STRIDE, INC., 10-K filed on 8/7/2024
Annual Report
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Document and Entity Information - USD ($)
 12 Months Ended
Jun. 30, 2024
Aug. 02, 2024
Dec. 31, 2023
Cover      
Document Type 10-K    
Document Annual Report true    
Document Transition Report false    
Document Period End Date Jun. 30, 2024    
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 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 Common Stock, Shares Outstanding   43,278,384  
Entity Public Float     $ 1,639,487,000
Current Fiscal Year End Date --06-30    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001157408    
Amendment Flag false    
Auditor Name BDO USA, P.C.    
Auditor Firm ID 243    
Auditor Location Potomac, Maryland    
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Current assets    
Cash and cash equivalents $ 500,614 $ 410,807
Accounts receivable, net of allowance of $31,298 and $30,031 472,754 463,722
Inventories, net 36,748 36,716
Prepaid expenses 29,164 24,817
Marketable securities 191,672 111,918
Other current assets 14,494 17,219
Total current assets 1,245,446 1,065,199
Operating lease right-of-use assets, net 54,503 69,508
Property and equipment, net 50,856 52,332
Capitalized software, net 81,952 83,465
Capitalized curriculum development costs, net 53,232 50,787
Intangible assets, net 60,282 74,771
Goodwill 246,676 246,676
Deferred tax asset 7,200 8,776
Deposits and other assets 120,318 109,152
Total assets 1,920,465 1,760,666
Current liabilities    
Accounts payable 40,970 48,854
Accrued liabilities 60,796 76,626
Accrued compensation and benefits 64,878 57,426
Deferred revenue 35,742 76,159
Current portion of finance lease liability 29,146 35,621
Current portion of operating lease liability 12,748 14,449
Total current liabilities 244,280 309,135
Long-term finance lease liability 26,452 21,278
Long-term operating lease liability 45,192 59,425
Long-term debt 414,675 413,035
Other long-term liabilities 13,841 10,497
Total liabilities 744,440 813,370
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; 48,576,164 and 48,339,048 shares issued; and 43,241,421 and 43,004,305 shares outstanding, respectively 4 4
Additional paid-in capital 720,033 695,480
Accumulated other comprehensive loss (42) (35)
Retained earnings 558,512 354,329
Treasury stock of 5,334,743 shares at cost (102,482) (102,482)
Total stockholders' equity 1,176,025 947,296
Total liabilities and stockholders' equity $ 1,920,465 $ 1,760,666
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
CONSOLIDATED BALANCE SHEETS    
Accounts receivable, allowance (in dollars) $ 31,298 $ 30,031
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 48,576,164 48,339,048
Common stock, shares outstanding 43,241,421 43,004,305
Treasury stock, shares 5,334,743 5,334,743
v3.24.2.u1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
CONSOLIDATED STATEMENTS OF OPERATIONS      
Revenues $ 2,040,069 $ 1,837,358 $ 1,686,666
Instructional costs and services 1,276,466 1,190,288 1,090,191
Gross margin 763,603 647,070 596,475
Selling, general, and administrative expenses 514,003 481,571 439,847
Income from operations 249,600 165,499 156,628
Interest expense, net (8,812) (8,404) (8,277)
Other income (expense), net 26,900 15,452 (1,277)
Income before income taxes and income (loss) from equity method investments 267,688 172,547 147,074
Income tax expense (64,482) (45,346) (40,088)
Income (loss) from equity method investments 977 (334) 144
Net income attributable to common stockholders $ 204,183 $ 126,867 $ 107,130
Net income attributable to common stockholders per share:      
Basic (in dollars per share) $ 4.79 $ 3.00 $ 2.58
Diluted (in dollars per share) $ 4.69 $ 2.97 $ 2.52
Basic (in shares) 42,626,588 42,286,392 41,451,101
Diluted (in shares) 43,535,441 42,728,108 42,441,524
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME      
Net income $ 204,183 $ 126,867 $ 107,130
Other comprehensive income (loss), net of tax:      
Foreign currency translation adjustment (7) (178) 617
Comprehensive income attributable to common stockholders $ 204,176 $ 126,689 $ 107,747
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Common Stock
Additional Paid-in Capital
Cumulative Effect, Period of Adoption, Adjustment
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Retained Earnings
Treasury Stock
Cumulative Effect, Period of Adoption, Adjustment
Total
Balance (ASU 2020-06) at Jun. 30, 2021   $ (89,460)     $ 8,181     $ (81,279)  
Balance at Jun. 30, 2021 $ 4   $ 795,449 $ (474)   $ 112,151 $ (102,482)   $ 804,648
Balance (in shares) at Jun. 30, 2021 46,911,527           (5,334,743)    
Increase (Decrease) in Stockholders' Equity                  
Net Income (Loss)           107,130     107,130
Foreign currency translation adjustment       617         617
Stock-based compensation expense     19,021           19,021
Exercise of stock options     414           $ 414
Exercise of stock options (in shares) 29,100               29,100
Vesting of performance share units, net of tax withholding (in shares) 1,017,380                
Issuance of restricted stock awards (in shares) 582,273                
Forfeiture of restricted stock awards (in shares) (160,795)                
Repurchase of restricted stock for tax withholding     (37,970)           $ (37,970)
Repurchase of restricted stock for tax withholding (in shares) (266,821)                
Balance at Jun. 30, 2022 $ 4   687,454 143   227,462 $ (102,482)   812,581
Balance (in shares) at Jun. 30, 2022 48,112,664           (5,334,743)    
Increase (Decrease) in Stockholders' Equity                  
Net Income (Loss)           126,867     126,867
Foreign currency translation adjustment       (178)         (178)
Stock-based compensation expense     21,419           21,419
Exercise of stock options     20           $ 20
Exercise of stock options (in shares) 1,350               1,350
Vesting of performance share units, net of tax withholding (in shares) 80,004                
Issuance of restricted stock awards (in shares) 595,818                
Forfeiture of restricted stock awards (in shares) (137,134)                
Repurchase of restricted stock for tax withholding     (13,413)           $ (13,413)
Repurchase of restricted stock for tax withholding (in shares) (313,654)                
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           (5,334,743)    
Increase (Decrease) in Stockholders' Equity                  
Net Income (Loss)           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           (5,334,743)    
v3.24.2.u1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities      
Net income $ 204,183 $ 126,867 $ 107,130
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization expense 109,683 110,358 97,914
Stock-based compensation expense 31,462 20,320 18,570
Deferred income taxes 2,890 (10,373) 1,190
Provision for credit losses 22,844 9,158 15,673
Amortization of fees on debt 1,640 1,597 1,573
Noncash operating lease expense 14,246 14,728 19,810
Other 849 (1,966) 9,949
Changes in assets and liabilities:      
Accounts receivable (32,056) (54,908) (57,501)
Inventories, prepaid expenses, deposits and other current and long-term assets (8,877) (19,389) 4,798
Accounts payable (6,844) (11,999) 11
Accrued liabilities (16,556) 24,132 7,598
Accrued compensation and benefits 7,394 (15,473) (7,465)
Operating lease liability (14,990) (12,243) (20,742)
Deferred revenue and other liabilities (37,071) 22,341 8,376
Net cash provided by operating activities 278,797 203,150 206,884
Cash flows from investing activities      
Purchase of property and equipment (2,270) (4,336) (9,748)
Capitalized software development costs (40,653) (44,973) (42,191)
Capitalized curriculum development costs (18,666) (17,239) (15,687)
Sale of other investments   60 5,261
Acquisition of assets   (1,409)  
Other acquisitions, loans and investments, net of distributions (5,196) (1,652) (3,899)
Proceeds from the maturity of marketable securities 204,487 91,879 40,163
Purchases of marketable securities (277,573) (140,570) (84,657)
Net cash used in investing activities (139,871) (118,240) (110,758)
Cash flows from financing activities      
Repayments on finance lease obligations (40,919) (42,956) (33,011)
Payments of contingent consideration   (7,024)  
Payments of deferred purchase consideration     (22,858)
Proceeds from exercise of stock options   20 414
Repurchase of restricted stock for income tax withholding (8,200) (13,541) (37,855)
Net cash used in financing activities (49,119) (63,501) (93,310)
Net change in cash, cash equivalents and restricted cash 89,807 21,409 2,816
Cash, cash equivalents and restricted cash, beginning of period 410,807 389,398 386,582
Cash, cash equivalents and restricted cash, end of period $ 500,614 $ 410,807 $ 389,398
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Description of the Business
 12 Months Ended
Jun. 30, 2024
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:

​

●Products and services for the General Education market 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 diverse 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.

​
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Basis of Presentation
 12 Months Ended
Jun. 30, 2024
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.

The Company 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 Chief Operating Decision Maker evaluates profitability based on consolidated results.
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Summary of Significant Accounting Policies
 12 Months Ended
Jun. 30, 2024
Summary of Significant Accounting Policies  
Summary of Significant Accounting Policies

3. Summary of Significant Accounting Policies

Recent Accounting Pronouncements

​

Accounting Standards Adopted

​

On July 1, 2021, the Company early adopted Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity

(Subtopic 815-40) (“ASU 2020-06”) which, among other things, simplifies the accounting for convertible instruments by eliminating the requirement to separate conversion features from the host contract. Consequently, a convertible debt instrument is accounted for as a single liability measured at its amortized cost and interest expense will be recognized at the coupon rate. The adoption resulted in the elimination of the debt discount (and related deferred tax liability) that had been recorded within equity. The net impact of the adjustments was recorded to the opening balance of retained earnings, as presented in the statement of stockholders’ equity. The impacts of adoption were the following: (1) increase of $110.6 million to long-term debt, (2) decrease of $89.5 million to additional paid-in capital, (3) decrease of $29.3 million to deferred tax liability, and (4) increase to retained earnings of $8.2 million.

​

Accounting Standards Not Yet Adopted

​

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020 04”) which provides relief to companies that will be impacted by the cessation of reference rate reform, e.g. LIBOR, that was tentatively planned for the end of fiscal year 2023. The ASU permitted an entity to consider contract modifications due to reference rate reform to be an event that did not require contract remeasurement. This ASU was applicable from March 12, 2020 through December 31, 2022 and adoption was permitted at any time during the period on a prospective basis. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the provisions of Topic 848 to December 31, 2024. The Company’s senior secured revolving credit facility includes the use of alternate rates when LIBOR is not available. The Company does not expect the change from LIBOR to an alternate rate will have a material impact to the consolidated financial statements and, to the extent it enters into modifications of agreements that are impacted by the LIBOR phase-out, the Company will apply such guidance to those contract modifications.

​

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) ("ASU 2023-07"). This update provides, among other things, enhanced segment disclosure requirements including disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. There are aspects of ASU 2023-07 that apply to entities with one reportable segment. The Company will review the extent of new disclosures necessary in the coming quarters, prior to implementation during fiscal year 2025. Other than additional disclosure, we do not expect a change to our consolidated financial statements.

​

In December 2023, the 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 will review the extent of new disclosures necessary in the coming quarters, prior to implementation during fiscal year 2026. Other than additional disclosure, we do not expect a change to our consolidated financial statements.

​

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 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 who contracts with the Company to provide 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. Contractual agreements generally span multiple years with performance obligations being isolated to annual periods which generally coincide with the Company’s 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 for the upcoming school year are recorded in deferred revenue.

​

The Company generates revenues under contracts with virtual and blended public schools and include 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 pro rata 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 Company’s 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 for the current and prior periods. 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, 2023, 2022 and 2021, the Company’s aggregate funding estimates differed from actual reimbursements impacting total reported revenue by approximately 2.8%, 1.6%, and 1.4%, 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 recognized revenues 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, 2024, 2023 and 2022, the Company’s revenues included a reduction for net school operating losses at the schools of $17.0 million, $23.8 million, and $36.3 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 expenses in the consolidated statements of operations. Amounts recorded as revenues and expenses for the years ended June 30, 2024, 2023 and 2022, were $576.4 million, $503.2 million and $460.5 million, respectively.

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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 are considered to be one performance obligation. The Company recognizes these revenues pro rata over the maximum term of the customer contract based on the defined contract price.

Enterprise Contracts

​

The Company provides job training over a specified contract period to enterprises. Each of these contracts are 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 Company’s 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, 2024, 2023 and 2022, approximately 93%, 90%, and 89%, respectively, of the Company’s General Education revenues, and 100%, 99% and 99%, 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, 2024, 2023 and 2022:

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​

​

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​

​

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Years Ended June 30, 

​

​

2024

​

2023

​

2022

​

​

(In thousands)

General Education

​

$

1,289,193

​

$

1,131,391

​

$

1,273,783

Career Learning

​

​

​

​

​

​

​

​

​

Middle - High School

​

​

651,191

​

​

586,770

​

​

321,416

Adult

​

​

99,685

​

​

119,197

​

​

91,467

Total Career Learning

​

​

750,876

​

​

705,967

​

​

412,883

Total Revenues

​

$

2,040,069

​

$

1,837,358

​

$

1,686,666

​

Concentration of Customers

​

During the years ended June 30, 2024, 2023 and 2022, 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 balance of the Company’s accounts receivable, unbilled receivables and deferred revenue are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2024

​

2023

​

2022

​

​

(In thousands)

Accounts receivable

​

$

472,754

​

$

463,722

​

$

418,558

Unbilled receivables (included in accounts receivable)

​

​

19,499

​

​

20,647

​

​

19,702

Deferred revenue

​

​

35,742

​

​

76,159

​

​

53,630

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

​

​

1,097

​

​

2,061

​

​

3,099

​

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 contractual agreements. The difference between the opening and closing balance of the deferred revenue relates to the timing difference between billings to customers and the service periods under the contract, as well as changes in the estimates of variable consideration. Typically, each of these balances are at their 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, 2024, 2023 and 2022, that was included in the previous July 1st deferred revenue balance was $74.4 million, $53.1 million, and $38.9 million, respectively. During the years ended June 30, 2024, 2023 and 2022, the Company recorded revenues of $51.0 million, $26.8 million and $20.8 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, 2024 was $1.1 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 $16.7 million, $15.5 million and $7.5 million for the years ended June 30, 2024, 2023 and 2022, 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 $25.6 million, $13.6 million and $0.4 million for the years ended June 30, 2024, 2023 and 2022, 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, 2024 and 2023, the allowance for credit losses recognized related to held-to-maturity debt securities was zero.

As of June 30, 2024, 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 $191.7 million and $21.9 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

$

45,752

​

$

-

​

$

45,752

​

$

(95)

​

$

45,657

U.S. Treasury Notes

​

46,760

​

​

-

​

​

46,760

​

​

(71)

​

​

46,689

Commercial Paper

​

121,077

​

​

-

​

​

121,077

​

​

2

​

​

121,079

Total

$

213,589

​

$

-

​

$

213,589

​

$

(164)

​

$

213,425

​

As of June 30, 2023, 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 $111.9 million and $22.8 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

$

52,567

​

$

-

​

$

52,567

​

$

(460)

​

$

52,107

U.S. Treasury Notes

​

46,156

​

​

-

​

​

46,156

​

​

(228)

​

​

45,928

Commercial Paper

​

35,949

​

​

-

​

​

35,949

​

​

-

​

​

35,949

Total

$

134,672

​

$

-

​

$

134,672

​

$

(688)

​

$

133,984

​

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 $30.0 million as of June 30, 2023 to $31.3 million as of June 30, 2024. The increase of $1.3 million is due primarily to a $22.8 million current year provision, less $21.6 million in amounts written off. The Company’s allowance for credit losses increased from $27.0 million as of June 30, 2022 to $30.0 million as of June 30, 2023. The increase of $3.0 million is comprised of an $8.0 million provision, less $5.0 million of amounts recovered.

​

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, 2024 and 2023, $12.5 million and $13.2 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 $5.9 million and $4.1 million at June 30, 2024 and 2023, 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.

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

Student and state testing computers and printers

​

3 - 5 years

Computer hardware

​

3 - 7 years

Computer software

​

3 - 5 years

Web site development

​

3 years

Office equipment

​

5 years

Furniture and fixtures

​

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 $4.0 million, $5.6 million and $3.8 million for the years ended June 30, 2024, 2023 and 2022, 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 $4.0 million, $3.1 million and $8.6 million for the years ended June 30, 2024, 2023 and 2022, 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 $40.7 million, $45.0 million and $42.2 million for the years ended June 30, 2024, 2023 and 2022, respectively. There were no material write-downs of capitalized software projects for the years ended June 30, 2024, 2023 and 2022.

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 $18.7 million, $17.2 million and $15.7 million for the years ended June 30, 2024, 2023 and 2022, 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, 2024, 2023 and 2022.

Leases

​

The Company’s principal leasing activities include student 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 student computers and peripherals provided to students of its schools. 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 9 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 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 on-going 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, 2024, 2023 and 2022 was $12.9 million, $15.2 million and $13.0 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 $9.9 million, $8.7 million,  $7.1 million, $5.3 million and $4.5 million in the fiscal years ending June 30, 2025 through June 30, 2029, respectively and $24.6 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.

