commo stockholde s$64,919  $68,800 Amo tizatio of i ta gible assets 1,770   1,933 Stock-based compe satio expe se (7,392)  10,222 I come tax effect f om adjustme ts above (2,038)  (8,969)Adjusted et i come att ibutable to commo stockholde s$57,259  $71,986     Sha e computatio :   Weighted ave age commo sha es — diluted 44,828,092   49,222,851 Effect of capped call t a sactio s (2,958,006)  (1,803,506)Adjusted weighted ave age commo sha es — diluted 41,870,086   47,419,345 Adjusted ea i gs pe sha e$1.37  $1.52      Th ee Mo ths E ded  Septembe 30, 2026 2025 (pe sha e)Diluted et i come pe sha e$1.45  $1.40 Amo tizatio of i ta gible assets 0.04   0.04 Stock-based compe satio expe se (0.16)  0.20 I come tax effect f om adjustme ts above (0.05)  (0.18)Effect of capped call t a sactio s 0.09   0.06 Adjusted ea i gs pe sha e$1.37  $1.52     

Fiscal Yea 2027 Outlook

Reco ciliatio of I come f om Ope atio s to Adjusted Ope ati g I come (u audited)

 Th ee Mo ths E ded Yea E ded Decembe 31, 2026 Ju e 30, 2027 Low High Low High (I millio s) I come f om ope atio s$126.0  $134.5  $479.5  $503.5 Amo tizatio of i ta gible assets 1.5   2.0   5.5   7.5 Stock-based compe satio expe se 7.5   8.5   15.0   19.0 Adjusted ope ati g i come$135.0  $145.0  $500.0  $530.0                 

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