STRIDE, INC., 10-K filed on 8/5/2026
Annual Report
v3.26.1
Document and Entity Information - USD ($)
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jul. 31, 2026
Dec. 31, 2025
Cover        
Document Type 10-K      
Document Annual Report true      
Document Period End Date Jun. 30, 2026      
Document Transition Report false      
Entity File Number 001-33883      
Entity Registrant Name Stride, Inc.      
Entity Incorporation, State or Country Code DE      
Entity Tax Identification Number 95-4774688      
Entity Address, Address Line One 11720 Plaza America Drive, 9th Floor      
Entity Address, City or Town Reston      
Entity Address, State or Province VA      
Entity Address, Postal Zip Code 20190      
City Area Code 703      
Local Phone Number 483-7000      
Title of 12(b) Security Common Stock, $0.0001 par value      
Trading Symbol LRN      
Security Exchange Name NYSE      
Entity Well-known Seasoned Issuer No      
Entity Voluntary Filers No      
Entity Current Reporting Status Yes      
Entity Interactive Data Current Yes      
Entity Filer Category Large Accelerated Filer      
Entity Small Business false      
Entity Emerging Growth Company false      
ICFR Auditor Attestation Flag true      
Document Financial Statement Error Correction [Flag] false      
Entity Shell Company false      
Entity Public Float       $ 1,974,309,000
Entity Common Stock, Shares Outstanding     41,559,845  
Documents Incorporated by Reference [Text Block]

Portions of the registrant’s definitive proxy statement for its 2026 annual meeting of stockholders to be filed pursuant to Regulation 14A with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year ended June 30, 2026, are incorporated by reference into Part III of this Form 10-K.

      
Entity Central Index Key 0001157408      
Current Fiscal Year End Date --06-30      
Document Fiscal Year Focus 2026      
Document Fiscal Period Focus FY      
Amendment Flag false      
Auditor Name KPMG LLP BDO USA, P.C.    
Auditor Location McLean, Virginia Potomac, Maryland    
Auditor Firm ID 185 243    
v3.26.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2026
Jun. 30, 2025
Current assets    
Cash and cash equivalents $ 754,501 $ 782,497
Accounts receivable, net of allowance of $31,302 and $31,124 664,788 559,646
Inventories, net 38,250 37,570
Prepaid expenses 43,052 35,579
Marketable securities 203,499 202,769
Other current assets 12,033 14,673
Total current assets 1,716,123 1,632,734
Property and equipment, net 102,042 78,582
Capitalized software, net 95,002 75,314
Capitalized curriculum development costs, net 56,895 58,584
Intangible assets, net 10,876 18,227
Goodwill 246,676 246,676
Deferred tax asset   26,377
Deposits and other assets 207,938 157,465
Total assets 2,435,552 2,293,959
Current liabilities    
Accounts payable 46,742 43,962
Accrued liabilities 95,446 103,276
Accrued compensation and benefits 62,896 74,939
Deferred revenue 20,553 26,995
Current portion of finance lease liability 60,477 42,316
Current portion of operating lease liability 2,737 11,391
Total current liabilities 288,851 302,879
Long-term finance lease liability 56,455 44,567
Long-term operating lease liability 8,316 35,164
Long-term debt 417,995 416,322
Deferred tax liability 13,033  
Other long-term liabilities 18,573 15,408
Total liabilities 803,223 814,340
Commitments and contingencies
Stockholders' equity    
Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding
Common stock, par value $0.0001; 100,000,000 shares authorized; 49,126,917 and 48,852,419 shares issued; and 41,477,230 and 43,517,676 shares outstanding, respectively 4 4
Additional paid-in capital 739,829 735,711
Accumulated other comprehensive loss (59) (67)
Retained earnings 1,184,645 846,453
Treasury stock of 7,649,687 and 5,334,743 shares at cost, respectively (292,090) (102,482)
Total stockholders' equity 1,632,329 1,479,619
Total liabilities and stockholders' equity $ 2,435,552 $ 2,293,959
v3.26.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2026
Jun. 30, 2025
CONSOLIDATED BALANCE SHEETS    
Accounts receivable, allowance (in dollars) $ 31,302 $ 31,124
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 49,126,917 48,852,419
Common stock, shares outstanding 41,477,230 43,517,676
Treasury stock, shares 7,649,687 5,334,743
v3.26.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
CONSOLIDATED STATEMENTS OF OPERATIONS      
Revenues $ 2,518,081 $ 2,405,317 $ 2,040,069
Instructional costs and services 1,567,481 1,461,398 1,276,466
Gross margin 950,600 943,919 763,603
Selling, general, and administrative expenses 499,833 524,347 514,003
Impairment of long-lived assets   59,478  
Income from operations 450,767 360,094 249,600
Interest expense, net (11,778) (10,504) (8,812)
Other income, net 2,173 33,629 26,900
Income before income taxes and income (loss) from equity method investments 441,162 383,219 267,688
Income tax expense (102,765) (93,007) (64,482)
Income (loss) from equity method investments (205) (2,271) 977
Net income attributable to common stockholders $ 338,192 $ 287,941 $ 204,183
Net income attributable to common stockholders per share:      
Basic (in dollars per share) $ 7.92 $ 6.69 $ 4.79
Diluted (in dollars per share) $ 7.14 $ 5.95 $ 4.69
Weighted average shares used in computing per share amounts:      
Basic (in shares) 42,717,156 43,041,274 42,626,588
Diluted (in shares) 47,332,855 48,413,717 43,535,441
v3.26.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME      
Net income $ 338,192 $ 287,941 $ 204,183
Other comprehensive income (loss), net of tax:      
Foreign currency translation adjustment 8 (25) (7)
Comprehensive income attributable to common stockholders $ 338,200 $ 287,916 $ 204,176
v3.26.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Treasury Stock
Total
Balance at Jun. 30, 2023 $ 4 $ 695,480 $ (35) $ 354,329 $ (102,482) $ 947,296
Balance (in shares) at Jun. 30, 2023 48,339,048          
Treasury Stock, Balance (in shares) at Jun. 30, 2023         (5,334,743)  
Increase (Decrease) in Stockholders' Equity            
Net income       204,183   204,183
Foreign currency translation adjustment     (7)     (7)
Stock-based compensation expense   32,810       32,810
Vesting of performance share units, net of tax withholding (in shares) 31,426          
Issuance of restricted stock awards (in shares) 507,443          
Forfeiture of restricted stock awards (in shares) (153,728)          
Repurchase of restricted stock for tax withholding   (8,257)       (8,257)
Repurchase of restricted stock for tax withholding (in shares) (148,025)          
Balance at Jun. 30, 2024 $ 4 720,033 (42) 558,512 $ (102,482) 1,176,025
Balance (in shares) at Jun. 30, 2024 48,576,164          
Treasury Stock, Balance (in shares) at Jun. 30, 2024         (5,334,743)  
Increase (Decrease) in Stockholders' Equity            
Net income       287,941   287,941
Foreign currency translation adjustment     (25)     (25)
Stock-based compensation expense   37,295       37,295
Vesting of performance share units, net of tax withholding (in shares) 173,804          
Issuance of restricted stock awards (in shares) 317,490          
Forfeiture of restricted stock awards (in shares) (84,389)          
Repurchase of restricted stock for tax withholding   (21,617)       (21,617)
Repurchase of restricted stock for tax withholding (in shares) (130,650)          
Balance at Jun. 30, 2025 $ 4 735,711 (67) 846,453 $ (102,482) $ 1,479,619
Balance (in shares) at Jun. 30, 2025 48,852,419          
Treasury Stock, Balance (in shares) at Jun. 30, 2025         (5,334,743) 5,334,743
Increase (Decrease) in Stockholders' Equity            
Net income       338,192   $ 338,192
Foreign currency translation adjustment     8     8
Purchase of treasury stock, net of tax         $ (189,608) $ (189,608)
Purchase of treasury stock, net of tax (in shares)         (2,314,944) (2,314,944)
Stock-based compensation expense   40,370       $ 40,370
Vesting of performance share units, net of tax withholding (in shares) 245,412          
Issuance of restricted stock awards (in shares) 206,518          
Forfeiture of restricted stock awards (in shares) (64,562)          
Repurchase of restricted stock for tax withholding   (36,252)       (36,252)
Repurchase of restricted stock for tax withholding (in shares) (112,870)          
Balance at Jun. 30, 2026 $ 4 $ 739,829 $ (59) $ 1,184,645 $ (292,090) $ 1,632,329
Balance (in shares) at Jun. 30, 2026 49,126,917          
Treasury Stock, Balance (in shares) at Jun. 30, 2026         (7,649,687) 7,649,687
v3.26.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Cash flows from operating activities      
Net income $ 338,192 $ 287,941 $ 204,183
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization expense 126,562 114,669 109,683
Stock-based compensation expense 40,255 36,794 31,462
Deferred income taxes 39,993 (17,783) 2,890
Provision for credit losses 16,463 15,267 22,844
Amortization of fees on debt 1,673 1,647 1,640
Noncash operating lease expense 5,063 12,265 14,246
Impairment of long-lived assets   59,478  
Other 20,514 (596) 849
Changes in assets and liabilities:      
Accounts receivable (121,370) (102,188) (32,056)
Inventories, prepaid expenses, deposits and other current and long-term assets 6,538 (6,239) (8,877)
Accounts payable 2,164 310 (6,844)
Accrued liabilities (10,188) 40,915 (16,556)
Accrued compensation and benefits (11,828) 9,913 7,394
Operating lease liability (16,943) (12,396) (14,990)
Deferred revenue and other liabilities (3,274) (7,181) (37,071)
Net cash provided by operating activities 433,814 432,816 278,797
Cash flows from investing activities      
Purchase of property and equipment (587) (1,781) (2,270)
Capitalized software development costs (61,591) (36,428) (40,653)
Capitalized curriculum development costs (16,668) (21,801) (18,666)
Other acquisitions, loans and investments, net of distributions (55,538) (20,682) (5,196)
Proceeds from the maturity of marketable securities 279,497 252,930 204,487
Purchases of marketable securities (324,941) (260,233) (277,573)
Net cash used in investing activities (179,828) (87,995) (139,871)
Cash flows from financing activities      
Repayments on finance lease obligations (56,856) (41,469) (40,919)
Purchase of treasury stock (188,659)    
Repurchase of restricted stock for income tax withholding (36,467) (21,469) (8,200)
Net cash used in financing activities (281,982) (62,938) (49,119)
Net change in cash, cash equivalents and restricted cash (27,996) 281,883 89,807
Cash, cash equivalents and restricted cash, beginning of period 782,497 500,614 410,807
Cash, cash equivalents and restricted cash, end of period $ 754,501 $ 782,497 $ 500,614
v3.26.1
Description of the Business
 12 Months Ended
Jun. 30, 2026
Description of the Business  
Description of the Business

1. Description of the Business

Stride, Inc., together with its subsidiaries (“Stride” or the “Company”), is a technology company providing an educational platform to deliver online learning to students throughout the U.S. The brand reflects the Company’s continued growth into lifelong learning, regardless of a student’s age or location. The Company’s platform hosts products and services to attract, enroll, educate, track progress, and support students. These products and services, spanning curriculum, systems, instruction, and support services, are designed to help learners of all ages reach their full potential through inspired teaching and personalized learning. The Company’s clients are primarily public and private schools, school districts, and charter boards. Additionally, it provides solutions to employers, government agencies and consumers. These products and services are provided through two lines of revenue:

​

●General Education products and services are predominantly focused on core subjects, including math, English, science and history, for kindergarten through twelfth grade students to help build a common foundation of knowledge. These programs provide an alternative to traditional school options and address a range of student needs. Products and services are delivered as a comprehensive school-as-a-service offering for schools or as stand-alone products and services. A student enrolled in a school that offers Stride’s General Education program may elect to take career courses, but that student and the associated revenue is reported as a General Education enrollment and General Education revenue.

​

●Career Learning products and services are focused on developing skills to enter and succeed in careers in high-growth, in-demand industries—including information technology, healthcare and general business. The Company provides middle and high school students with Career Learning programs that complement their core general education coursework. Stride offers multiple career pathways through a broad catalog of courses. The middle school program exposes students to a variety of career options and introduces career skill development. In high school, students may engage in industry content pathway courses, project-based learning in virtual teams, and career development services. High school students have the opportunity to progress toward certifications, connect with industry professionals, earn college credits while in high school, and participate in job shadowing and/or work-based learning experiences that facilitate success in today’s digital, tech-enabled economy. A student is reported as a Career Learning enrollment and associated Career Learning revenue only if the student is enrolled in a Career Learning program. Like General Education products and services, the products and services for Career Learning are sold as a comprehensive school-as-a-service offering or as stand-alone products and services. The Company also provides focused post-secondary career learning programs to adult learners, for the software engineering, healthcare, and medical fields. These programs are sold directly to consumers, employers and government agencies.

​
v3.26.1
Basis of Presentation
 12 Months Ended
Jun. 30, 2026
Basis of Presentation  
Basis of Presentation

2. Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated.
v3.26.1
Summary of Significant Accounting Policies
 12 Months Ended
Jun. 30, 2026
Summary of Significant Accounting Policies  
Summary of Significant Accounting Policies

3. Summary of Significant Accounting Policies

Recent Accounting Pronouncements

​

Accounting Standards Adopted

​

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and for interim periods for

fiscal years beginning after December 15, 2025. The Company adopted this guidance prospectively, as permitted by ASU 2023-09, in the fourth quarter of 2026. The adoption is reflected in Note 5, “Income Taxes.”

​

Accounting Standards Not Yet Adopted

​

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) ("ASU 2024-03"). This update provides investors with enhanced detail regarding components of expenses presented in the income statement, aiming to improve transparency and enable precise understanding of a company’s cost structure. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company will review the extent of new disclosures necessary in the coming quarters, prior to implementation during fiscal year 2028. Other than additional disclosure, the Company does not expect a change to its consolidated financial statements.

​

In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The update provides an optional practical expedient for public companies to estimate expected credit losses on current accounts receivable and contract assets arising from ASC 606 transactions by assuming that conditions at the balance sheet date remain unchanged over the assets’ remaining lives. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025 (including interim periods), with early adoption permitted. The Company is assessing the impact of the ASU and whether to elect the practical expedient upon adoption in fiscal year 2027.

​

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 is intended to modernize and clarify the accounting for internal-use software, including updates to capitalization guidance that removes references to project stages and replaces them with the concept of a probable-to-complete recognition threshold. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and early adoption is permitted as of the beginning of an annual period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

​

Segment Reporting

Stride, Inc. operates in one operating and reportable business segment as a technology company providing an educational platform to deliver proprietary and third-party curriculum, software systems and educational services designed to facilitate individualized learning for students and adults. The Company’s primary revenue source is derived from educational products and services provided through its General Education and Career Learning lines of revenue.

Operating as a cohesive technology company, the Company offers its products and services across the United States via an integrated online platform, using a centralized management approach for all educational and support functions.

The Chief Executive Officer (“CEO”) serves as the Chief Operating Decision Maker (“CODM”). The CODM evaluates the Company’s performance based on consolidated net income. This measure aligns with Stride’s consolidated financial statements and serves as the basis for resource allocation and performance assessment. The measure of segment assets is reported on the balance sheet as total consolidated assets. The CODM monitors profitability and strategic growth initiatives on a consolidated basis without disaggregating profit or loss into separate operating segments. The Company determined there are no significant segment expenses that require a separate disclosure. The consolidated net income is used to assess overall company performance, benchmark against industry standards, and identify profitability trends, which guides resource allocation and investment in expansion and technology upgrades. The CODM also evaluates company performance using operating income. Operating income provides the CODM with a focused view of the company’s profitability excluding the effects of financing activities, tax strategies, and other non-operating items. This measure enables the CODM to assess operational efficiency, monitor performance trends, and evaluate the effectiveness of strategies aimed at revenue generation and cost management.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to the allowance for credit losses, inventory reserves, amortization periods, the allocation of the purchase price to the fair value of net assets and liabilities acquired in business combinations, fair values used in asset impairment evaluations, valuation of long-lived assets, accrual for incurred but not reported (“IBNR”) claims, contingencies, income taxes, fair value of contingent consideration, and stock-based compensation expense. The Company bases its estimates on historical experience and various assumptions that it believes are reasonable under the circumstances. The results of the analysis form the basis for making assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.

Revenue Recognition

​

Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services using the following steps:

​

●identify the contract, or contracts, with a customer;
●identify the performance obligations in the contract;
●determine the transaction price;
●allocate the transaction price to the performance obligations in the contract; and
●recognize revenue when, or as, the Company satisfies a performance obligation.

​

Revenues related to the products and services that the Company provides to students in kindergarten through twelfth grade or adult learners are considered to be General Education or Career Learning based on the school or adult program in which the student is enrolled. General Education products and services are focused on core subjects, including math, English, science and history, for kindergarten through twelfth grade students to help build a common foundation of knowledge. Career Learning products and services are focused on developing skills to enter and succeed in careers in high-growth, in-demand industries—including information technology, healthcare and general business, for students in middle school through high school and adult learners.

​

The majority of the Company’s contracts are with the following types of customers:

​

●a virtual or blended school whereby the amount of revenue is primarily determined by funding the school receives;
●a school or individual who licenses certain curriculum on a subscription or course-by-course basis; or
●an enterprise that contracts with the Company to provide online job training.

​

Funding-based Contracts

​

The Company provides an integrated package of systems, services, products, and professional expertise that is administered together to support a virtual or blended public school. Contracts generally span multiple years with performance obligations being isolated to annual periods which generally coincide with the fiscal year. Customers of these programs can obtain administrative support, information technology, academic support services, online curriculum, learning systems platforms and instructional services under the terms of a negotiated service agreement. The schools receive funding on a per student basis from the state in which the public school or school district is located. Shipments of materials for schools that occur in the fourth fiscal quarter and the upcoming school year are recorded in deferred revenue.

​

The Company generates revenues under contracts with virtual and blended public schools and includes the

following components, where required:

​

●providing each of a school’s students with access to the Company’s online school and lessons;
●offline learning kits, which include books and materials to supplement the online lessons;
●the use of a personal computer and associated reclamation services;
●internet access and technology support services;
●instruction by a state-certified teacher; and
●management and technology services necessary to support a virtual or blended school. In certain contracts, revenues are determined directly by per enrollment funding.

​

To determine the ratable amount of revenue to recognize in a fiscal quarter, the Company estimates the total expected funds each school will receive in a particular school year. Total funds for a school are primarily a function of the number of students enrolled in the school and established per enrollment funding levels, which are generally published on an annual basis by the state or school district. The Company reviews its estimates of funding periodically, and updates as necessary, by adjusting its year-to-date earned revenues to be proportional to the total expected revenues to be earned during the fiscal year. Actual school funding may vary from these estimates and the impact of these differences could impact the Company’s results of operations. Since the end of the school year coincides with the end of the fiscal year, annual revenues are generally based on actual school funding and actual costs incurred (including costs for the Company’s services to the schools plus other costs the schools may incur). The Company’s reported results are subject to annual school district financial audits, which incorporate enrollment counts, funding and other routine financial audit considerations. The results of these audits are incorporated into the Company’s monthly funding estimates. Historically, aggregate funding estimates have differed from actual reimbursements, generally in the range of 2% of annual revenue or less, which may vary from year to year. For the years ended June 30, 2025, 2024 and 2023, the Company’s aggregate funding estimates differed from actual reimbursements impacting total reported revenue by approximately 0.8%, 1.8%, and 2.8%, respectively.

Each state and/or school district has variations in the school funding formulas and methodologies that it uses to estimate funding for revenue recognition at its respective schools. As the Company estimates funding for each school, it takes into account the state definition for count dates on which reported enrollment numbers will be used for per pupil funding. The parameters the Company considers in estimating funding for revenue recognition purposes include school district count definitions, withdrawal rates, new registrations, average daily attendance, special needs enrollment, academic progress, historical completion, student location, funding caps and other state specified categorical program funding.

Under the contracts where the Company provides products and services to schools, the Company is responsible for substantially all of the expenses incurred by the school and has generally agreed to absorb any operating losses of the schools in a given school year. These school operating losses represent the excess of costs incurred over revenues earned by the virtual or blended public school (the school’s expected funding), as reflected in its respective financial statements, including Company charges to the schools. To the extent a school does not receive sufficient funding for each student enrolled in the school, the school would still incur costs associated with serving the unfunded enrollment. If losses due to unfunded enrollments result in a net operating loss for the year that loss is reflected as a reduction in the revenues and net receivables that the Company collects from the school. A school net operating loss in one year does not necessarily mean the Company anticipates losing money on the entire contract with the school. However, a school’s net operating loss may reduce the Company’s ability to collect its management fees in full and revenues recognized are constrained to reflect the expected cash collections from such schools. The Company records the school’s estimated net operating loss against revenues based upon the percentage of actual revenues in the period to total estimated revenues for the fiscal year. Actual school net operating losses may vary from these estimates or revisions, and the impact of these differences could have a material impact on results of operations. For the years ended June 30, 2026, 2025 and 2024, the Company’s revenues included an adjustment for net school operating losses at the schools of $17.2 million, $14.5 million, and $17.0 million, respectively. Because the Company has agreed to absorb any operating losses of the schools, the Company records the expenses incurred by the school as both revenue and expense in the consolidated statements of operations. For the years ended June 30, 2026, 2025 and 2024, the Company recognized revenue associated with these schools of $683.6 million, $662.6 million and $576.4 million, respectively.

​

Subscription-based Contracts

​

The Company provides certain online curriculum and services to schools and school districts under subscription agreements. Revenues from the licensing of curriculum under subscription arrangements are recognized on a ratable basis over the subscription period. Revenues from professional consulting, training and support services are deferred and recognized ratably over the service period.

​

In addition, the Company contracts with individual customers who have access for one to two years to company-provided online curriculum and generally prepay for services to be received. Adult learners enroll in courses that provide specialized training in a specific industry. Each of these contracts is considered to be one performance obligation. The Company recognizes these revenues ratably over the maximum term of the customer contract based on the defined contract price.

​

Enterprise Contracts

​

The Company provides online job training over a specified contract period to enterprises. Each of these contracts is considered to be one performance obligation. The Company recognizes these revenues based on the number of students trained during the term of the contract based on the defined contract price.

​

Disaggregated Revenues

​

The revenue recognition related to the types of contracts discussed above can span both of the Company’s lines of revenue as shown below. For example, a funding-based contract may include both General Education and Career Learning students. In total, there is one performance obligation and revenue is recognized over the fiscal year. The revenue is then disaggregated between General Education and Career Learning based on the Company’s estimated full-year enrollment totals of each category. During the years ended June 30, 2026, 2025 and 2024, approximately 96%, 95%, and 93%, respectively, of the Company’s General Education revenues, and 100%, 100% and 100%, respectively, of the Company’s Middle – High School Career Learning revenues, were from funding-based contracts.

​

The following table presents the Company’s revenues disaggregated based on its two lines of revenue for the years ended June 30, 2026, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

General Education

​

$

1,417,785

​

$

1,448,676

​

$

1,289,193

Career Learning

​

​

​

​

​

​

​

​

​

Middle - High School

​

​

1,043,726

​

​

876,287

​

​

651,191

Adult

​

​

56,570

​

​

80,354

​

​

99,685

Total Career Learning

​

​

1,100,296

​

​

956,641

​

​

750,876

Total Revenues

​

$

2,518,081

​

$

2,405,317

​

$

2,040,069

​

Concentration of Customers

​

During each of the years ended June 30, 2026, 2025 and 2024, the Company had no contracts that represented greater than 10% of total revenues.

​

Contract Balances

​

The timing of revenue recognition, invoicing, and cash collection results in accounts receivable, unbilled receivables (a contract asset) and deferred revenue (a contract liability) in the consolidated balance sheets. Accounts receivable are recorded when there is an executed customer contract and the customer is billed. An allowance is recorded to reflect expected losses at the time the receivable is recorded. The collectability of outstanding receivables is evaluated regularly by the Company to determine if additional allowances are needed. Unbilled receivables are created when revenue is earned prior to the customer being billed. Deferred revenue is recorded when customers are billed or cash is collected in advance of services being provided.