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, 2024, 2023 and 2022, 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, 2024, 2023 and 2022:

​

​

​

​

​

($ in millions)

    

Amount

Goodwill

​

​

​

Balance as of June 30, 2022

​

$

241.0

Acquisition of Tallo Assets

​

​

5.7

Balance as of June 30, 2023

​

$

246.7

​

​

​

—

Balance as of June 30, 2024

​

$

246.7

​

The following table represents the balance of the Company’s intangible assets as of June 30, 2024 and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

June 30, 2023

($ in millions)

    

Gross
Carrying
Amount

    

Accumulated
Amortization

    

Net
Carrying
Value

    

Gross
Carrying
Amount

    

Accumulated
Amortization

    

Net
Carrying
Value

Trade names

    

$

70.6

    

$

(23.5)

    

$

47.1

​

$

77.2

​

$

(23.0)

​

$

54.2

Customer and distributor relationships

​

​

37.1

​

​

(31.1)

​

​

6.0

​

​

38.4

​

​

(28.0)

​

​

10.4

Developed technology

​

​

21.7

​

​

(14.8)

​

​

6.9

​

​

22.0

​

​

(12.1)

​

​

9.9

Other

​

​

1.4

​

​

(1.1)

​

​

0.3

​

​

1.4

​

​

(1.1)

​

​

0.3

Total

​

$

130.8

​

$

(70.5)

​

$

60.3

​

$

139.0

  

$

(64.2)

​

$

74.8

​

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 on a 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 years ended June 30, 2024, 2023 and 2022, 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, online marketing, direct mail, print media and television commercials and are expensed when incurred.  Advertising costs totaled $96.5 million, $96.8 million and $86.5 million for the years ended June 30, 2024, 2023 and 2022, 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.

​

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. The Tallo, Inc. convertible note is discussed in more detail in Note 12, “Acquisitions and Investments.” As of June 30, 2024, the estimated fair value of the long-term debt was $585.8 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, 2024, the estimated fair value of the Company’s marketable securities was $213.4 million. The Company estimated the fair value based on the quoted market prices in an inactive market (Level 2). The marketable securities are discussed in more detail in Note 3, “Summary of Significant Accounting Policies - Investments in Marketable Securities.”

​

On November 30, 2020, the Company acquired 100% of MedCerts in exchange for $70.0 million and estimated contingent consideration of $10.8 million. During fiscal year 2021 and 2022, the Company recorded an aggregate expense of $0.5 million to adjust its estimate of the fair value of the contingent consideration to $11.3 million. During the fiscal year ended June 30, 2023, the Company paid $7.0 million to settle the contingent consideration and recorded a gain of $4.3 million. The gain is recorded within selling, general, and administrative expenses on the consolidated statements of operations.

​

There were no assets or liabilities measured at fair value on a recurring basis as of June 30, 2024 and 2023.

​

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 year ended June 30, 2024.

The following table presents activity related to the Company’s fair value measurements categorized as Level 3 in the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Year Ended June 30, 2023

 

​

​

 

​

Purchases,

​

​

 

​

​

​

 

​

Fair Value

​

Issuances,

​

Realized

​

Fair Value

Description

    

June 30, 2022

    

and Settlements

    

Gain

    

June 30, 2023

​

​

(In thousands)

Contingent consideration associated with acquisitions

​

$

11,290

​

$

(7,024)

​

$

(4,266)

​

$

—

Convertible note received in acquisition

​

$

889

​

$

(889)

​

$

—

​

$

—

​

The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2022.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Year Ended June 30, 2022

 

​

​

 

​

Purchases,

​

​

 

​

​

​

 

​

Fair Value

​

Issuances,

​

Unrealized

​

Fair Value

Description

    

June 30, 2021

    

and Settlements

    

Losses

    

June 30, 2022

​

​

(In thousands)

Contingent consideration associated with acquisitions

​

$

11,082

​

$

—

​

$

208

​

$

11,290

Convertible note received in acquisition

​

$

5,006

​

$

—

​

$

(4,117)

​

$

889

​

​

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 conversion or exercise of all dilutive unexercised stock options and vesting of all dilutive unvested restricted stock awards. The dilutive effect of stock options and restricted stock awards was determined using the treasury stock method. Under the treasury stock method, the proceeds received from the exercise of stock options and 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. Stock options and restricted stock awards are not included in the computation of diluted net income (loss) per share when they are antidilutive. 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 following schedule presents the calculation of basic and diluted net income (loss) per share:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

  

2024

​

2023

​

2022

​

​

(In thousands except share and per share data)

Basic net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

$

204,183

​

$

126,867

​

$

107,130

Weighted average common shares  — basic

​

​

42,626,588

​

​

42,286,392

​

​

41,451,101

Basic net income per share

​

$

4.79

​

$

3.00

​

$

2.58

​

​

​

​

​

​

​

​

​

​

Diluted net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

$

204,183

​

$

126,867

​

$

107,130

Share computation:

​

​

​

​

​

​

​

​

​

Weighted average common shares  — basic

​

​

42,626,588

​

​

42,286,392

​

​

41,451,101

Effect of dilutive stock options and restricted stock awards

​

​

908,853

​

​

441,716

​

​

990,423

Weighted average common shares  — diluted

​

​

43,535,441

​

​

42,728,108

​

​

42,441,524

Diluted net income per share

​

$

4.69

​

$

2.97

​

$

2.52

​

For the years ended June 30, 2024, 2023 and 2022, shares issuable in connection with stock options, restricted stock, and convertible debt of 7,658, 21,854 and 4,939 respectively, were excluded from the diluted income per common share calculation because the effect would have been antidilutive.
v3.24.2.u1
Property and Equipment and Capitalized Software and Curriculum
 12 Months Ended
Jun. 30, 2024
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, 

​

    

2024

    

2023

​

​

(In thousands)

Student computers

​

$

128,496

​

$

114,064

Computer software

​

 

9,923

​

 

14,908

Computer hardware

​

 

6,698

​

 

8,867

Leasehold improvements

​

 

10,369

​

 

11,590

State testing computers

​

​

4,609

​

​

4,609

Furniture and fixtures

​

 

3,190

​

 

3,547

Office equipment

​

 

122

​

 

213

​

​

 

163,407

​

 

157,798

Less accumulated depreciation and amortization

​

 

(112,551)

​

 

(105,466)

​

​

$

50,856

​

$

52,332

​

The Company recorded depreciation expense related to property and equipment reflected in selling, general, and administrative expenses of $3.8 million, $3.6 million and $3.9 million during the years ended June 30, 2024, 2023 and 2022, respectively. Depreciation expense of $32.9 million, $42.3 million and $37.6 million related to computers provided to students is reflected in instructional costs and services during the years ended June 30, 2024, 2023 and 2022, 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, 

​

    

2024

    

2023

​

​

(In thousands)

Capitalized software

​

$

330,054

​

$

318,965

Less accumulated depreciation and amortization

​

 

(248,102)

​

 

(235,500)

​

​

$

81,952

​

$

83,465

​

The Company recorded amortization expense of $34.4 million, $27.0 million and $22.9 million related to capitalized software reflected in instructional costs and services and $7.9 million, $5.6 million and $5.4 million reflected in selling, general, and administrative expenses during the years ended June 30, 2024, 2023 and 2022, respectively.

Capitalized curriculum development costs consist of the following at:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

    

2024

    

2023

​

​

(In thousands)

Capitalized curriculum development costs

​

$

181,353

​

$

183,597

Less accumulated depreciation and amortization

​

 

(128,121)

​

 

(132,810)

​

​

$

53,232

​

$

50,787

​

The Company recorded amortization expense of $17.7 million, $16.7 million and $15.1 million related to capitalized curriculum development cost reflected in instructional costs and services during the years ended June 30, 2024, 2023 and 2022, respectively.
v3.24.2.u1
Income Taxes
 12 Months Ended
Jun. 30, 2024
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, 

​

    

2024

    

2023

​

​

(In thousands)

Deferred tax assets

​

​

​

​

​

​

Net operating loss carryforward

​

$

15,553

​

$

17,628

Reserves

​

 

9,031

​

 

7,850

Accrued expenses

​

 

13,290

​

 

10,868

Stock compensation expense

​

 

8,162

​

 

4,548

Other assets

​

 

2,180

​

 

3,212

Convertible debt

​

 

5,980

​

 

8,632

Deferred revenue

​

 

456

​

 

680

Lease liability

​

​

13,879

​

​

17,900

Total deferred tax assets

​

 

68,531

​

 

71,318

Deferred tax liabilities

​

​

​

​

​

​

Capitalized curriculum development

​

 

(9,466)

​

 

(9,038)

Capitalized software and website development costs

​

 

(4,340)

​

 

(2,987)

Property and equipment

​

 

(9,401)

​

 

(8,438)

Right-of-use assets

​

​

(13,052)

​

​

(16,837)

Returned materials

​

 

(2,858)

​

 

(2,980)

Purchased intangibles

​

​

(14,827)

​

​

(15,471)

Total deferred tax liabilities

​

 

(53,944)

​

 

(55,751)

Net deferred tax asset before valuation allowance

​

 

14,587

​

 

15,567

Valuation allowance

​

 

(7,387)

​

 

(6,791)

Net deferred tax asset

​

$

7,200

​

$

8,776

Reported as:

​

​

​

​

​

​

Long-term deferred tax assets

​

$

7,200

​

$

8,776

​

The Company maintained a valuation allowance on net noncurrent deferred tax assets of $7.4 million and $6.8 million as of June 30, 2024 and 2023, respectively, predominantly related to foreign and state income tax net operating losses ("NOL").

At June 30, 2024, the Company had approximately $33.6 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, 2024, the Company had tax effected state NOL carryforwards of $1.1 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, 2024, 2023 and 2022 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

    

2024

    

2023

    

2022

​

​

(In thousands)

Domestic

​

$

262,802

​

$

161,270

​

$

131,967

Foreign

​

 

5,863

​

 

10,943

​

 

15,251

Total income before income taxes

​

$

268,665

​

$

172,213

​

$

147,218

​

The components of the income tax expense (benefit) for the years ended June 30, 2024, 2023 and 2022 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

    

2024

    

2023

    

2022

​

​

(In thousands)

Current:

​

​

​

​

​

​

​

​

​

Federal

​

$

52,678

​

$

41,360

​

$

27,969

State

​

 

7,660

​

 

12,032

​

 

7,550

Foreign

​

 

1,254

​

 

2,327

​

 

3,379

Total current

​

 

61,592

​

 

55,719

​

 

38,898

Deferred:

​

​

​

​

​

​

​

​

​

Federal

​

 

(667)

​

 

(9,033)

​

 

1,743

State

​

 

3,557

​

 

(1,340)

​

 

(553)

Total deferred

​

 

2,890

​

 

(10,373)

​

 

1,190

Total income tax expense

​

$

64,482

​

$

45,346

​

$

40,088

​

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, 

 

​

    

2024

    

2023

    

2022

 

U.S. federal tax at statutory rates

​

21.0

%  

21.0

%  

21.0

%  

Permanent items

 

-

​

-

​

0.4

​

Lobbying

 

0.1

​

0.1

​

0.1

​

Non-deductible compensation

​

0.8

​

1.6

​

9.3

​

State taxes, net of federal benefit

 

3.2

​

4.4

​

3.5

​

Research and development tax credits

 

(1.5)

​

(1.4)

​

(0.8)

​

Change in valuation allowance

 

-

​

(0.4)

​

0.8

​

Effects of foreign operations

 

0.1

​

0.9

​

0.3

​

Reserve for unrecognized tax benefits

 

0.5

​

0.9

​

0.5

​

Other

 

0.1

​

(0.5)

​

(1.2)

​

Stock-based compensation

​

(0.3)

​

(0.3)

​

(6.7)

​

Provision for income taxes

 

24.0

%  

26.3

%  

27.2

%  

​

The decrease in the effective income tax rate for the year ended June 30, 2024, as compared to the effective tax rate for the year ended June 30, 2023, was primarily due to non-deductible compensation and state taxes.

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, 2024, 2023 and 2022, the Company had $0.4 million, $0.2 million and $0.1 million in accrued interest and penalties, respectively.

The unrecognized tax benefits for the years ended June 30, 2024, 2023 and 2022 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

    

2024

    

2023

    

2022

​

​

(In thousands)

Balance at beginning of the year

​

$

3,156

​

$

1,729

​

$

1,057

Additions for prior year tax positions

​

 

591

​

 

568

​

 

364

Additions for current year tax positions

​

 

1,205

​

 

1,106

​

 

482

Reductions for prior year tax positions

​

​

(666)

​

​

(247)

​

​

(173)

Balance at end of the year

​

$

4,286

​

$

3,156

​

$

1,729

​

If recognized, all of the $4.3 million balance of unrecognized tax benefits as of June 30, 2024 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, 2020.  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, 2018.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law. The Company has evaluated the business provisions in the CARES Act and adopted the deferral of the employer portion of the social security payroll tax (6.2%) outlined within. The deferral was effective from the enactment date through December 31, 2020. The deferred amount of $14.1 million was paid in two installments, $7.05 million of the deferred amount was paid in December 2021 and the remaining $7.05 million was paid in December 2022.
v3.24.2.u1
Finance and Operating Leases
 12 Months Ended
Jun. 30, 2024
Finance and Operating Leases  
Finance and Operating Leases

6. Finance and Operating Leases

Finance Leases

The Company is a lessee under finance leases for student computers and peripherals under agreements with Banc of America Leasing & Capital, LLC (“BALC”) and CSI Leasing, Inc. (“CSI Leasing”). As of June 30, 2024 and 2023, the finance lease liability was $55.6 million and $56.9 million, respectively, with lease interest rates ranging from 2.10% to 6.72%. As of June 30, 2024 and 2023, the balance of the associated right-of-use assets was $39.8 million and $36.3 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 instructional costs and services on the consolidated statements of operations.

The Company entered into an agreement with BALC in April 2020 for $25.0 million (increased to $41.0 million in July 2020) to provide financing for its leases through March 2021 at varying rates. The Company entered into additional

agreements during fiscal year 2021 to provide financing of $54.0 million for its student computers and peripherals leases through October 2022 at varying rates. Individual leases with BALC include 36-month payment terms, fixed rates ranging from 2.10% 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.

​

The Company entered into an agreement with CSI Leasing in August 2022 to provide financing for its 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, 2024 and June 30, 2023, respectively, of the present value of the net minimum lease payments under the Company’s finance leases:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2024

​

2023

​

​

(in thousands)

2024

​

$

—

​

$

37,056

2025

​

​

31,655

​

​

16,691

2026

​

​

19,880

​

​

5,457

2027

​

​

7,691

​

​

60

2028

​

​

82

​

​

—

Total minimum payments

​

​

59,308

​

​

59,264

Less: imputed interest

​

​

(3,710)

​

​

(2,365)

Finance lease liability

​

​

55,598

​

​

56,899

Less: current portion of finance lease liability

​

​

(29,146)

​

​

(35,621)

Long-term finance lease liability

​

$

26,452

​

$

21,278

​

Operating Leases

The Company is a lessee under operating leases for various facilities to support the Company’s operations. As of June 30, 2024 and 2023, the operating lease liability was $57.9 million and $73.9 million, respectively. As of June 30, 2024 and 2023 the balance of the associated right-of-use assets was $54.5 million and $69.5 million, respectively. 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 9 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, 2024 and June 30, 2023, respectively, of the present value of the minimum lease payments under the Company’s operating leases:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2024

​

2023

​

​

(in thousands)

2024

​

$

—

​

$

16,341

2025

​

​

14,263

​

​

15,668

2026

​

​

12,361

​

​

12,290

2027

​

​

8,705

​

​

8,753

2028

​

​

7,713

​

​

7,727

2029

​

​

7,599

​

​

—

Thereafter

​

​

12,381

​

​

19,975

Total minimum payments

​

​

63,022

​

​

80,754

Less: imputed interest

​

​

(5,082)

​

​

(6,880)

Operating lease liability

​

​

57,940

​

​

73,874

Less: current portion of operating lease liability

​

​

(12,748)

​

​

(14,449)

Long-term operating lease liability

​

$

45,192

​

$

59,425

​

The Company is subleasing one of its facilities through September 2024, one through November 2024, and one 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. The following is a summary as of June 30, 2024 and June 30, 2023, respectively, of the expected sublease income:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2024

​

2023

​

​

(in thousands)

2024

​

$

—

​

$

836

2025

​

​

455

​

​

455

2026

​

​

139

​

​

139

Total sublease income

​

$

594

​

$

1,430

​

​

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 leases for the years ended June 30, 2024, 2023 and 2022:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

​

2024

​

2023

​

2022

​

​

​

(in thousands)

​

Lease cost

​

​

​

​

​

​

​

​

​

​

Finance lease cost:

​

​

​

​

​

​

​

​

​

​

Amortization of right-of-use assets

​

$

31,099

​

$

39,312

​

$

34,719

​

Interest on lease liabilities

​

​

2,639

​

​

2,080

​

​

1,769

​

Instructional costs and services:

​

​

​

​

​

​

​

​

​

​

Operating lease cost

​

​

9,605

​

​

12,028

​

​

15,718

​

Short-term lease cost

​

​

56

​

​

103

​

​

67

​

Sublease income

​

​

(328)

​

​

(1,081)

​

​

(955)

​

Selling, general, and administrative expenses:

​

​

​

​

​

​

​

​

​

​

Operating lease cost

​

​

6,019

​

​

4,616

​

​

6,253

​

Short-term lease cost

​

​

150

​

​

259

​

​

125

​

Sublease income

​

​

(491)

​

​

(406)

​

​

(367)

​

Total lease cost

​

$

48,749

​

$

56,911

​

$

57,329

​

​

​

​

​

​

​

​

​

​

​

​

Other information

​

​

​

​

​

​

​

​

​

​

Cash paid for amounts included in the measurement of lease liabilities

​

​

​

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

(14,990)

​

$

(12,243)

​

$

(20,742)

​

Financing cash flows from finance leases

​

​

(40,919)

​

​

(42,956)

​

​

(33,011)

​

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

​

​

35,652

​

​

30,514

​

​

23,232

​

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

​

​

864

​

​

1,619

​

​

10,589

​

Weighted-average remaining lease term - finance leases

​

​

2.02

yrs.

