Strayer Education (STRA) Stock Forecast & Price Target

Strategic Education Inc. has demonstrated significant financial growth, with adjusted diluted earnings per share (EPS) increasing by 41.3% to $1.64 on a constant currency basis, reflecting robust performance. The company's third-quarter revenue rose 5.1% year-over-year to $321.7 million, supported by an 8.6% increase in employer-affiliated enrollment, which has reached a record high of 32.7% of total US Higher Education enrollment. Additionally, free cash flow increased by 2.3% to $127.0 million in the first nine months of fiscal year 2025, while the Sophia Learning platform reported a 42.2% revenue growth, indicating strong demand for their educational services.

Strategic Education Inc. has reported a decline in total student enrollment by 2.1%, which is indicative of ongoing challenges within the company, particularly with unaffiliated enrollment experiencing a considerable 5.1% decrease, marking its fourth consecutive quarter of decline. The U.S. Higher Education segment has also seen a downturn, with operating income falling 15.9% and total enrollment dropping 1.0%, raising concerns regarding the sustainability of growth in this segment as negative trends are anticipated to persist into the first half of 2026. Additionally, revenue from the Australia/New Zealand segment decreased by 4.7%, further reflecting the company’s struggles with enrollment and financial performance across its diverse offerings.