​

The opening and closing balances of the Company’s accounts receivable, unbilled receivables and deferred revenue are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Accounts receivable

​

$

664,788

​

$

559,646

​

$

472,754

Unbilled receivables (included in accounts receivable)

​

​

24,351

​

​

19,902

​

​

19,499

Deferred revenue

​

​

20,553

​

​

26,995

​

​

35,742

Deferred revenue, long-term (included in other long-term liabilities)

​

​

58

​

​

327

​

​

1,097

​

The difference between the opening and closing balance of the accounts receivable and unbilled receivables relates to the timing of the Company’s billing in relation to month end and its contracts. The difference between the opening and closing balance of the deferred revenue relates to the timing difference between billings to customers and the term of the contract, as well as changes in the estimates of variable consideration. Typically, each of these balances is at its highest during the first quarter of the fiscal year and lowest at the end of the fiscal year. The amount of revenue recognized during the years ended June 30, 2026, 2025 and 2024, that was included in the previous July 1st deferred revenue balance was $25.8 million, $32.0 million, and $74.4 million, respectively. During the years ended June 30, 2026, 2025 and 2024, the Company recorded revenues of $18.4 million, $35.9 million and $51.0 million, respectively, related to performance obligations satisfied in prior periods.

​

Performance Obligations

​

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For the majority of its contracts, the Company’s performance obligations are satisfied over time, as the Company delivers, and the customer receives the services, over the service period of the contract. The Company’s payment terms are generally net 30 or net 45, but can vary depending on the customer or when the school receives its funding from the state.

​

The Company has elected, as a practical expedient, not to report the value of unsatisfied performance obligations for contracts with customers that have an expected duration of one year or less. The amount of unsatisfied performance obligations for contracts with customers which extend beyond one year as of June 30, 2026 was $0.1 million.

​

Significant Judgments

​

The Company determined that the majority of its contracts with customers contain one performance obligation. The Company markets the products and services as an integrated package building off its curriculum offerings. It does not market distinct products or services to be sold independently from the curriculum offering. The Company provides the significant service of integrating the goods and services into the operation of the school and education of its students, for which the customer has contracted.

​

The Company has determined that the time elapsed method is the most appropriate measure of progress towards the satisfaction of the performance obligation. Generally, the Company delivers the integrated products and services package over the course of the Company’s fiscal year. This package includes enrollment, marketing, teacher training, etc. in addition to the core curriculum and instruction. All of these activities are necessary and contribute to the overall education of its students, which occurs evenly throughout the year. Accordingly, the Company recognizes revenue on a straight-line basis.

​

The Company determined that the expected value method is the most appropriate method to account for variable consideration and the Company’s forecasting method is an estimation process that uses probability to determine expected funding. On a monthly basis, the Company estimates the total funds each school will receive in a particular school year and the amount of full-year school revenues and operating expenses to determine the amount of revenue the Company will recognize. Enrollment and state funding rates are key inputs to this estimate. The estimates are adjusted monthly, and a cumulative catch-up adjustment is recorded to revenue as necessary to reflect the total revenues earned to date to be proportional to the total revenues to be earned in the fiscal year. The Company builds in known constraints (i.e., enrollment, funding, net operating losses, etc.) into the estimate of the variable consideration to record the most probable amount.

​

Sales Taxes

Sales tax collected from customers is excluded from revenues. Collected but unremitted sales tax is included as part of accrued liabilities in the consolidated balance sheets. Revenues do not include sales tax as the Company considers itself a pass-through conduit for collecting and remitting sales tax.

​

Shipping and Handling Costs

Shipping and handling costs are expensed when incurred and are classified as instructional costs and services in the consolidated statements of operations. Shipping and handling charges invoiced to a customer are included in revenues.

Research and Development Costs

All research and development costs, including patent application costs, are expensed as incurred. Research and development costs totaled $22.0 million, $16.6 million and $16.7 million for the years ended June 30, 2026, 2025 and 2024, respectively, and are included within selling, general and administrative expenses in the consolidated statements of operations.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents generally consist of cash on hand and cash held in money market and demand deposit accounts. The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company periodically has cash balances which exceed federally insured limits.

Investments in Marketable Securities

The Company’s marketable securities generally consist of bonds and other securities which are classified as held-to-maturity. The securities with maturities between three months and one year are classified as short-term and are included in marketable securities on the consolidated balance sheets. The securities with maturities greater than one year are classified as long-term and are included in deposits and other assets on the consolidated balance sheets. Held-to-maturity securities are recorded at their amortized cost. The Company recorded interest income of $30.4 million, $31.6 million and $25.6 million for the years ended June 30, 2026, 2025 and 2024, respectively. This activity is recorded within other income (expense) within the consolidated statements of operations.

The Company reviews the held-to-maturity debt securities for declines in fair value below the amortized cost basis under the credit loss model of Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments – Credit Losses (“ASC 326”). Any decline in fair value related to a credit loss is recognized in the consolidated statements

of operations, with the amount of the loss limited to the difference between fair value and amortized cost. As of June 30, 2026 and 2025, the allowance for credit losses recognized related to held-to-maturity debt securities was $0.2 million and zero, respectively.

As of June 30, 2026, the Company’s marketable securities consisted of investments in corporate bonds, U.S. Treasury notes and commercial paper. The short-term and long-term portions were $203.6 million and $76.2 million, respectively. The maturities of the Company’s long-term marketable debt securities range from one to two years.

The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands).

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for

​

​

Net Carrying

​

​

Gross Unrealized

​

​

​

​

​

Amortized Cost

​

​

Credit Losses

​

​

Amount

​

​

Gains (Losses)

​

​

Fair Value

Corporate Bonds

$

112,160

​

$

(160)

​

$

112,000

​

$

(269)

​

$

111,731

U.S. Treasury Notes

​

141,689

​

​

(50)

​

​

141,639

​

​

(259)

​

​

141,380

Commercial Paper

​

25,956

​

​

(12)

​

​

25,944

​

​

-

​

​

25,944

Total

$

279,805

​

$

(222)

​

$

279,583

​

$

(528)

​

$

279,055

​

As of June 30, 2025, the Company’s marketable securities consisted of investments in corporate bonds, U.S. Treasury notes, and commercial paper. The short-term and long-term portions were $202.8 million and $26.1 million, respectively. The maturities of the Company’s long-term marketable debt securities range from one to two years. The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands).

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for

​

​

Net Carrying

​

​

Gross Unrealized

​

​

​

​

​

Amortized Cost

​

​

Credit Losses

​

​

Amount

​

​

Gains (Losses)

​

​

Fair Value

Corporate Bonds

$

48,837

​

$

-

​

$

48,837

​

$

97

​

$

48,934

U.S. Treasury Notes

​

35,816

​

​

-

​

​

35,816

​

​

27

​

​

35,843

Commercial Paper

​

144,257

​

​

-

​

​

144,257

​

​

(6)

​

​

144,251

Total

$

228,910

​

$

-

​

$

228,910

​

$

118

​

$

229,028

​

In addition to bonds and other held-to-maturity securities, the Company’s marketable securities also include investments in publicly held equity securities. The publicly held equity securities have readily determinable fair values, are included in deposits and other assets on the consolidated balance sheets, and are measured at fair value with changes recognized in other income (expense) within the consolidated statement of operations.

As of June 30, 2026 and 2025, the Company’s investments in publicly held equity securities were $42.3 million and $19.9 million, respectively. For the years ended June 30, 2026, 2025 and 2024, the Company recorded a net unrealized (losses) gains of ($24.0) million, $1.0 million, and zero, respectively, related to changes in the fair value of the underlying securities of its publicly held equity securities.

Allowance for Credit Losses

The Company maintains an allowance for credit losses primarily for estimated losses resulting from the inability or failure of individual customers to make required payments. The Company maintains an allowance under ASC 326 based on historical losses, changes in payment history, customer-specific information, current economic conditions, and reasonable and supportable forecasts of future economic conditions. The allowance under ASC 326 is updated as additional losses are incurred or information becomes available related to the customer or economic conditions.

​

The Company’s allowance for credit losses increased from $31.1 million as of June 30, 2025 to $31.3 million as of June 30, 2026. The increase of $0.2 million is due primarily to a $16.4 million current year provision, less $16.2 million in adjustments and amounts written off. The Company’s allowance for credit losses decreased from $31.3 million as of June 30, 2024 to $31.1 million as of June 30, 2025. The decrease of $0.2 million is due primarily to a $15.3 million current

year provision, less $15.5 million in amounts written off.

​

The Company writes off accounts receivable based on the age of the receivable and the facts and circumstances surrounding the customer and reasons for non-payment. Actual write-offs might differ from the recorded allowance.

Inventories

Inventories consist primarily of textbooks and curriculum materials, a majority of which are supplied to virtual and blended public schools, and utilized directly by students. Inventories represent items that are purchased and held for sale and are recorded at the lower of cost (first-in, first-out method) or net realizable value. The Company classifies its inventory as current or long-term based on the holding period. As of June 30, 2026 and 2025, $14.7 million and $13.6 million, respectively, of inventory, net of reserves, was deemed long-term and included in deposits and other assets on the consolidated balance sheets. The provision for excess and obsolete inventory is established based upon the evaluation of the quantity on hand relative to demand. The excess and obsolete inventory reserve was $9.4 million and $6.8 million at June 30, 2026 and 2025, respectively.

Other Current Assets

Other current assets primarily include textbooks, curriculum materials and other supplies which are expected to be returned upon the completion of the school year. Materials not returned are expensed as part of instructional costs and services.

Capitalized Software-as-a-Service Costs

The Company capitalizes Software-as-a-Service (“SaaS”) license and implementation costs incurred in cloud computing contracts that are service contracts if they meet certain requirements. Those requirements are similar to the requirements for capitalizing costs incurred to develop internal-use software. Capitalization of SaaS costs ceases once the project is substantially complete and the software is ready for its intended purpose. Amortization is computed using the straight-line method over the term of the associated hosting contract, usually between three and five years. The Company classifies its SaaS implementation costs as current or long-term based on the terms of the associated hosting contract. SaaS implementation costs deemed short-term are included in prepaid expenses, and those deemed long-term are included in deposits and other assets, on the consolidated balance sheets. Impairment is recognized when it is no longer probable that the SaaS project will be completed and placed in service.

As of June 30, 2026 and 2025, the Company recorded $18.0 million and $17.5 million, respectively, of costs related to SaaS implementation within prepaid expenses in the consolidated balance sheets. As of June 30, 2026 and 2025, the Company recorded $28.1 million and $43.3 million, respectively, of costs related to SaaS implementation within deposits and other assets in the consolidated balance sheets.

​

During the years ended June 30, 2026, 2025 and 2024, the Company amortized $13.8 million, $3.4 million, and zero, respectively, of SaaS implementation costs to instructional costs and services. SaaS implementation costs amortized to selling, general and administrative expenses were $17.3 million, $16.0 million, and $15.8 million, during the years ended June 30, 2026, 2025 and 2024, respectively. There were no material impairments of SaaS implementation costs for the years ended June 30, 2026, 2025 and 2024.

​

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is calculated using the straight-line method over the estimated useful life of the asset (or the lesser of the term of the lease and the estimated useful life of the asset under the finance lease). Amortization of assets capitalized under finance lease arrangements is included in depreciation expense. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the asset. The determination of the lease term is discussed below under “Leases.”

Property and equipment are depreciated over the following useful lives:

​

​

​

​

​

  ​ ​ ​

Useful Life

Computer hardware

​

3 - 5 years

Computer software

​

3 - 5 years

Financed computers and printers

​

3 years

Web site development

​

3 - 5 years

Office equipment

​

3 years

Furniture and fixtures

​

5 - 7 years

Leasehold improvements

​

Shorter of useful life or term of the lease

​

The Company makes an estimate of unreturned student computers and printers based on an analysis of recent trends of returns. The Company recorded accelerated depreciation of $5.4 million, $4.3 million and $4.0 million for the years ended June 30, 2026, 2025 and 2024, respectively, related to unreturned student computers and printers.

The Company fully expenses computer peripheral equipment (e.g., keyboards, mouses) upon purchase as recovery has been determined to be uneconomical. These expenses totaled $4.4 million, $3.8 million and $4.0 million for the years ended June 30, 2026, 2025 and 2024, respectively, and are recorded as instructional costs and services.

Capitalized Software Costs

The Company develops software for internal use. Software development costs incurred during the application development stage are capitalized. The Company amortizes these costs over the estimated useful life of the software, which is generally three years. Capitalized software development costs are stated at cost less accumulated amortization.

Capitalized software additions totaled $61.6 million, $36.4 million and $40.7 million for the years ended June 30, 2026, 2025 and 2024, respectively. There were no material write-downs of capitalized software projects for the years ended June 30, 2026, 2025 and 2024.

Capitalized Curriculum Development Costs

The Company internally develops curriculum, which is primarily provided as online content and accessed via the Internet. The Company also creates textbooks and other materials that are complementary to online content.

​

The Company capitalizes curriculum development costs incurred during the application development stage, as well as the design and deployment phases of the project. As a result, a significant portion of the Company’s courseware development costs qualify for capitalization due to the concentration of its development efforts on the content of the courseware. Capitalization ends when a course is available for general release to its customers, at which time amortization of the capitalized costs begins. The period of time over which these development costs are amortized is generally five years.

Total capitalized curriculum development additions were $16.7 million, $21.8 million and $18.7 million for the years ended June 30, 2026, 2025 and 2024, respectively. These amounts are recorded on the consolidated balance sheets, net of amortization charges. There were no material write-downs of capitalized curriculum development costs for the years ended June 30, 2026, 2025 and 2024.

Leases

​

The Company’s principal leasing activities include computers and peripherals, classified as finance leases, and facilities, classified as operating leases.

​

Leases are classified as operating leases unless they meet any of the criteria below to be classified as a finance lease:

●the lease transfers ownership of the asset at the end of the lease;
●the lease grants an option to purchase the asset which the lessee is expected to exercise;
●the lease term reflects a major part of the asset’s economic life;
●the present value of the lease payments equals or exceeds the fair value of the asset; or
●the asset is specialized with no alternative use to the lessor at the end of the term.

​

Finance Leases

​

The Company enters into agreements to finance the purchase of computers and peripherals. Individual leases typically include 3-year payment terms. The Company pledges the assets financed to secure the outstanding leases.

​

Operating Leases

​

The Company enters into agreements for facilities that serve as offices for its headquarters and school operations. Lease terms vary between 1 and 7 years. Certain leases include renewal options, usually based upon current market rates, as well as termination rights. The Company performs an evaluation of each lease to determine if the lease payments included in the renewal option should be included in the initial measurement of the lease liability.

Discount Rate

​

The present value of the lease payments is calculated using either the rate implicit in the lease, or the lessee’s incremental borrowing rate, over the lease term. For the majority of the Company’s finance and operating leases, the stated rate is not defined within the lease terms. Therefore, the Company uses its incremental borrowing rate as the discount rate. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment and is calculated using comparative credit ratings.

​

Policy Elections

​

Short-term Leases

​

The Company has elected as an ongoing accounting policy election not to record a right-of-use asset or lease liability on its short-term facility leases of 12 months or less, and will expense its lease payments on a straight-line basis over the lease term. The accounting policy election is made by class of underlying asset to which the right of use relates. The Company has elected to apply the accounting policy election only to operating leases.

Goodwill and Intangible Assets

The Company records as goodwill the excess of the purchase price over the fair value of the identifiable net assets acquired. Finite-lived intangible assets acquired in business combinations subject to amortization are recorded at their fair value. Finite-lived intangible assets include trade names, acquired customers and distributors, developed technology, and non-compete agreements. Such intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense for the years ended June 30, 2026, 2025 and 2024 was $7.4 million, $9.9 million and $12.9 million, respectively, and is included within selling, general, and administrative expenses in the consolidated statements of operations. Future amortization of intangible assets is expected to be $5.9 million, $4.1 million, $0.3 million, $0.2 million and $0.1 million in the fiscal years ending June 30, 2027 through June 30, 2031, respectively, and $0.1 million thereafter.

The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset. As part of the Company’s review of its long-lived assets for impairment (discussed in more detail in Note 3, “Summary of Significant Accounting Policies – Impairment of Long-Lived Assets”) during the year ended June 30, 2025, the Company recorded an aggregate impairment loss of $32.2 million, of which $32.0

million related to trade names and $0.2 million related to developed technology. The $32.2 million is recorded under impairment of long-lived assets within the consolidated statements of operations.

The Company has one reporting unit. The process for testing goodwill and intangible assets with indefinite lives for impairment is performed annually, as well as when an event triggering impairment may have occurred. Companies are also allowed to qualitatively assess goodwill impairment through a screening process which would permit companies to forgo the quantitative impairment test as part of their annual goodwill impairment process. The Company performs its annual assessment on May 31st, which is then updated for any changes in condition as of June 30th.

​

During the years ended June 30, 2026, 2025 and 2024, there were no events or changes in circumstances that would indicate that the carrying amount of the goodwill was impaired.

​

The following table represents the balance of the Company’s goodwill for the years ended June 30, 2026, 2025 and 2024:

​

​

​

​

​

($ in millions)

  ​ ​ ​

Amount

Goodwill

​

​

​

Balance as of June 30, 2024

​

$

246.7

​

​

​

​

Balance as of June 30, 2025

​

$

246.7

​

​

​

—

Balance as of June 30, 2026

​

$

246.7

​

The following table represents the balance of the Company’s intangible assets as of June 30, 2026 and 2025:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2026

​

June 30, 2025

($ in millions)

  ​ ​ ​

Gross
Carrying
Amount

  ​ ​ ​

Accumulated
 Amortization
and
Impairment

  ​ ​ ​

Net
Carrying
Value

  ​ ​ ​

Gross
Carrying
Amount

  ​ ​ ​

Accumulated
Amortization
and Impairment

  ​ ​ ​

Net
Carrying
Value

Trade names

  ​ ​ ​

$

70.6

  ​ ​ ​

$

(63.8)

  ​ ​ ​

$

6.8

​

$

70.6

​

$

(60.4)

​

$

10.2

Customer and distributor relationships

​

​

37.1

​

​

(35.8)

​

​

1.3

​

​

37.1

​

​

(33.7)

​

​

3.4

Developed technology

​

​

21.7

​

​

(19.1)

​

​

2.6

​

​

21.7

​

​

(17.3)

​

​

4.4

Other

​

​

1.4

​

​

(1.2)

​

​

0.2

​

​

1.4

​

​

(1.2)

​

​

0.2

Total

​

$

130.8

​

$

(119.9)

​

$

10.9

​

$

130.8

  ​

$

(112.6)

​

$

18.2

​

Impairment of Long-Lived Assets

Long-lived assets include property, equipment, right-of-use assets, capitalized curriculum and software developed or obtained for internal use. Management reviews the Company’s recorded long-lived assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company determines the extent to which an asset may be impaired based upon its expectation of the asset’s future usability as well as reasonable assurance that the future cash flows associated with the asset will be in excess of its carrying amount. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset.

​

During the year ended June 30, 2025, the Company reviewed an asset group unrelated to its core operations, comprised entirely of Galvanize, a wholly-owned subsidiary, for impairment and determined that the carrying value exceeded its fair value. This review was prompted by changes in the expected use of certain long-lived assets as the Company decided to exit specific leased facilities. The fair value of the asset group was determined using a discounted cash flow methodology based on expected future cash flows. The Company recorded an impairment loss of $59.5 million, which is separately disclosed in the consolidated statements of operations under impairment of long-lived assets and

included in income from operations. This loss comprises $32.2 million associated with intangible assets and $27.3 million related to operating lease right-of-use assets.

​

During the years ended June 30, 2026 and 2024, there were no events or changes in circumstances that may indicate that the carrying amount of the long-lived assets may not be recoverable.

Income Taxes

Deferred tax assets and liabilities are computed based on the difference between the financial reporting and income tax bases of assets and liabilities using the enacted marginal tax rate. The net deferred tax asset is reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the net deferred tax asset will not be realized.

Stock-Based Compensation

The Company estimates the fair value of share-based awards on the date of grant. The fair value of restricted stock awards is based on the closing price of the Company’s common stock on the date of grant. Certain restricted stock awards with a market-based performance component are valued using a Monte Carlo simulation model that considers a variety of factors, including, but not limited to, the Company’s common stock price, risk-free rate, and expected stock price volatility over the expected life of awards. The Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture.

Advertising and Marketing Costs

Advertising and marketing costs consist primarily of internet advertising and online marketing, and are expensed when incurred. Advertising costs totaled $92.1 million, $103.6 million and $96.5 million for the years ended June 30, 2026, 2025 and 2024, respectively, and are included within selling, general, and administrative expenses in the consolidated statements of operations.

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. Measurements are described in a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

​

The three levels of inputs used to measure fair value are:

​

Level 1:

Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date;

​

Level 2:

Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and

​

Level 3:

Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation.

​

The carrying values reflected in the consolidated balance sheets for cash and cash equivalents, receivables, and short-term obligations approximate their fair values, as they are largely short-term in nature. As of June 30, 2026, the estimated fair value of the long-term debt was $747.6 million. The Company estimated the fair value based on the quoted

market prices in an inactive market (Level 2). The long-term debt, comprised of the Company’s convertible senior notes due 2027, is recorded at face value less the unamortized debt issuance costs on its consolidated balance sheet, and is discussed in more detail in Note 7, “Debt.” As of June 30, 2026, the estimated fair value of the Company’s held-to-maturity marketable securities based on the quoted market prices in an inactive market (Level 2) was $266.2 million. As of June 30, 2026, the estimated fair value of the Company’s held-to-maturity marketable securities based on quoted prices in an active market (Level 1) was $12.9 million. As of June 30, 2026, the fair value of the Company’s publicly held equity securities was $42.3 million. The fair value was determined using quoted prices in an active market (Level 1). The held-to-maturity marketable securities and publicly held equity securities are discussed in more detail in Note 3, “Summary of Significant Accounting Policies - Investments in Marketable Securities.”

​

There was no activity related to the Company’s fair value measurements categorized as Level 3 in the valuation hierarchy, valued on a recurring basis, for the years ended June 30, 2026, 2025 and 2024.

​

Net Income (Loss) Per Common Share

Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The weighted average number of shares of common stock outstanding includes vested restricted stock awards. Diluted net income (loss) per share (“EPS”) reflects the potential dilution that could occur assuming vesting of all dilutive unvested restricted stock awards. The dilutive effect of restricted stock awards is determined using the treasury stock method. Under the treasury stock method, the proceeds received from the vesting of restricted stock awards, the amount of compensation cost for future service not yet recognized by the Company and the amount of tax benefits that would be recorded as income tax expense when the stock options become deductible for income tax purposes are all assumed to be used to repurchase shares of the Company’s common stock. Restricted stock awards are not included in the computation of diluted net income (loss) per share when they are anti-dilutive. Common stock outstanding reflected in the Company’s consolidated balance sheets includes restricted stock awards outstanding. The dilutive effect of the Company’s convertible debt is determined using the if-converted method when the Company’s stock is trading above the conversion price. However, based on the structure of the instrument and how it is settled upon conversion, it would produce a similar result as the previously applied treasury stock method. The dilutive effect of the Company’s employee stock purchase plan shares is also determined by the treasury stock method. Under the treasury stock method, the total expected employee payroll contributions and unrecognized compensation cost are assumed to be used to repurchase shares of the Company’s common stock.