​

1.72

yrs.

​

1.85

yrs.

Weighted-average remaining lease term - operating leases

​

​

5.66

yrs.

​

6.10

yrs.

​

6.54

yrs.

Weighted-average discount rate - finance leases

​

​

5.62

%

​

3.86

%

​

2.47

%

Weighted-average discount rate - operating leases

​

​

2.92

%

​

2.81

%

​

2.75

%

​
v3.24.2.u1
Debt
 12 Months Ended
Jun. 30, 2024
Debt  
Debt

​

7. Debt

The following is a summary, as of June 30, 2024 and June 30, 2023, respectively, of the components of the Company’s outstanding long-term debt:

​

​

​

​

​

​

​

​

​

    

June 30, 

​

    

2024

​

2023

​

​

(in thousands)

Convertible Senior Notes due 2027

​

$

420,000

​

$

420,000

Less: unamortized debt issuance costs

​

​

(5,325)

​

​

(6,965)

Total debt

​

​

414,675

​

​

413,035

Less: current portion of debt

​

​

—

​

​

—

Long-term debt

​

$

414,675

​

$

413,035

​

Convertible Senior Notes due 2027

In August and September 2020, the Company issued $420.0 million aggregate principal amount of 1.125% Convertible Senior Notes due 2027 (“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, $4.7 million and $4.7 million respectively, during the years ended June 30, 2024 and 2023 and 2022.

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 related to the amortization of the debt issuance costs of $1.6 million, $1.6 million and $1.6 million respectively, during the years ended June 30, 2024 and 2023 and 2022.

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 will be 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 (the “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.
v3.24.2.u1
Credit Facility
 12 Months Ended
Jun. 30, 2024
Credit Facility  
Credit Facility

8. Credit Facility

​

On January 27, 2020, the Company entered into a $100.0 million senior secured revolving credit facility (“Credit Facility”) to be used for general corporate operating purposes with PNC Capital Markets LLC. The Credit Facility has a five-year term and incorporates customary financial and other covenants, including, but not limited to, a maximum leverage ratio and a minimum interest coverage ratio. The majority of the Company’s borrowings under the Credit Facility were at LIBOR plus an additional rate ranging from 0.875% - 1.50% based on the Company’s leverage ratio as defined in the agreement. The Credit Facility is secured by the Company’s assets. The Credit Facility agreement allows for an amendment to establish a new benchmark interest rate when LIBOR is discontinued during the five-year term. As of June 30, 2024, the Company was in compliance with the financial covenants. As part of the proceeds received from the Notes, the Company repaid its $100.0 million outstanding balance and as of June 30, 2024, the Company had no amounts outstanding on the Credit Facility. The Credit Facility also includes a $200.0 million accordion feature.

v3.24.2.u1
Equity Incentive Plan
 12 Months Ended
Jun. 30, 2024
Equity Incentive Plan  
Equity Incentive Plan

9. Equity Incentive Plan

On December 9, 2022, the Company’s stockholders approved an amendment and restatement of the 2016 Equity Incentive Award Plan (the “amended and restated 2016 Plan”). The amended and restated 2016 Plan reflects an increase in the number of shares of common stock available for issuance by 1,045,000 shares, the removal of certain provisions that were otherwise required for awards to qualify as performance-based compensation under an exception to Section 162(m) of the Internal Revenue Code of 1986, as amended, prior to its repeal, an extension of the term of the amended and

restated 2016 Plan to October 7, 2032, an increase to the limit on the number of shares that may be issued upon the exercise of incentive stock options, and a prohibition on the payment of dividends and dividend equivalents on unvested awards.

​

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 cancelled 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 cancelled 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, 2024, the remaining aggregate number of shares of the Company’s common stock authorized for future issuance under the amended and restated 2016 Plan was 2,066,665. At June 30, 2024, there were 1,587,359 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.

Stock Options

Each stock option is exercisable pursuant to the vesting schedule set forth in the stock option agreement granting such stock option, generally over four years. No stock option shall be exercisable after the expiration of its option term. The Company has granted stock options under the Prior Plan and the Company has also granted stock options to executive officers under stand-alone agreements outside the Prior Plan.

​

Stock option activity including stand alone agreements during the years ended June 30, 2024, 2023 and 2022 was as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

​

​

    

Weighted

    

​

​

 

​

​

​

​

Weighted

​

Average

​

​

​

 

​

​

​

​

Average

​

Remaining

​

Aggregate

 

​

​

​

​

Exercise

​

Contractual

​

Intrinsic

 

​

​

Shares

​

Price

​

Life (Years)

​

Value

 

Outstanding, June 30, 2021

 

31,450

​

$

16.58

​

0.82

​

$

437,037

​

Granted

​

—

​

​

—

​

​

​

​

​

​

Exercised

​

(29,100)

​

​

16.14

​

​

​

​

​

​

Forfeited or canceled

​

(1,000)

​

​

31.73

​

​

​

​

​

​

Outstanding, June 30, 2022

​

1,350

​

$

14.77

​

0.98

​

$

35,127

​

Granted

​

—

​

​

—

​

​

​

​

​

​

Exercised

​

(1,350)

​

​

14.77

​

​

​

​

​

​

Forfeited or canceled

​

—

​

​

—

​

​

​

​

​

​

Outstanding, June 30, 2023

​

—

​

$

—

​

​

​

​

Granted

​

—

​

​

—

​

​

​

​

​

​

Exercised

​

—

​

​

—

​

​

​

​

​

​

Forfeited or canceled

​

—

​

​

—

​

​

​

​

​

​

Outstanding and exercisable, June 30, 2024

​

—

​

$

—

​

—

​

$

—

​

​

The aggregate intrinsic value in the table above represents the total pre tax intrinsic value (the difference between the Company’s closing stock price on the last day of the period and the exercise price, multiplied by the number of in the money options) that would have been received by the option holders had all option holders exercised their options at the end of each fiscal year. The total intrinsic value of options exercised during the years ended June 30, 2024, 2023 and 2022 was zero, $0.0 million, and $0.5 million, respectively.

As of June 30, 2024, there was no unrecognized compensation expense related to nonvested stock options granted. During each of the years ended June 30, 2024, 2023 and 2022, the Company recognized zero stock-based compensation expense related to stock options

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, 2024, 2023 and 2022 was as follows:

​

​

​

​

​

​

​

​

​

    

​

    

Weighted

 

​

​

​

​

Average

 

​

​

​

​

Grant-Date

​

​

​

Shares

​

Fair Value

 

Nonvested, June 30, 2021

 

1,409,334

​

$

30.26

​

Granted

​

582,273

​

​

35.27

​

Vested

​

(699,346)

​

​

28.62

​

Canceled

​

(160,795)

​

​

34.33

​

Nonvested, June 30, 2022

​

1,131,466

​

$

33.27

​

Granted

​

595,818

​

​

37.90

​

Vested

​

(774,917)

​

​

32.50

​

Canceled

​

(137,134)

​

​

36.08

​

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

​

​

Performance-Based Restricted Stock Awards (included above)

During the year ended June 30, 2024, no new performance-based restricted stock awards were granted, and none remained nonvested as of June 30, 2024. During the year ended June 30, 2024, 27,234 performance-based restricted stock awards vested. Vesting of the performance-based restricted stock awards is contingent on the achievement of certain financial performance goals and service vesting conditions.

During fiscal year 2021, the Company granted 30,364 performance-based restricted stock awards to the Company’s CEO with a weighted average grant-date fair value of $24.70 per share. These awards were granted pursuant to the amended and restated 2016 Plan and were subject to the achievement of Adjusted EBITDA metrics for the calendar year 2021. In January 2022, achievement was certified at 133% of target, which resulted in an additional 10,020 shares, and one-third of the award vested; the remaining two-thirds will vest annually over two years.

During fiscal year 2021, the Company granted 82,710 performance-based restricted stock awards to the Company’s named executive officers with a weighted average grant-date fair value of $45.33 per share. These awards were granted pursuant to the amended and restated 2016 Plan and were subject to the achievement of Adjusted EBITDA metrics in fiscal year 2021. In August 2021, achievement was certified at 133% of target, which resulted in an additional 27,293 shares, and one-third of the award vested; the remaining two-thirds will vest annually over two years.

During fiscal year 2020, the Company granted 358,294 performance-based restricted stock awards to the Company’s then CEO with a weighted average grant-date fair value of $27.91 per share. These awards were granted pursuant to the amended and restated 2016 Plan and are subject to the achievement of target free cash flow metrics in each of the fiscal years 2020 through 2022. The metrics are measured at the end of each fiscal year; however if either of the first two tranches are not achieved, the awards may still vest if the free cash flow metric in aggregate is met over the three-year life of the award. In August 2021, the second tranche was achieved at target resulting in the vesting of 119,431 shares. In August 2022, the first and third tranches were achieved at target resulting in the vesting of 238,863 shares.

Service-Based Restricted Stock Awards (included above)

During the year ended June 30, 2024, 507,443 new service-based restricted stock awards were granted and in total, 731,224 remain nonvested at June 30, 2024. During the year ended June 30, 2024, 410,491 service-based restricted stock awards vested.

Summary of All Restricted Stock Awards

As of June 30, 2024, there was $21.2 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 1.6 years. The fair value of restricted stock awards granted for the years ended June 30, 2024, 2023 and 2022, was $22.0 million, $22.6 million and $20.5 million, respectively. The total fair value of shares vested for the years ended June 30, 2024, 2023 and 2022, was $23.3 million, $29.6 million and $23.5 million, respectively. During the years ended June 30, 2024, 2023 and 2022, the Company recognized $16.0 million, $15.5 million and $18.4 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 (excluding liability-classified awards) during the years ended June 30, 2024, 2023 and 2022 was as follows:

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

Average

​

​

​

​

Grant-Date

​

    

Shares

    

Fair Value

Nonvested, June 30, 2021

​

2,878,044

​

$

15.26

Granted

​

346,880

​

​

34.90

Vested

​

(1,810,752)

​

​

9.95

Canceled

​

(1,058,870)

​

​

24.95

Nonvested, June 30, 2022

​

355,302

​

$

32.62

Granted

​

366,507

​

​

33.87

Vested

​

(119,467)

​

​

30.48

Canceled

​

(105,473)

​

​

28.22

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

​

Fiscal Year 2024 LTIP

​

During the year ended June 30, 2024, the Company granted 354,090 PSUs at target under a Long Term Incentive Plan (“LTIP”) which are tied to operating income targets and stock price performance. These PSUs had a grant date fair value of $14.4 million, or a weighted average grant-date fair value of $40.84 per share. Seventy-five percent of the earned award is based on operating income performance (“Tranche #1) and twenty-five percent is based on the performance of the Company’s stock price (“Tranche #2), both of which will vest after achievement is certified during the first quarter of fiscal year 2027. For Tranche #1, the level of performance will determine the number of PSUs earned as measured against threshold, target and outperform achievement levels. For Tranche #2, the number of PSUs will be earned based on the Company’s compounded annual stock price growth over a completed three-year performance period. In all cases, vesting is dependent upon continuing service by the grantee as an employee of the Company. The fair value of Tranche #2 was determined using a Monte Carlo simulation model and is amortized on a straight-line basis over the vesting period. Tranche #2 is a market-based award, and therefore is not subject to any probability assessment by the Company. The Company is currently amortizing Tranche #1 over the vesting period because it believes that it is probable that the metric will be achieved at outperform.

​

Fiscal Year 2023 LTIP

​

During fiscal year 2023, the Company granted 289,640 PSUs at target under an LTIP which are tied to operating income targets and stock price performance. These PSUs had a grant date fair value of $10.0 million, or a weighted average grant-date fair value of $34.41 per share. Fifty percent of the earned award is based on operating income performance (“Tranche #1) and fifty percent is based on the performance of the Company’s stock price (“Tranche #2), both of which will vest after achievement is certified during the first quarter of fiscal year 2026. The grant date fair value of Tranche #1 was remeasured in October 2022 as a result of a modification of the terms of the award. Originally, performance was tied to gross margin. The metric was changed to operating income to better align with shareholder feedback and technology industry and peer group common practice. The modification of the performance criteria from gross margin to operating income resulted in a new fair market value as of the modification date of $4.8 million, a decrease of $0.8 million. For Tranche #1, the level of performance will determine the number of PSUs earned as measured against threshold, target and outperform achievement levels. For Tranche #2, the number of PSUs will be earned based on the Company’s compounded annual stock price growth over a completed three-year performance period. In all cases, vesting is dependent upon

continuing service by the grantee as an employee of the Company. The fair value of Tranche #2 was determined using a Monte Carlo simulation model and is amortized on a straight-line basis over the vesting period. Tranche #2 is a market-based award, and therefore is not subject to any probability assessment by the Company. The Company is currently amortizing Tranche #1 over the vesting period because it believes that it is probable that the metric will be achieved at outperform.

​

Fiscal Year 2022 LTIP

​

During fiscal year 2022, the Company granted 250,250 PSUs at target under an LTIP which are tied to gross margin targets and stock price performance. These PSUs had a grant date fair value of $9.1 million, or a weighted average grant-date fair value of $36.30 per share. Fifty percent of the earned award is based on gross margin performance (“Tranche #1) and fifty percent is based on the performance of the Company’s stock price (“Tranche #2), both of which will vest after achievement is certified during the first quarter of fiscal year 2025. For Tranche #1, the level of performance will determine the number of PSUs earned as measured against threshold, target and outperform achievement levels. For Tranche #2, the number of PSUs will be earned based on the Company’s compounded annual stock price growth over a completed three-year performance period. In all cases, vesting is dependent upon continuing service by the grantee as an employee of the Company. The fair value of Tranche #2 was determined using a Monte Carlo simulation model and is amortized on a straight-line basis over the vesting period. Tranche #2 is a market-based award, and therefore is not subject to any probability assessment by the Company. The Company is currently amortizing Tranche #1 over the vesting period because it believes that it is probable that the metric will be achieved at 70% of target.

​

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 are expected to vest after achievement is certified in January 2024. The level of performance will determine the number of PSUs earned as measured against threshold and target achievement levels. In all cases, vesting is dependent upon continuing service by the grantee as an employee of the Company. The MIP is 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.

​

Fiscal Year 2021 Career Learning PSUs

​

During fiscal year 2021, the Company granted 366,250 PSUs at target which were tied to the achievement of Career Learning revenue targets for fiscal years 2021 – 2023. These PSUs had a grant date fair value of $16.5 million, or a weighted average grant-date fair value of $45.05 per share. The vesting is as follows:

​

●77,690 PSUs relate to fiscal year 2021 revenues and if achieved, one-third of the award will vest immediately, and the remaining two-thirds will vest annually over two years;
●122,080 PSUs relate to fiscal year 2022 revenues and if achieved, two-thirds of the award will vest immediately, and the remaining one-third will vest the following year; and
●166,480 PSUs relate to fiscal year 2023 revenues and if achieved, the award will vest immediately.

​

The level of performance will determine the number of PSUs earned as measured against threshold, target and outperform achievement levels. In all cases, vesting is dependent upon continuing service by the grantee as an employee of the Company. The fiscal year 2021 Career Learning PSUs are equity-classified awards. In August 2021, the Company determined the performance condition of fiscal year 2021 revenues were not achieved resulting in a forfeiture of those shares. Additionally, in October 2021, the two remaining tranches were forfeited as the grantee of the PSUs separated from the Company.

​

Fiscal Year 2020 Galvanize TRIP

​

During fiscal year 2020, the Company granted to the executive team of Galvanize a target level of $12.3 million under a Transaction Related Incentive Plan (“TRIP”) which is tied to the achievement of certain revenue and EBITDA targets of Galvanize. Seventy percent of the earned award is based on the performance of Galvanize for the calendar year 2021 (“Tranche #1”) and thirty percent of the earned award is based on the performance of Galvanize for the calendar year 2022 (“Tranche #2”), both of which are expected to vest after achievement is certified in January following each of the calendar year ends. The revenue and EBITDA targets are split sixty percent and forty percent, respectively, for both tranches. In all cases, vesting is dependent upon continuing service by the grantee as an employee of the Company. The level of performance will determine the number of PSUs earned as measured against threshold, target and outperform achievement levels. In January 2022, the Company determined that the metrics for calendar year 2021 were not met and Tranche #1 was forfeited. In January 2023, the Company determined that the metrics for calendar year 2022 were not met and Tranche #2 was also forfeited. The TRIP was a liability-classified award.

​

Fiscal Year 2019 LTIP

​

During fiscal year 2019, the Company granted 263,936 PSUs at target under an LTIP which are tied to certain career learning revenue targets and enrollment levels, as well as students’ academic progress. These PSUs had a grant date fair value of $7.9 million, or a weighted average grant-date fair value of $30.05 per share. During fiscal year 2020, the Company granted an additional 34,030 PSUs at target with a grant date fair value of $0.8 million, or $23.51 per share. Forty-five percent of the earned award is based on students’ academic progress (“Tranche #1”) and twenty-five percent of the earned award is based on certain enrollment levels (“Tranche #2”). In October 2021, Tranche #2 achievement was certified at approximately 193% of target resulting in the vesting of 115,223 shares, while Tranche #1 was not achieved resulting in 107,397 forfeited shares. The remaining thirty percent of the earned award is based on certain revenue targets (“Tranche #3”). In August 2022, Tranche #3 achievement was certified at 200% of target resulting in the vesting of 77,048 shares.

​

Fiscal Year 2019 SPP

​

During fiscal year 2019, the Company adopted a new long-term shareholder performance plan (“2019 SPP”) that provides for incentive award opportunities to its key senior executives. The awards were granted in the form of PSUs and will be earned based on the Company’s market capitalization growth over a completed three-year performance period.  The 2019 SPP was designed to provide the executives with a percentage of shareholder value growth. No amounts will be earned if total stock price growth over the three-year period is below 25% (7.6% annualized). An amount of 6% of total

value growth will be earned based on achieving total stock price growth of 33% (10% annualized) and a maximum of 7.5% of total value growth will be earned if total stock price growth equals or exceeds 95% (25% annualized).

​

During fiscal year 2019, the Company granted 2,108,305 PSUs at a weighted average grant-date fair value of $8.18 per share, based on the highest level of performance. During fiscal year 2020, the Company granted an additional 66,934 PSUs at a weighted average grant-date fair value of $12.56 per share, based on the highest level of performance. The final amount of PSUs was determined (and vesting occurred) based on the 30-day average price of the Company’s stock subsequent to seven days after the release of fiscal year 2021 results. The fair value was determined using a Monte Carlo simulation model and is amortized on a straight-line basis over the vesting period. The SPP is a market-based award, and therefore is not subject to any probability assessment by the Company.

​

In October 2021, the Company certified achievement of the 2019 SPP based upon the 30-day average price of the Company’s stock during the period of August 18, 2021 – September 17, 2021 of $34.13. The 112% market capitalization growth over the three-year performance period resulted in the vesting 1,656,594 shares to the Company’s six named executive officers.

​

Summary of All Performance Share Units

​

As of June 30, 2024, there was $21.8 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 1.4 years. During the years ended June 30, 2024, 2023 and 2022 the Company recognized $15.4 million, $4.9 million and $0.1 million, respectively, of stock-based compensation expense related to PSUs. Included in the stock-based compensation expense above, for the years ended June 30, 2024 and 2023 and 2022 is $0.3 million, $1.0 million, and $1.3 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, 2024, 2023 and 2022 was as follows:

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

Average

​

​

​

​

Grant-Date

​

    

Shares

    

Fair Value

Nonvested, June 30, 2021

​

59,354

​

$

22.01

Granted

​

14,769

​

​

33.24

Vested

​

(5,006)

​

​

23.97

Canceled

​

—

​

​

—

Nonvested, June 30, 2022

​

69,117

​

$

24.27

Granted

​

30,418

​

​

34.43

Vested

​

—

​

​

—

Canceled

​

—

​

​

—

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

​

Summary of All Deferred Stock Units

​

As of June 30, 2024, 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, 2024, 2023 and 2022, the Company recognized $0.9 million, $0.7 million and $0.5 million, respectively, of stock-based compensation expense related to DSUs.
v3.24.2.u1
Commitments and Contingencies
 12 Months Ended
Jun. 30, 2024
Commitments and Contingencies  
Commitments and Contingencies

10. Commitments and Contingencies

Litigation

​

In the ordinary conduct of the Company’s business, the Company is subject to lawsuits, arbitrations 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. 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.

Employment Agreements

The Company has entered into employment agreements with certain executive officers that provide for severance payments and, in some cases other benefits, upon certain terminations of employment. All agreements 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 agreement.

Off-Balance Sheet Arrangements

As of June 30, 2024, the Company provided guarantees of approximately $0.2 million related to lease commitments on the buildings for certain of the Company’s schools.

In addition, 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 these lease and 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.
v3.24.2.u1
Severance
 12 Months Ended
Jun. 30, 2024
Severance  
Severance

11. Severance

​

During the years ended June 30, 2024, 2023 and 2022, the Company reduced its workforce, resulting in severance of $4.6 million, $3.4 million and $3.7 million, respectively. Included in severance expense for the years ended June 30, 2024, 2023 and 2022 is $0.5 million, $0.5 million and $0.1 million, respectively, associated with accelerated vesting of equity awards to former executives and other employees.
v3.24.2.u1
Acquisitions and Investments
 12 Months Ended
Jun. 30, 2024
Acquisitions and Investments.  
Acquisitions and Investments

12. Acquisitions and Investments

Investment in Tallo, Inc. and Acquisition of Assets

​

In August 2018, the Company made an initial investment of $6.7 million for a 39.5% minority interest in Tallo, Inc. (“Tallo”). In August 2020, the Company invested an additional $2.3 million, which increased its minority interest to 46.1%. These investments in preferred stock, which contain additional rights over common stock and have no readily

determinable fair value, were recorded at cost and will be adjusted, as necessary, for impairment.  In the event Tallo issues equity at a materially different price than what the Company paid, the Company would also assess changing the carrying value.  In conjunction with the Company’s initial investment in August 2018, Tallo also issued a convertible note to the Company for $5.0 million that is being accounted for as an available-for-sale debt security and adjusted to fair value quarterly. The note bears interest at the mid-term Applicable Federal Rate plus 25 bps per annum with a maturity of 48 months. The note is convertible at the Company’s option into 3.67 million Series D Preferred Shares that, combined with the shares resulting from the conversion of the accrued interest, would give the Company an effective ownership of 55% if exercised. In October 2021, the Company agreed to loan Tallo up to $3.0 million. This promissory note bears interest at 5% and has a maturity date of five years. The promissory note does not contain any means of conversion into additional ownership by the Company. During the second and third quarters of fiscal year 2022, the Company funded $3.0 million under the promissory note.

​

During fiscal year 2022, the Company adjusted its investment in Tallo preferred stock to fair value and recorded an impairment charge of $4.5 million to other income (expense), net on the consolidated statements of operations. Also, during fiscal year 2022, the Company recorded a credit loss expense of $4.1 million to reduce the carrying amount of the convertible note and $3.0 million to reduce the carrying amount of the promissory note. The credit loss expenses were recorded within selling, general, and administrative expenses on the consolidated statements of operations. Additionally, the Company reversed an aggregate $0.4 million of accrued interest on both instruments and made an accounting policy election to record this within interest income (expense), net on the consolidated statements of operations. During the year ended June 30, 2022, the Company’s investment in Tallo, the convertible note, and promissory note were included in deposits and other assets on the consolidated balance sheets.

  On July 8, 2022, the Company purchased the assets of Tallo in exchange for $1.0 million, plus $0.4 million in working capital.  As part of the closing of the transaction, the promissory note was cancelled and the convertible note was converted into additional equity. That additional equity and previously held equity interests were cancelled, and combined with the cash, resulted in a purchase price of $7.3 million. The acquisition of Tallo further expands the Company’s ability to match students to internships, jobs, and scholarships with colleges and companies looking for talent. The acquisition has been accounted for as a business combination under the acquisition method of accounting, which results in acquired assets and assumed liabilities being measured at their fair values as of July 8, 2022, the acquisition date. The allocation of the purchase price resulted in goodwill of $5.7 million and intangible assets of $1.3 million, both of which are deductible for income tax purposes. The recognized goodwill is primarily associated with future customer relationships and an acquired assembled work force. The intangible assets primarily consist of customer relationships which will be amortized over 10 years.
v3.24.2.u1
Related Party Transactions
 12 Months Ended
Jun. 30, 2024
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 is a related party because a former executive officer of the Company formerly served on its Board of Directors. During the years ended June 30, 2024, 2023 and 2022, contributions made by the Company to Future of School were zero, zero, and $1.2 million, respectively. 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. The amounts contributed for the years ended June 30, 2024, 2023 and 2022 reduced those obligations and as of June 30, 2024, $2.3 million remains outstanding as related to the fiscal year 2021 accrual.
v3.24.2.u1
Employee Benefits
 12 Months Ended
Jun. 30, 2024
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 first 5% of each participant’s contribution. The Company expensed $7.7 million, $7.7 million and $6.1 million during the years ended June 30, 2024, 2023 and 2022, respectively, under the 401(k) Plan.
v3.24.2.u1
Supplemental Disclosure of Cash Flow Information
 12 Months Ended
Jun. 30, 2024
Supplemental Disclosure of Cash Flow Information  
Supplemental Disclosure of Cash Flow Information

15. Supplemental Disclosure of Cash Flow Information

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

Years Ended June 30, 

 

    

2024

    

2023

    

2022

​

​

​

(In thousands)

Cash paid for interest

​

$

7,521

​

$

6,946

​

$

6,641

Cash paid for taxes

​

$

85,228

​

​

37,131

​

$

35,972

​

​

​

​

​

​

​

​

​

​

Supplemental disclosure of non-cash financing activities:

​

​

​

​

​

​

​

​

​

Right-of-use assets obtained from acquisitions

​

$

—

​

$

385

​

$

—

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

​

​

35,652

​

​

30,514

​

​

23,232

​

​

​

​

​

​

​

​

​

​

Supplemental disclosure of non-cash investing activities:

​

​

​

​

​

​

​

​

​

Stock-based compensation expense capitalized on software development

​

$

816

​

$

700

​

$

374

Stock-based compensation expense capitalized on curriculum development

​

​

76

​

​

84

​

​

88

Non-cash purchase price related to business combinations

​

​

—

​

​

5,861

​

​

1,145

​

​

​

​

​

​

​

​

​

​

Business combinations:

​

​

​

​

​

​

​

​

​

Acquired assets

​

$

—

​

$

1,132

​

$

394

Intangible assets

​

​

—

​

​

1,309

​

​

2,157

Goodwill

​

​

—

​

​

5,655

​

​

600

Assumed liabilities

​

​

—

​

​

(385)

​

​

(58)

Deferred revenue

​

​

—

​

​

(441)

​

​

(1,030)

​

​

​

​

​

​

​

​

​

​

​
v3.24.2.u1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
 12 Months Ended
Jun. 30, 2024
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS  
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II

STRIDE, INC.

VALUATION AND QUALIFYING ACCOUNTS

Years Ending June 30, 2024, 2023 and 2022

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, 2024

​

$

30,031,273

 

22,843,961

 

21,577,267

​

$

31,297,967

June 30, 2023

​

$

26,993,037

 

8,047,729

 

5,009,493

​

$

30,031,273

June 30, 2022

​

$

21,383,543

 

8,555,918

 

2,946,424

​

$

26,993,037

2.     INVENTORY RESERVES

​

​

​

​

​

​

​

​

​

​

​

​

    

Balance at

    

Charged to

    

Deductions,

    

​

​

​

​

Beginning

​

Cost and

​

Shrinkage and

​

Balance at

​

​

of Period

​

Expenses

​

Obsolescence

​

End of Period

June 30, 2024

​

$

4,145,280

 

1,778,825

 

2,867

​

$

5,921,239

June 30, 2023

​

$

6,457,046

 

2,392,785

 

4,704,551

​

$

4,145,280

June 30, 2022

​

$

5,647,283

 

880,809

 

71,046

​

$

6,457,046

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, 2024

​

$

1,345,832

 

1,129,323

 

$ 688,930

​

$

1,786,225

June 30, 2023

​

$

2,039,771

 

332,197

 

1,026,136

​

$

1,345,832

June 30, 2022

​

$

2,273,372

 

135,948

 

369,549

​

$

2,039,771

(1)A reserve account is maintained against potential obsolescence of, and damage beyond economic repair to, computers provided to the Company’s students. The reserve is calculated based upon several factors including historical percentages, the net book value and the remaining useful life. During fiscal years 2024, 2023 and 2022, 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, 2024

​

$

6,790,724

 

596,455

 

—

​

$

7,387,179

June 30, 2023

​

$

6,677,352

 

113,372

 

—

​

$

6,790,724

June 30, 2022

​

$

5,047,078

 

1,630,274

 

—

​

$

6,677,352

​
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ 204,183 $ 126,867 $ 107,130
v3.24.2.u1
Insider Trading Arrangements - Mr. Rhyu
 3 Months Ended
Jun. 30, 2024
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement On May 23, 2024, Mr. Rhyu, the Company’s Chief Executive Officer and director, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act for the sale of up to 28,870 shares of the Company’s common stock until June 30, 2025, for a duration of 404 days. Other than as noted above for Mr. Rhyu, during the three months ended June 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.
Name Mr. Rhyu
Title Chief Executive Officer and director
Rule 10b5-1 Arrangement Adopted true
Adoption Date May 23, 2024
Arrangement Duration 404 days
Aggregate Available 28,870
v3.24.2.u1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jun. 30, 2024
Summary of Significant Accounting Policies  
Recent Accounting Pronouncements

Accounting Standards Adopted

​

On July 1, 2021, the Company early adopted Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity

(Subtopic 815-40) (“ASU 2020-06”) which, among other things, simplifies the accounting for convertible instruments by eliminating the requirement to separate conversion features from the host contract. Consequently, a convertible debt instrument is accounted for as a single liability measured at its amortized cost and interest expense will be recognized at the coupon rate. The adoption resulted in the elimination of the debt discount (and related deferred tax liability) that had been recorded within equity. The net impact of the adjustments was recorded to the opening balance of retained earnings, as presented in the statement of stockholders’ equity. The impacts of adoption were the following: (1) increase of $110.6 million to long-term debt, (2) decrease of $89.5 million to additional paid-in capital, (3) decrease of $29.3 million to deferred tax liability, and (4) increase to retained earnings of $8.2 million.

​

Accounting Standards Not Yet Adopted

​

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020 04”) which provides relief to companies that will be impacted by the cessation of reference rate reform, e.g. LIBOR, that was tentatively planned for the end of fiscal year 2023. The ASU permitted an entity to consider contract modifications due to reference rate reform to be an event that did not require contract remeasurement. This ASU was applicable from March 12, 2020 through December 31, 2022 and adoption was permitted at any time during the period on a prospective basis. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the provisions of Topic 848 to December 31, 2024. The Company’s senior secured revolving credit facility includes the use of alternate rates when LIBOR is not available. The Company does not expect the change from LIBOR to an alternate rate will have a material impact to the consolidated financial statements and, to the extent it enters into modifications of agreements that are impacted by the LIBOR phase-out, the Company will apply such guidance to those contract modifications.

​

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) ("ASU 2023-07"). This update provides, among other things, enhanced segment disclosure requirements including disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. There are aspects of ASU 2023-07 that apply to entities with one reportable segment. The Company will review the extent of new disclosures necessary in the coming quarters, prior to implementation during fiscal year 2025. Other than additional disclosure, we do not expect a change to our consolidated financial statements.

​

In December 2023, the 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 will review the extent of new disclosures necessary in the coming quarters, prior to implementation during fiscal year 2026. Other than additional disclosure, we do not expect a change to our consolidated financial statements.
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 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 who contracts with the Company to provide 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. Contractual agreements generally span multiple years with performance obligations being isolated to annual periods which generally coincide with the Company’s 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 for the upcoming school year are recorded in deferred revenue.

​

The Company generates revenues under contracts with virtual and blended public schools and include 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 pro rata 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 Company’s 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 for the current and prior periods. 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, 2023, 2022 and 2021, the Company’s aggregate funding estimates differed from actual reimbursements impacting total reported revenue by approximately 2.8%, 1.6%, and 1.4%, 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 recognized revenues 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, 2024, 2023 and 2022, the Company’s revenues included a reduction for net school operating losses at the schools of $17.0 million, $23.8 million, and $36.3 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 expenses in the consolidated statements of operations. Amounts recorded as revenues and expenses for the years ended June 30, 2024, 2023 and 2022, were $576.4 million, $503.2 million and $460.5 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 are considered to be one performance obligation. The Company recognizes these revenues pro rata over the maximum term of the customer contract based on the defined contract price.

Enterprise Contracts

​

The Company provides job training over a specified contract period to enterprises. Each of these contracts are 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 Company’s 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, 2024, 2023 and 2022, approximately 93%, 90%, and 89%, respectively, of the Company’s General Education revenues, and 100%, 99% and 99%, 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, 2024, 2023 and 2022:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

2024

​

2023

​

2022

​

​

(In thousands)

General Education

​

$

1,289,193

​

$

1,131,391

​

$

1,273,783

Career Learning

​

​

​

​

​

​

​

​

​

Middle - High School

​

​

651,191

​

​

586,770

​

​

321,416

Adult

​

​

99,685

​

​

119,197

​

​

91,467

Total Career Learning

​

​

750,876

​

​

705,967

​

​

412,883

Total Revenues

​

$

2,040,069

​

$

1,837,358

​

$

1,686,666

​

Concentration of Customers

​

During the years ended June 30, 2024, 2023 and 2022, 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 balance of the Company’s accounts receivable, unbilled receivables and deferred revenue are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2024

​

2023

​

2022

​

​

(In thousands)

Accounts receivable

​

$

472,754

​

$

463,722

​

$

418,558

Unbilled receivables (included in accounts receivable)

​

​

19,499

​

​

20,647

​

​

19,702

Deferred revenue

​

​

35,742

​

​

76,159

​

​

53,630

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

​

​

1,097

​

​

2,061

​

​

3,099

​

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 contractual agreements. The difference between the opening and closing balance of the deferred revenue relates to the timing difference between billings to customers and the service periods under the contract, as well as changes in the estimates of variable consideration. Typically, each of these balances are at their 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, 2024, 2023 and 2022, that was included in the previous July 1st deferred revenue balance was $74.4 million, $53.1 million, and $38.9 million, respectively. During the years ended June 30, 2024, 2023 and 2022, the Company recorded revenues of $51.0 million, $26.8 million and $20.8 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, 2024 was $1.1 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 $16.7 million, $15.5 million and $7.5 million for the years ended June 30, 2024, 2023 and 2022, 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 $25.6 million, $13.6 million and $0.4 million for the years ended June 30, 2024, 2023 and 2022, 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, 2024 and 2023, the allowance for credit losses recognized related to held-to-maturity debt securities was zero.