The following schedule presents the calculation of basic and diluted net income (loss) per share:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

  ​

  ​

​

2026

​

2025

​

2024

​

​

​

​

(In thousands except share and per share data)

Basic net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

​

​

$

338,192

​

$

287,941

​

$

204,183

Weighted average common shares — basic

​

​

​

​

42,717,156

​

​

43,041,274

​

​

42,626,588

Basic net income per share

​

​

​

$

7.92

​

$

6.69

​

$

4.79

​

​

​

​

​

​

​

​

​

​

​

​

Diluted net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

​

​

$

338,192

​

$

287,941

​

$

204,183

Share computation:

​

​

​

​

​

​

​

​

​

​

​

Weighted average common shares — basic

​

​

​

​

42,717,156

​

​

43,041,274

​

​

42,626,588

Effect of dilutive restricted stock, convertible debt, and the employee stock purchase plan

​

​

​

​

4,615,699

​

​

5,372,443

​

​

908,853

Weighted average common shares — diluted

​

​

​

​

47,332,855

​

​

48,413,717

​

​

43,535,441

Diluted net income per share

​

​

​

$

7.14

​

$

5.95

​

$

4.69

​

For the years ended June 30, 2026, 2025 and 2024, shares issuable in connection with restricted stock, convertible debt, and the 2025 Employee Stock Purchase Plan (the “2025 ESPP”) of 2,778,431, 2,400,621 and 7,658 respectively, were excluded from the diluted income per common share calculation because the effect would have been anti-dilutive. In connection with the issuance of the 1.125% Convertible Senior Notes due 2027 (“Notes”), the Company entered into capped call transactions (the “Capped Call Transactions”) as described further in Note 7, “Debt.” The Capped Call Transactions are intended to reduce the potential dilution to the Company’s common stock upon conversion of the Notes and/or to offset any cash payments the Company may be required to make in excess of the principal amount of the Notes.

Reclassification

Certain previous year amounts have been reclassified to conform with current year presentation, as related to the balance sheets.
v3.26.1
Property and Equipment and Capitalized Software and Curriculum
 12 Months Ended
Jun. 30, 2026
Property and Equipment and Capitalized Software and Curriculum  
Property and Equipment and Capitalized Software and Curriculum

4. Property and Equipment and Capitalized Software and Curriculum

Property and equipment consists of the following at:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

​

2025

​

​

(In thousands)

Financed computers and printers

​

$

225,777

​

$

173,009

Computer software

​

 

3,927

​

 

5,568

Computer hardware

​

 

3,722

​

 

4,604

Leasehold improvements

​

 

8,587

​

 

10,327

State testing computers

​

​

7,149

​

​

7,151

Furniture and fixtures

​

 

2,252

​

 

3,107

Office equipment

​

 

79

​

 

129

Web site development

​

​

2,626

​

​

436

​

​

 

254,119

​

 

204,331

Less accumulated depreciation and amortization

​

 

(152,077)

​

 

(125,749)

​

​

$

102,042

​

$

78,582

​

The Company recorded depreciation expense related to property and equipment reflected in selling, general, and administrative expenses of $3.0 million, $2.8 million and $3.8 million during the years ended June 30, 2026, 2025 and 2024, respectively. Depreciation expense of $54.6 million, $39.3 million and $32.9 million related to property and equipment is reflected in instructional costs and services during the years ended June 30, 2026, 2025 and 2024, respectively.

The Company incurs maintenance and repair expenses, which are expensed as incurred, and are generally recorded in selling, general, and administrative expenses.

Capitalized software costs consist of the following at:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

​

2025

​

​

(In thousands)

Capitalized software

​

$

276,089

​

$

323,782

Less accumulated depreciation and amortization

​

 

(181,087)

​

 

(248,468)

​

​

$

95,002

​

$

75,314

​

The Company recorded amortization expense of $29.8 million, $35.6 million and $34.4 million related to capitalized software reflected in instructional costs and services and $13.0 million, $9.5 million and $7.9 million reflected in selling, general, and administrative expenses during the years ended June 30, 2026, 2025 and 2024, respectively.

Capitalized curriculum development costs consist of the following at:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

​

​

(In thousands)

Capitalized curriculum development costs

​

$

204,674

​

$

187,641

Less accumulated depreciation and amortization

​

 

(147,779)

​

 

(129,057)

​

​

$

56,895

​

$

58,584

​

The Company recorded amortization expense of $18.9 million, $17.5 million and $17.7 million related to

capitalized curriculum development costs reflected in instructional costs and services during the years ended June 30, 2026, 2025 and 2024, respectively.
v3.26.1
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Taxes  
Income Taxes

5. Income Taxes

The provision for income taxes is based on earnings reported in the consolidated financial statements. A deferred income tax asset or liability is determined by applying currently enacted tax laws and rates to the expected reversal of the cumulative temporary differences between the carrying value of assets and liabilities for financial statement and income tax purposes. Deferred income tax expense or benefit is measured by the change in the deferred income tax asset or liability during the year.

Deferred tax assets and liabilities result primarily from temporary differences in book versus tax basis accounting. Deferred tax assets and liabilities consist of the following:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

​

​

(In thousands)

Deferred tax assets

​

​

​

​

​

​

Net operating loss carryforward

​

$

13,524

​

$

13,888

Reserves

​

 

10,545

​

 

9,154

Accrued expenses

​

 

11,916

​

 

15,441

Stock compensation expense

​

 

7,320

​

 

6,881

Other assets

​

 

2,170

​

 

3,308

Convertible debt

​

 

9,085

​

 

4,059

Deferred revenue

​

 

122

​

 

260

Capitalized software and website development costs

​

​

—

​

​

4,680

Lease liability

​

​

2,659

​

​

11,136

Total deferred tax assets

​

 

57,341

​

 

68,807

Deferred tax liabilities

​

​

​

​

​

​

Capitalized curriculum development

​

 

(9,758)

​

 

(10,071)

Capitalized software and website development costs

​

 

(24,023)

​

 

—

Property and equipment

​

 

(18,259)

​

 

(11,460)

Right-of-use assets

​

​

(1,755)

​

​

(3,832)

Returned materials

​

 

(2,220)

​

 

(2,722)

Purchased intangibles

​

​

(6,943)

​

​

(6,717)

Total deferred tax liabilities

​

 

(62,958)

​

 

(34,802)

Net deferred tax (liability) asset before valuation allowance

​

 

(5,617)

​

 

34,005

Valuation allowance

​

 

(7,416)

​

 

(7,628)

Net deferred tax (liability) asset

​

$

(13,033)

​

$

26,377

Reported as:

​

​

​

​

​

​

Long-term deferred tax (liability) asset

​

$

(13,033)

​

$

26,377

​

The Company maintained a valuation allowance on net noncurrent deferred tax assets of $7.4 million and $7.6 million as of June 30, 2026 and 2025, respectively, predominantly related to foreign and state income tax net operating losses ("NOL").

At June 30, 2026, the Company had approximately $24.5 million of available federal NOL carryforwards solely related to the acquisition of Galvanize in January 2020. The available federal NOL carryforwards were generated after 2017 and have an indefinite carryforward period due to the Tax Cuts and Jobs Act (the “Tax Act”). Section 382 of the Internal Revenue Code limits the utilization of NOL carryforwards following a change of control. The Company has performed an analysis of the Section 382 ownership changes and have determined that it will be able to fully utilize its available NOLs subject to the Section 382 limitation.

At June 30, 2026, the Company had tax effected state NOL carryforwards of $1.0 million, net of valuation allowances, and will expire on various dates.

The components of the income before income taxes for the years ended June 30, 2026, 2025 and 2024 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Domestic

​

$

435,108

​

$

374,932

​

$

262,802

Foreign

​

 

5,850

​

 

6,016

​

 

5,863

Total income before income taxes

​

$

440,958

​

$

380,948

​

$

268,665

​

The components of the income tax expense (benefit) for the years ended June 30, 2026, 2025 and 2024 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

2026

​

2025

​

2024

​

​

(In thousands)

Current:

​

​

​

​

​

​

​

​

​

Federal

​

$

47,321

​

$

91,696

​

$

52,678

State

​

 

14,213

​

 

17,921

​

 

7,660

Foreign

​

 

1,238

​

 

1,173

​

 

1,254

Total current

​

 

62,772

​

 

110,790

​

 

61,592

Deferred:

​

​

​

​

​

​

​

​

​

Federal

​

 

38,372

​

 

(16,047)

​

 

(667)

State

​

 

1,621

​

 

(1,736)

​

 

3,557

Total deferred

​

 

39,993

​

 

(17,783)

​

 

2,890

Total income tax expense

​

$

102,765

​

$

93,007

​

$

64,482

​

Following the adoption of ASU 2023-09, the provision for income taxes can be reconciled to the income tax that would result from applying the statutory rate to the net income before income taxes as follows:

​

​

​

​

​

​

​

​

​

​

Year Ended June 30, 2026

​

​

​

Amount

​

Percent

​

​

​

(In thousands)

U.S. Federal Statutory Tax Rate

​

$

92,601

​

21.0

%

State and Local Income Tax Effects, net of federal tax benefit (a)

 

​

14,705

​

3.3

​

Foreign Tax Effects

 

​

(18)

​

-

​

Tax Credits

​

​

​

​

​

​

Research and development tax credits

 

​

(2,866)

​

(0.7)

​

Changes in Valuation Allowance

 

​

31

​

-

​

Nontaxable or Nondeductible Items

 

​

​

​

​

​

Stock-based compensation

 

​

(20,007)

​

(4.5)

​

Non-deductible compensation

 

​

17,329

​

3.9

​

Other

 

​

85

​

-

​

Changes in Unrecognized Tax Benefits

 

​

583

​

0.2

​

Other Adjustments

 

​

322

​

0.1

​

Effective Tax Rate

​

$

102,765

​

23.3

%

(a) State taxes in California, Texas, and Virginia made up the majority (greater than 50 percent) of the tax effect in this category.

​

Prior to the adoption of ASU 2023-09, the provision for income taxes can be reconciled to the income tax that would result from applying the statutory rate to the net income before income taxes as follows:

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

U.S. federal tax at statutory rates

​

21.0

%  

21.0

%  

Lobbying

 

-

​

0.1

​

Non-deductible compensation

​

2.7

​

0.8

​

State taxes, net of federal benefit

 

3.4

​

3.2

​

Research and development tax credits

 

(1.2)

​

(1.5)

​

Effects of foreign operations

 

-

​

0.1

​

Reserve for unrecognized tax benefits

 

0.4

​

0.5

​

Noncontrolling interests

 

-

​

-

​

Other

 

(0.2)

​

0.1

​

Stock-based compensation

​

(1.7)

​

(0.3)

​

Provision for income taxes

 

24.4

%  

24.0

%  

​

The decrease in the effective income tax rate for the year ended June 30, 2026, as compared to the effective tax rate for the year ended June 30, 2025, was primarily due to stock-based compensation. As of June 30, 2026 and 2025, the balance of income taxes payable was $27.5 million and $52.6 million, respectively. Income taxes payable is recorded within accrued liabilities on the consolidated balance sheets.

Tax Uncertainties

The Company follows the provisions of ASC 740, Income Taxes (“ASC 740”) which applies to all tax positions related to income taxes. ASC 740 provides a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return. ASC 740 clarifies accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. If the probability for sustaining a tax position is greater than

50%, then the tax position is warranted and recognition should be at the highest amount which would be expected to be realized upon ultimate settlement related to unrecognized tax benefits.

The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As of June 30, 2026, 2025 and 2024, the Company had $0.7 million, $0.5 million and $0.4 million in accrued interest and penalties, respectively.

The unrecognized tax benefits for the years ended June 30, 2026, 2025 and 2024 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

2026

​

2025

​

2024

​

​

(In thousands)

Balance at beginning of the year

​

$

5,514

​

$

4,286

​

$

3,156

Additions for prior year tax positions

​

 

277

​

 

486

​

 

591

Additions for current year tax positions

​

 

1,236

​

 

1,635

​

 

1,205

Reductions for prior year tax positions

​

​

(1,047)

​

​

(893)

​

​

(666)

Balance at end of the year

​

$

5,980

​

$

5,514

​

$

4,286

​

If recognized, all of the $6.0 million balance of unrecognized tax benefits as of June 30, 2026 would affect the effective tax rate. The Company does not anticipate a significant increase or decrease in unrecognized tax benefits in the next twelve months.

The Company remains subject to audit by the Internal Revenue Service for federal tax purposes for tax years after June 30, 2022. Certain state and foreign tax jurisdictions are also either currently under audit or remain open under the statute of limitations for the tax years after June 30, 2021.

Income Taxes Paid

Disclosed below is a summary of income taxes paid by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended June 30, 2026:

​

​

​

​

Year Ended June 30, 2026

​

Amount

​

(In thousands)

Federal

$

67,201

State and Local

​

19,963

Foreign

​

859

​

$

88,023

​

Income taxes paid (net of refunds) exceed 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:

​

​

​

​

State

​

​

California

$

6,475

​
v3.26.1
Finance and Operating Leases
 12 Months Ended
Jun. 30, 2026
Finance and Operating Leases  
Finance and Operating Leases

6. Finance and Operating Leases

Finance Leases

The Company is a lessee under finance leases for computers and peripherals under agreements with Banc of America Leasing & Capital, LLC (“BALC”) and CSI Leasing, Inc. (“CSI Leasing”). As of June 30, 2026 and 2025, the finance lease liability was $116.9 million and $86.9 million, respectively, with lease interest rates ranging from 4.12% to 6.72%. As of June 30, 2026 and 2025, the balance of the associated right-of-use assets was $95.3 million and $69.5 million, respectively. The right-of-use asset is recorded within property and equipment, net on the consolidated balance sheets. Lease amortization expense associated with the Company’s finance leases is recorded within both instructional costs and services and selling, general, and administrative expenses on the consolidated statements of operations.

The Company entered into agreements with BALC and CSI Leasing in April 2020 and August 2022, respectively, to provide financing for its computers and peripherals. Individual leases with BALC include 36-month payment terms, fixed rates ranging from 4.75% to 6.72%, and a $1 purchase option at the end of each lease term. The Company has pledged the assets financed to secure the outstanding leases. Individual leases under the agreement with CSI Leasing include 36-month payment terms, but do not include a stated interest rate. The Company uses its incremental borrowing rate as the implied interest rate and the total lease payments to calculate its lease liability.

​

The following is a summary, as of June 30, 2026 and 2025, respectively, of the present value of the net minimum lease payments under the Company’s finance leases:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

​

2025

2026

​

$

—

​

$

45,781

2027

​

​

64,471

​

​

33,864

2028

​

​

42,580

​

​

12,095

2029

​

​

15,356

​

​

297

2030

​

​

373

​

​

—

Total minimum payments

​

​

122,780

​

​

92,037

Less: imputed interest

​

​

(5,848)

​

​

(5,154)

Finance lease liability

​

​

116,932

​

​

86,883

Less: current portion of finance lease liability

​

​

(60,477)

​

​

(42,316)

Long-term finance lease liability

​

$

56,455

​

$

44,567

​

Operating Leases

The Company is a lessee under operating leases for various facilities to support the Company’s operations. As of June 30, 2026 and 2025, the operating lease liability was $11.1 million and $46.6 million, respectively. As of June 30, 2026 and 2025, the balance of the associated right-of-use assets was $7.3 million and $16.0 million, respectively. The right-of-use asset is recorded within deposits and other assets on the consolidated balance sheets. Lease expense associated with the Company’s operating leases is recorded within both instructional costs and services and selling, general, and administrative expenses on the consolidated statements of operations.

​

Individual operating leases range in terms of 1 to 7 years and expire on various dates through fiscal year 2034 and the minimum lease payments are discounted using the Company’s incremental borrowing rate.

The following is a summary as of June 30, 2026 and 2025, respectively, of the present value of the minimum lease payments under the Company’s operating leases:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

​

2025

​

​

(in thousands)

2026

​

$

—

​

$

12,957

2027

​

​

3,128

​

​

8,942

2028

​

​

2,066

​

​

7,957

2029

​

​

1,684

​

​

7,776

2030

​

​

1,590

​

​

7,878

2031

​

​

1,406

​

​

4,748

Thereafter

​

​

2,443

​

​

—

Total minimum payments

​

​

12,317

​

​

50,258

Less: imputed interest

​

​

(1,264)

​

​

(3,703)

Operating lease liability

​

​

11,053

​

​

46,555

Less: current portion of operating lease liability

​

​

(2,737)

​

​

(11,391)

Long-term operating lease liability

​

$

8,316

​

$

35,164

​

The Company was subleasing one of its facilities through December 2025. Sublease income is recorded as an offset to the related lease expense within both instructional costs and services and selling, general, and administrative expenses on the consolidated statements of operations.

In December 2025, the Company signed an agreement with the landlord of its San Francisco lease to terminate the lease prior its expiration date and recorded a lease termination gain of $14.3 million as a result of eliminating its remaining lease liability and right-of-use asset. The lease termination gain is recorded within instructional costs and services within the consolidated statements of operations.

​

The following is a summary of the Company’s lease cost, weighted-average remaining lease term, weighted-average discount rate and certain other cash flows as it relates to its operating and finance leases for the years ended June 30, 2026, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

​

2026

​

2025

​

2024

​

​

​

(in thousands)

​

Lease cost

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Finance lease cost:

​

​

​

​

​

​

​

​

​

​

Instructional costs and services:

​

​

​

​

​

​

​

​

​

​

Amortization of right-of-use assets

​

$

52,326

​

$

37,400

​

$

31,099

​

Selling, general, and administrative expenses:

​

​

​

​

​

​

​

​

​

​

Amortization of right-of-use assets

​

$

918

​

$

237

​

$

—

​

Interest on lease liabilities

​

​

5,686

​

​

4,280

​

​

2,639

​

Operating lease cost:

​

​

​

​

​

​

​

​

​

​

Instructional costs and services:

​

​

​

​

​

​

​

​

​

​

Operating lease cost

​

​

3,867

​

​

9,154

​

​

9,605

​

Short-term lease cost

​

​

82

​

​

83

​

​

56

​

Sublease income

​

​

(126)

​

​

(262)

​

​

(328)

​

Selling, general, and administrative expenses:

​

​

​

​

​

​

​

​

​

​

Operating lease cost

​

​

1,318

​

​

4,077

​

​

6,019

​

Short-term lease cost

​

​

94

​

​

93

​

​

150

​

Sublease income

​

​

—

​

​

(149)

​

​

(491)

​

Total lease cost

​

$

64,165

​

$

54,913

​

$

48,749

​

​

​

​

​

​

​

​

​

​

​

​

Other information

​

​

​

​

​

​

​

​

​

​

Cash paid for amounts included in the measurement of lease liabilities

​

​

​

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

(16,943)

​

$

(12,396)

​

$

(14,990)

​

Financing cash flows from finance leases

​

​

(56,856)

​

​

(41,469)

​

​

(40,919)

​

Right-of-use assets obtained in exchange for new finance lease liabilities

​

​

82,500

​

​

68,995

​

​

35,652

​

Right-of-use assets obtained in exchange for new operating lease liabilities

​

​

1,325

​

​

1,012

​

​

864

​

Weighted-average remaining lease term - finance leases

​

​

2.00

yrs.

​

2.07

yrs.

​

2.02

yrs.

Weighted-average remaining lease term - operating leases

​

​

5.58

yrs.

​

5.13

yrs.

​

5.66

yrs.

Weighted-average discount rate - finance leases

​

​

4.71

%

​

5.34

%

​

5.62

%

Weighted-average discount rate - operating leases

​

​

4.05

%

​

2.95

%

​

2.92

%

​
v3.26.1
Debt
 12 Months Ended
Jun. 30, 2026
Debt  
Debt

​

7. Debt

The following is a summary, as of June 30, 2026 and 2025, respectively, of the components of the Company’s outstanding long-term debt:

​

​

​

​

​

​

​

​

​

  ​ ​ 

June 30, 

​

  ​ ​ 

2026

​

2025

​

​

(in thousands)

Convertible Senior Notes due 2027

​

$

420,000

​

$

420,000

Less: unamortized debt issuance costs

​

​

(2,005)

​

​

(3,678)

Total debt

​

​

417,995

​

​

416,322

Less: current portion of debt

​

​

—

​

​

—

Long-term debt

​

$

417,995

​

$

416,322

​

Future maturities of long-term debt are expected to be $420.0 million in the fiscal year ending June 30, 2028 and zero in each of the fiscal years ending June 30, 2027, 2029 and 2030.

Convertible Senior Notes due 2027

In August and September 2020, the Company issued $420.0 million aggregate principal amount of Notes. The Notes are governed by an indenture (the “Indenture”) between the Company and U.S. Bank National Association, as trustee. The net proceeds from the offering of the Notes were approximately $408.6 million after deducting the underwriting fees and other expenses paid by the Company.

The Notes bear interest at a rate of 1.125% per annum, payable semi-annually in arrears on March 1st and September 1st of each year, beginning on March 1, 2021. The Notes will mature on September 1, 2027. The Company recorded coupon interest expense of $4.7 million during each of the years ended June 30, 2026, 2025 and 2024.

The Company incurred debt issuance costs of $11.4 million which are amortized over the contractual term of the Notes. The Company recorded interest expense of $1.7 million, $1.6 million, and $1.6 million, respectively, related to the amortization of the debt issuance costs during each of the years ended June 30, 2026, 2025 and 2024.

Before June 1, 2027, noteholders will have the right to convert their Notes only upon the occurrence of certain events. After June 1, 2027, noteholders may convert their Notes at any time at their election until two days prior to the maturity date. The Company will settle conversions by paying cash up to the outstanding principal amount, and at the Company’s election, will settle the conversion spread by paying or delivering cash or shares of its common stock, or a combination of cash and shares of its common stock. The initial conversion rate is 18.9109 shares of common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $52.88 per share of common stock (lower strike price). The Notes are redeemable at the Company’s option at any time after September 6, 2024 at a cash redemption price equal to the principal amount of the Notes, plus accrued and unpaid interest, subject to certain stock price hurdles as discussed in the Indenture.

In connection with the Notes, the Company entered into privately negotiated Capped Call Transactions with certain counterparties. The Capped Call Transactions are expected to cover the aggregate number of shares of the Company’s common stock that initially underlie the Notes, and are expected to reduce potential dilution to the Company’s common stock upon any conversion of Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Notes. The upper strike price of the Capped Call Transactions is $86.174 per share. The cost of the Capped Call Transactions was $60.4 million and was recorded within additional paid-in capital.
v3.26.1
Equity Incentive Plan
 12 Months Ended
Jun. 30, 2026
Equity Incentive Plan  
Equity Incentive Plan

8. Equity Incentive Plan

On December 4, 2025, the Company’s stockholders approved a second amendment and restatement of the 2016 Equity Incentive Award Plan (the “amended and restated 2016 Plan”). The amended and restated 2016 Plan reflects an additional increase in the number of shares of common stock available for issuance by 740,000 shares and an extension of the term of the amended and restated 2016 Plan to October 17, 2035.

​

The amended and restated 2016 Plan is designed to attract, retain and motivate employees who make important contributions to the Company by providing such individuals with equity ownership opportunities. Awards granted under the amended and restated 2016 Plan may include stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards. Under the amended and restated 2016 Plan, unissued shares related to forfeited or canceled awards granted under the amended and restated 2016 Plan or awards granted under the Company’s 2007 Equity Incentive Award Plan (the “Prior Plan”) (to the extent such awards granted under the Prior Plan were outstanding as of December 15, 2016 and were forfeited or canceled prior to September 19, 2022), will again be available for issuance under the amended and restated 2016 Plan. Notwithstanding the foregoing, shares tendered to pay the exercise price or tax withholding with respect to a stock option, or shares that are not issued in connection with the settlement of a stock appreciation right on exercise thereof, or shares purchased on the open market with the cash proceeds from the exercise of

options will not again be available for issuance under the amended and restated 2016 Plan.

​

At June 30, 2026, the remaining aggregate number of shares of the Company’s common stock authorized for future issuance under the amended and restated 2016 Plan was 2,406,929. At June 30, 2026, there were 1,106,316 shares of the Company’s common stock that remain outstanding or nonvested under the amended and restated 2016 Plan and Prior Plan.

Compensation expense for all equity-based compensation awards is based on the grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The vesting of performance-based awards is contingent on the achievement of certain performance metrics. Compensation expense is recognized retroactively, through a cumulative catch-up adjustment, when the performance conditions are satisfied or when the Company determines that it is probable that the performance conditions will be satisfied. The amount of compensation expense recognized for a performance-based award is affected by the level of achievement attained. Management has established three levels of attainment: threshold, target, and outperform. Stock-based compensation expense is recorded within selling, general, and administrative expenses on the consolidated statements of operations.