As of June 30, 2024, 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 $191.7 million and $21.9 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

$

45,752

​

$

-

​

$

45,752

​

$

(95)

​

$

45,657

U.S. Treasury Notes

​

46,760

​

​

-

​

​

46,760

​

​

(71)

​

​

46,689

Commercial Paper

​

121,077

​

​

-

​

​

121,077

​

​

2

​

​

121,079

Total

$

213,589

​

$

-

​

$

213,589

​

$

(164)

​

$

213,425

​

As of June 30, 2023, 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 $111.9 million and $22.8 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

$

52,567

​

$

-

​

$

52,567

​

$

(460)

​

$

52,107

U.S. Treasury Notes

​

46,156

​

​

-

​

​

46,156

​

​

(228)

​

​

45,928

Commercial Paper

​

35,949

​

​

-

​

​

35,949

​

​

-

​

​

35,949

Total

$

134,672

​

$

-

​

$

134,672

​

$

(688)

​

$

133,984
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 $30.0 million as of June 30, 2023 to $31.3 million as of June 30, 2024. The increase of $1.3 million is due primarily to a $22.8 million current year provision, less $21.6 million in amounts written off. The Company’s allowance for credit losses increased from $27.0 million as of June 30, 2022 to $30.0 million as of June 30, 2023. The increase of $3.0 million is comprised of an $8.0 million provision, less $5.0 million of amounts recovered.

​

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, 2024 and 2023, $12.5 million and $13.2 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 $5.9 million and $4.1 million at June 30, 2024 and 2023, 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.

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

Student and state testing computers and printers

​

3 - 5 years

Computer hardware

​

3 - 7 years

Computer software

​

3 - 5 years

Web site development

​

3 years

Office equipment

​

5 years

Furniture and fixtures

​

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 $4.0 million, $5.6 million and $3.8 million for the years ended June 30, 2024, 2023 and 2022, 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 $4.0 million, $3.1 million and $8.6 million for the years ended June 30, 2024, 2023 and 2022, 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 $40.7 million, $45.0 million and $42.2 million for the years ended June 30, 2024, 2023 and 2022, respectively. There were no material write-downs of capitalized software projects for the years ended June 30, 2024, 2023 and 2022.
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 $18.7 million, $17.2 million and $15.7 million for the years ended June 30, 2024, 2023 and 2022, 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, 2024, 2023 and 2022.
Leases

Leases

​

The Company’s principal leasing activities include student 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 student computers and peripherals provided to students of its schools. 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 9 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 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 on-going 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, 2024, 2023 and 2022 was $12.9 million, $15.2 million and $13.0 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 $9.9 million, $8.7 million,  $7.1 million, $5.3 million and $4.5 million in the fiscal years ending June 30, 2025 through June 30, 2029, respectively and $24.6 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.

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, 2024, 2023 and 2022, 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, 2024, 2023 and 2022:

​

​

​

​

​

($ in millions)

    

Amount

Goodwill

​

​

​

Balance as of June 30, 2022

​

$

241.0

Acquisition of Tallo Assets

​

​

5.7

Balance as of June 30, 2023

​

$

246.7

​

​

​

—

Balance as of June 30, 2024

​

$

246.7

​

The following table represents the balance of the Company’s intangible assets as of June 30, 2024 and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

June 30, 2023

($ in millions)

    

Gross
Carrying
Amount

    

Accumulated
Amortization

    

Net
Carrying
Value

    

Gross
Carrying
Amount

    

Accumulated
Amortization

    

Net
Carrying
Value

Trade names

    

$

70.6

    

$

(23.5)

    

$

47.1

​

$

77.2

​

$

(23.0)

​

$

54.2

Customer and distributor relationships

​

​

37.1

​

​

(31.1)

​

​

6.0

​

​

38.4

​

​

(28.0)

​

​

10.4

Developed technology

​

​

21.7

​

​

(14.8)

​

​

6.9

​

​

22.0

​

​

(12.1)

​

​

9.9

Other

​

​

1.4

​

​

(1.1)

​

​

0.3

​

​

1.4

​

​

(1.1)

​

​

0.3

Total

​

$

130.8

​

$

(70.5)

​

$

60.3

​

$

139.0

  

$

(64.2)

​

$

74.8
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 on a 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 years ended June 30, 2024, 2023 and 2022, 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, online marketing, direct mail, print media and television commercials and are expensed when incurred.  Advertising costs totaled $96.5 million, $96.8 million and $86.5 million for the years ended June 30, 2024, 2023 and 2022, 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.

​

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. The Tallo, Inc. convertible note is discussed in more detail in Note 12, “Acquisitions and Investments.” As of June 30, 2024, the estimated fair value of the long-term debt was $585.8 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, 2024, the estimated fair value of the Company’s marketable securities was $213.4 million. The Company estimated the fair value based on the quoted market prices in an inactive market (Level 2). The marketable securities are discussed in more detail in Note 3, “Summary of Significant Accounting Policies - Investments in Marketable Securities.”

​

On November 30, 2020, the Company acquired 100% of MedCerts in exchange for $70.0 million and estimated contingent consideration of $10.8 million. During fiscal year 2021 and 2022, the Company recorded an aggregate expense of $0.5 million to adjust its estimate of the fair value of the contingent consideration to $11.3 million. During the fiscal year ended June 30, 2023, the Company paid $7.0 million to settle the contingent consideration and recorded a gain of $4.3 million. The gain is recorded within selling, general, and administrative expenses on the consolidated statements of operations.

​

There were no assets or liabilities measured at fair value on a recurring basis as of June 30, 2024 and 2023.

​

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 year ended June 30, 2024.

The following table presents activity related to the Company’s fair value measurements categorized as Level 3 in the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Year Ended June 30, 2023

 

​

​

 

​

Purchases,

​

​

 

​

​

​

 

​

Fair Value

​

Issuances,

​

Realized

​

Fair Value

Description

    

June 30, 2022

    

and Settlements

    

Gain

    

June 30, 2023

​

​

(In thousands)

Contingent consideration associated with acquisitions

​

$

11,290

​

$

(7,024)

​

$

(4,266)

​

$

—

Convertible note received in acquisition

​

$

889

​

$

(889)

​

$

—

​

$

—

​

The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2022.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Year Ended June 30, 2022

 

​

​

 

​

Purchases,

​

​

 

​

​

​

 

​

Fair Value

​

Issuances,

​

Unrealized

​

Fair Value

Description

    

June 30, 2021

    

and Settlements

    

Losses

    

June 30, 2022

​

​

(In thousands)

Contingent consideration associated with acquisitions

​

$

11,082

​

$

—

​

$

208

​

$

11,290

Convertible note received in acquisition

​

$

5,006

​

$

—

​

$

(4,117)

​

$

889

​

​
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 conversion or exercise of all dilutive unexercised stock options and vesting of all dilutive unvested restricted stock awards. The dilutive effect of stock options and restricted stock awards was determined using the treasury stock method. Under the treasury stock method, the proceeds received from the exercise of stock options and 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. Stock options and restricted stock awards are not included in the computation of diluted net income (loss) per share when they are antidilutive. 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 following schedule presents the calculation of basic and diluted net income (loss) per share:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

  

2024

​

2023

​

2022

​

​

(In thousands except share and per share data)

Basic net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

$

204,183

​

$

126,867

​

$

107,130

Weighted average common shares  — basic

​

​

42,626,588

​

​

42,286,392

​

​

41,451,101

Basic net income per share

​

$

4.79

​

$

3.00

​

$

2.58

​

​

​

​

​

​

​

​

​

​

Diluted net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

$

204,183

​

$

126,867

​

$

107,130

Share computation:

​

​

​

​

​

​

​

​

​

Weighted average common shares  — basic

​

​

42,626,588

​

​

42,286,392

​

​

41,451,101

Effect of dilutive stock options and restricted stock awards

​

​

908,853

​

​

441,716

​

​

990,423

Weighted average common shares  — diluted

​

​

43,535,441

​

​

42,728,108

​

​

42,441,524

Diluted net income per share

​

$

4.69

​

$

2.97

​

$

2.52

​

For the years ended June 30, 2024, 2023 and 2022, shares issuable in connection with stock options, restricted stock, and convertible debt of 7,658, 21,854 and 4,939 respectively, were excluded from the diluted income per common share calculation because the effect would have been antidilutive.
v3.24.2.u1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jun. 30, 2024
Summary of Significant Accounting Policies  
Schedule of disaggregation of revenue

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

2024

​

2023

​

2022

​

​

(In thousands)

General Education

​

$

1,289,193

​

$

1,131,391

​

$

1,273,783

Career Learning

​

​

​

​

​

​

​

​

​

Middle - High School

​

​

651,191

​

​

586,770

​

​

321,416

Adult

​

​

99,685

​

​

119,197

​

​

91,467

Total Career Learning

​

​

750,876

​

​

705,967

​

​

412,883

Total Revenues

​

$

2,040,069

​

$

1,837,358

​

$

1,686,666
Schedule of accounts receivables, unbilled receivables and deferred revenue

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2024

​

2023

​

2022

​

​

(In thousands)

Accounts receivable

​

$

472,754

​

$

463,722

​

$

418,558

Unbilled receivables (included in accounts receivable)

​

​

19,499

​

​

20,647

​

​

19,702

Deferred revenue

​

​

35,742

​

​

76,159

​

​

53,630

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

​

​

1,097

​

​

2,061

​

​

3,099
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

$

45,752

​

$

-

​

$

45,752

​

$

(95)

​

$

45,657

U.S. Treasury Notes

​

46,760

​

​

-

​

​

46,760

​

​

(71)

​

​

46,689

Commercial Paper

​

121,077

​

​

-

​

​

121,077

​

​

2

​

​

121,079

Total

$

213,589

​

$

-

​

$

213,589

​

$

(164)

​

$

213,425

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

$

52,567

​

$

-

​

$

52,567

​

$

(460)

​

$

52,107

U.S. Treasury Notes

​

46,156

​

​

-

​

​

46,156

​

​

(228)

​

​

45,928

Commercial Paper

​

35,949

​

​

-

​

​

35,949

​

​

-

​

​

35,949

Total

$

134,672

​

$

-

​

$

134,672

​

$

(688)

​

$

133,984
Schedule of useful lives of property and equipment

​

​

​

​

​

    

Useful Life

Student and state testing computers and printers

​

3 - 5 years

Computer hardware

​

3 - 7 years

Computer software

​

3 - 5 years

Web site development

​

3 years

Office equipment

​

5 years

Furniture and fixtures

​

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, 2022

​

$

241.0

Acquisition of Tallo Assets

​

​

5.7

Balance as of June 30, 2023

​

$

246.7

​

​

​

—

Balance as of June 30, 2024

​

$

246.7
Schedule of intangible assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

June 30, 2023

($ in millions)

    

Gross
Carrying
Amount

    

Accumulated
Amortization

    

Net
Carrying
Value

    

Gross
Carrying
Amount

    

Accumulated
Amortization

    

Net
Carrying
Value

Trade names

    

$

70.6

    

$

(23.5)

    

$

47.1

​

$

77.2

​

$

(23.0)

​

$

54.2

Customer and distributor relationships

​

​

37.1

​

​

(31.1)

​

​

6.0

​

​

38.4

​

​

(28.0)

​

​

10.4

Developed technology

​

​

21.7

​

​

(14.8)

​

​

6.9

​

​

22.0

​

​

(12.1)

​

​

9.9

Other

​

​

1.4

​

​

(1.1)

​

​

0.3

​

​

1.4

​

​

(1.1)

​

​

0.3

Total

​

$

130.8

​

$

(70.5)

​

$

60.3

​

$

139.0

  

$

(64.2)

​

$

74.8
Schedule of activity related to fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis

The following table presents activity related to the Company’s fair value measurements categorized as Level 3 in the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Year Ended June 30, 2023

 

​

​

 

​

Purchases,

​

​

 

​

​

​

 

​

Fair Value

​

Issuances,

​

Realized

​

Fair Value

Description

    

June 30, 2022

    

and Settlements

    

Gain

    

June 30, 2023

​

​

(In thousands)

Contingent consideration associated with acquisitions

​

$

11,290

​

$

(7,024)

​

$

(4,266)

​

$

—

Convertible note received in acquisition

​

$

889

​

$

(889)

​

$

—

​

$

—

​

The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2022.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Year Ended June 30, 2022

 

​

​

 

​

Purchases,

​

​

 

​

​

​

 

​

Fair Value

​

Issuances,

​

Unrealized

​

Fair Value

Description

    

June 30, 2021

    

and Settlements

    

Losses

    

June 30, 2022

​

​

(In thousands)

Contingent consideration associated with acquisitions

​

$

11,082

​

$

—

​

$

208

​

$

11,290

Convertible note received in acquisition

​

$

5,006

​

$

—

​

$

(4,117)

​

$

889

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

  

2024

​

2023

​

2022

​

​

(In thousands except share and per share data)

Basic net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

$

204,183

​

$

126,867

​

$

107,130

Weighted average common shares  — basic

​

​

42,626,588

​

​

42,286,392

​

​

41,451,101

Basic net income per share

​

$

4.79

​

$

3.00

​

$

2.58

​

​

​

​

​

​

​

​

​

​

Diluted net income per share computation:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income attributable to common stockholders

​

$

204,183

​

$

126,867

​

$

107,130

Share computation:

​

​

​

​

​

​

​

​

​

Weighted average common shares  — basic

​

​

42,626,588

​

​

42,286,392

​

​

41,451,101

Effect of dilutive stock options and restricted stock awards

​

​

908,853

​

​

441,716

​

​

990,423

Weighted average common shares  — diluted

​

​

43,535,441

​

​

42,728,108

​

​

42,441,524

Diluted net income per share

​

$

4.69

​

$

2.97

​

$

2.52
v3.24.2.u1
Property and Equipment and Capitalized Software and Curriculum (Tables)
 12 Months Ended
Jun. 30, 2024
Property and Equipment and Capitalized Software and Curriculum  
Schedule of property and equipment

​

​

​

​

​

​

​

​

​

​

June 30, 

​

    

2024

    

2023

​

​

(In thousands)

Student computers

​

$

128,496

​

$

114,064

Computer software

​

 

9,923

​

 

14,908

Computer hardware

​

 

6,698

​

 

8,867

Leasehold improvements

​

 

10,369

​

 

11,590

State testing computers

​

​

4,609

​

​

4,609

Furniture and fixtures

​

 

3,190

​

 

3,547

Office equipment

​

 

122

​

 

213

​

​

 

163,407

​

 

157,798

Less accumulated depreciation and amortization

​

 

(112,551)

​

 

(105,466)

​

​

$

50,856

​

$

52,332
Schedule of capitalized software

​

​

​

​

​

​

​

​

​

​

June 30, 

​

    

2024

    

2023

​

​

(In thousands)

Capitalized software

​

$

330,054

​

$

318,965

Less accumulated depreciation and amortization

​

 

(248,102)

​

 

(235,500)

​

​

$

81,952

​

$

83,465
Schedule of capitalized curriculum development costs

​

​

​

​

​

​

​

​

​

​

June 30, 

​

    

2024

    

2023

​

​

(In thousands)

Capitalized curriculum development costs

​

$

181,353

​

$

183,597

Less accumulated depreciation and amortization

​

 

(128,121)

​

 

(132,810)

​

​

$

53,232

​

$

50,787
v3.24.2.u1
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2024
Income Taxes  
Schedule of deferred tax assets and liabilities

​

​

​

​

​

​

​

​

​

​

June 30, 

​

    

2024

    

2023

​

​

(In thousands)

Deferred tax assets

​

​

​

​

​

​

Net operating loss carryforward

​

$

15,553

​

$

17,628

Reserves

​

 

9,031

​

 

7,850

Accrued expenses

​

 

13,290

​

 

10,868

Stock compensation expense

​

 

8,162

​

 

4,548

Other assets

​

 

2,180

​

 

3,212

Convertible debt

​

 

5,980

​

 

8,632

Deferred revenue

​

 

456

​

 

680

Lease liability

​

​

13,879

​

​

17,900

Total deferred tax assets

​

 

68,531

​

 

71,318

Deferred tax liabilities

​

​

​

​

​

​

Capitalized curriculum development

​

 

(9,466)

​

 

(9,038)

Capitalized software and website development costs

​

 

(4,340)

​

 

(2,987)

Property and equipment

​

 

(9,401)

​

 

(8,438)

Right-of-use assets

​

​

(13,052)

​

​

(16,837)

Returned materials

​

 

(2,858)

​

 

(2,980)

Purchased intangibles

​

​

(14,827)

​

​

(15,471)

Total deferred tax liabilities

​

 

(53,944)

​

 

(55,751)

Net deferred tax asset before valuation allowance

​

 

14,587

​

 

15,567

Valuation allowance

​

 

(7,387)

​

 

(6,791)

Net deferred tax asset

​

$

7,200

​

$

8,776

Reported as:

​

​

​

​

​

​

Long-term deferred tax assets

​

$

7,200

​

$

8,776
Schedule of components of income before income taxes

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

    

2024

    

2023

    

2022

​

​

(In thousands)

Domestic

​

$

262,802

​

$

161,270

​

$

131,967

Foreign

​

 

5,863

​

 

10,943

​

 

15,251

Total income before income taxes

​

$

268,665

​

$

172,213

​

$

147,218
Schedule of related components of the income tax expense

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

    

2024

    

2023

    

2022

​

​

(In thousands)

Current:

​

​

​

​

​

​

​

​

​

Federal

​

$

52,678

​

$

41,360

​

$

27,969

State

​

 

7,660

​

 

12,032

​

 

7,550

Foreign

​

 

1,254

​

 

2,327

​

 

3,379

Total current

​

 

61,592

​

 

55,719

​

 

38,898

Deferred:

​

​

​

​

​

​

​

​

​

Federal

​

 

(667)

​

 

(9,033)

​

 

1,743

State

​

 

3,557

​

 

(1,340)

​

 

(553)

Total deferred

​

 

2,890

​

 

(10,373)

​

 

1,190

Total income tax expense

​

$

64,482

​

$

45,346

​

$

40,088
Schedule of reconciliation of provision for income taxes to the income tax from applying the statutory rate

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

 

​

    

2024

    

2023

    

2022

 

U.S. federal tax at statutory rates

​

21.0

%  

21.0

%  

21.0

%  

Permanent items

 

-

​

-

​

0.4

​

Lobbying

 

0.1

​

0.1

​

0.1

​

Non-deductible compensation

​

0.8

​

1.6

​

9.3

​

State taxes, net of federal benefit

 

3.2

​

4.4

​

3.5

​

Research and development tax credits

 

(1.5)

​

(1.4)

​

(0.8)

​

Change in valuation allowance

 

-

​

(0.4)

​

0.8

​

Effects of foreign operations

 

0.1

​

0.9

​

0.3

​

Reserve for unrecognized tax benefits

 

0.5

​

0.9

​

0.5

​

Other

 

0.1

​

(0.5)

​

(1.2)

​

Stock-based compensation

​

(0.3)

​

(0.3)

​

(6.7)

​

Provision for income taxes

 

24.0

%  

26.3

%  

27.2

%  
Schedule of unrecognized tax benefits

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

    

2024

    

2023

    

2022

​

​

(In thousands)

Balance at beginning of the year

​

$

3,156

​

$

1,729

​

$

1,057

Additions for prior year tax positions

​

 

591

​

 

568

​

 

364

Additions for current year tax positions

​

 

1,205

​

 

1,106

​

 

482

Reductions for prior year tax positions

​

​

(666)

​

​

(247)

​

​

(173)

Balance at end of the year

​

$

4,286

​

$

3,156

​

$

1,729
v3.24.2.u1
Finance and Operating Leases (Tables)
 12 Months Ended
Jun. 30, 2024
Finance and Operating Leases  
Schedule of present value of the minimum lease payments on finance leases

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2024

​

2023

​

​

(in thousands)

2024

​

$

—

​

$

37,056

2025

​

​

31,655

​

​

16,691

2026

​

​

19,880

​

​

5,457

2027

​

​

7,691

​

​

60

2028

​

​

82

​

​

—

Total minimum payments

​

​

59,308

​

​

59,264

Less: imputed interest

​

​

(3,710)

​

​

(2,365)

Finance lease liability

​

​

55,598

​

​

56,899

Less: current portion of finance lease liability

​

​

(29,146)

​

​

(35,621)

Long-term finance lease liability

​

$

26,452

​

$

21,278
Schedule of future minimum lease payments under non-cancelable operating leases

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2024

​

2023

​

​

(in thousands)

2024

​

$

—

​

$

16,341

2025

​

​

14,263

​

​

15,668

2026

​

​

12,361

​

​

12,290

2027

​

​

8,705

​

​

8,753

2028

​

​

7,713

​

​

7,727

2029

​

​

7,599

​

​

—

Thereafter

​

​

12,381

​

​

19,975

Total minimum payments

​

​

63,022

​

​

80,754

Less: imputed interest

​

​

(5,082)

​

​

(6,880)

Operating lease liability

​

​

57,940

​

​

73,874

Less: current portion of operating lease liability

​

​

(12,748)

​

​

(14,449)

Long-term operating lease liability

​

$

45,192

​

$

59,425
Schedule of expected sublease income

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2024

​

2023

​

​

(in thousands)

2024

​

$

—

​

$

836

2025

​

​

455

​

​

455

2026

​

​

139

​

​

139

Total sublease income

​

$

594

​

$

1,430
Schedule of lease cost, weighted-average remaining lease term, weighted-average discount rate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

​

2024

​

2023

​

2022

​

​

​

(in thousands)

​

Lease cost

​

​

​

​

​

​

​

​

​

​

Finance lease cost:

​

​

​

​

​

​

​

​

​

​

Amortization of right-of-use assets

​

$

31,099

​

$

39,312

​

$

34,719

​

Interest on lease liabilities

​

​

2,639

​

​

2,080

​

​

1,769

​

Instructional costs and services:

​

​

​

​

​

​

​

​

​

​

Operating lease cost

​

​

9,605

​

​

12,028

​

​

15,718

​

Short-term lease cost

​

​

56

​

​

103

​

​

67

​

Sublease income

​

​

(328)

​

​

(1,081)

​

​

(955)

​

Selling, general, and administrative expenses:

​

​

​

​

​

​

​

​

​

​

Operating lease cost

​

​

6,019

​

​

4,616

​

​

6,253

​

Short-term lease cost

​

​

150

​

​

259

​

​

125

​

Sublease income

​

​

(491)

​

​

(406)

​

​

(367)

​

Total lease cost

​

$

48,749

​

$

56,911

​

$

57,329

​

​

​

​

​

​

​

​

​

​

​

​

Other information

​

​

​

​

​

​

​

​

​

​

Cash paid for amounts included in the measurement of lease liabilities

​

​

​

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

(14,990)

​

$

(12,243)

​

$

(20,742)

​

Financing cash flows from finance leases

​

​

(40,919)

​

​

(42,956)

​

​

(33,011)

​

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

​

​

35,652

​

​

30,514

​

​

23,232

​

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

​

​

864

​

​

1,619

​

​

10,589

​

Weighted-average remaining lease term - finance leases

​

​

2.02

yrs.

​

1.72

yrs.

​

1.85

yrs.

Weighted-average remaining lease term - operating leases

​

​

5.66

yrs.

​

6.10

yrs.

​

6.54

yrs.

Weighted-average discount rate - finance leases

​

​

5.62

%

​

3.86

%

​

2.47

%

Weighted-average discount rate - operating leases

​

​

2.92

%

​

2.81

%

​

2.75

%

​
v3.24.2.u1
Debt (Tables)
 12 Months Ended
Jun. 30, 2024
Debt  
Schedule of components of debt

​

​

​

​

​

​

​

​

​

    

June 30, 

​

    

2024

​

2023

​

​

(in thousands)

Convertible Senior Notes due 2027

​

$

420,000

​

$

420,000

Less: unamortized debt issuance costs

​

​

(5,325)

​

​

(6,965)

Total debt

​

​

414,675

​

​

413,035

Less: current portion of debt

​

​

—

​

​

—

Long-term debt

​

$

414,675

​

$

413,035
v3.24.2.u1
Equity Incentive Plan (Tables)
 12 Months Ended
Jun. 30, 2024
Schedule of stock option activity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

​

​

    

Weighted

    

​

​

 

​

​

​

​

Weighted

​

Average

​

​

​

 

​

​

​

​

Average

​

Remaining

​

Aggregate

 

​

​

​

​

Exercise

​

Contractual

​

Intrinsic

 

​

​

Shares

​

Price

​

Life (Years)

​

Value

 

Outstanding, June 30, 2021

 

31,450

​

$

16.58

​

0.82

​

$

437,037

​

Granted

​

—

​

​

—

​

​

​

​

​

​

Exercised

​

(29,100)

​

​

16.14

​

​

​

​

​

​

Forfeited or canceled

​

(1,000)

​

​

31.73

​

​

​

​

​

​

Outstanding, June 30, 2022

​

1,350

​

$

14.77

​

0.98

​

$

35,127

​

Granted

​

—

​

​

—

​

​

​

​

​

​

Exercised

​

(1,350)

​

​

14.77

​

​

​

​

​

​

Forfeited or canceled

​

—

​

​

—

​

​

​

​

​

​

Outstanding, June 30, 2023

​

—

​

$

—

​

​

​

​

Granted

​

—

​

​

—

​

​

​

​

​

​

Exercised

​

—

​

​

—

​

​

​

​

​

​

Forfeited or canceled

​

—

​

​

—

​

​

​

​

​

​

Outstanding and exercisable, June 30, 2024

​

—

​

$

—

​

—

​

$

—

​
Schedule of restricted stock award activity

​

​

​

​

​

​

​

​

​

    

​

    

Weighted

 

​

​

​

​

Average

 

​

​

​

​

Grant-Date

​

​

​

Shares

​

Fair Value

 

Nonvested, June 30, 2021

 

1,409,334

​

$

30.26

​

Granted

​

582,273

​

​

35.27

​

Vested

​

(699,346)

​

​

28.62

​

Canceled

​

(160,795)

​

​

34.33

​

Nonvested, June 30, 2022

​

1,131,466

​

$

33.27

​

Granted

​

595,818

​

​

37.90

​

Vested

​

(774,917)

​

​

32.50

​

Canceled

​

(137,134)

​

​

36.08

​

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

​
Schedule of performance share units award activity

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

Average

​

​

​

​

Grant-Date

​

    

Shares

    

Fair Value

Nonvested, June 30, 2021

​

2,878,044

​

$

15.26

Granted

​

346,880

​

​

34.90

Vested

​

(1,810,752)

​

​

9.95

Canceled

​

(1,058,870)

​

​

24.95

Nonvested, June 30, 2022

​

355,302

​

$

32.62

Granted

​

366,507

​

​

33.87

Vested

​

(119,467)

​

​

30.48

Canceled

​

(105,473)

​

​

28.22

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
Deferred Stock Units  
Schedule of performance share units award activity

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

Average

​

​

​

​

Grant-Date

​

    

Shares

    

Fair Value

Nonvested, June 30, 2021

​

59,354

​

$

22.01

Granted

​

14,769

​

​

33.24

Vested

​

(5,006)

​

​

23.97

Canceled

​

—

​

​

—

Nonvested, June 30, 2022

​

69,117

​

$

24.27

Granted

​

30,418

​

​

34.43

Vested

​

—

​

​

—

Canceled

​

—

​

​

—

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
v3.24.2.u1
Supplemental Disclosure of Cash Flow Information (Tables)
 12 Months Ended
Jun. 30, 2024
Supplemental Disclosure of Cash Flow Information  
Schedule of supplemental disclosure of cash flow information

​

​

​

​

​

​

​

​

​

​

​

 

​

Years Ended June 30, 

 

    

2024

    

2023

    

2022

​

​

​

(In thousands)

Cash paid for interest

​

$

7,521

​

$

6,946

​

$

6,641

Cash paid for taxes

​

$

85,228

​

​

37,131

​

$

35,972

​

​

​

​

​

​

​

​

​

​

Supplemental disclosure of non-cash financing activities:

​

​

​

​

​

​

​

​

​

Right-of-use assets obtained from acquisitions

​

$

—

​

$

385

​

$

—

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

​

​

35,652

​

​

30,514

​

​

23,232

​

​

​

​

​

​

​

​

​

​

Supplemental disclosure of non-cash investing activities:

​

​

​

​

​

​

​

​

​

Stock-based compensation expense capitalized on software development

​

$

816

​

$

700

​

$

374

Stock-based compensation expense capitalized on curriculum development

​

​

76

​

​

84

​

​

88

Non-cash purchase price related to business combinations

​

​

—

​

​

5,861

​

​

1,145

​

​

​

​

​

​

​

​

​

​

Business combinations:

​

​

​

​

​

​

​

​

​

Acquired assets

​

$

—

​

$

1,132

​

$

394

Intangible assets

​

​

—

​

​

1,309

​

​

2,157

Goodwill

​

​

—

​

​

5,655

​

​

600

Assumed liabilities

​

​

—

​

​

(385)

​

​

(58)

Deferred revenue

​

​

—

​

​

(441)

​

​

(1,030)