Restricted Stock Awards

The Company has approved grants of restricted stock awards (“RSA”) pursuant to the amended and restated 2016 Plan and Prior Plan. Under the amended and restated 2016 Plan and Prior Plan, employees, outside directors and independent contractors are able to participate in the Company’s future performance through the awards of restricted stock. Each RSA vests pursuant to the vesting schedule set forth in the restricted stock agreement granting such RSAs, generally over three years.

Restricted stock award activity during the years ended June 30, 2026, 2025 and 2024 was as follows:

​

​

​

​

​

​

​

​

  ​ ​ ​

​

  ​ ​ ​

Weighted

​

​

​

​

Average

​

​

​

​

Grant-Date

​

​

Shares

​

Fair Value

Nonvested, June 30, 2023

 

815,233

​

$

36.91

Granted

​

507,443

​

​

43.43

Vested

​

(437,724)

​

​

36.36

Canceled

​

(153,728)

​

​

37.37

Nonvested, June 30, 2024

​

731,224

​

$

40.60

Granted

​

317,490

​

​

85.79

Vested

​

(387,471)

​

​

42.79

Canceled

​

(84,389)

​

​

49.39

Nonvested, June 30, 2025

​

576,854

​

$

62.72

Granted

​

206,518

​

​

137.82

Vested

​

(317,612)

​

​

59.04

Canceled

​

(64,562)

​

​

82.44

Nonvested, June 30, 2026

​

401,198

​

$

101.11

​

Summary of All Restricted Stock Awards

As of June 30, 2026, there was $28.2 million of total unrecognized compensation expense related to nonvested restricted stock awards. The cost is expected to be recognized over a weighted average period of 1.4 years. The fair value of restricted stock awards granted for the years ended June 30, 2026, 2025 and 2024, was $28.5 million, $27.2 million and $22.0 million, respectively. The total fair value of shares vested for the years ended June 30, 2026, 2025 and 2024, was $38.5 million, $43.6 million and $23.3 million, respectively. During the years ended June 30, 2026, 2025 and 2024, the Company recognized $21.5 million, $19.8 million and $16.0 million, respectively, of stock-based compensation expense

related to restricted stock awards.

Performance Share Units

The Company has approved grants of performance share units (“PSUs”) pursuant to the amended and restated 2016 Plan. Each PSU is earned through the achievement of a performance-based metric, combined with the continuation of employee service over a defined period. The level of performance determines the number of PSUs earned, and is generally measured against threshold, target and outperform achievement levels of the award. Each PSU represents the right to receive one share of the Company’s common stock, or at the option of the Company, an equivalent amount of cash, and is classified as an equity or liability award. When the grant is a fixed monetary amount, and the number of shares is not determined until achievement and the value of the Company’s stock on that day, the PSU is a liability-classified award. Each PSU vests pursuant to the vesting schedule found in the respective PSU agreement.

​

In addition to the performance conditions of the PSUs, there is a service vesting condition which is dependent upon continuing service by the grantee as an employee of the Company, unless the grantee is eligible for earlier vesting upon a change in control and qualifying termination, as defined by the PSU agreement. PSUs are generally subject to graduated vesting schedules and stock-based compensation expense is computed by tranche and recognized on a straight-line basis over the tranches’ applicable vesting period based on the expected achievement level.

​

Performance share unit activity during the years ended June 30, 2026, 2025 and 2024 was as follows:

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

Average

​

​

​

​

Grant-Date

​

  ​ ​ ​

Shares

  ​ ​ ​

Fair Value

Nonvested, June 30, 2023

​

496,869

​

$

34.99

Granted

​

375,725

​

​

41.85

Vested

​

(22,468)

​

​

49.62

Canceled

​

(90,595)

​

​

36.94

Nonvested, June 30, 2024

​

759,531

​

$

37.73

Granted

​

299,908

​

​

71.40

Vested

​

(223,241)

​

​

37.44

Canceled

​

(134,291)

​

​

42.60

Nonvested, June 30, 2025

​

701,907

​

$

51.27

Granted

​

354,664

​

​

83.87

Vested

​

(413,681)

​

​

34.90

Canceled

​

(18,875)

​

​

80.15

Nonvested, June 30, 2026

​

624,015

​

$

79.78

​

The Company has granted PSUs under a Long-Term Incentive Plan (“LTIP”) which are tied to operating income targets (“Tranche #1”) and compounded annual stock price growth (“Tranche #2”) over a three-year performance period. The level of performance will determine the number of PSUs earned as measured against threshold (50%), target (100%) and outperform (200%) achievement levels. The Company begins to amortize the fair value of Tranche #1 over the vesting period when it assesses that achievement is probable at the threshold level. The fair value of Tranche #2 is determined using a Monte Carlo simulation model and is amortized over the vesting period. Tranche #2 is a market-based award and therefore is not subject to any probability assessment by the Company. The following table is a summary of the PSUs

outstanding:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fiscal Year

​

Grant Date
Fair Value

​

Number
of
Target Shares

​

Weighted
Average
Grant Date
Fair Value

​

Tranche #1

​

​

Tranche #2

​

​

Vest Date

​

​

Tranche #1
Probability
Assessment

Fiscal Year 2026

​

$22.2 million

​

146,911

​

$151.16

​

81,093 shares
based on FY28
Operating Income

​

​

65,818
shares based
on Stock
Price Growth
in September 2029

​

​

First Quarter of
Fiscal Year 2029

​

​

Not Yet
Determinable

Fiscal Year 2025

​

$17.0 million

​

210,620

​

$80.89

​

158,470 shares
based on FY27
Operating Income

​

​

52,150
shares based
on Stock
Price Growth
in September 2028

​

​

First Quarter of
Fiscal Year 2028

​

​

Outperform

Fiscal Year 2024

​

$14.4 million

​

354,090

​

$40.84

​

265,630 shares
based on FY26
Operating Income

​

​

88,460
shares based
on Stock
Price Growth
in September 2027

​

​

First Quarter of
Fiscal Year 2027

​

​

Outperform

Fiscal Year 2023

​

$10.0 million

​

289,640

​

$34.41

​

144,820 shares
based on FY25
Operating Income

​

​

144,820
shares based
on Stock
Price Growth
in September 2026

​

​

First Quarter of
Fiscal Year 2026

​

​

Achieved

Fiscal Year 2022

​

$9.1 million

​

250,250

​

$36.30

​

125,125 shares
based on FY24
Gross Margin

​

​

125,125
shares based
on Stock
Price Growth
in September 2025

​

​

First Quarter of
Fiscal Year 2025

​

​

Achieved

​

Fiscal Year 2023 LTIP

​

In July 2025, achievement was certified at 200% of target for Tranche #1, which resulted in the vesting of 204,340 shares. In September 2025, achievement was certified at 200% of target for Tranche #2, which resulted in the vesting of 204,340 shares.

​

Fiscal Year 2022 LTIP

​

In July 2024, achievement was certified at 70% of target for Tranche #1, which resulted in the vesting of 62,379 shares. In September 2024, achievement was certified at 175.0% of target for Tranche #2, which resulted in the vesting of 155,946 shares.

​

Fiscal Year 2021 Tech Elevator MIP

​

During fiscal year 2021, the Company granted to the executive team of Tech Elevator a time-based award with a value of $4.0 million and a performance-based award with a target value of $4.0 million under a Management Incentive

Plan (“MIP”). The time-based award vests equally over three years on the anniversary of the closing date of the acquisition of Tech Elevator which was November 30, 2020. During the second quarter of fiscal year 2022, one-third vested and was settled with the issuance of 38,575 PSUs. During the second quarter of fiscal year 2023, an additional one-third vested and was settled with the issuance of 37,886 PSUs. During the second quarter of fiscal year 2024, the final third vested and was settled with the issuance of 13,066 PSUs. The performance-based award is tied to the achievement of certain revenue and EBITDA targets of Tech Elevator. Seventy percent of the award is based on Tech Elevator’s revenues for the calendar year 2023 (“Tranche #1”) and thirty percent of the earned award is based on Tech Elevator’s EBITDA for the calendar year 2023 (“Tranche #2”), both of which were expected to vest after achievement in January 2024. The level of performance determined the number of PSUs earned as measured against threshold and target achievement levels. In all cases, vesting was dependent upon continuing service by the grantee as an employee of the Company. The MIP was a liability-classified award. In January 2024, the Company determined that the performance award metrics for calendar year 2023 were not met and Tranches #1 and #2 were forfeited.

​

Fiscal Year 2021 LTIP

​

During fiscal year 2021, the Company granted 111,450 PSUs at target under an LTIP which are tied to the achievement of certain individualized financial and non-financial performance targets. These PSUs had a grant date fair value of $2.7 million, or a weighted average grant-date fair value of $24.15 per share. In December 2022, achievement was certified related to two metrics – one at threshold and one at 123% of target. Forty percent, or 4,533 shares vested immediately and an additional sixty percent, or 6,797 shares vested in December 2023. The remaining shares tied to metrics that were not achieved were forfeited. The fiscal year 2021 LTIP is an equity-classified award.

​

Summary of All Performance Share Units

​

As of June 30, 2026, there was $18.2 million of total unrecognized compensation expense related to nonvested PSUs that are expected to vest based on the Company’s probability assumptions discussed above. The cost is expected to be recognized over a weighted average period of 1.0 years. During the years ended June 30, 2026, 2025 and 2024, the Company recognized $18.5 million, $16.9 million, and $15.4 million, respectively, of stock-based compensation expense related to PSUs. Included in the stock-based compensation expense above, for the years ended June 30, 2026, 2025 and 2024 is zero, zero, and $0.3 million, respectively, related to the Tech Elevator time-based portion of the MIP. The time-based portion of the MIP fully vested during the second quarter of fiscal year 2024 and was settled with the issuance of PSUs. Therefore, the amount recorded in accrued liabilities for future issuances is zero.

​

Deferred Stock Units (“DSUs”)

​

The DSUs vest on the grant-date anniversary and are settled in the form of shares of common stock issued to the holder upon separation from the Company. DSUs are specific only to board members.

Deferred stock unit activity during the years ended June 30, 2026, 2025 and 2024 was as follows:

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

Average

​

​

​

​

Grant-Date

​

  ​ ​ ​

Shares

  ​ ​ ​

Fair Value

Nonvested, June 30, 2023

​

99,535

​

$

27.38

Granted

​

13,171

​

​

59.43

Vested

​

(16,102)

​

​

22.91

Canceled

​

—

​

​

—

Nonvested, June 30, 2024

​

96,604

​

$

32.49

Granted

​

6,621

​

​

108.92

Vested

​

(34,446)

​

​

27.03

Canceled

​

—

​

​

—

Nonvested, June 30, 2025

​

68,779

​

$

42.58

Granted

​

12,324

​

​

61.22

Vested

​

—

​

​

—

Canceled

​

—

​

​

—

Nonvested, June 30, 2026

​

81,103

​

$

45.41

​

Summary of All Deferred Stock Units

​

As of June 30, 2026, there was $0.3 million of total unrecognized compensation expense related to nonvested DSUs. The cost is expected to be recognized over a weighted average period of 0.4 years. During the years ended June 30, 2026, 2025 and 2024, the Company recognized $0.7 million, $0.8 million and $0.9 million, respectively, of stock-based compensation expense related to DSUs.
v3.26.1
Employee Stock Purchase Plan
 12 Months Ended
Jun. 30, 2026
Employee Stock Purchase Plan  
Employee Stock Purchase Plan

9. Employee Stock Purchase Plan

On December 4, 2025, the Company’s stockholders approved the 2025 ESPP, which became effective February 1, 2026 with the beginning of the first purchase period (the “enrollment date”). The 2025 ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions during 12-month offering periods with semi-annual purchase dates. The purchase price is 85% of the lower of the fair market value of the Company’s common stock on the enrollment date or the applicable purchase date. Employees may contribute up to 10% of eligible compensation, subject to plan limits. A total of 4,000,000 shares of common stock were authorized for issuance under the 2025 ESPP. No shares were purchased during the year ended June 30, 2026, as the initial purchase date had not occurred as of June 30, 2026. The impact of the 2025 ESPP purchase rights on stock-based compensation expense for the year ended June 30, 2026 was immaterial.
v3.26.1
Stock Repurchase Program
 12 Months Ended
Jun. 30, 2026
Stock Repurchase Program  
Stock Repurchase Program

10. Stock Repurchase Program

On November 3, 2025, the Company’s Board of Directors authorized a stock repurchase program for the purchase of up to $500 million of the Company’s common stock until October 31, 2026. Share repurchases may be made for cash in open market transactions at prevailing market prices or in privately negotiated transactions or otherwise. During the year ended June 30, 2026, the Company repurchased 2,314,944 shares of its common stock for an aggregate purchase price of approximately $188.7 million, or an average price of $ 81.50 per share. As of June 30, 2026, $311.3 million remained available for repurchases under the stock repurchase program.
v3.26.1
Commitments and Contingencies
 12 Months Ended
Jun. 30, 2026
Commitments and Contingencies  
Commitments and Contingencies

11. Commitments and Contingencies

Litigation

​

In the ordinary conduct of the Company’s business, the Company is subject to lawsuits, arbitrations, disputes and administrative proceedings from time to time. The Company vigorously defends these claims; however, no assurances can be given as to the outcome of any pending legal proceedings or disputes. The Company believes, based on currently available information, that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on its business, financial condition, liquidity or results of operations.

Securities Litigation

On November 11, 2025, a putative securities class action lawsuit captioned Vivienne MacMahon v. Stride, Inc., et al., Case No. 1:25-cv-02019 was filed against the Company and two of its officers in the United States District Court for the Eastern District of Virginia, purportedly on behalf of a class of persons who purchased or otherwise acquired the Company’s common stock between October 22, 2024 and October 28, 2025. The Court appointed lead plaintiffs filed an amended complaint on March 16, 2026. The amended complaint asserts violations by the Company and the individual defendants of Section 10(b) of the Exchange Act, and Rule 10b-5 promulgated under the Exchange Act, and violations by the individual defendants of Section 20(a) of the Exchange Act. The amended complaint alleges, among other things, that the Company and the individual defendants made false or misleading statements and/or omitted to disclose material facts concerning the Company’s legacy technology platform and the rollout of a new platform for Fiscal Year 2026. The amended complaint seeks unspecified monetary damages and other relief. The Company moved to dismiss the amended complaint on April 21, 2026. On June 18, 2026, the Court granted the Company’s motion to dismiss all claims against the Company and the individual defendants.

Employment Arrangements

The Company has entered into employment arrangements with certain executive officers that provide for severance payments and, in some cases, other benefits, upon certain terminations of employment. All arrangements provide for employment on an “at-will” basis. If the employee resigns for “good reason” or is terminated without cause, the

employee is entitled to salary continuation, and in some cases benefit continuation, for varying periods depending on the arrangement.

Off-Balance Sheet Arrangements

The Company contractually guarantees that certain schools under the Company’s management will not have annual operating deficits and the Company’s management fees from these schools may be reduced accordingly to cover any school operating deficits.

Other than the operating deficit guarantees, the Company did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
v3.26.1
Severance
 12 Months Ended
Jun. 30, 2026
Severance  
Severance

12. Severance

​

During the years ended June 30, 2026, 2025 and 2024, the Company recorded severance of $3.2 million, $6.6 million and $4.6 million, respectively. Included in severance expense for the years ended June 30, 2026, 2025 and 2024 is $0.1 million, $1.6 million and $0.5 million, respectively, associated with accelerated vesting of equity awards to former executives and other employees.
v3.26.1
Related Party Transactions
 12 Months Ended
Jun. 30, 2026
Related Party Transactions  
Related Party Transactions

13. Related Party Transactions

The Company contributed to Future of School, a charity focused on access to quality education. Future of School was a related party because a former executive officer of the Company formerly served on its Board of Directors. During the years ended June 30, 2026, 2025 and 2024, contributions made by the Company to Future of School were zero. In fiscal year 2019 and 2021, the Company accrued $2.5 million and $3.5 million, respectively, for contributions to be made in subsequent years. In October 2022, a lawsuit was filed regarding future contributions, and in January 2024, a Virginia trial court found that the Company was not obligated to make any additional contributions. The trial court’s decision was affirmed by an intermediate appellate court, and in December 2025, the Supreme Court of Virginia declined Future of School’s petition for appeal, resulting in a confirmation of the trial court’s ruling. As a result, in December 2025, the Company reversed the remaining $2.3 million that had been accrued.

v3.26.1
Employee Benefits
 12 Months Ended
Jun. 30, 2026
Employee Benefits  
Employee Benefits

14. Employee Benefits

The Company maintains a 401(k) salary deferral plan (the “401(k) Plan”) for its employees. Employees who have been employed for at least 30 days may voluntarily contribute to the 401(k) Plan on a pretax basis, up to the maximum allowed by the Internal Revenue Service. The 401(k) Plan provides for a matching Company contribution of 50%, up to the first 5% of each participant’s contribution. The Company expensed $9.3 million, $8.5 million and $7.7 million during the years ended June 30, 2026, 2025 and 2024, respectively, under the 401(k) Plan.
v3.26.1
Supplemental Disclosure of Cash Flow Information
 12 Months Ended
Jun. 30, 2026
Supplemental Disclosure of Cash Flow Information  
Supplemental Disclosure of Cash Flow Information

15. Supplemental Disclosure of Cash Flow Information

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

Years Ended June 30, 

 

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

​

(In thousands)

Cash paid for interest

​

$

10,437

​

$

9,144

​

$

7,521

Cash paid for taxes (1)

​

$

—

​

​

67,901

​

$

85,228

​

​

​

​

​

​

​

​

​

​

Supplemental disclosure of non-cash financing activities:

​

​

​

​

​

​

​

​

​

Right-of-use assets obtained in exchange for new finance lease liabilities

​

​

82,500

​

​

68,995

​

​

35,652

​

​

​

​

​

​

​

​

​

​

Supplemental disclosure of non-cash investing activities:

​

​

​

​

​

​

​

​

​

Stock-based compensation expense capitalized on software development

​

$

774

​

$

551

​

$

816

Stock-based compensation expense capitalized on curriculum development

​

​

163

​

​

128

​

​

76

​
v3.26.1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
 12 Months Ended
Jun. 30, 2026
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS  
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II

STRIDE, INC.

VALUATION AND QUALIFYING ACCOUNTS

Years Ending June 30, 2026, 2025 and 2024

1.     ALLOWANCE FOR CREDIT LOSSES

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Additions

​

​

​

​

​

​

​

Balance at

​

Charged to

​

Deductions from

​

​

​

​

​

Beginning

​

Cost and

​

(Net Increases to)

​

Balance at

​

​

of Period

​

Expenses

​

Allowance

​

End of Period

June 30, 2026

​

$

31,123,755

 

16,430,560

 

16,252,780

​

$

31,301,535

June 30, 2025

​

$

31,297,967

 

15,266,692

 

15,440,904

​

$

31,123,755

June 30, 2024

​

$

30,031,273

 

22,843,961

 

21,577,267

​

$

31,297,967

2.     INVENTORY RESERVES

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at

​

Charged to

​

Deductions,

​

​

​

​

​

Beginning

​

Cost and

​

Shrinkage and

​

Balance at

​

​

of Period

​

Expenses

​

Obsolescence

​

End of Period

June 30, 2026

​

$

6,832,904

 

3,433,448

 

859,845

​

$

9,406,507

June 30, 2025

​

$

5,921,239

 

942,397

 

30,732

​

$

6,832,904

June 30, 2024

​

$

4,145,280

 

1,778,825

 

2,867

​

$

5,921,239

3.     COMPUTER RESERVE (1)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Additions

​

​

​

​

​

​

​

Balance at

​

Charged to

​

Deductions,

​

​

​

​

​

Beginning

​

Cost and

​

Shrinkage and

​

Balance at

​

​

of Period

​

Expenses

​

Obsolescence

​

End of Period

June 30, 2026

​

$

3,274,432

 

3,091,844

 

1,037,764

​

$

5,328,512

June 30, 2025

​

$

1,786,225

 

2,499,889

 

1,011,682

​

$

3,274,432

June 30, 2024

​

$

1,345,832

 

1,129,323

 

688,930

​

$

1,786,225

(1)A reserve account is maintained against potential obsolescence of, and damage beyond economic repair to computers. The reserve is calculated based upon several factors, including historical percentages, the net book value and the remaining useful life. During fiscal years 2026, 2025 and 2024, certain computers were written off against the reserve.

4.     INCOME TAX VALUATION ALLOWANCE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Additions to

​

Deductions in

​

​

​

​

​

Balance at

​

Net Deferred

​

Net Deferred

​

​

​

​

​

Beginning

​

Tax Asset

​

Tax Asset

​

Balance at

​

​

of Period

​

Allowance

​

Allowance

​

End of Period

June 30, 2026

​

$

7,627,642

 

—

 

211,881

​

$

7,415,761

June 30, 2025

​

$

7,387,179

 

240,463

 

—

​

$

7,627,642

June 30, 2024

​

$

6,790,724

 

596,455

 

—

​

$

7,387,179

​
v3.26.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure      
Net Income (Loss) $ 338,192 $ 287,941 $ 204,183
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.26.1
Insider Trading Policies and Procedures
 12 Months Ended
Jun. 30, 2026
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.26.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Jun. 30, 2026
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Cybersecurity Risk Management and Strategy

​

We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information.

​

Our cybersecurity risk management program is guided by the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF) and the National Institute of Standards and Technology Special Publication (SP) 800-53. This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use the NIST CSF and SP 800-53 as a framework to help us identify, assess, and manage cybersecurity risks relevant to our business.

​

Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.

​

Key elements of our cybersecurity risk management program include:

​

●risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment;

​

●a security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents;

​

●the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls and processes;

​

●cybersecurity awareness training of our employees, including incident response personnel, and senior management;

​

●a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and

​

●a third-party risk management process for key service providers, suppliers, and vendors based on our assessment of their criticality to our operations and respective risk profile.

​

We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected us, including our operations, business strategy, results of operations, or financial condition. We face certain ongoing risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. See “Risk Factors – We operate in markets that are dependent on IT Systems and technological change. Failure to maintain and support customer-facing services, systems, and platforms, including addressing quality issues and execution on time of new products and enhancements, could negatively impact our revenues and reputation” and “Risk Factors – The failure to prevent a cybersecurity incident affecting our systems could result in the disruption of our services and the disclosure or misappropriation of sensitive information, which could harm our reputation, decrease demand for our services and products, expose us to liability, penalties, and remedial costs, or otherwise adversely affect our financial performance.”
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.

​

Key elements of our cybersecurity risk management program include:

​

●risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment;

​

●a security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents;

​

●the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls and processes;

​

●cybersecurity awareness training of our employees, including incident response personnel, and senior management;

​

●a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and

​

●a third-party risk management process for key service providers, suppliers, and vendors based on our assessment of their criticality to our operations and respective risk profile.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to its Audit Committee (the “Committee”) oversight of cybersecurity and other information technology risks, including oversight of management’s implementation of our cybersecurity risk management program.

​

The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee on any incidents it considers to be significant or potentially significant.

​
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Audit Committee
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]

The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee on any incidents it considers to be significant or potentially significant.

​
Cybersecurity Risk Role of Management [Text Block]

​

Our management team, including our Chief Information Security Officer (CISO), is responsible for assessing and managing our material risks from cybersecurity threats. The team has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. Our CISO has more than 20 years of experience managing the security and compliance organization for global companies, providing online and cloud-based services to more than a majority of the Fortune 500 and the United States Government.

​

Our management team works closely with our CISO to stay informed about and monitor efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in our IT environment.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our management team, including our Chief Information Security Officer (CISO)
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO has more than 20 years of experience managing the security and compliance organization for global companies, providing online and cloud-based services to more than a majority of the Fortune 500 and the United States Government.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]

​

Our management team works closely with our CISO to stay informed about and monitor efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in our IT environment.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.26.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jun. 30, 2026
Summary of Significant Accounting Policies  
Recent Accounting Pronouncements

Recent Accounting Pronouncements

​

Accounting Standards Adopted

​

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and for interim periods for

fiscal years beginning after December 15, 2025. The Company adopted this guidance prospectively, as permitted by ASU 2023-09, in the fourth quarter of 2026. The adoption is reflected in Note 5, “Income Taxes.”