​

​

​

​

​

​

​

​

​

​

​
v3.24.2.u1
Description of the Business (Details)
Jun. 30, 2024
item
Description of the Business  
Number of lines of revenue 2
v3.24.2.u1
Basis of Presentation (Details)
 12 Months Ended
Jun. 30, 2024
segment
Basis of Presentation  
Number of operating segments 1
Number of reportable business segments 1
v3.24.2.u1
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($)
$ in Thousands
 12 Months Ended 24 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2023
Summary of Significant Accounting Policies          
Revenues $ 2,040,069 $ 1,837,358 $ 1,686,666    
Percentage of impact on total revenue   2.80% 1.60% 1.40%  
Estimate of Percentage of Impact on Total Revenue         2.00%
School operating losses included in the entity's revenue $ 17,000 $ 23,800 $ 36,300    
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 $ 576,400 $ 503,200 $ 460,500    
v3.24.2.u1
Summary of Significant Accounting Policies - Disaggregation of revenue (Details)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
USD ($)
item
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Summary of Significant Accounting Policies      
Number of lines of business | item 2    
Total Revenues $ 2,040,069 $ 1,837,358 $ 1,686,666
General Education      
Summary of Significant Accounting Policies      
Percentage of revenues from funding-based contracts 93.00% 90.00% 89.00%
Total Revenues $ 1,289,193 $ 1,131,391 $ 1,273,783
Career Learning      
Summary of Significant Accounting Policies      
Total Revenues $ 750,876 $ 705,967 $ 412,883
Middle - High School      
Summary of Significant Accounting Policies      
Percentage of revenues from funding-based contracts 100.00% 99.00% 99.00%
Total Revenues $ 651,191 $ 586,770 $ 321,416
Adult      
Summary of Significant Accounting Policies      
Total Revenues $ 99,685 $ 119,197 $ 91,467
v3.24.2.u1
Summary of Significant Accounting Policies - Concentration of Customers (Details) - contract
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Revenue | Customer Concentration Risk      
Concentration of revenues      
Number of customers with concentration 0 0 0
v3.24.2.u1
Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Accounts receivables, contract assets and deferred revenue      
Accounts receivable $ 472,754 $ 463,722 $ 418,558
Unbilled receivables (included in accounts receivable) 19,499 20,647 19,702
Deferred revenue 35,742 76,159 53,630
Deferred revenue, long-term (included in other long-term liabilities) 1,097 2,061 3,099
Revenue recognized that was included in opening deferred revenue balance 74,400 53,100 38,900
Revenue recognized from performance obligation satisfied in prior periods $ 51,000 $ 26,800 $ 20,800
v3.24.2.u1
Summary of Significant Accounting Policies - Performance Obligations (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
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 $ 1.1    
Research and development costs $ 16.7 $ 15.5 $ 7.5
v3.24.2.u1
Summary of Significant Accounting Policies - Marketable Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Marketable securities      
Investment income, nonoperating $ 25,600 $ 13,600 $ 400
Marketable securities, short-term portion 191,700 111,900  
Marketable securities, long-term portion $ 21,900 $ 22,800  
Marketable Securities, Maturity Date, Start 1 year 1 year  
Marketable Securities, Maturity Date, End 2 years 2 years  
Amortized Cost $ 213,589 $ 134,672  
Allowance for Credit Losses 0 0  
Net Carrying Amount 213,589 134,672  
Gross Unrealized Gains (Losses) (164) (688)  
Fair Value 213,425 133,984  
Corporate Bonds      
Marketable securities      
Amortized Cost 45,752 52,567  
Net Carrying Amount 45,752 52,567  
Gross Unrealized Gains (Losses) (95) (460)  
Fair Value 45,657 52,107  
U.S. Treasury Notes      
Marketable securities      
Amortized Cost 46,760 46,156  
Net Carrying Amount 46,760 46,156  
Gross Unrealized Gains (Losses) (71) (228)  
Fair Value 46,689 45,928  
Commercial Paper      
Marketable securities      
Amortized Cost 121,077 35,949  
Net Carrying Amount 121,077 35,949  
Gross Unrealized Gains 2    
Fair Value $ 121,079 $ 35,949  
v3.24.2.u1
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Summary of Significant Accounting Policies      
Allowance for doubtful accounts $ 31,298 $ 30,031 $ 27,000
Increase in allowance for doubtful accounts 1,300 3,000  
Provision 22,800 8,000  
Allowance for credit losses written off $ 21,600 $ 5,000  
v3.24.2.u1
Summary of Significant Accounting Policies - Inventories (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Jun. 30, 2023
Summary of Significant Accounting Policies    
Inventory deemed long-term and included in deposits and other assets $ 12.5 $ 13.2
Excess and obsolete inventory reserve $ 5.9 $ 4.1
v3.24.2.u1
Summary of Significant Accounting Policies - Property and Equipment and Leases (Details) - USD ($)
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Property and equipment      
Equipment expense $ 4,000,000.0 $ 3,100,000 $ 8,600,000
Capitalized software development costs 40,653,000 44,973,000 42,191,000
Capitalized software written down $ 0 0 0
Capitalized Curriculum Development Costs      
Estimated useful life of the software 5 years    
Time for Short Term Leases 12 months    
Capitalized curriculum development costs $ 18,666,000 17,239,000 15,687,000
Capitalized curriculum development costs write down $ 0 0 0
Minimum      
Operating Leases      
Operating leases initial term 1 year    
Maximum      
Finance Leases      
Finance lease term 3 years    
Operating Leases      
Operating leases initial term 9 years    
Student and state testing computers and printers      
Property and equipment      
Accelerated depreciation $ 4,000,000.0 $ 5,600,000 $ 3,800,000
Student and state testing computers and printers | Minimum      
Property and equipment      
Useful Life 3 years    
Student and state testing computers and printers | Maximum      
Property and equipment      
Useful Life 5 years    
Computer hardware | Minimum      
Property and equipment      
Useful Life 3 years    
Computer hardware | Maximum      
Property and equipment      
Useful Life 7 years    
Computer software | Minimum      
Property and equipment      
Useful Life 3 years    
Computer software | Maximum      
Property and equipment      
Useful Life 5 years    
Website development      
Property and equipment      
Useful Life 3 years    
Office equipment      
Property and equipment      
Useful Life 5 years    
Furniture and fixtures      
Property and equipment      
Useful Life 7 years    
Software Development      
Property and equipment      
Useful Life 3 years    
Building | Minimum      
Operating Leases      
Operating leases initial term 1 year    
Building | Maximum      
Operating Leases      
Operating leases initial term 9 years    
v3.24.2.u1
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
USD ($)
segment
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Intangible Assets:      
Amortization expense $ 12,900 $ 15,200 $ 13,000
Number of reporting units | segment 1    
Future amortization of intangible assets      
Fiscal 2025 $ 9,900    
Fiscal 2026 8,700    
Fiscal 2027 7,100    
Fiscal 2028 5,300    
Fiscal 2029 4,500    
Thereafter 24,600    
Rollforward of Goodwill      
Balance at the beginning of the period 246,676 241,000  
Acquisition   5,655 600
Balance at the end of the period 246,676 246,676 $ 241,000
Intangible Assets      
Gross Carrying Amount 130,800 139,000  
Accumulated Amortization (70,500) (64,200)  
Net Carrying Value 60,300 74,800  
Trade names      
Intangible Assets      
Gross Carrying Amount 70,600 77,200  
Accumulated Amortization (23,500) (23,000)  
Net Carrying Value 47,100 54,200  
Customer and distributor relationships      
Intangible Assets      
Gross Carrying Amount 37,100 38,400  
Accumulated Amortization (31,100) (28,000)  
Net Carrying Value 6,000 10,400  
Developed technology      
Intangible Assets      
Gross Carrying Amount 21,700 22,000  
Accumulated Amortization (14,800) (12,100)  
Net Carrying Value 6,900 9,900  
Other      
Intangible Assets      
Gross Carrying Amount 1,400 1,400  
Accumulated Amortization (1,100) (1,100)  
Net Carrying Value $ 300 300  
Acquisition of Tallo Assets      
Rollforward of Goodwill      
Acquisition   $ 5,700  
v3.24.2.u1
Summary of Significant Accounting Policies - Advertising and Marketing Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Advertising and Marketing Costs      
Advertising costs $ 96.5 $ 96.8 $ 86.5
v3.24.2.u1
Summary of Significant Accounting Policies - Fair Value Measurement (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended 24 Months Ended
Nov. 30, 2020
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2024
Jun. 30, 2022
Assets and liabilities measured at fair value          
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]       Other Nonoperating Income (Expense)  
Estimated fair value of long-term debt       $ 585,800  
Estimated fair value of marketable securities       213,400  
Expense on estimate of fair value of contingent consideration         $ 500
Fair value of the contingent consideration     $ 11,300   11,300
Payments of contingent consideration   $ 7,024      
MedCerts          
Assets and liabilities measured at fair value          
Ownership percentage acquired (as a percent) 100.00%        
Total consideration $ 70,000        
Contingent consideration $ 10,800        
Payments of contingent consideration   7,000      
MedCerts | Selling, General, and Administrative Expenses          
Assets and liabilities measured at fair value          
Gain on contingent consideration   4,300      
Measured on a recurring basis          
Assets and liabilities measured at fair value          
Assets, Fair Value Disclosure   0   0  
Liabilities, Fair Value Disclosure   0   0  
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Contingent Consideration | Acquisitions          
Assets and liabilities measured at fair value          
Fair Value Liability, beginning of period   11,290 11,082 11,290  
Purchases, Issuances and Settlements   (7,024)      
Realized Liability Gains/(Losses)   (4,266) 208    
Fair Value Liability, ending of period     11,290   11,290
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Convertible Note | Acquisitions          
Assets and liabilities measured at fair value          
Fair Value Asset, beginning of period   889 5,006 $ 889  
Purchases, Issuances and Settlements   $ (889)      
Realized Liability Gains/(Losses)     (4,117)    
Fair Value Asset, ending of period     $ 889   $ 889
v3.24.2.u1
Summary of Significant Accounting Policies - Net Income (Loss) Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Weighted average shares used in computing per share amounts:      
Net income attributable to common stockholders $ 204,183 $ 126,867 $ 107,130
Weighted average common shares-basic 42,626,588 42,286,392 41,451,101
Basic net income per share (in dollars per share) $ 4.79 $ 3.00 $ 2.58
Effect of dilutive stock options and restricted stock awards (in shares) 908,853 441,716 990,423
Weighted average common shares-diluted 43,535,441 42,728,108 42,441,524
Diluted net income per share (in dollars per share) $ 4.69 $ 2.97 $ 2.52
Stock options and restricted stock      
Weighted average shares used in computing per share amounts:      
Anti-dilutive shares 7,658 21,854 4,939
v3.24.2.u1
Summary of Significant Accounting Policies - ASU (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Jul. 01, 2021
Summary of Significant Accounting Policies      
Long-term debt $ 414,675 $ 413,035  
Additional paid-in capital 720,033 695,480  
Retained earnings $ 558,512 $ 354,329  
ASU 2020-06 | Adjustment | Cumulative Effect, Period of Adoption, Adjustment      
Summary of Significant Accounting Policies      
Long-term debt     $ 110,600
Additional paid-in capital     89,500
Deferred tax liability     29,300
Retained earnings     $ 8,200
v3.24.2.u1
Property and Equipment and Capitalized Software and Curriculum (Details) - USD ($)
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Property and equipment, net      
Property and equipment, gross $ 163,407,000 $ 157,798,000  
Less accumulated depreciation and amortization (112,551,000) (105,466,000)  
Property and equipment, Net 50,856,000 52,332,000  
Capitalized Computer Software, Net [Abstract]      
Capitalized Computer Software, Gross 330,054,000 318,965,000  
Less accumulated depreciation and amortization (248,102,000) (235,500,000)  
Capitalized software, Net 81,952,000 83,465,000  
Capitalized curriculum development costs, Gross 181,353,000 183,597,000  
Less accumulated depreciation and amortization (128,121,000) (132,810,000)  
Capitalized curriculum development costs, net 53,232,000 50,787,000  
Capitalized software written down 0 0 $ 0
Selling, General and Administrative Expenses      
Capitalized Computer Software, Net [Abstract]      
Depreciation expense 3,800,000 3,600,000 3,900,000
Student computers      
Property and equipment, net      
Property and equipment, gross 128,496,000 114,064,000  
Student computers | Cost of Sales      
Capitalized Computer Software, Net [Abstract]      
Depreciation expense 32,900,000 42,300,000 37,600,000
Computer software      
Property and equipment, net      
Property and equipment, gross 9,923,000 14,908,000  
Computer hardware      
Property and equipment, net      
Property and equipment, gross 6,698,000 8,867,000  
Leasehold improvements      
Property and equipment, net      
Property and equipment, gross 10,369,000 11,590,000  
State testing computers      
Property and equipment, net      
Property and equipment, gross 4,609,000 4,609,000  
Furniture and fixtures      
Property and equipment, net      
Property and equipment, gross 3,190,000 3,547,000  
Office equipment      
Property and equipment, net      
Property and equipment, gross 122,000 213,000  
Software Development | Selling, General and Administrative Expenses      
Capitalized Computer Software, Net [Abstract]      
Amortization expense 7,900,000 5,600,000 5,400,000
Software Development | Cost of Sales      
Capitalized Computer Software, Net [Abstract]      
Amortization expense 34,400,000 27,000,000.0 22,900,000
Capitalized curriculum      
Capitalized Computer Software, Net [Abstract]      
Amortization expense $ 17,700,000 $ 16,700,000 $ 15,100,000
v3.24.2.u1
Income Taxes - Deferred (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Deferred tax assets:    
Net operating loss carryforward $ 15,553 $ 17,628
Reserves 9,031 7,850
Accrued expenses 13,290 10,868
Stock compensation expense 8,162 4,548
Other assets 2,180 3,212
Convertible debt 5,980 8,632
Deferred revenue 456 680
Lease liability 13,879 17,900
Total deferred tax assets 68,531 71,318
Deferred tax liabilities:    
Capitalized curriculum development (9,466) (9,038)
Capitalized software and website development costs (4,340) (2,987)
Property and equipment (9,401) (8,438)
Right-of-use assets (13,052) (16,837)
Returned materials (2,858) (2,980)
Purchased intangibles (14,827) (15,471)
Total deferred tax liabilities (53,944) (55,751)
Net deferred tax asset before valuation allowance 14,587 15,567
Valuation Allowance (7,387) (6,791)
Net deferred tax asset $ 7,200 $ 8,776
v3.24.2.u1
Income Taxes - Carryforward (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Income Taxes  
NOL carryforward $ 33.6
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration $ 1.1
v3.24.2.u1
Income Taxes - Other (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Income Taxes      
Domestic $ 262,802 $ 161,270 $ 131,967
Foreign 5,863 10,943 15,251
Total income before income taxes 268,665 172,213 147,218
Current:      
Federal 52,678 41,360 27,969
State 7,660 12,032 7,550
Foreign 1,254 2,327 3,379
Total current 61,592 55,719 38,898
Deferred:      
Federal (667) (9,033) 1,743
State 3,557 (1,340) (553)
Total deferred 2,890 (10,373) 1,190
Total income tax expense $ 64,482 $ 45,346 $ 40,088
Reconciliation to income tax at the statutory rate:      
U.S. Federal tax at statutory rates (as a percent) 21.00% 21.00% 21.00%
Permanent items (as a percent)     0.40%
Lobbying (as a percent) 0.10% 0.10% 0.10%
Non-deductible compensation 0.80% 1.60% 9.30%
State taxes, net of federal benefit (as a percent) 3.20% 4.40% 3.50%
Research and development tax credits (as a percent) (1.50%) (1.40%) (0.80%)
Change in valuation allowance (as a percent)   (0.40%) 0.80%
Effects of foreign operations (as a percent) 0.10% 0.90% 0.30%
Reserve for unrecognized tax benefits (as a percent) 0.50% 0.90% 0.50%
Other (as a percent) 0.10% (0.50%) (1.20%)
Stock-based compensation (as a percent) (0.30%) (0.30%) (6.70%)
Provision for income taxes (as a percent) 24.00% 26.30% 27.20%
v3.24.2.u1
Income Taxes - Tax Uncertainties (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Tax Uncertainties      
Interest and penalties accrued $ 400 $ 200 $ 100
Balance at beginning of the year 3,156 1,729 1,057
Additions for prior year tax positions 591 568 364
Additions for current year tax positions 1,205 1,106 482
Reductions for prior year tax positions (666) (247) (173)
Balance at end of the year 4,286 $ 3,156 $ 1,729
Unrecognized tax benefits that would affect the effective tax rate $ 4,300    
v3.24.2.u1
Income Taxes (Details)
$ in Thousands
 1 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
installment
Mar. 27, 2020
Reconciliation to income tax at the statutory rate:        
Employer portion of social security payroll tax percentage       6.20%
Deferred amount of employer portion of social security payroll tax     $ 14,100  
Number of installments that deferred employer social security payroll taxes will be repaid | installment     2  
Deferred amount paid $ 7,050 $ 7,050    
v3.24.2.u1
Finance and Operating Leases (Details) - USD ($)
Jun. 30, 2024
Jun. 30, 2023
Aug. 31, 2022
Dec. 31, 2021
Jul. 31, 2020
Apr. 30, 2020
Finance and Operating Leases            
Finance lease liability $ 55,598,000 $ 56,899,000        
Maximum            
Finance and Operating Leases            
Finance lease term 3 years          
BALC            
Finance and Operating Leases            
Finance lease liability $ 55,600,000 56,900,000        
Available line of credit         $ 41,000,000.0 $ 25,000,000.0
Finance lease right-of-use assets $ 39,800,000 $ 36,300,000        
Finance lease term 36 months          
Purchase option $ 1          
Additional amount of borrowings as at the and of the reporting period       $ 54,000,000.0    
BALC | Minimum            
Finance and Operating Leases            
Fixed interest rate (as a percent) 2.10%          
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      
v3.24.2.u1
Finance and Operating Leases - Finance leases (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Finance leases    
Remainder of fiscal year   $ 37,056
Year 1 $ 31,655 16,691
Year 2 19,880 5,457
Year 3 7,691 60
Year 4 82  
Total minimum payments 59,308 59,264
Less: imputed interest (3,710) (2,365)
Finance lease liability 55,598 56,899
Less: current portion of finance lease liability (29,146) (35,621)
Long-term finance lease liability $ 26,452 $ 21,278
v3.24.2.u1
Finance and Operating Leases - Operating Leases (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Operating Leases    
Remainder of fiscal year   $ 16,341
Year 1 $ 14,263 15,668
Year 2 12,361 12,290
Year 3 8,705 8,753
Year 4 7,713 7,727
Year 5 7,599  
Thereafter 12,381 19,975
Total minimum payments 63,022 80,754
Less: imputed interest (5,082) (6,880)
Operating lease liability 57,940 73,874
Less: current portion of operating lease liability (12,748) (14,449)
Long-term operating lease liability 45,192 59,425
Operating lease right-of-use assets, net $ 54,503 $ 69,508
Minimum    
Operating Leases    
Operating leases initial term 1 year  
Maximum    
Operating Leases    
Operating leases initial term 9 years  
v3.24.2.u1
Finance and Operating Leases - Sub Leases (Details)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
USD ($)
facility
Jun. 30, 2023
USD ($)
Finance and Operating Leases    
Remainder of current fiscal year   $ 836
Year 1 $ 455 455
Year 2 139 139
Total sublease income $ 594 $ 1,430
Number of entity's facilities that are being subleased through September 2024 | facility 1  
Number of entity's facilities that are being subleased through November 2024 | facility 1  
Number of entity's facilities that are being subleased through December 2025 | facility 1  
v3.24.2.u1
Finance and Operating Leases - Lease cost and other information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Finance lease cost:      
Amortization of right-of-use assets $ 31,099 $ 39,312 $ 34,719
Interest on lease liabilities 2,639 2,080 1,769
Total lease cost 48,749 56,911 57,329
Cash paid for amounts included in the measurement of lease liabilities      
Operating cash flows from operating leases (14,990) (12,243) (20,742)
Financing cash flows from finance leases (40,919) (42,956) (33,011)
Right-of-use assets obtained in exchange for new finance lease liabilities 35,652 30,514 23,232
Right-of-use assets obtained in exchange for new operating lease liabilities $ 864 $ 1,619 $ 10,589
Weighted-average remaining lease term - finance leases 2 years 7 days 1 year 8 months 19 days 1 year 10 months 6 days
Weighted-average remaining lease term - operating leases 5 years 7 months 28 days 6 years 1 month 6 days 6 years 6 months 14 days
Weighted-average discount rate - finance leases 5.62% 3.86% 2.47%
Weighted-average discount rate - operating leases 2.92% 2.81% 2.75%
Instructional costs and services      
Finance lease cost:      
Operating lease cost $ 9,605 $ 12,028 $ 15,718
Short-term lease cost 56 103 67
Sublease income (328) (1,081) (955)
Selling, general and administrative expenses      
Finance lease cost:      
Operating lease cost 6,019 4,616 6,253
Short-term lease cost 150 259 125
Sublease income $ (491) $ (406) $ (367)
v3.24.2.u1
Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Debt    
Less: unamortized debt issuance costs $ (5,325) $ (6,965)
Total debt 414,675 413,035
Long-term debt 414,675 413,035
Convertible Senior Notes Due 2027    
Debt    
Total debt $ 420,000 $ 420,000
v3.24.2.u1
Debt - Additional Information (Details)
 2 Months Ended 12 Months Ended
Sep. 30, 2020
USD ($)
$ / shares
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Debt        
Amortization of fees on debt   $ 1,640,000 $ 1,597,000 $ 1,573,000
Convertible Senior Notes Due 2027        
Debt        
Face amount $ 420,000,000.0      
Interest rate (as percent) 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   $ 1,600,000 $ 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      
v3.24.2.u1
Credit Facility (Details) - USD ($)
$ in Millions
 1 Months Ended
Jan. 27, 2020
Aug. 31, 2018
Jun. 30, 2024
Credit Facility      
Term of debt   48 months  
Interest rate spread added to base rate (as a percent)   25.00%  
Credit Facility      
Credit Facility      