​

Accounting Standards Not Yet Adopted

​

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) ("ASU 2024-03"). This update provides investors with enhanced detail regarding components of expenses presented in the income statement, aiming to improve transparency and enable precise understanding of a company’s cost structure. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company will review the extent of new disclosures necessary in the coming quarters, prior to implementation during fiscal year 2028. Other than additional disclosure, the Company does not expect a change to its consolidated financial statements.

​

In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The update provides an optional practical expedient for public companies to estimate expected credit losses on current accounts receivable and contract assets arising from ASC 606 transactions by assuming that conditions at the balance sheet date remain unchanged over the assets’ remaining lives. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025 (including interim periods), with early adoption permitted. The Company is assessing the impact of the ASU and whether to elect the practical expedient upon adoption in fiscal year 2027.

​

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 is intended to modernize and clarify the accounting for internal-use software, including updates to capitalization guidance that removes references to project stages and replaces them with the concept of a probable-to-complete recognition threshold. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and early adoption is permitted as of the beginning of an annual period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
Segment Reporting

Segment Reporting

Stride, Inc. operates in one operating and reportable business segment as a technology company providing an educational platform to deliver proprietary and third-party curriculum, software systems and educational services designed to facilitate individualized learning for students and adults. The Company’s primary revenue source is derived from educational products and services provided through its General Education and Career Learning lines of revenue.

Operating as a cohesive technology company, the Company offers its products and services across the United States via an integrated online platform, using a centralized management approach for all educational and support functions.

The Chief Executive Officer (“CEO”) serves as the Chief Operating Decision Maker (“CODM”). The CODM evaluates the Company’s performance based on consolidated net income. This measure aligns with Stride’s consolidated financial statements and serves as the basis for resource allocation and performance assessment. The measure of segment assets is reported on the balance sheet as total consolidated assets. The CODM monitors profitability and strategic growth initiatives on a consolidated basis without disaggregating profit or loss into separate operating segments. The Company determined there are no significant segment expenses that require a separate disclosure. The consolidated net income is used to assess overall company performance, benchmark against industry standards, and identify profitability trends, which guides resource allocation and investment in expansion and technology upgrades. The CODM also evaluates company performance using operating income. Operating income provides the CODM with a focused view of the company’s profitability excluding the effects of financing activities, tax strategies, and other non-operating items. This measure enables the CODM to assess operational efficiency, monitor performance trends, and evaluate the effectiveness of strategies aimed at revenue generation and cost management.
Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to the allowance for credit losses, inventory reserves, amortization periods, the allocation of the purchase price to the fair value of net assets and liabilities acquired in business combinations, fair values used in asset impairment evaluations, valuation of long-lived assets, accrual for incurred but not reported (“IBNR”) claims, contingencies, income taxes, fair value of contingent consideration, and stock-based compensation expense. The Company bases its estimates on historical experience and various assumptions that it believes are reasonable under the circumstances. The results of the analysis form the basis for making assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
Revenue Recognition

Revenue Recognition

​

Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services using the following steps:

​

●identify the contract, or contracts, with a customer;
●identify the performance obligations in the contract;
●determine the transaction price;
●allocate the transaction price to the performance obligations in the contract; and
●recognize revenue when, or as, the Company satisfies a performance obligation.

​

Revenues related to the products and services that the Company provides to students in kindergarten through twelfth grade or adult learners are considered to be General Education or Career Learning based on the school or adult program in which the student is enrolled. General Education products and services are focused on core subjects, including math, English, science and history, for kindergarten through twelfth grade students to help build a common foundation of knowledge. Career Learning products and services are focused on developing skills to enter and succeed in careers in high-growth, in-demand industries—including information technology, healthcare and general business, for students in middle school through high school and adult learners.

​

The majority of the Company’s contracts are with the following types of customers:

​

●a virtual or blended school whereby the amount of revenue is primarily determined by funding the school receives;
●a school or individual who licenses certain curriculum on a subscription or course-by-course basis; or
●an enterprise that contracts with the Company to provide online job training.

​

Funding-based Contracts

​

The Company provides an integrated package of systems, services, products, and professional expertise that is administered together to support a virtual or blended public school. Contracts generally span multiple years with performance obligations being isolated to annual periods which generally coincide with the fiscal year. Customers of these programs can obtain administrative support, information technology, academic support services, online curriculum, learning systems platforms and instructional services under the terms of a negotiated service agreement. The schools receive funding on a per student basis from the state in which the public school or school district is located. Shipments of materials for schools that occur in the fourth fiscal quarter and the upcoming school year are recorded in deferred revenue.

​

The Company generates revenues under contracts with virtual and blended public schools and includes the

following components, where required:

​

●providing each of a school’s students with access to the Company’s online school and lessons;
●offline learning kits, which include books and materials to supplement the online lessons;
●the use of a personal computer and associated reclamation services;
●internet access and technology support services;
●instruction by a state-certified teacher; and
●management and technology services necessary to support a virtual or blended school. In certain contracts, revenues are determined directly by per enrollment funding.

​

To determine the ratable amount of revenue to recognize in a fiscal quarter, the Company estimates the total expected funds each school will receive in a particular school year. Total funds for a school are primarily a function of the number of students enrolled in the school and established per enrollment funding levels, which are generally published on an annual basis by the state or school district. The Company reviews its estimates of funding periodically, and updates as necessary, by adjusting its year-to-date earned revenues to be proportional to the total expected revenues to be earned during the fiscal year. Actual school funding may vary from these estimates and the impact of these differences could impact the Company’s results of operations. Since the end of the school year coincides with the end of the fiscal year, annual revenues are generally based on actual school funding and actual costs incurred (including costs for the Company’s services to the schools plus other costs the schools may incur). The Company’s reported results are subject to annual school district financial audits, which incorporate enrollment counts, funding and other routine financial audit considerations. The results of these audits are incorporated into the Company’s monthly funding estimates. Historically, aggregate funding estimates have differed from actual reimbursements, generally in the range of 2% of annual revenue or less, which may vary from year to year. For the years ended June 30, 2025, 2024 and 2023, the Company’s aggregate funding estimates differed from actual reimbursements impacting total reported revenue by approximately 0.8%, 1.8%, and 2.8%, respectively.

Each state and/or school district has variations in the school funding formulas and methodologies that it uses to estimate funding for revenue recognition at its respective schools. As the Company estimates funding for each school, it takes into account the state definition for count dates on which reported enrollment numbers will be used for per pupil funding. The parameters the Company considers in estimating funding for revenue recognition purposes include school district count definitions, withdrawal rates, new registrations, average daily attendance, special needs enrollment, academic progress, historical completion, student location, funding caps and other state specified categorical program funding.

Under the contracts where the Company provides products and services to schools, the Company is responsible for substantially all of the expenses incurred by the school and has generally agreed to absorb any operating losses of the schools in a given school year. These school operating losses represent the excess of costs incurred over revenues earned by the virtual or blended public school (the school’s expected funding), as reflected in its respective financial statements, including Company charges to the schools. To the extent a school does not receive sufficient funding for each student enrolled in the school, the school would still incur costs associated with serving the unfunded enrollment. If losses due to unfunded enrollments result in a net operating loss for the year that loss is reflected as a reduction in the revenues and net receivables that the Company collects from the school. A school net operating loss in one year does not necessarily mean the Company anticipates losing money on the entire contract with the school. However, a school’s net operating loss may reduce the Company’s ability to collect its management fees in full and revenues recognized are constrained to reflect the expected cash collections from such schools. The Company records the school’s estimated net operating loss against revenues based upon the percentage of actual revenues in the period to total estimated revenues for the fiscal year. Actual school net operating losses may vary from these estimates or revisions, and the impact of these differences could have a material impact on results of operations. For the years ended June 30, 2026, 2025 and 2024, the Company’s revenues included an adjustment for net school operating losses at the schools of $17.2 million, $14.5 million, and $17.0 million, respectively. Because the Company has agreed to absorb any operating losses of the schools, the Company records the expenses incurred by the school as both revenue and expense in the consolidated statements of operations. For the years ended June 30, 2026, 2025 and 2024, the Company recognized revenue associated with these schools of $683.6 million, $662.6 million and $576.4 million, respectively.

​

Subscription-based Contracts

​

The Company provides certain online curriculum and services to schools and school districts under subscription agreements. Revenues from the licensing of curriculum under subscription arrangements are recognized on a ratable basis over the subscription period. Revenues from professional consulting, training and support services are deferred and recognized ratably over the service period.

​

In addition, the Company contracts with individual customers who have access for one to two years to company-provided online curriculum and generally prepay for services to be received. Adult learners enroll in courses that provide specialized training in a specific industry. Each of these contracts is considered to be one performance obligation. The Company recognizes these revenues ratably over the maximum term of the customer contract based on the defined contract price.

​

Enterprise Contracts

​

The Company provides online job training over a specified contract period to enterprises. Each of these contracts is considered to be one performance obligation. The Company recognizes these revenues based on the number of students trained during the term of the contract based on the defined contract price.

​

Disaggregated Revenues

​

The revenue recognition related to the types of contracts discussed above can span both of the Company’s lines of revenue as shown below. For example, a funding-based contract may include both General Education and Career Learning students. In total, there is one performance obligation and revenue is recognized over the fiscal year. The revenue is then disaggregated between General Education and Career Learning based on the Company’s estimated full-year enrollment totals of each category. During the years ended June 30, 2026, 2025 and 2024, approximately 96%, 95%, and 93%, respectively, of the Company’s General Education revenues, and 100%, 100% and 100%, respectively, of the Company’s Middle – High School Career Learning revenues, were from funding-based contracts.

​

The following table presents the Company’s revenues disaggregated based on its two lines of revenue for the years ended June 30, 2026, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

General Education

​

$

1,417,785

​

$

1,448,676

​

$

1,289,193

Career Learning

​

​

​

​

​

​

​

​

​

Middle - High School

​

​

1,043,726

​

​

876,287

​

​

651,191

Adult

​

​

56,570

​

​

80,354

​

​

99,685

Total Career Learning

​

​

1,100,296

​

​

956,641

​

​

750,876

Total Revenues

​

$

2,518,081

​

$

2,405,317

​

$

2,040,069

​

Concentration of Customers

​

During each of the years ended June 30, 2026, 2025 and 2024, the Company had no contracts that represented greater than 10% of total revenues.

​

Contract Balances

​

The timing of revenue recognition, invoicing, and cash collection results in accounts receivable, unbilled receivables (a contract asset) and deferred revenue (a contract liability) in the consolidated balance sheets. Accounts receivable are recorded when there is an executed customer contract and the customer is billed. An allowance is recorded to reflect expected losses at the time the receivable is recorded. The collectability of outstanding receivables is evaluated regularly by the Company to determine if additional allowances are needed. Unbilled receivables are created when revenue is earned prior to the customer being billed. Deferred revenue is recorded when customers are billed or cash is collected in advance of services being provided.

​

The opening and closing balances of the Company’s accounts receivable, unbilled receivables and deferred revenue are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Accounts receivable

​

$

664,788

​

$

559,646

​

$

472,754

Unbilled receivables (included in accounts receivable)

​

​

24,351

​

​

19,902

​

​

19,499

Deferred revenue

​

​

20,553

​

​

26,995

​

​

35,742

Deferred revenue, long-term (included in other long-term liabilities)

​

​

58

​

​

327

​

​

1,097

​

The difference between the opening and closing balance of the accounts receivable and unbilled receivables relates to the timing of the Company’s billing in relation to month end and its contracts. The difference between the opening and closing balance of the deferred revenue relates to the timing difference between billings to customers and the term of the contract, as well as changes in the estimates of variable consideration. Typically, each of these balances is at its highest during the first quarter of the fiscal year and lowest at the end of the fiscal year. The amount of revenue recognized during the years ended June 30, 2026, 2025 and 2024, that was included in the previous July 1st deferred revenue balance was $25.8 million, $32.0 million, and $74.4 million, respectively. During the years ended June 30, 2026, 2025 and 2024, the Company recorded revenues of $18.4 million, $35.9 million and $51.0 million, respectively, related to performance obligations satisfied in prior periods.

​

Performance Obligations

​

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For the majority of its contracts, the Company’s performance obligations are satisfied over time, as the Company delivers, and the customer receives the services, over the service period of the contract. The Company’s payment terms are generally net 30 or net 45, but can vary depending on the customer or when the school receives its funding from the state.

​

The Company has elected, as a practical expedient, not to report the value of unsatisfied performance obligations for contracts with customers that have an expected duration of one year or less. The amount of unsatisfied performance obligations for contracts with customers which extend beyond one year as of June 30, 2026 was $0.1 million.

​

Significant Judgments

​

The Company determined that the majority of its contracts with customers contain one performance obligation. The Company markets the products and services as an integrated package building off its curriculum offerings. It does not market distinct products or services to be sold independently from the curriculum offering. The Company provides the significant service of integrating the goods and services into the operation of the school and education of its students, for which the customer has contracted.

​

The Company has determined that the time elapsed method is the most appropriate measure of progress towards the satisfaction of the performance obligation. Generally, the Company delivers the integrated products and services package over the course of the Company’s fiscal year. This package includes enrollment, marketing, teacher training, etc. in addition to the core curriculum and instruction. All of these activities are necessary and contribute to the overall education of its students, which occurs evenly throughout the year. Accordingly, the Company recognizes revenue on a straight-line basis.

​

The Company determined that the expected value method is the most appropriate method to account for variable consideration and the Company’s forecasting method is an estimation process that uses probability to determine expected funding. On a monthly basis, the Company estimates the total funds each school will receive in a particular school year and the amount of full-year school revenues and operating expenses to determine the amount of revenue the Company will recognize. Enrollment and state funding rates are key inputs to this estimate. The estimates are adjusted monthly, and a cumulative catch-up adjustment is recorded to revenue as necessary to reflect the total revenues earned to date to be proportional to the total revenues to be earned in the fiscal year. The Company builds in known constraints (i.e., enrollment, funding, net operating losses, etc.) into the estimate of the variable consideration to record the most probable amount.

​

Sales Taxes

Sales tax collected from customers is excluded from revenues. Collected but unremitted sales tax is included as part of accrued liabilities in the consolidated balance sheets. Revenues do not include sales tax as the Company considers itself a pass-through conduit for collecting and remitting sales tax.
Shipping and Handling Costs

Shipping and Handling Costs

Shipping and handling costs are expensed when incurred and are classified as instructional costs and services in the consolidated statements of operations. Shipping and handling charges invoiced to a customer are included in revenues.
Research and Developments Costs

Research and Development Costs

All research and development costs, including patent application costs, are expensed as incurred. Research and development costs totaled $22.0 million, $16.6 million and $16.7 million for the years ended June 30, 2026, 2025 and 2024, respectively, and are included within selling, general and administrative expenses in the consolidated statements of operations.
Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents generally consist of cash on hand and cash held in money market and demand deposit accounts. The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company periodically has cash balances which exceed federally insured limits.
Investments in Marketable Securities

Investments in Marketable Securities

The Company’s marketable securities generally consist of bonds and other securities which are classified as held-to-maturity. The securities with maturities between three months and one year are classified as short-term and are included in marketable securities on the consolidated balance sheets. The securities with maturities greater than one year are classified as long-term and are included in deposits and other assets on the consolidated balance sheets. Held-to-maturity securities are recorded at their amortized cost. The Company recorded interest income of $30.4 million, $31.6 million and $25.6 million for the years ended June 30, 2026, 2025 and 2024, respectively. This activity is recorded within other income (expense) within the consolidated statements of operations.

The Company reviews the held-to-maturity debt securities for declines in fair value below the amortized cost basis under the credit loss model of Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments – Credit Losses (“ASC 326”). Any decline in fair value related to a credit loss is recognized in the consolidated statements

of operations, with the amount of the loss limited to the difference between fair value and amortized cost. As of June 30, 2026 and 2025, the allowance for credit losses recognized related to held-to-maturity debt securities was $0.2 million and zero, respectively.

As of June 30, 2026, the Company’s marketable securities consisted of investments in corporate bonds, U.S. Treasury notes and commercial paper. The short-term and long-term portions were $203.6 million and $76.2 million, respectively. The maturities of the Company’s long-term marketable debt securities range from one to two years.

The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands).

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for

​

​

Net Carrying

​

​

Gross Unrealized

​

​

​

​

​

Amortized Cost

​

​

Credit Losses

​

​

Amount

​

​

Gains (Losses)

​

​

Fair Value

Corporate Bonds

$

112,160

​

$

(160)

​

$

112,000

​

$

(269)

​

$

111,731

U.S. Treasury Notes

​

141,689

​

​

(50)

​

​

141,639

​

​

(259)

​

​

141,380

Commercial Paper

​

25,956

​

​

(12)

​

​

25,944

​

​

-

​

​

25,944

Total

$

279,805

​

$

(222)

​

$

279,583

​

$

(528)

​

$

279,055

​

As of June 30, 2025, the Company’s marketable securities consisted of investments in corporate bonds, U.S. Treasury notes, and commercial paper. The short-term and long-term portions were $202.8 million and $26.1 million, respectively. The maturities of the Company’s long-term marketable debt securities range from one to two years. The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands).

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for

​

​

Net Carrying

​

​

Gross Unrealized

​

​

​

​

​

Amortized Cost

​

​

Credit Losses

​

​

Amount

​

​

Gains (Losses)

​

​

Fair Value

Corporate Bonds

$

48,837

​

$

-

​

$

48,837

​

$

97

​

$

48,934

U.S. Treasury Notes

​

35,816

​

​

-

​

​

35,816

​

​

27

​

​

35,843

Commercial Paper

​

144,257

​

​

-

​

​

144,257

​

​

(6)

​

​

144,251

Total

$

228,910

​

$

-

​

$

228,910

​

$

118

​

$

229,028

​

In addition to bonds and other held-to-maturity securities, the Company’s marketable securities also include investments in publicly held equity securities. The publicly held equity securities have readily determinable fair values, are included in deposits and other assets on the consolidated balance sheets, and are measured at fair value with changes recognized in other income (expense) within the consolidated statement of operations.

As of June 30, 2026 and 2025, the Company’s investments in publicly held equity securities were $42.3 million and $19.9 million, respectively. For the years ended June 30, 2026, 2025 and 2024, the Company recorded a net unrealized (losses) gains of ($24.0) million, $1.0 million, and zero, respectively, related to changes in the fair value of the underlying securities of its publicly held equity securities.

Allowance for Credit Losses

Allowance for Credit Losses

The Company maintains an allowance for credit losses primarily for estimated losses resulting from the inability or failure of individual customers to make required payments. The Company maintains an allowance under ASC 326 based on historical losses, changes in payment history, customer-specific information, current economic conditions, and reasonable and supportable forecasts of future economic conditions. The allowance under ASC 326 is updated as additional losses are incurred or information becomes available related to the customer or economic conditions.

​

The Company’s allowance for credit losses increased from $31.1 million as of June 30, 2025 to $31.3 million as of June 30, 2026. The increase of $0.2 million is due primarily to a $16.4 million current year provision, less $16.2 million in adjustments and amounts written off. The Company’s allowance for credit losses decreased from $31.3 million as of June 30, 2024 to $31.1 million as of June 30, 2025. The decrease of $0.2 million is due primarily to a $15.3 million current

year provision, less $15.5 million in amounts written off.

​

The Company writes off accounts receivable based on the age of the receivable and the facts and circumstances surrounding the customer and reasons for non-payment. Actual write-offs might differ from the recorded allowance.

Inventories

Inventories

Inventories consist primarily of textbooks and curriculum materials, a majority of which are supplied to virtual and blended public schools, and utilized directly by students. Inventories represent items that are purchased and held for sale and are recorded at the lower of cost (first-in, first-out method) or net realizable value. The Company classifies its inventory as current or long-term based on the holding period. As of June 30, 2026 and 2025, $14.7 million and $13.6 million, respectively, of inventory, net of reserves, was deemed long-term and included in deposits and other assets on the consolidated balance sheets. The provision for excess and obsolete inventory is established based upon the evaluation of the quantity on hand relative to demand. The excess and obsolete inventory reserve was $9.4 million and $6.8 million at June 30, 2026 and 2025, respectively.
Other Current Assets

Other Current Assets

Other current assets primarily include textbooks, curriculum materials and other supplies which are expected to be returned upon the completion of the school year. Materials not returned are expensed as part of instructional costs and services.

Capitalized Software-as-a-Service Costs

Capitalized Software-as-a-Service Costs

The Company capitalizes Software-as-a-Service (“SaaS”) license and implementation costs incurred in cloud computing contracts that are service contracts if they meet certain requirements. Those requirements are similar to the requirements for capitalizing costs incurred to develop internal-use software. Capitalization of SaaS costs ceases once the project is substantially complete and the software is ready for its intended purpose. Amortization is computed using the straight-line method over the term of the associated hosting contract, usually between three and five years. The Company classifies its SaaS implementation costs as current or long-term based on the terms of the associated hosting contract. SaaS implementation costs deemed short-term are included in prepaid expenses, and those deemed long-term are included in deposits and other assets, on the consolidated balance sheets. Impairment is recognized when it is no longer probable that the SaaS project will be completed and placed in service.

As of June 30, 2026 and 2025, the Company recorded $18.0 million and $17.5 million, respectively, of costs related to SaaS implementation within prepaid expenses in the consolidated balance sheets. As of June 30, 2026 and 2025, the Company recorded $28.1 million and $43.3 million, respectively, of costs related to SaaS implementation within deposits and other assets in the consolidated balance sheets.

​

During the years ended June 30, 2026, 2025 and 2024, the Company amortized $13.8 million, $3.4 million, and zero, respectively, of SaaS implementation costs to instructional costs and services. SaaS implementation costs amortized to selling, general and administrative expenses were $17.3 million, $16.0 million, and $15.8 million, during the years ended June 30, 2026, 2025 and 2024, respectively. There were no material impairments of SaaS implementation costs for the years ended June 30, 2026, 2025 and 2024.
Property and Equipment

​

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is calculated using the straight-line method over the estimated useful life of the asset (or the lesser of the term of the lease and the estimated useful life of the asset under the finance lease). Amortization of assets capitalized under finance lease arrangements is included in depreciation expense. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the asset. The determination of the lease term is discussed below under “Leases.”

Property and equipment are depreciated over the following useful lives:

​

​

​

​

​

  ​ ​ ​

Useful Life

Computer hardware

​

3 - 5 years

Computer software

​

3 - 5 years

Financed computers and printers

​

3 years

Web site development

​

3 - 5 years

Office equipment

​

3 years

Furniture and fixtures

​

5 - 7 years

Leasehold improvements

​

Shorter of useful life or term of the lease

​

The Company makes an estimate of unreturned student computers and printers based on an analysis of recent trends of returns. The Company recorded accelerated depreciation of $5.4 million, $4.3 million and $4.0 million for the years ended June 30, 2026, 2025 and 2024, respectively, related to unreturned student computers and printers.

The Company fully expenses computer peripheral equipment (e.g., keyboards, mouses) upon purchase as recovery has been determined to be uneconomical. These expenses totaled $4.4 million, $3.8 million and $4.0 million for the years ended June 30, 2026, 2025 and 2024, respectively, and are recorded as instructional costs and services.
Capitalized Software Costs

Capitalized Software Costs

The Company develops software for internal use. Software development costs incurred during the application development stage are capitalized. The Company amortizes these costs over the estimated useful life of the software, which is generally three years. Capitalized software development costs are stated at cost less accumulated amortization.

Capitalized software additions totaled $61.6 million, $36.4 million and $40.7 million for the years ended June 30, 2026, 2025 and 2024, respectively. There were no material write-downs of capitalized software projects for the years ended June 30, 2026, 2025 and 2024.
Capitalized Curriculum Development Costs

Capitalized Curriculum Development Costs

The Company internally develops curriculum, which is primarily provided as online content and accessed via the Internet. The Company also creates textbooks and other materials that are complementary to online content.

​

The Company capitalizes curriculum development costs incurred during the application development stage, as well as the design and deployment phases of the project. As a result, a significant portion of the Company’s courseware development costs qualify for capitalization due to the concentration of its development efforts on the content of the courseware. Capitalization ends when a course is available for general release to its customers, at which time amortization of the capitalized costs begins. The period of time over which these development costs are amortized is generally five years.

Total capitalized curriculum development additions were $16.7 million, $21.8 million and $18.7 million for the years ended June 30, 2026, 2025 and 2024, respectively. These amounts are recorded on the consolidated balance sheets, net of amortization charges. There were no material write-downs of capitalized curriculum development costs for the years ended June 30, 2026, 2025 and 2024.
Leases

Leases

​

The Company’s principal leasing activities include computers and peripherals, classified as finance leases, and facilities, classified as operating leases.

​

Leases are classified as operating leases unless they meet any of the criteria below to be classified as a finance lease:

●the lease transfers ownership of the asset at the end of the lease;
●the lease grants an option to purchase the asset which the lessee is expected to exercise;
●the lease term reflects a major part of the asset’s economic life;
●the present value of the lease payments equals or exceeds the fair value of the asset; or
●the asset is specialized with no alternative use to the lessor at the end of the term.

​

Finance Leases

​

The Company enters into agreements to finance the purchase of computers and peripherals. Individual leases typically include 3-year payment terms. The Company pledges the assets financed to secure the outstanding leases.

​

Operating Leases

​

The Company enters into agreements for facilities that serve as offices for its headquarters and school operations. Lease terms vary between 1 and 7 years. Certain leases include renewal options, usually based upon current market rates, as well as termination rights. The Company performs an evaluation of each lease to determine if the lease payments included in the renewal option should be included in the initial measurement of the lease liability.

Discount Rate

​

The present value of the lease payments is calculated using either the rate implicit in the lease, or the lessee’s incremental borrowing rate, over the lease term. For the majority of the Company’s finance and operating leases, the stated rate is not defined within the lease terms. Therefore, the Company uses its incremental borrowing rate as the discount rate. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment and is calculated using comparative credit ratings.

​

Policy Elections

​

Short-term Leases

​

The Company has elected as an ongoing accounting policy election not to record a right-of-use asset or lease liability on its short-term facility leases of 12 months or less, and will expense its lease payments on a straight-line basis over the lease term. The accounting policy election is made by class of underlying asset to which the right of use relates. The Company has elected to apply the accounting policy election only to operating leases.
Goodwill and Intangible Assets

Goodwill and Intangible Assets

The Company records as goodwill the excess of the purchase price over the fair value of the identifiable net assets acquired. Finite-lived intangible assets acquired in business combinations subject to amortization are recorded at their fair value. Finite-lived intangible assets include trade names, acquired customers and distributors, developed technology, and non-compete agreements. Such intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense for the years ended June 30, 2026, 2025 and 2024 was $7.4 million, $9.9 million and $12.9 million, respectively, and is included within selling, general, and administrative expenses in the consolidated statements of operations. Future amortization of intangible assets is expected to be $5.9 million, $4.1 million, $0.3 million, $0.2 million and $0.1 million in the fiscal years ending June 30, 2027 through June 30, 2031, respectively, and $0.1 million thereafter.

The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset. As part of the Company’s review of its long-lived assets for impairment (discussed in more detail in Note 3, “Summary of Significant Accounting Policies – Impairment of Long-Lived Assets”) during the year ended June 30, 2025, the Company recorded an aggregate impairment loss of $32.2 million, of which $32.0

million related to trade names and $0.2 million related to developed technology. The $32.2 million is recorded under impairment of long-lived assets within the consolidated statements of operations.

The Company has one reporting unit. The process for testing goodwill and intangible assets with indefinite lives for impairment is performed annually, as well as when an event triggering impairment may have occurred. Companies are also allowed to qualitatively assess goodwill impairment through a screening process which would permit companies to forgo the quantitative impairment test as part of their annual goodwill impairment process. The Company performs its annual assessment on May 31st, which is then updated for any changes in condition as of June 30th.

​

During the years ended June 30, 2026, 2025 and 2024, there were no events or changes in circumstances that would indicate that the carrying amount of the goodwill was impaired.

​

The following table represents the balance of the Company’s goodwill for the years ended June 30, 2026, 2025 and 2024:

​

​

​

​

​

($ in millions)

  ​ ​ ​

Amount

Goodwill

​

​

​

Balance as of June 30, 2024

​

$

246.7

​

​

​

​

Balance as of June 30, 2025

​

$

246.7

​

​

​

—

Balance as of June 30, 2026

​

$

246.7

​

The following table represents the balance of the Company’s intangible assets as of June 30, 2026 and 2025:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2026

​

June 30, 2025

($ in millions)

  ​ ​ ​

Gross
Carrying
Amount

  ​ ​ ​

Accumulated
 Amortization
and
Impairment

  ​ ​ ​

Net
Carrying
Value

  ​ ​ ​

Gross
Carrying
Amount

  ​ ​ ​

Accumulated
Amortization
and Impairment

  ​ ​ ​

Net
Carrying
Value

Trade names

  ​ ​ ​

$

70.6

  ​ ​ ​

$

(63.8)

  ​ ​ ​

$

6.8

​

$

70.6

​

$

(60.4)

​

$

10.2

Customer and distributor relationships

​

​

37.1

​

​

(35.8)

​

​

1.3

​

​

37.1

​

​

(33.7)

​

​

3.4

Developed technology

​

​

21.7

​

​

(19.1)

​

​

2.6

​

​

21.7

​

​

(17.3)

​

​

4.4

Other

​

​

1.4

​

​

(1.2)

​

​

0.2

​

​

1.4

​

​

(1.2)

​

​

0.2

Total

​

$

130.8

​

$

(119.9)

​

$

10.9

​

$

130.8

  ​

$

(112.6)

​

$

18.2
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Long-lived assets include property, equipment, right-of-use assets, capitalized curriculum and software developed or obtained for internal use. Management reviews the Company’s recorded long-lived assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company determines the extent to which an asset may be impaired based upon its expectation of the asset’s future usability as well as reasonable assurance that the future cash flows associated with the asset will be in excess of its carrying amount. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset.

​

During the year ended June 30, 2025, the Company reviewed an asset group unrelated to its core operations, comprised entirely of Galvanize, a wholly-owned subsidiary, for impairment and determined that the carrying value exceeded its fair value. This review was prompted by changes in the expected use of certain long-lived assets as the Company decided to exit specific leased facilities. The fair value of the asset group was determined using a discounted cash flow methodology based on expected future cash flows. The Company recorded an impairment loss of $59.5 million, which is separately disclosed in the consolidated statements of operations under impairment of long-lived assets and

included in income from operations. This loss comprises $32.2 million associated with intangible assets and $27.3 million related to operating lease right-of-use assets.

​

During the years ended June 30, 2026 and 2024, there were no events or changes in circumstances that may indicate that the carrying amount of the long-lived assets may not be recoverable.
Income Taxes

Income Taxes

Deferred tax assets and liabilities are computed based on the difference between the financial reporting and income tax bases of assets and liabilities using the enacted marginal tax rate. The net deferred tax asset is reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the net deferred tax asset will not be realized.
Stock-Based Compensation

Stock-Based Compensation

The Company estimates the fair value of share-based awards on the date of grant. The fair value of restricted stock awards is based on the closing price of the Company’s common stock on the date of grant. Certain restricted stock awards with a market-based performance component are valued using a Monte Carlo simulation model that considers a variety of factors, including, but not limited to, the Company’s common stock price, risk-free rate, and expected stock price volatility over the expected life of awards. The Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture.
Advertising and Marketing Costs

Advertising and Marketing Costs

Advertising and marketing costs consist primarily of internet advertising and online marketing, and are expensed when incurred. Advertising costs totaled $92.1 million, $103.6 million and $96.5 million for the years ended June 30, 2026, 2025 and 2024, respectively, and are included within selling, general, and administrative expenses in the consolidated statements of operations.

Fair Value Measurements

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. Measurements are described in a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

​

The three levels of inputs used to measure fair value are:

​

Level 1:

Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date;

​

Level 2:

Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and

​

Level 3:

Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation.

​

The carrying values reflected in the consolidated balance sheets for cash and cash equivalents, receivables, and short-term obligations approximate their fair values, as they are largely short-term in nature. As of June 30, 2026, the estimated fair value of the long-term debt was $747.6 million. The Company estimated the fair value based on the quoted

market prices in an inactive market (Level 2). The long-term debt, comprised of the Company’s convertible senior notes due 2027, is recorded at face value less the unamortized debt issuance costs on its consolidated balance sheet, and is discussed in more detail in Note 7, “Debt.” As of June 30, 2026, the estimated fair value of the Company’s held-to-maturity marketable securities based on the quoted market prices in an inactive market (Level 2) was $266.2 million. As of June 30, 2026, the estimated fair value of the Company’s held-to-maturity marketable securities based on quoted prices in an active market (Level 1) was $12.9 million. As of June 30, 2026, the fair value of the Company’s publicly held equity securities was $42.3 million. The fair value was determined using quoted prices in an active market (Level 1). The held-to-maturity marketable securities and publicly held equity securities are discussed in more detail in Note 3, “Summary of Significant Accounting Policies - Investments in Marketable Securities.”

​

There was no activity related to the Company’s fair value measurements categorized as Level 3 in the valuation hierarchy, valued on a recurring basis, for the years ended June 30, 2026, 2025 and 2024.

​
Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The weighted average number of shares of common stock outstanding includes vested restricted stock awards. Diluted net income (loss) per share (“EPS”) reflects the potential dilution that could occur assuming vesting of all dilutive unvested restricted stock awards. The dilutive effect of restricted stock awards is determined using the treasury stock method. Under the treasury stock method, the proceeds received from the vesting of restricted stock awards, the amount of compensation cost for future service not yet recognized by the Company and the amount of tax benefits that would be recorded as income tax expense when the stock options become deductible for income tax purposes are all assumed to be used to repurchase shares of the Company’s common stock. Restricted stock awards are not included in the computation of diluted net income (loss) per share when they are anti-dilutive. Common stock outstanding reflected in the Company’s consolidated balance sheets includes restricted stock awards outstanding. The dilutive effect of the Company’s convertible debt is determined using the if-converted method when the Company’s stock is trading above the conversion price. However, based on the structure of the instrument and how it is settled upon conversion, it would produce a similar result as the previously applied treasury stock method. The dilutive effect of the Company’s employee stock purchase plan shares is also determined by the treasury stock method. Under the treasury stock method, the total expected employee payroll contributions and unrecognized compensation cost are assumed to be used to repurchase shares of the Company’s common stock.

The following schedule presents the calculation of basic and diluted net income (loss) per share:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

  ​

  ​

​

2026

​

2025

​

2024

​

​

​

​

(In thousands except share and per share data)

Basic net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

​

​

$

338,192

​

$

287,941

​

$

204,183

Weighted average common shares — basic

​

​

​

​

42,717,156

​

​

43,041,274

​

​

42,626,588

Basic net income per share

​

​

​

$

7.92

​

$

6.69

​

$

4.79

​

​

​

​

​

​

​

​

​

​

​

​

Diluted net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

​

​

$

338,192

​

$

287,941

​

$

204,183

Share computation:

​

​

​

​

​

​

​

​

​

​

​

Weighted average common shares — basic

​

​

​

​

42,717,156

​

​

43,041,274

​

​

42,626,588

Effect of dilutive restricted stock, convertible debt, and the employee stock purchase plan

​

​

​

​

4,615,699

​

​

5,372,443

​

​

908,853

Weighted average common shares — diluted

​

​

​

​

47,332,855

​

​

48,413,717

​

​

43,535,441

Diluted net income per share

​

​

​

$

7.14

​

$

5.95

​

$

4.69

​

For the years ended June 30, 2026, 2025 and 2024, shares issuable in connection with restricted stock, convertible debt, and the 2025 Employee Stock Purchase Plan (the “2025 ESPP”) of 2,778,431, 2,400,621 and 7,658 respectively, were excluded from the diluted income per common share calculation because the effect would have been anti-dilutive. In connection with the issuance of the 1.125% Convertible Senior Notes due 2027 (“Notes”), the Company entered into capped call transactions (the “Capped Call Transactions”) as described further in Note 7, “Debt.” The Capped Call Transactions are intended to reduce the potential dilution to the Company’s common stock upon conversion of the Notes and/or to offset any cash payments the Company may be required to make in excess of the principal amount of the Notes.
Reclassification

Reclassification

Certain previous year amounts have been reclassified to conform with current year presentation, as related to the balance sheets.
v3.26.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jun. 30, 2026
Summary of Significant Accounting Policies  
Schedule of disaggregation of revenue

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

General Education

​

$

1,417,785

​

$

1,448,676

​

$

1,289,193

Career Learning

​

​

​

​

​

​

​

​

​

Middle - High School

​

​

1,043,726

​

​

876,287

​

​

651,191

Adult

​

​

56,570

​

​

80,354

​

​

99,685

Total Career Learning

​

​

1,100,296

​

​

956,641

​

​

750,876

Total Revenues

​

$

2,518,081

​

$

2,405,317

​

$

2,040,069
Schedule of accounts receivable, unbilled receivables and deferred revenue

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Accounts receivable

​

$

664,788

​

$

559,646

​

$

472,754

Unbilled receivables (included in accounts receivable)

​

​

24,351

​

​

19,902

​

​

19,499

Deferred revenue

​

​

20,553

​

​

26,995

​

​

35,742

Deferred revenue, long-term (included in other long-term liabilities)

​

​

58

​

​

327

​

​

1,097
Schedule of investments in marketable securities

The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands).

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for

​

​

Net Carrying

​

​

Gross Unrealized

​

​

​

​

​

Amortized Cost

​

​

Credit Losses

​

​

Amount

​

​

Gains (Losses)

​

​

Fair Value

Corporate Bonds

$

112,160

​

$

(160)

​

$

112,000

​

$

(269)

​

$

111,731

U.S. Treasury Notes

​

141,689

​

​

(50)

​

​

141,639

​

​

(259)

​

​

141,380

Commercial Paper

​

25,956

​

​

(12)

​

​

25,944

​

​

-

​

​

25,944

Total

$

279,805

​

$

(222)

​

$

279,583

​

$

(528)

​

$

279,055

The following table summarizes the amortized cost, net carrying amount, and fair value disaggregated by class of instrument (in thousands).

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for

​

​

Net Carrying

​

​

Gross Unrealized

​

​

​

​

​

Amortized Cost

​

​

Credit Losses

​

​

Amount

​

​

Gains (Losses)

​

​

Fair Value

Corporate Bonds

$

48,837

​

$

-

​

$

48,837

​

$

97

​

$

48,934

U.S. Treasury Notes

​

35,816

​

​

-

​

​

35,816

​

​

27

​

​

35,843

Commercial Paper

​

144,257

​

​

-

​

​

144,257

​

​

(6)

​

​

144,251

Total

$

228,910

​

$

-

​

$

228,910

​

$

118

​

$

229,028
Schedule of useful lives of property and equipment

​

​

​

​

​

  ​ ​ ​

Useful Life

Computer hardware

​

3 - 5 years

Computer software

​

3 - 5 years

Financed computers and printers

​

3 years

Web site development

​

3 - 5 years

Office equipment

​

3 years

Furniture and fixtures

​

5 - 7 years

Leasehold improvements

​

Shorter of useful life or term of the lease
Schedule of goodwill activity

​

​

​

​

​

($ in millions)

  ​ ​ ​

Amount

Goodwill

​

​

​

Balance as of June 30, 2024

​

$

246.7

​

​

​

​

Balance as of June 30, 2025

​

$

246.7

​

​

​

—

Balance as of June 30, 2026

​

$

246.7
Schedule of intangible assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2026

​

June 30, 2025

($ in millions)

  ​ ​ ​

Gross
Carrying
Amount

  ​ ​ ​

Accumulated
 Amortization
and
Impairment

  ​ ​ ​

Net
Carrying
Value

  ​ ​ ​

Gross
Carrying
Amount

  ​ ​ ​

Accumulated
Amortization
and Impairment

  ​ ​ ​

Net
Carrying
Value

Trade names

  ​ ​ ​

$

70.6

  ​ ​ ​

$

(63.8)

  ​ ​ ​

$

6.8

​

$

70.6

​

$

(60.4)

​

$

10.2

Customer and distributor relationships

​

​

37.1

​

​

(35.8)

​

​

1.3

​

​

37.1

​

​

(33.7)

​

​

3.4

Developed technology

​

​

21.7

​

​

(19.1)

​

​

2.6

​

​

21.7

​

​

(17.3)

​

​

4.4

Other

​

​

1.4

​

​

(1.2)

​

​

0.2

​

​

1.4

​

​

(1.2)

​

​

0.2

Total

​

$

130.8

​

$

(119.9)

​

$

10.9

​

$

130.8

  ​

$

(112.6)

​

$

18.2
Schedule of calculation of basic and diluted net income (loss) per share

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

  ​

  ​

​

2026

​

2025

​

2024

​

​

​

​

(In thousands except share and per share data)

Basic net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

​

​

$

338,192

​

$

287,941

​

$

204,183

Weighted average common shares — basic

​

​

​

​

42,717,156

​

​

43,041,274

​

​

42,626,588

Basic net income per share

​

​

​

$

7.92

​

$

6.69

​

$

4.79

​

​

​

​

​

​

​

​

​

​

​

​

Diluted net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

​

​

$

338,192

​

$

287,941

​

$

204,183

Share computation:

​

​

​

​

​

​

​

​

​

​

​

Weighted average common shares — basic

​

​

​

​

42,717,156

​

​

43,041,274

​

​

42,626,588

Effect of dilutive restricted stock, convertible debt, and the employee stock purchase plan

​

​

​

​

4,615,699

​

​

5,372,443

​

​

908,853

Weighted average common shares — diluted

​

​

​

​

47,332,855

​

​

48,413,717

​

​

43,535,441

Diluted net income per share

​

​

​

$

7.14

​

$

5.95

​

$

4.69
v3.26.1
Property and Equipment and Capitalized Software and Curriculum (Tables)
 12 Months Ended
Jun. 30, 2026
Property and Equipment and Capitalized Software and Curriculum  
Schedule of property and equipment

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

​

2025

​

​

(In thousands)

Financed computers and printers

​

$

225,777

​

$

173,009

Computer software

​

 

3,927

​

 

5,568

Computer hardware

​

 

3,722

​

 

4,604

Leasehold improvements

​

 

8,587

​

 

10,327

State testing computers

​

​

7,149

​

​

7,151

Furniture and fixtures

​

 

2,252

​

 

3,107

Office equipment

​

 

79

​

 

129

Web site development

​

​

2,626

​

​

436

​

​

 

254,119

​

 

204,331

Less accumulated depreciation and amortization

​

 

(152,077)

​

 

(125,749)

​

​

$

102,042

​

$

78,582
Schedule of capitalized software

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

​

2025

​

​

(In thousands)

Capitalized software

​

$

276,089

​

$

323,782

Less accumulated depreciation and amortization

​

 

(181,087)

​

 

(248,468)

​

​

$

95,002

​

$

75,314
Schedule of capitalized curriculum development costs

​

​

​

​

​

​

​

​

​

​

June 30, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

​

​

(In thousands)

Capitalized curriculum development costs

​

$

204,674

​

$

187,641

Less accumulated depreciation and amortization

​

 

(147,779)

​

 

(129,057)

​

​

$

56,895

​

$

58,584
v3.26.1
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2026
Income Taxes  
Schedule of deferred tax assets and liabilities

​

​

​

​

​

​

​

​

​

​

June 30, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

​

​

(In thousands)

Deferred tax assets

​

​

​

​

​

​

Net operating loss carryforward

​

$

13,524

​

$

13,888

Reserves

​

 

10,545

​

 

9,154

Accrued expenses

​

 

11,916

​

 

15,441

Stock compensation expense

​

 

7,320

​

 

6,881

Other assets

​

 

2,170

​

 

3,308

Convertible debt

​

 

9,085

​

 

4,059

Deferred revenue

​

 

122

​

 

260

Capitalized software and website development costs

​

​

—

​

​

4,680

Lease liability

​

​

2,659

​

​

11,136

Total deferred tax assets

​

 

57,341

​

 

68,807

Deferred tax liabilities

​

​

​

​

​

​

Capitalized curriculum development

​

 

(9,758)

​

 

(10,071)

Capitalized software and website development costs

​

 

(24,023)

​

 

—

Property and equipment

​

 

(18,259)

​

 

(11,460)

Right-of-use assets

​

​

(1,755)

​

​

(3,832)

Returned materials

​

 

(2,220)

​

 

(2,722)

Purchased intangibles

​

​

(6,943)

​

​

(6,717)

Total deferred tax liabilities

​

 

(62,958)

​

 

(34,802)

Net deferred tax (liability) asset before valuation allowance

​

 

(5,617)

​

 

34,005

Valuation allowance

​

 

(7,416)

​

 

(7,628)

Net deferred tax (liability) asset

​

$

(13,033)

​

$

26,377

Reported as:

​

​

​

​

​

​

Long-term deferred tax (liability) asset

​

$

(13,033)

​

$

26,377
Schedule of components of income before income taxes

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Domestic

​

$

435,108

​

$

374,932

​

$

262,802

Foreign

​

 

5,850

​

 

6,016

​

 

5,863

Total income before income taxes

​

$

440,958

​

$

380,948

​

$

268,665
Schedule of reconciliation of provision for income taxes to the income tax from applying the statutory rate

​

​

​

​

​

​

​

​

​

​

Year Ended June 30, 2026

​

​

​

Amount

​

Percent

​

​

​

(In thousands)

U.S. Federal Statutory Tax Rate

​

$

92,601

​

21.0

%

State and Local Income Tax Effects, net of federal tax benefit (a)

 

​

14,705

​

3.3

​

Foreign Tax Effects

 

​

(18)

​

-

​

Tax Credits

​

​

​

​

​

​

Research and development tax credits

 

​

(2,866)

​

(0.7)

​

Changes in Valuation Allowance

 

​

31

​

-

​

Nontaxable or Nondeductible Items

 

​

​

​

​

​

Stock-based compensation

 

​

(20,007)

​

(4.5)

​

Non-deductible compensation

 

​

17,329

​

3.9

​

Other

 

​

85

​

-

​

Changes in Unrecognized Tax Benefits

 

​

583

​

0.2

​

Other Adjustments

 

​

322

​

0.1

​

Effective Tax Rate

​

$

102,765

​

23.3

%

(a) State taxes in California, Texas, and Virginia made up the majority (greater than 50 percent) of the tax effect in this category.

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

U.S. federal tax at statutory rates

​

21.0

%  

21.0

%  

Lobbying

 

-

​

0.1

​

Non-deductible compensation

​

2.7

​

0.8

​

State taxes, net of federal benefit

 

3.4

​

3.2

​

Research and development tax credits

 

(1.2)

​

(1.5)

​

Effects of foreign operations

 

-

​

0.1

​

Reserve for unrecognized tax benefits

 

0.4

​

0.5

​

Noncontrolling interests

 

-

​

-

​

Other

 

(0.2)

​

0.1

​

Stock-based compensation

​

(1.7)

​

(0.3)

​

Provision for income taxes

 

24.4

%  

24.0

%  
Schedule of related components of the income tax expense

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

2026

​

2025

​

2024

​

​

(In thousands)

Current:

​

​

​

​

​

​

​

​

​

Federal

​

$

47,321

​

$

91,696

​

$

52,678

State

​

 

14,213

​

 

17,921

​

 

7,660

Foreign

​

 

1,238

​

 

1,173

​

 

1,254

Total current

​

 

62,772

​

 

110,790

​

 

61,592

Deferred:

​

​

​

​

​

​

​

​

​

Federal

​

 

38,372

​

 

(16,047)

​

 

(667)

State

​

 

1,621

​

 

(1,736)

​

 

3,557

Total deferred

​

 

39,993

​

 

(17,783)

​

 

2,890

Total income tax expense

​

$

102,765

​

$

93,007

​

$

64,482

​
Schedule of unrecognized tax benefits

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

2026

​

2025

​

2024

​

​

(In thousands)

Balance at beginning of the year

​

$

5,514

​

$

4,286

​

$

3,156

Additions for prior year tax positions

​

 

277

​

 

486

​

 

591

Additions for current year tax positions

​

 

1,236

​

 

1,635

​

 

1,205

Reductions for prior year tax positions

​

​

(1,047)

​

​

(893)

​

​

(666)

Balance at end of the year

​

$

5,980

​

$

5,514

​

$

4,286
v3.26.1
Finance and Operating Leases (Tables)
 12 Months Ended
Jun. 30, 2026
Finance and Operating Leases  
Schedule of present value of the minimum lease payments on finance leases

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

​

2025

2026

​

$

—

​

$

45,781

2027

​

​

64,471

​

​

33,864

2028

​

​

42,580

​

​

12,095

2029

​

​

15,356

​

​

297

2030

​

​

373

​

​

—

Total minimum payments

​

​

122,780

​

​

92,037

Less: imputed interest

​

​

(5,848)

​

​

(5,154)

Finance lease liability

​

​

116,932

​

​

86,883

Less: current portion of finance lease liability

​

​

(60,477)

​

​

(42,316)

Long-term finance lease liability

​

$

56,455

​

$

44,567
Schedule of future minimum lease payments under non-cancelable operating leases

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2026

​

2025

​

​

(in thousands)

2026

​

$

—

​

$

12,957

2027

​

​

3,128

​

​

8,942

2028

​

​

2,066

​

​

7,957

2029

​

​

1,684

​

​

7,776

2030

​

​

1,590

​

​

7,878

2031

​

​

1,406

​

​

4,748

Thereafter

​

​

2,443

​

​

—

Total minimum payments

​

​

12,317

​

​

50,258

Less: imputed interest

​

​

(1,264)

​

​

(3,703)

Operating lease liability

​

​

11,053

​

​

46,555

Less: current portion of operating lease liability

​

​

(2,737)

​

​

(11,391)

Long-term operating lease liability

​

$

8,316

​

$

35,164
Schedule of lease cost, weighted-average remaining lease term, weighted-average discount rate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

​

2026

​

2025

​

2024

​

​

​

(in thousands)

​

Lease cost

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Finance lease cost:

​

​

​

​

​

​

​

​

​

​

Instructional costs and services:

​

​

​

​

​

​

​

​

​

​

Amortization of right-of-use assets

​

$

52,326

​

$

37,400

​

$

31,099

​

Selling, general, and administrative expenses:

​

​

​

​

​

​

​

​

​

​

Amortization of right-of-use assets

​

$

918

​

$

237

​

$

—

​

Interest on lease liabilities

​

​

5,686

​

​

4,280

​

​

2,639

​

Operating lease cost:

​

​

​

​

​

​

​

​

​

​

Instructional costs and services:

​

​

​

​

​

​

​

​

​

​

Operating lease cost

​

​

3,867

​

​

9,154

​

​

9,605

​

Short-term lease cost

​

​

82

​

​

83

​

​

56

​

Sublease income

​

​

(126)

​

​

(262)

​

​

(328)

​

Selling, general, and administrative expenses:

​

​

​

​

​

​

​

​

​

​

Operating lease cost

​

​

1,318

​

​

4,077

​

​

6,019

​

Short-term lease cost

​

​

94

​

​

93

​

​

150

​

Sublease income

​

​

—

​

​

(149)

​

​

(491)

​

Total lease cost

​

$

64,165

​

$

54,913

​

$

48,749

​

​

​

​

​

​

​

​

​

​

​

​

Other information

​

​

​

​

​

​

​

​

​

​

Cash paid for amounts included in the measurement of lease liabilities

​

​

​

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

(16,943)

​

$

(12,396)

​

$

(14,990)

​

Financing cash flows from finance leases

​

​

(56,856)

​

​

(41,469)

​

​

(40,919)

​

Right-of-use assets obtained in exchange for new finance lease liabilities

​

​

82,500

​

​

68,995

​

​

35,652

​

Right-of-use assets obtained in exchange for new operating lease liabilities

​

​

1,325

​

​

1,012

​

​

864

​

Weighted-average remaining lease term - finance leases

​

​

2.00

yrs.

​

2.07

yrs.

​

2.02

yrs.

Weighted-average remaining lease term - operating leases

​

​

5.58

yrs.

​

5.13

yrs.

​

5.66

yrs.

Weighted-average discount rate - finance leases

​

​

4.71

%

​

5.34

%

​

5.62

%

Weighted-average discount rate - operating leases

​

​

4.05

%

​

2.95

%

​

2.92

%
v3.26.1
Debt (Tables)
 12 Months Ended
Jun. 30, 2026
Debt  
Schedule of components of debt

​

​

​

​

​

​

​

​

​

  ​ ​ 

June 30, 

​

  ​ ​ 

2026

​

2025

​

​

(in thousands)

Convertible Senior Notes due 2027

​

$

420,000

​

$

420,000

Less: unamortized debt issuance costs

​

​

(2,005)

​

​

(3,678)

Total debt

​

​

417,995

​

​

416,322

Less: current portion of debt

​

​

—

​

​

—

Long-term debt

​

$

417,995

​

$

416,322
v3.26.1
Equity Incentive Plan (Tables)
 12 Months Ended
Jun. 30, 2026
Equity Incentive Plan  
Schedule of restricted stock award activity

​

​

​

​

​

​

​

​

  ​ ​ ​

​

  ​ ​ ​

Weighted

​

​

​

​

Average

​

​

​

​

Grant-Date

​

​

Shares

​

Fair Value

Nonvested, June 30, 2023

 

815,233

​

$

36.91

Granted

​

507,443

​

​

43.43

Vested

​

(437,724)

​

​

36.36

Canceled

​

(153,728)

​

​

37.37

Nonvested, June 30, 2024

​

731,224

​

$

40.60

Granted

​

317,490

​

​

85.79

Vested

​

(387,471)

​

​

42.79

Canceled

​

(84,389)

​

​

49.39

Nonvested, June 30, 2025

​

576,854

​

$

62.72

Granted

​

206,518

​

​

137.82

Vested

​

(317,612)

​

​

59.04

Canceled

​

(64,562)

​

​

82.44

Nonvested, June 30, 2026

​

401,198

​

$

101.11
Schedule of performance share units award activity

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

Average

​

​

​

​

Grant-Date

​

  ​ ​ ​

Shares

  ​ ​ ​

Fair Value

Nonvested, June 30, 2023

​

496,869

​

$

34.99

Granted

​

375,725

​

​

41.85

Vested

​

(22,468)

​

​

49.62

Canceled

​

(90,595)

​

​

36.94

Nonvested, June 30, 2024

​

759,531

​

$

37.73

Granted

​

299,908

​

​

71.40

Vested

​

(223,241)

​

​

37.44

Canceled

​

(134,291)

​

​

42.60

Nonvested, June 30, 2025

​

701,907

​

$

51.27

Granted

​

354,664

​

​

83.87

Vested

​

(413,681)

​

​

34.90

Canceled

​

(18,875)

​

​

80.15

Nonvested, June 30, 2026

​

624,015

​

$

79.78

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fiscal Year

​

Grant Date
Fair Value

​

Number
of
Target Shares

​

Weighted
Average
Grant Date
Fair Value

​

Tranche #1

​

​

Tranche #2

​

​

Vest Date

​

​

Tranche #1
Probability
Assessment

Fiscal Year 2026

​

$22.2 million

​

146,911

​

$151.16

​

81,093 shares
based on FY28
Operating Income

​

​

65,818
shares based
on Stock
Price Growth
in September 2029

​

​

First Quarter of
Fiscal Year 2029

​

​

Not Yet
Determinable

Fiscal Year 2025

​

$17.0 million

​

210,620

​

$80.89

​

158,470 shares
based on FY27
Operating Income

​

​

52,150
shares based
on Stock
Price Growth
in September 2028

​

​

First Quarter of
Fiscal Year 2028

​

​

Outperform

Fiscal Year 2024

​

$14.4 million

​

354,090

​

$40.84

​

265,630 shares
based on FY26
Operating Income

​

​

88,460
shares based
on Stock
Price Growth
in September 2027

​

​

First Quarter of
Fiscal Year 2027

​

​

Outperform

Fiscal Year 2023

​

$10.0 million

​

289,640

​

$34.41

​

144,820 shares
based on FY25
Operating Income

​

​

144,820
shares based
on Stock
Price Growth
in September 2026

​

​

First Quarter of
Fiscal Year 2026

​

​

Achieved

Fiscal Year 2022

​

$9.1 million

​

250,250

​

$36.30

​

125,125 shares
based on FY24
Gross Margin

​

​

125,125
shares based
on Stock
Price Growth
in September 2025

​

​

First Quarter of
Fiscal Year 2025

​

​

Achieved
Deferred Stock Units  
Equity Incentive Plan  
Schedule of performance share units award activity

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

Average

​

​

​

​

Grant-Date

​

  ​ ​ ​

Shares

  ​ ​ ​

Fair Value

Nonvested, June 30, 2023

​

99,535

​

$

27.38

Granted

​

13,171

​

​

59.43

Vested

​

(16,102)

​

​

22.91

Canceled

​

—

​

​

—

Nonvested, June 30, 2024

​

96,604

​

$

32.49

Granted

​

6,621

​

​

108.92

Vested

​

(34,446)

​

​

27.03

Canceled

​

—

​

​

—

Nonvested, June 30, 2025

​

68,779

​

$

42.58

Granted

​

12,324

​

​

61.22

Vested

​

—

​

​

—

Canceled

​

—

​

​

—

Nonvested, June 30, 2026

​

81,103

​

$

45.41
v3.26.1
Supplemental Disclosure of Cash Flow Information (Tables)
 12 Months Ended
Jun. 30, 2026
Supplemental Disclosure of Cash Flow Information  
Schedule of supplemental disclosure of cash flow information

​

​

​

​

​

​

​

​

​

​

​

 

​

Years Ended June 30, 

 

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

​

(In thousands)

Cash paid for interest

​

$

10,437

​

$

9,144

​

$

7,521

Cash paid for taxes (1)

​

$

—

​

​

67,901

​

$

85,228

​

​

​

​

​

​

​

​

​

​

Supplemental disclosure of non-cash financing activities:

​

​

​

​

​

​

​

​

​

Right-of-use assets obtained in exchange for new finance lease liabilities

​

​

82,500

​

​

68,995

​

​

35,652

​

​

​

​

​

​

​

​

​

​

Supplemental disclosure of non-cash investing activities:

​

​

​

​

​

​

​

​

​

Stock-based compensation expense capitalized on software development

​

$

774

​

$

551

​

$

816

Stock-based compensation expense capitalized on curriculum development

​

​

163

​

​

128

​

​

76

​
v3.26.1
Description of the Business (Details)
Jun. 30, 2026
item
Description of the Business  
Number of lines of revenue 2
v3.26.1
Summary of Significant Accounting Policies - Segment Reporting (Details)
 12 Months Ended
Jun. 30, 2026
segment
Summary of Significant Accounting Policies  
Number of operating segments 1
Number of reportable business segments 1
v3.26.1
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2023
Summary of Significant Accounting Policies        
Estimate of Percentage of Impact on Total Revenue 2.00%      
Percentage of impact on total revenue   0.80% 1.80% 2.80%
School operating losses included in the entity's revenue $ 17,200 $ 14,500 $ 17,000  
Revenues $ 2,518,081 2,405,317 2,040,069  
Minimum        
Summary of Significant Accounting Policies        
Duration of contracts providing access to curriculum via the entity's Web site 1 year      
Maximum        
Summary of Significant Accounting Policies        
Duration of contracts providing access to curriculum via the entity's Web site 2 years      
Primary Obligor        
Summary of Significant Accounting Policies        
Revenues $ 683,600 $ 662,600 $ 576,400  
v3.26.1
Summary of Significant Accounting Policies - Disaggregated Revenues (Details)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
USD ($)
item
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Summary of Significant Accounting Policies      
Number of lines of revenue | item 2    
Total Revenues $ 2,518,081 $ 2,405,317 $ 2,040,069
General Education      
Summary of Significant Accounting Policies      
Percentage of revenues from funding-based contracts 96.00% 95.00% 93.00%
Total Revenues $ 1,417,785 $ 1,448,676 $ 1,289,193
Career Learning      
Summary of Significant Accounting Policies      
Total Revenues $ 1,100,296 $ 956,641 $ 750,876
Middle - High School      
Summary of Significant Accounting Policies      
Percentage of revenues from funding-based contracts 100.00% 100.00% 100.00%
Total Revenues $ 1,043,726 $ 876,287 $ 651,191
Adult      
Summary of Significant Accounting Policies      
Total Revenues $ 56,570 $ 80,354 $ 99,685
v3.26.1
Summary of Significant Accounting Policies - Concentration of Customers (Details) - contract
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Revenue | Customer Concentration Risk      
Concentration of revenues      
Number of customers with concentration 0 0 0
v3.26.1
Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Accounts receivable, unbilled receivables and deferred revenue      
Accounts receivable $ 664,788 $ 559,646 $ 472,754
Unbilled receivables (included in accounts receivable) 24,351 19,902 19,499
Deferred revenue 20,553 26,995 35,742
Deferred revenue, long-term (included in other long-term liabilities) 58 327 1,097
Revenue recognized that was included in opening deferred revenue balance 25,800 32,000 74,400
Revenue recognized from performance obligation satisfied in prior periods $ 18,400 $ 35,900 $ 51,000
v3.26.1
Summary of Significant Accounting Policies - Performance Obligations and Research and Development Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Summary of Significant Accounting Policies      
Minimum payment term 30 days    
Maximum payment term 45 days    
Practical expedient      
Unsatisfied performance obligations true    
Unsatisfied performance obligations amount $ 0.1    
Research and development costs $ 22.0 $ 16.6 $ 16.7
v3.26.1
Summary of Significant Accounting Policies - Investments in Marketable Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Marketable securities      
Investment income, nonoperating $ 30,400 $ 31,600 $ 25,600
Marketable securities, short-term portion 203,600 202,800  
Marketable securities, long-term portion $ 76,200 $ 26,100  
Marketable Securities, Maturity Date, Start 1 year 1 year  
Marketable Securities, Maturity Date, End 2 years 2 years  
Amortized Cost $ 279,805 $ 228,910  
Allowance for Credit Losses (222) 0  
Net Carrying Amount 279,583 228,910  
Gross Unrealized Losses (528)    
Gross Unrealized Gains   118  
Fair Value 279,055 229,028  
Equity securities 42,300 19,900  
Net unrealized (losses) gains (24,000) 1,000 $ 0
Corporate Bonds      
Marketable securities      
Amortized Cost 112,160 48,837  
Allowance for Credit Losses (160)    
Net Carrying Amount 112,000 48,837  
Gross Unrealized Losses (269)    
Gross Unrealized Gains   97  
Fair Value 111,731 48,934  
U.S. Treasury Notes      
Marketable securities      
Amortized Cost 141,689 35,816  
Allowance for Credit Losses (50)    
Net Carrying Amount 141,639 35,816  
Gross Unrealized Losses (259)    
Gross Unrealized Gains   27  
Fair Value 141,380 35,843  
Commercial Paper      
Marketable securities      
Amortized Cost 25,956 144,257  
Allowance for Credit Losses (12)    
Net Carrying Amount 25,944 144,257  
Gross Unrealized Losses   (6)  
Fair Value $ 25,944 $ 144,251  
v3.26.1
Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Summary of Significant Accounting Policies      
Allowance for doubtful accounts $ 31,302 $ 31,124 $ 31,300
Increase in allowance for doubtful accounts 200 200  
Provision 16,400 15,300  
Allowance for credit losses written off $ 16,200 $ 15,500  
v3.26.1
Summary of Significant Accounting Policies - Inventories (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Jun. 30, 2025
Summary of Significant Accounting Policies    
Inventory deemed long-term and included in deposits and other assets $ 14.7 $ 13.6
Excess and obsolete inventory reserve $ 9.4 $ 6.8
v3.26.1
Summary of Significant Accounting Policies - Capitalized Software-as-a-Service Costs (Details) - USD ($)
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Property and equipment, net      
Capitalized software, net $ 95,002,000 $ 75,314,000  
Capitalized software written down 0 0 $ 0
Capitalized computer software as service      
Property and equipment, net      
Capitalized software written down 0 0 0
Capitalized computer software as service | Instructional costs and services      
Property and equipment, net      
Amortization expense 13,800,000 3,400,000 0
Capitalized computer software as service | Selling, general and administrative expenses      
Property and equipment, net      
Amortization expense 17,300,000 16,000,000 $ 15,800,000
Capitalized computer software as service | Prepaid expenses      
Property and equipment, net      
Capitalized software, net 18,000,000 17,500,000  
Capitalized computer software as service | Deposits and other assets      
Property and equipment, net      
Capitalized software, net $ 28,100,000 $ 43,300,000  
Minimum | Capitalized computer software as service      
Property and equipment, net      
Capitalized software as service useful life 3 years    
Maximum | Capitalized computer software as service      
Property and equipment, net      
Capitalized software as service useful life 5 years    
v3.26.1
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($)
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Property and equipment      
Equipment expense $ 4,400,000 $ 3,800,000 $ 4,000,000
Capitalized software development costs 61,591,000 36,428,000 40,653,000
Capitalized software written down $ 0 0 0
Capitalized Curriculum Development Costs      
Estimated useful life of the software 5 years    
Capitalized curriculum development costs $ 16,668,000 21,801,000 18,666,000
Capitalized curriculum development costs write down $ 0 0 0
Operating Lease cost:      
Time for Short Term Leases 12 months    
Capitalized software      
Property and equipment      
Estimated useful life of capitalized software 3 years    
Minimum      
Operating Lease cost:      
Operating leases initial term 1 year    
Maximum      
Finance Leases      
Finance lease term 3 years    
Operating Lease cost:      
Operating leases initial term 7 years    
Instructional costs and services      
Property and equipment      
Depreciation expense $ 54,600,000 39,300,000 32,900,000
Capitalized Curriculum Development Costs      
Amortization expense 18,900,000 17,500,000 17,700,000
Instructional costs and services | Capitalized software      
Property and equipment      
Amortization expense 29,800,000 35,600,000 34,400,000
Selling, general and administrative expenses      
Property and equipment      
Depreciation expense 3,000,000 2,800,000 3,800,000
Selling, general and administrative expenses | Capitalized software      
Property and equipment      
Amortization expense 13,000,000 9,500,000 7,900,000
Unreturned student computers and printers      
Property and equipment      
Accelerated depreciation $ 5,400,000 $ 4,300,000 $ 4,000,000
Computer hardware | Minimum      
Property and equipment      
Useful Life 3 years    
Computer hardware | Maximum      
Property and equipment      
Useful Life 5 years    
Computer software | Minimum      
Property and equipment      
Useful Life 3 years    
Computer software | Maximum      
Property and equipment      
Useful Life 5 years    
Financed computers and printers      
Property and equipment      
Useful Life 3 years    
Web site development | Minimum      
Property and equipment      
Useful Life 3 years    
Web site development | Maximum      
Property and equipment      
Useful Life 5 years    
Office equipment      
Property and equipment      
Useful Life 3 years    
Furniture and fixtures | Minimum      
Property and equipment      
Useful Life 5 years    
Furniture and fixtures | Maximum      
Property and equipment      
Useful Life 7 years    
Building | Minimum      
Operating Lease cost:      
Operating leases initial term 1 year    
Building | Maximum      
Operating Lease cost:      
Operating leases initial term 7 years    
v3.26.1
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
USD ($)
segment
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Intangible Assets:      
Amortization expense $ 7,400 $ 9,900 $ 12,900
Impairment loss $ 32,200    
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] Impairment of long-lived assets    
Number of reporting units | segment 1    
Impairment of long-lived assets   59,478  
Operating lease right-of-use assets $ 27,300    
Future amortization of intangible assets      
Fiscal 2027 5,900    
Fiscal 2028 4,100    
Fiscal 2029 300    
Fiscal 2030 200    
Fiscal 2031 100    
Thereafter 100    
Rollforward of Goodwill      
Balance at the beginning of the period 246,676 246,700  
Balance at the end of the period 246,676 246,676 $ 246,700
Intangible Assets      
Gross Carrying Amount 130,800 130,800  
Accumulated Amortization and Impairment (119,900) (112,600)  
Net Carrying Value 10,900 18,200  
Trade names      
Intangible Assets:      
Impairment loss 32,000    
Intangible Assets      
Gross Carrying Amount 70,600 70,600  
Accumulated Amortization and Impairment (63,800) (60,400)  
Net Carrying Value 6,800 10,200  
Customer and distributor relationships      
Intangible Assets      
Gross Carrying Amount 37,100 37,100  
Accumulated Amortization and Impairment (35,800) (33,700)  
Net Carrying Value 1,300 3,400  
Developed technology      
Intangible Assets:      
Impairment loss 200    
Intangible Assets      
Gross Carrying Amount 21,700 21,700  
Accumulated Amortization and Impairment (19,100) (17,300)  
Net Carrying Value 2,600 4,400  
Other      
Intangible Assets      
Gross Carrying Amount 1,400 1,400  
Accumulated Amortization and Impairment (1,200) (1,200)  
Net Carrying Value $ 200 $ 200  
v3.26.1
Summary of Significant Accounting Policies - Advertising and Marketing Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Advertising and Marketing Costs      
Advertising costs $ 92.1 $ 103.6 $ 96.5
v3.26.1
Summary of Significant Accounting Policies - Fair Value Measurement (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Jun. 30, 2025
Assets and liabilities measured at fair value    
Equity securities $ 42.3 $ 19.9
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets and liabilities measured at fair value    
Estimated fair value of marketable securities 12.9  
Equity securities 42.3  
Significant Other Observable Inputs (Level 2)    
Assets and liabilities measured at fair value    
Estimated fair value of long-term debt 747.6  
Estimated fair value of marketable securities $ 266.2  
v3.26.1
Summary of Significant Accounting Policies - Net Income (Loss) Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Sep. 30, 2020
Weighted average shares used in computing per share amounts:        
Net Income (Loss) $ 338,192 $ 287,941 $ 204,183  
Weighted average common shares-basic 42,717,156 43,041,274 42,626,588  
Basic net income per share (in dollars per share) $ 7.92 $ 6.69 $ 4.79  
Effect of dilutive restricted stock, convertible debt, and the employee stock purchase plan 4,615,699 5,372,443 908,853  
Weighted average common shares-diluted 47,332,855 48,413,717 43,535,441  
Diluted net income per share (in dollars per share) $ 7.14 $ 5.95 $ 4.69  
Convertible Senior Notes Due 2027        
Weighted average shares used in computing per share amounts:        
Interest rate (as percent) 1.125%     1.125%
Stock options and restricted stock        
Weighted average shares used in computing per share amounts:        
Anti-dilutive shares 2,778,431 2,400,621 7,658  
v3.26.1
Property and Equipment and Capitalized Software and Curriculum (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Property and equipment, net      
Property and equipment, gross $ 254,119 $ 204,331  
Less accumulated depreciation and amortization (152,077) (125,749)  
Property and equipment, Net 102,042 78,582  
Capitalized Computer Software      
Capitalized Computer Software, Gross 276,089 323,782  
Less accumulated depreciation and amortization (181,087) (248,468)  
Capitalized software, Net 95,002 75,314  
Capitalized Curriculum Development Costs      
Capitalized curriculum development costs 204,674 187,641  
Less accumulated depreciation and amortization (147,779) (129,057)  
Capitalized curriculum development costs, net 56,895 58,584  
Selling, General and Administrative Expenses      
Property and equipment, net      
Depreciation expense 3,000 2,800 $ 3,800
Cost of Sales      
Property and equipment, net      
Depreciation expense 54,600 39,300 32,900
Capitalized Curriculum Development Costs      
Amortization expense 18,900 17,500 $ 17,700
Financed computers and printers      
Property and equipment, net      
Property and equipment, gross 225,777 173,009  
Computer software      
Property and equipment, net      
Property and equipment, gross 3,927 5,568  
Computer hardware      
Property and equipment, net      
Property and equipment, gross 3,722 4,604  
Leasehold improvements      
Property and equipment, net      
Property and equipment, gross 8,587 10,327  
State testing computers      
Property and equipment, net      
Property and equipment, gross 7,149 7,151  
Furniture and fixtures      
Property and equipment, net      
Property and equipment, gross 2,252 3,107  
Office equipment      
Property and equipment, net      
Property and equipment, gross 79 129  
Website development      
Property and equipment, net      
Property and equipment, gross $ 2,626 $ 436  
v3.26.1
Income Taxes - Deferred (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Jun. 30, 2025
Deferred tax assets:    
Net operating loss carryforward $ 13,524 $ 13,888
Reserves 10,545 9,154
Accrued expenses 11,916 15,441
Stock compensation expense 7,320 6,881
Other assets 2,170 3,308
Convertible debt 9,085 4,059
Deferred revenue 122 260
Capitalized software and website development costs   4,680
Lease liability 2,659 11,136
Total deferred tax assets 57,341 68,807
Deferred tax liabilities:    
Capitalized curriculum development (9,758) (10,071)
Capitalized software and website development costs (24,023)  
Property and equipment (18,259) (11,460)
Right-of-use assets (1,755) (3,832)
Returned materials (2,220) (2,722)
Purchased intangibles (6,943) (6,717)
Total deferred tax liabilities (62,958) (34,802)
Net deferred tax (liability) asset before valuation allowance (5,617) 34,005
Valuation allowance (7,416) (7,628)
Net deferred tax (liability) (13,033)  
Net deferred tax asset   26,377
Reported as:    
Deferred tax liability $ (13,033)  
Deferred tax asset   $ 26,377
v3.26.1
Income Taxes - Carryforward (Details)
$ in Millions
Jun. 30, 2026
USD ($)
Income Taxes  
NOL carryforward $ 24.5
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration $ 1.0
v3.26.1
Income Taxes - Components of income tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Income Taxes      
Domestic $ 435,108 $ 374,932 $ 262,802
Foreign 5,850 6,016 5,863
Total income before income taxes 440,958 380,948 268,665
Current:      
Federal 47,321 91,696 52,678
State 14,213 17,921 7,660
Foreign 1,238 1,173 1,254
Total current 62,772 110,790 61,592
Deferred:      
Federal 38,372 (16,047) (667)
State 1,621 (1,736) 3,557
Total deferred 39,993 (17,783) 2,890
Total income tax expense $ 102,765 $ 93,007 $ 64,482
v3.26.1
Income Taxes - Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Effective income tax rate reconciliation, amount      
U.S. Federal Statutory Tax Rate $ 92,601    
State and Local Income Tax Effects, net of federal tax benefit $ 14,705    
Effective Income Tax Rate Reconciliation, State and Local Jurisdiction, Contribution Greater than 50 Percent, Tax Effect [Extensible Enumeration] CALIFORNIA, stpr:TX, stpr:VA    
Foreign Tax Effects $ (18)    
Tax Credits      
Research and development tax credits (2,866)    
Changes in Valuation Allowance 31    
Stock-based compensation (20,007)    
Non-deductible compensation 17,329    
Other 85    
Changes in Unrecognized Tax Benefits 583    
Other Adjustments 322    
Total income tax expense $ 102,765 $ 93,007 $ 64,482
Tax Jurisdiction of Domicile [Extensible Enumeration] country:US    
Reconciliation to income tax at the statutory rate:      
U.S. Federal Statutory Tax Rate (as a percent) 21.00% 21.00% 21.00%
State and Local Income Tax Effects, net of federal tax benefit (as a percent) 3.30% 3.40% 3.20%
Foreign Tax Effects (as a percent)     0.10%
Tax Credits      
Research and development tax credits (as a percent) (0.70%) (1.20%) (1.50%)
Stock-based compensation (as a percent) (4.50%) (1.70%) (0.30%)
Lobbying (as a percent)     0.10%
Non-deductible compensation ( as a percent) 3.90% 2.70% 0.80%
Reserve for unrecognized tax benefits (as a percent)   0.40% 0.50%
Changes in Unrecognized Tax Benefits (as a percent) 0.20%    
Other (as a percent) 0.10% (0.20%) 0.10%
Effective Tax Rate (as a percent) 23.30% 24.40% 24.00%
Income taxes payable $ 27,500 $ 52,600  
v3.26.1
Income Taxes - Tax Uncertainties (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Tax Uncertainties      
Interest and penalties accrued $ 700 $ 500 $ 400
Balance at beginning of the year 5,514 4,286 3,156
Additions for prior year tax positions 277 486 591
Additions for current year tax positions 1,236 1,635 1,205
Reductions for prior year tax positions (1,047) (893) (666)
Balance at end of the year 5,980 $ 5,514 $ 4,286
Unrecognized tax benefits that would affect the effective tax rate $ 6,000    
v3.26.1
Income Taxes - Income Taxes Paid (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Income Taxes      
Federal $ 67,201    
State and Local 19,963    
Foreign 859    
Income Taxes Paid, Net, Total 88,023 $ 67,901 $ 85,228
CALIFORNIA      
Income Taxes      
State and Local $ 6,475    
v3.26.1
Finance and Operating Leases (Details) - USD ($)
Jun. 30, 2026
Jun. 30, 2025
Finance and Operating Leases    
Finance lease liability $ 116,932,000 $ 86,883,000
Maximum    
Finance and Operating Leases    
Finance lease term 3 years  
BALC    
Finance and Operating Leases    
Finance lease liability $ 116,900,000 86,900,000
Finance lease right-of-use assets $ 95,300,000 $ 69,500,000
Finance lease term 36 months  
Purchase option $ 1  
BALC | Minimum    
Finance and Operating Leases    
Fixed interest rate (as a percent) 4.12%  
BALC | Maximum    
Finance and Operating Leases    
Fixed interest rate (as a percent) 6.72%  
CSI Leasing    
Finance and Operating Leases    
Finance lease term 36 months  
CSI Leasing | Minimum    
Finance and Operating Leases    
Fixed interest rate (as a percent) 4.75%  
v3.26.1
Finance and Operating Leases - Finance leases (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Jun. 30, 2025
Finance leases    
2026   $ 45,781
2027 $ 64,471 33,864
2028 42,580 12,095
2029 15,356 297
2030 373  
Total minimum payments 122,780 92,037
Less: imputed interest (5,848) (5,154)
Finance lease liability 116,932 86,883
Less: current portion of finance lease liability (60,477) (42,316)
Long-term finance lease liability $ 56,455 $ 44,567
v3.26.1
Finance and Operating Leases - Operating Leases (Details)
$ in Thousands
 1 Months Ended 12 Months Ended
Dec. 31, 2025
USD ($)
Jun. 30, 2026
USD ($)
facility
Jun. 30, 2025
USD ($)
Operating Leases      
2026     $ 12,957
2027   $ 3,128 8,942
2028   2,066 7,957
2029   1,684 7,776
2030   1,590 7,878
2031   1,406 4,748
Thereafter   2,443  
Total minimum payments   12,317 50,258
Less: imputed interest   (1,264) (3,703)
Operating lease liability   11,053 46,555
Less: current portion of operating lease liability   (2,737) (11,391)
Long-term operating lease liability   8,316 35,164
Operating lease right-of-use assets, net   $ 7,300 $ 16,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]   Other Assets, Noncurrent Other Assets, Noncurrent
Number of entity's facilities that are being subleased through December 2025 | facility   1  
Lease termination gain $ 14,300    
Minimum      
Operating Leases      
Operating leases initial term   1 year  
Maximum      
Operating Leases      
Operating leases initial term   7 years  
v3.26.1
Finance and Operating Leases - Lease cost and other information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Operating Lease cost:      
Total lease cost $ 64,165 $ 54,913 $ 48,749
Cash paid for amounts included in the measurement of lease liabilities      
Operating cash flows from operating leases (16,943) (12,396) (14,990)
Financing cash flows from finance leases (56,856) (41,469) (40,919)
Right-of-use assets obtained in exchange for new finance lease liabilities 82,500 68,995 35,652
Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,325 $ 1,012 $ 864
Weighted-average remaining lease term - finance leases 2 years 2 years 25 days 2 years 7 days
Weighted-average remaining lease term - operating leases 5 years 6 months 29 days 5 years 1 month 17 days 5 years 7 months 28 days
Weighted-average discount rate - finance leases 4.71% 5.34% 5.62%
Weighted-average discount rate - operating leases 4.05% 2.95% 2.92%
Instructional costs and services      
Finance lease cost:      
Amortization of right-of-use assets $ 52,326 $ 37,400 $ 31,099
Operating Lease cost:      
Operating lease cost 3,867 9,154 9,605
Short-term lease cost 82 83 56
Sublease Income 126 262 328
Selling, general and administrative expenses      
Finance lease cost:      
Amortization of right-of-use assets 918 237  
Interest on lease liabilities 5,686 4,280 2,639
Operating Lease cost:      
Operating lease cost 1,318 4,077 6,019
Short-term lease cost $ 94 93 150
Sublease Income   $ 149 $ 491
v3.26.1
Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Jun. 30, 2025
Debt    
Less: unamortized debt issuance costs $ (2,005) $ (3,678)
Total debt 417,995 416,322
Long-term debt 417,995 416,322
Convertible Senior Notes Due 2027    
Debt    
Total debt $ 420,000 $ 420,000
v3.26.1
Debt - Maturities of long-term debt (Details)
$ in Millions
Jun. 30, 2026
USD ($)
Debt  
Year 1 $ 0.0
Year 2 0.0
Year 3 420.0
Year 4 0.0
Year 5 $ 0.0
v3.26.1
Debt - Additional Information (Details)
 2 Months Ended 12 Months Ended
Sep. 30, 2020
USD ($)
$ / shares
Jun. 30, 2026
USD ($)
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Debt        
Amortization of fees on debt   $ 1,673,000 $ 1,647,000 $ 1,640,000
Convertible Senior Notes Due 2027        
Debt        
Face amount $ 420,000,000      
Interest rate (as percent) 1.125% 1.125%    
Net proceeds $ 408,600,000      
Interest expense   $ 4,700,000 4,700,000 4,700,000
Debt issuance costs $ 11,400,000      
Amortization of fees on debt   $ 1,700,000 $ 1,600,000 $ 1,600,000
Period prior to maturity date where noteholders may convert their notes at their election prior to the maturity date 2 days      
Conversion rate 18.9109      
Denomination of the Principal amount $ 1,000      
Conversion price (in dollars per share) | $ / shares $ 52.88      
Upper strike price (in dollars per share) | $ / shares $ 86.174      
Capped call transaction $ 60,400,000      
v3.26.1
Equity Incentive Plan (Details) - 2016 Plan - shares
Dec. 04, 2025
Jun. 30, 2026
Equity Transactions    
Additional shares available for issuance 740,000  
Shares reserved for issuance   2,406,929
Number of stock awards outstanding (in shares)   1,106,316
v3.26.1
Equity Incentive Plan - Restricted Stock Awards (Details) - Restricted Stock Awards - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Shares      
Nonvested at the beginning of the period (in shares) 576,854 731,224 815,233
Granted (in shares) 206,518 317,490 507,443
Vested (in shares) (317,612) (387,471) (437,724)
Canceled (in shares) (64,562) (84,389) (153,728)
Nonvested at the end of the period (in shares) 401,198 576,854 731,224
Weighted-Average Grant Date Fair Value      
Nonvested at the beginning of the period (in dollars per share) $ 62.72 $ 40.6 $ 36.91
Granted (in dollars per share) 137.82 85.79 43.43
Vested (in dollars per share) 59.04 42.79 36.36
Canceled (in dollars per share) 82.44 49.39 37.37
Nonvested at the end of the period (in dollars per share) $ 101.11 $ 62.72 $ 40.6
Vesting period 3 years    
Unrecognized compensation $ 28.2    
Weighted average period for recognition of total unrecognized compensation expense related to unvested stock options granted 1 year 4 months 24 days    
Fair value of share-based compensation awards granted in period $ 28.5 $ 27.2 $ 22.0
Fair value of share-based compensation awards vested in period 38.5 43.6 23.3
Stock based compensation expense $ 21.5 $ 19.8 $ 16.0
v3.26.1
Equity Incentive Plan - Performance Share Units ("PSU") (Details) - Performance Share Units - $ / shares
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Shares      
Nonvested at the beginning of the period (in shares) 701,907 759,531 496,869
Granted (in shares) 354,664 299,908 375,725
Vested (in shares) (413,681) (223,241) (22,468)
Canceled (in shares) (18,875) (134,291) (90,595)
Nonvested at the end of the period (in shares) 624,015 701,907 759,531
Weighted-Average Grant Date Fair Value      
Nonvested at the beginning of the period (in dollars per share) $ 51.27 $ 37.73 $ 34.99
Granted (in dollars per share) 83.87 71.4 41.85
Vested (in dollars per share) 34.9 37.44 49.62
Canceled (in dollars per share) 80.15 42.6 36.94
Nonvested at the end of the period (in dollars per share) $ 79.78 $ 51.27 $ 37.73
Number of shares of common stock each unit has the right to receive 1    
Vesting period 3 years    
PSU Threshold Payout Percentage (50.00%)    
Target payout percentage (100.00%)    
Maximum payout percentage (200.00%)    
v3.26.1
Equity Incentive Plan - Long Term Incentive Plan (LTIP) (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
Sep. 30, 2025
shares
Jul. 31, 2025
shares
Sep. 30, 2024
shares
Jul. 31, 2024
shares
Dec. 31, 2022
tranche
Dec. 31, 2023
shares
Dec. 31, 2022
tranche
shares
Dec. 31, 2021
shares
Jun. 30, 2026
USD ($)
$ / shares
shares
Jun. 30, 2025
USD ($)
$ / shares
shares
Jun. 30, 2024
USD ($)
$ / shares
shares
Jun. 30, 2022
shares
Jun. 30, 2021
USD ($)
$ / shares
shares
Fiscal Year 2021 LTIP                          
Equity Transactions                          
Earned award vesting percentage         123.00%                
Number of metrics assumed to be achieved | tranche         2   2            
Number of metrics assumed to be achieved at threshold | tranche         1   1            
Vest immediately | Fiscal Year 2021 LTIP                          
Equity Transactions                          
Vested (in shares)                       4,533  
Earned award vesting percentage                       40.00%  
Vest annually over two years. | Fiscal Year 2021 LTIP                          
Equity Transactions                          
Vested (in shares)                       6,797  
Earned award vesting percentage                       60.00%  
Performance Share Units                          
Equity Transactions                          
Number of Target Shares                 354,664 299,908 375,725    
Weighted Average Grant Date Fair Value | $ / shares                 $ 83.87 $ 71.4 $ 41.85    
Vested (in shares)                 413,681 223,241 22,468    
Unrecognized compensation | $                 $ 18,200,000        
Weighted average period for recognition of total unrecognized compensation expense related to unvested stock options granted                 1 year        
Stock based compensation expense | $                 $ 18,500,000 $ 16,900,000 $ 15,400,000    
Performance Share Units | Fiscal Year 2026 LTIP                          
Equity Transactions                          
Grant Date Fair Value | $                 $ 22,200,000        
Number of Target Shares                 146,911        
Weighted Average Grant Date Fair Value | $ / shares                 $ 151.16        
Performance Share Units | Fiscal Year 2025 LTIP                          
Equity Transactions                          
Grant Date Fair Value | $                 $ 17,000,000        
Number of Target Shares                 210,620        
Weighted Average Grant Date Fair Value | $ / shares                 $ 80.89        
Performance Share Units | Fiscal Year 2024 LTIP                          
Equity Transactions                          
Grant Date Fair Value | $                 $ 14,400,000        
Number of Target Shares                 354,090        
Weighted Average Grant Date Fair Value | $ / shares                 $ 40.84        
Performance Share Units | Fiscal Year 2023 LTIP                          
Equity Transactions                          
Grant Date Fair Value | $                 $ 10,000,000        
Number of Target Shares                 289,640        
Weighted Average Grant Date Fair Value | $ / shares                 $ 34.41        
Performance Share Units | Fiscal Year 2022 LTIP                          
Equity Transactions                          
Grant Date Fair Value | $                 $ 9,100,000        
Number of Target Shares                 250,250        
Weighted Average Grant Date Fair Value | $ / shares                 $ 36.3        
Performance Share Units | Fiscal Year 2021 MIP                          
Equity Transactions                          
Number of Target Shares           13,066 37,886 38,575          
Earned award vesting percentage             0.333% 0.3333%          
Performance Share Units | Fiscal Year 2021 LTIP                          
Equity Transactions                          
Number of Target Shares                         111,450
Weighted Average Grant Date Fair Value | $ / shares                         $ 24.15
Fair value | $                         $ 2,700,000
Performance Share Units | Tech Elevator                          
Equity Transactions                          
Stock based compensation expense | $                 $ 0   $ 300,000    
Performance Share Units | Tech Elevator | Fiscal Year 2021 MIP                          
Equity Transactions                          
Intrinsic value of awards | $                         $ 4,000,000
Performance Share Units | Vest immediately | Fiscal Year 2026 LTIP                          
Equity Transactions                          
Number of Target Shares                 81,093        
Performance Share Units | Vest immediately | Fiscal Year 2025 LTIP                          
Equity Transactions                          
Number of Target Shares                 158,470        
Performance Share Units | Vest immediately | Fiscal Year 2024 LTIP                          
Equity Transactions                          
Number of Target Shares                 265,630        
Performance Share Units | Vest immediately | Fiscal Year 2023 LTIP                          
Equity Transactions                          
Number of Target Shares                 144,820        
Certified achievement percentage 200.00% 200.00%                      
Vested (in shares) 204,340 204,340 155,946 62,379                  
Performance Share Units | Vest immediately | Fiscal Year 2022 LTIP                          
Equity Transactions                          
Number of Target Shares                 125,125        
Certified achievement percentage     175.00% 70.00%                  
Performance Share Units | Vest annually over two years. | Fiscal Year 2026 LTIP                          
Equity Transactions                          
Number of Target Shares                 65,818        
Performance Share Units | Vest annually over two years. | Fiscal Year 2025 LTIP                          
Equity Transactions                          
Number of Target Shares                 52,150        
Performance Share Units | Vest annually over two years. | Fiscal Year 2024 LTIP                          
Equity Transactions                          
Number of Target Shares                 88,460        
Performance Share Units | Vest annually over two years. | Fiscal Year 2023 LTIP                          
Equity Transactions                          
Number of Target Shares                 144,820        
Performance Share Units | Vest annually over two years. | Fiscal Year 2022 LTIP                          
Equity Transactions                          
Number of Target Shares                 125,125        
Time Based Award                          
Equity Transactions                          
Deferred Compensation Liability | $                 $ 0        
Time Based Award | Tech Elevator | Fiscal Year 2021 MIP                          
Equity Transactions                          
Vesting period                         3 years
Intrinsic value of awards | $                         $ 4,000,000
Time Based Award | Vest immediately | Tech Elevator | Fiscal Year 2021 MIP                          
Equity Transactions                          
Earned award vesting percentage                         70.00%
Time Based Award | Vest annually over two years. | Tech Elevator | Fiscal Year 2021 MIP                          
Equity Transactions                          
Earned award vesting percentage                         30.00%
v3.26.1
Equity Incentive Plan - Deferred Stock Units ("DSU") (Details) - Deferred Stock Units - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Shares      
Nonvested at the beginning of the period (in shares) 68,779 96,604 99,535
Granted (in shares) 12,324 6,621 13,171
Vested (in shares)   (34,446) (16,102)
Nonvested at the end of the period (in shares) 81,103 68,779 96,604
Weighted-Average Grant Date Fair Value      
Nonvested at the beginning of the period (in dollars per share) $ 42.58 $ 32.49 $ 27.38
Granted (in dollars per share) 61.22 108.92 59.43
Vested (in dollars per share)   27.03 22.91
Nonvested at the end of the period (in dollars per share) $ 45.41 $ 42.58 $ 32.49
Unrecognized compensation $ 0.3    
Weighted average period for recognition of total unrecognized compensation expense related to unvested stock options granted 4 months 24 days    
Stock based compensation expense $ 0.7 $ 0.8 $ 0.9
v3.26.1
Employee Stock Purchase Plan (Details) - shares
 12 Months Ended
Feb. 01, 2026
Jun. 30, 2026
Equity Transactions    
Shares Purchased During Period   0
2025 Employee Stock Purchase Plan    
Equity Transactions    
Purchase price (in percent) 85.00%  
Employee contribution (in percent) 10.00%  
Common stock authorized for issuance   4,000,000
v3.26.1
Stock Repurchase Program (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jun. 30, 2026
Nov. 03, 2025
Stock Repurchase Program    
Authorized share repurchased amount   $ 500,000
Common stock redeemed (in shares) 2,314,944  
Amount paid to repurchase common stock $ 188,659  
Common stock redeemed, average price (in dollars per share) $ 81.5  
Common stock amount yet to be repurchased under the plan $ 311,300  
v3.26.1
Severance (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Severance      
Severance costs $ 3.2 $ 6.6 $ 4.6
Executives and other employees      
Severance      
Costs associated with accelerated vesting of equity awards $ 0.1 $ 1.6 $ 0.5
v3.26.1
Related Party Transactions (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2025
Jun. 30, 2021
Jun. 30, 2019
Related Party Transactions            
Reversal Of Accrued Contributions To Related Party       $ 2.3    
Future of School            
Related Party Transactions            
Contributions made to related party $ 0.0 $ 0.0 $ 0.0      
Accrued contributions to related party         $ 3.5 $ 2.5
v3.26.1
Employee Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Employee Benefits      
Minimum length of service for participation 30 days    
Company match percentage of participant's compensation 50.00%    
Percentage of participant's compensation that company matches on 5.00%    
401(k) Plan expense $ 9.3 $ 8.5 $ 7.7
v3.26.1
Supplemental Disclosure of Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
Supplemental Disclosure of Cash Flow Information      
Cash paid for interest $ 10,437 $ 9,144 $ 7,521
Cash paid for taxes 88,023 67,901 85,228
Supplemental disclosure of non-cash financing activities:      
Right-of-use assets obtained in exchange for new finance lease liabilities 82,500 68,995 35,652
Supplemental disclosure of non-cash investing activities:      
Stock-based compensation expense capitalized on software development 774 551 816
Stock-based compensation expense capitalized on curriculum development $ 163 $ 128 $ 76
v3.26.1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)
 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2024
ALLOWANCE FOR DOUBTFUL ACCOUNTS      
Valuation and Qualifying Account Activity      
Balance at Beginning of Period $ 31,123,755 $ 31,297,967 $ 30,031,273
Additions (Deductions) Charged to Cost and Expenses 16,430,560 15,266,692 22,843,961
Deductions from Allowance 16,252,780 15,440,904 21,577,267
Balance at End of Period 31,301,535 31,123,755 31,297,967
INVENTORY RESERVES      
Valuation and Qualifying Account Activity      
Balance at Beginning of Period 6,832,904 5,921,239 4,145,280
Additions (Deductions) Charged to Cost and Expenses 3,433,448 942,397 1,778,825
Deductions from Allowance 859,845 30,732 2,867
Balance at End of Period 9,406,507 6,832,904 5,921,239
COMPUTER RESERVE      
Valuation and Qualifying Account Activity      
Balance at Beginning of Period 3,274,432 1,786,225 1,345,832
Additions (Deductions) Charged to Cost and Expenses 3,091,844 2,499,889 1,129,323
Deductions from Allowance 1,037,764 1,011,682 688,930
Balance at End of Period 5,328,512 3,274,432 1,786,225
INCOME TAX VALUATION ALLOWANCE      
Valuation and Qualifying Account Activity      
Balance at Beginning of Period 7,627,642 7,387,179 6,790,724
Additions to Net Deferred Tax Asset Allowance   240,463 596,455
Deductions from Allowance 211,881    
Balance at End of Period $ 7,415,761 $ 7,627,642 $ 7,387,179