Face amount $ 100.0    
Term of debt 5 years    
Repayments on credit facility $ 100.0    
Amount outstanding     $ 0.0
Amount of accordion feature under the credit facility $ 200.0    
Credit Facility | LIBOR | Minimum      
Credit Facility      
Interest rate spread added to base rate (as a percent) 0.875%    
Credit Facility | LIBOR | Maximum      
Credit Facility      
Interest rate spread added to base rate (as a percent) 1.50%    
v3.24.2.u1
Equity Incentive Plan (Details) - shares
Dec. 09, 2022
Jun. 30, 2024
Jun. 30, 2022
Jun. 30, 2021
Equity Transactions        
Options outstanding (in shares)     1,350 31,450
2016 Plan        
Equity Transactions        
Additional shares available for issuance 1,045,000      
Shares reserved for issuance   2,066,665    
Number of stock awards outstanding (in shares)   1,587,359    
v3.24.2.u1
Equity Incentive Plan - Stock Options (Details) - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Shares      
Outstanding at the beginning of the period (in shares) 1,350 31,450  
Exercised (in shares) (1,350) (29,100)  
Forfeited or canceled (in shares)   (1,000)  
Outstanding at the end of the period (in shares)   1,350 31,450
Weighted-Average Exercise Price      
Outstanding at the beginning of the period (in dollars per share) $ 14.77 $ 16.58  
Exercised (in dollars per share) $ 14.77 16.14  
Forfeited or canceled (in dollars per share)   31.73  
Outstanding at the end of the period (in dollars per share)   $ 14.77 $ 16.58
Additional information      
Weighted Average Remaining Contractual Life   11 months 23 days 9 months 25 days
Aggregate Intrinsic Value   $ 35,127 $ 437,037
v3.24.2.u1
Equity Incentive Plan - Relationship (Details) - Employee and Non Employees Stock Option [Member] - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Equity Transactions      
Intrinsic value of options exercised $ 0.0 $ 0.0 $ 0.5
Unrecognized compensation 0.0    
Stock based compensation expense $ 0.0 $ 0.0 $ 0.0
v3.24.2.u1
Equity Incentive Plan - Restricted Stock Awards (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2022
Aug. 31, 2022
Jan. 31, 2022
Oct. 31, 2021
Sep. 17, 2021
Aug. 31, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2019
Shares                              
Vested (in shares)   (238,863)                          
2019 SPP                              
Weighted-Average Grant Date Fair Value                              
Vesting period                             3 years
Fiscal Year 2021 LTIP                              
Weighted-Average Grant Date Fair Value                              
Earned award vesting percentage 123.00%                            
Restricted Stock Awards                              
Shares                              
Nonvested at the beginning of the period (in shares)                   815,233 1,131,466 1,409,334      
Granted (in shares)                   507,443 595,818 582,273      
Vested (in shares)                   (437,724) (774,917) (699,346)      
Canceled (in shares)                   (153,728) (137,134) (160,795)      
Nonvested at the end of the period (in shares)                   731,224 815,233 1,131,466 1,409,334    
Weighted-Average Grant Date Fair Value                              
Nonvested at the beginning of the period (in dollars per share)                   $ 36.91 $ 33.27 $ 30.26      
Granted (in dollars per share)                   43.43 37.90 35.27      
Vested (in dollars per share)                   36.36 32.50 28.62      
Canceled (in dollars per share)                   37.37 36.08 34.33      
Nonvested at the end of the period (in dollars per share)                   $ 40.60 $ 36.91 $ 33.27 $ 30.26    
Vesting period                   3 years          
Unrecognized compensation                   $ 21.2          
Weighted average period for recognition of total unrecognized compensation expense related to unvested stock options granted                   1 year 7 months 6 days          
Fair value of share-based compensation awards granted in period                   $ 22.0 $ 22.6 $ 20.5      
Fair value of share-based compensation awards vested in period                   23.3 29.6 23.5      
Stock based compensation expense                   $ 16.0 $ 15.5 $ 18.4      
Restricted Stock Awards | Vesting Based on Performance                              
Shares                              
Granted (in shares)                   0          
Nonvested at the end of the period (in shares)                   0          
Restricted Stock Awards | Vesting Based On Performance And Service                              
Shares                              
Vested (in shares)                   (27,234)          
Restricted Stock Awards | Service based awards                              
Shares                              
Granted (in shares)                   507,443          
Vested (in shares)                   (410,491)          
Nonvested at the end of the period (in shares)                   731,224          
Performance Share Units                              
Shares                              
Nonvested at the beginning of the period (in shares)                   496,869 355,302 2,878,044      
Granted (in shares)                   375,725 366,507 346,880      
Vested (in shares)                   (22,468) (119,467) (1,810,752)      
Canceled (in shares)                   (90,595) (105,473) (1,058,870)      
Nonvested at the end of the period (in shares)                   759,531 496,869 355,302 2,878,044    
Weighted-Average Grant Date Fair Value                              
Nonvested at the beginning of the period (in dollars per share)                   $ 34.99 $ 32.62 $ 15.26      
Granted (in dollars per share)                   41.85 33.87 34.90      
Vested (in dollars per share)                   49.62 30.48 9.95      
Canceled (in dollars per share)                   36.94 28.22 24.95      
Nonvested at the end of the period (in dollars per share)                   $ 37.73 $ 34.99 $ 32.62 $ 15.26    
Unrecognized compensation                   $ 21.8          
Weighted average period for recognition of total unrecognized compensation expense related to unvested stock options granted                   1 year 4 months 24 days          
Stock based compensation expense                   $ 15.4 $ 4.9 $ 0.1      
Performance Share Units | 2019 SPP                              
Shares                              
Granted (in shares)                           66,934 2,108,305
Vested (in shares)         (1,656,594)                    
Weighted-Average Grant Date Fair Value                              
Granted (in dollars per share)                           $ 12.56 $ 8.18
Vesting period         3 years                    
Performance Share Units | Fiscal Year 2019 LTIP                              
Shares                              
Granted (in shares)                           34,030 263,936
Vested (in shares)       (115,223)                      
Canceled (in shares)       (107,397)                      
Weighted-Average Grant Date Fair Value                              
Granted (in dollars per share)                           $ 23.51 $ 30.05
Performance Share Units | Fiscal Year 2021 MIP                              
Shares                              
Granted (in shares)             13,066 37,886 38,575            
Weighted-Average Grant Date Fair Value                              
Earned award vesting percentage               0.33% 33.33%            
Performance Share Units | Fiscal Year 2021 LTIP                              
Shares                              
Granted (in shares)                         111,450    
Weighted-Average Grant Date Fair Value                              
Granted (in dollars per share)                         $ 24.15    
Performance Share Units | Fiscal Year 2022 LTIP                              
Shares                              
Granted (in shares)                       250,250      
Weighted-Average Grant Date Fair Value                              
Granted (in dollars per share)                       $ 36.30      
Vesting period                       3 years      
Performance Share Units | Fiscal Year 2023 LTIP                              
Shares                              
Granted (in shares)                     289,640        
Weighted-Average Grant Date Fair Value                              
Granted (in dollars per share)                     $ 34.41        
Vesting period                     3 years        
Performance Share Units | Fiscal Year 2024 LTIP                              
Shares                              
Granted (in shares)                   354,090          
Weighted-Average Grant Date Fair Value                              
Granted (in dollars per share)                   $ 40.84          
Vesting period                   3 years          
Performance Share Units | Senior Executives | 2019 SPP                              
Weighted-Average Grant Date Fair Value                              
Market Capitalization Growth Performance Period                           3 years  
Performance Share Units | New Chief Executive Officer and Executive Chairman                              
Shares                              
Granted (in shares)                           358,294  
Weighted-Average Grant Date Fair Value                              
Granted (in dollars per share)                           $ 27.91  
Performance Share Units | Vesting Based on Performance | Executive Officers                              
Shares                              
Granted (in shares)                         82,710    
Weighted-Average Grant Date Fair Value                              
Granted (in dollars per share)                         $ 45.33    
Performance Share Units | Vesting Based on Performance | Chief Executive Officer                              
Shares                              
Granted (in shares)                         30,364    
Weighted-Average Grant Date Fair Value                              
Granted (in dollars per share)                         $ 24.70    
Performance Share Units | Vest immediately upon achievement of the performance goals | Executive Officers                              
Weighted-Average Grant Date Fair Value                              
Earned award vesting percentage           33.33%                  
Performance Share Units | Vest immediately upon achievement of the performance goals | Chief Executive Officer                              
Weighted-Average Grant Date Fair Value                              
Earned award vesting percentage     33.33%                        
Performance Share Units | Vesting Based On Performance And Service | Executive Officers                              
Weighted-Average Grant Date Fair Value                              
Certified achievement percentage           133.00%                  
Number Of Shares Earned Upon Reaching Performance Threshold           27,293                  
Performance Share Units | Vesting Based On Performance And Service | Chief Executive Officer                              
Weighted-Average Grant Date Fair Value                              
Certified achievement percentage     133.00%                        
Number Of Shares Earned Upon Reaching Performance Threshold     10,020                        
Performance Share Units | Vest annually over two years | Executive Officers                              
Weighted-Average Grant Date Fair Value                              
Earned award vesting percentage           66.67%                  
Performance Shares Tranche #2 | Fiscal Year 2019 LTIP                              
Weighted-Average Grant Date Fair Value                              
Certified achievement percentage       193.00%                      
Earned award vesting percentage                           25.00%  
Performance Shares Tranche #2 | New Chief Executive Officer and Executive Chairman                              
Shares                              
Granted (in shares)           119,431                  
v3.24.2.u1
Equity Incentive Plan - Performance Share Units ("PSU") (Details) - $ / shares
 1 Months Ended 12 Months Ended
Aug. 31, 2022
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Shares        
Vested (in shares) (238,863)      
Performance Share Units        
Shares        
Nonvested at the beginning of the period (in shares)   496,869 355,302 2,878,044
Granted (in shares)   375,725 366,507 346,880
Vested (in shares)   (22,468) (119,467) (1,810,752)
Canceled (in shares)   (90,595) (105,473) (1,058,870)
Nonvested at the end of the period (in shares)   759,531 496,869 355,302
Weighted-Average Grant Date Fair Value        
Nonvested at the beginning of the period (in dollars per share)   $ 34.99 $ 32.62 $ 15.26
Granted (in dollars per share)   41.85 33.87 34.90
Vested (in dollars per share)   49.62 30.48 9.95
Canceled (in dollars per share)   36.94 28.22 24.95
Nonvested at the end of the period (in dollars per share)   $ 37.73 $ 34.99 $ 32.62
Number of shares of common stock each unit has the right to receive   1    
v3.24.2.u1
Equity Incentive Plan - Long Term Incentive Plan (LTIP) (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2022
tranche
Aug. 31, 2022
shares
Jan. 31, 2022
shares
Oct. 31, 2021
item
shares
Sep. 30, 2021
$ / shares
Sep. 17, 2021
employee
shares
Aug. 31, 2021
shares
Dec. 31, 2023
shares
Dec. 31, 2022
tranche
shares
Dec. 31, 2021
shares
Jun. 30, 2024
USD ($)
$ / shares
shares
Jun. 30, 2023
USD ($)
$ / shares
shares
Jun. 30, 2022
USD ($)
$ / shares
shares
Jun. 30, 2021
USD ($)
$ / shares
shares
Jun. 30, 2020
USD ($)
$ / shares
shares
Jun. 30, 2019
USD ($)
$ / shares
shares
Equity Transactions                                
Vested (in shares)   238,863                            
Share based compensation, number of tranches forfeited | item       2                        
2019 SPP                                
Equity Transactions                                
Vesting period                               3 years
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 2022                                
Equity Transactions                                
Earned award vesting percentage                         2.00%      
Vest immediately | Fiscal Year 2021 LTIP                                
Equity Transactions                                
Earned award vesting percentage                           40.00%    
Vested (in shares)                           4,533    
Vest annually over two years. | Fiscal Year 2021 LTIP                                
Equity Transactions                                
Earned award vesting percentage                           60.00%    
Vested (in shares)                           6,797    
Vest the following year                                
Equity Transactions                                
Vested (in shares)   77,048                            
Certified achievement percentage   200.00%                            
Career Learning Revenue Performance Based Share Units                                
Equity Transactions                                
Granted (in shares)                           366,250    
Granted (in dollars per share) | $ / shares                           $ 45.05    
Fair value | $                           $ 16,500,000    
Career Learning Revenue Performance Based Share Units | Fiscal Year 2021                                
Equity Transactions                                
Granted (in shares)                           77,690    
Vesting period                           2 years    
Career Learning Revenue Performance Based Share Units | Fiscal Year 2022                                
Equity Transactions                                
Granted (in shares)                         122,080      
Career Learning Revenue Performance Based Share Units | Fiscal Year 2023                                
Equity Transactions                                
Granted (in shares)                       166,480        
Career Learning Revenue Performance Based Share Units | Vest immediately | Fiscal Year 2021                                
Equity Transactions                                
Earned award vesting percentage                           1.00%    
Career Learning Revenue Performance Based Share Units | Vest annually over two years.                                
Equity Transactions                                
Earned award vesting percentage                         1.00%      
Career Learning Revenue Performance Based Share Units | Vest annually over two years. | Fiscal Year 2021                                
Equity Transactions                                
Earned award vesting percentage                           2.00%    
Performance Share Units                                
Equity Transactions                                
Granted (in shares)                     375,725 366,507 346,880      
Granted (in dollars per share) | $ / shares                     $ 41.85 $ 33.87 $ 34.90      
Vested (in shares)                     22,468 119,467 1,810,752      
Canceled (in shares)                     (90,595) (105,473) (1,058,870)      
Unrecognized compensation | $                     $ 21,800,000          
Weighted average period for recognition of total unrecognized compensation expense related to unvested stock options granted                     1 year 4 months 24 days          
Stock based compensation expense | $                     $ 15,400,000 $ 4,900,000 $ 100,000      
Performance Share Units | 2019 SPP                                
Equity Transactions                                
Granted (in shares)                             66,934 2,108,305
Number of named executive officers | employee           6                    
Granted (in dollars per share) | $ / shares                             $ 12.56 $ 8.18
Vesting period           3 years                    
Vested (in shares)           1,656,594                    
Threshold period average price of stock to determine final amount       30 days                        
Average price of Company stock during the performance period (in dollars per share) | $ / shares         $ 34.13                      
Market capitalization growth (as a percent)           112.00%                    
Performance Share Units | 2019 SPP | Senior Executives                                
Equity Transactions                                
Threshold period average price of stock to determine final amount                             30 days  
Threshold days after release of fiscal year 2021 results to calculate average price of stock                             7 days  
Performance Share Units | 2019 SPP | Total stock price growth less than 25% | Senior Executives                                
Equity Transactions                                
Amount earned as percentage of total value growth                               0.00%
Percentage of total stock price growth                               25.00%
Annualized percentage of total stock price growth                               7.60%
Performance Share Units | 2019 SPP | Total Stock Price Growth 33% | Senior Executives                                
Equity Transactions                                
Amount earned as percentage of total value growth                               6.00%
Percentage of total stock price growth                               33.00%
Annualized percentage of total stock price growth                               10.00%
Performance Share Units | 2019 SPP | Total Stock Price Growth Equals or Greater than 95% | Senior Executives                                
Equity Transactions                                
Amount earned as percentage of total value growth                               7.50%
Percentage of total stock price growth                               95.00%
Annualized percentage of total stock price growth                               25.00%
Performance Share Units | Fiscal Year 2019 LTIP                                
Equity Transactions                                
Granted (in shares)                             34,030 263,936
Granted (in dollars per share) | $ / shares                             $ 23.51 $ 30.05
Fair value | $                             $ 800,000 $ 7,900,000
Vested (in shares)       115,223                        
Canceled (in shares)       (107,397)                        
Performance Share Units | Fiscal Year 2020 TRIP                                
Equity Transactions                                
Fair value | $                             $ 12,300,000  
Performance Share Units | Fiscal Year 2021 MIP                                
Equity Transactions                                
Granted (in shares)               13,066 37,886 38,575            
Earned award vesting percentage                 0.33% 33.33%            
Performance Share Units | Fiscal Year 2021 LTIP                                
Equity Transactions                                
Granted (in shares)                           111,450    
Granted (in dollars per share) | $ / shares                           $ 24.15    
Fair value | $                           $ 2,700,000    
Performance Share Units | Fiscal Year 2022 LTIP                                
Equity Transactions                                
Granted (in shares)                         250,250      
Granted (in dollars per share) | $ / shares                         $ 36.30      
Vesting period                         3 years      
Fair value | $                         $ 9,100,000      
Performance Share Units | Fiscal Year 2023 LTIP                                
Equity Transactions                                
Granted (in shares)                       289,640        
Granted (in dollars per share) | $ / shares                       $ 34.41        
Vesting period                       3 years        
Fair value | $                       $ 10,000,000.0        
Performance Share Units | Fiscal Year 2024 LTIP                                
Equity Transactions                                
Granted (in shares)                     354,090          
Granted (in dollars per share) | $ / shares                     $ 40.84          
Vesting period                     3 years          
Fair value | $                     $ 14,400,000          
Performance Share Units | Tech Elevator                                
Equity Transactions                                
Stock based compensation expense | $                     $ 300,000 1,000,000.0 $ 1,300,000      
Performance Share Units | Tech Elevator | Fiscal Year 2021 MIP                                
Equity Transactions                                
Intrinsic value of awards | $                           $ 4,000,000.0    
Performance Share Units | Vest immediately upon achievement of the performance goals | Chief Executive Officer                                
Equity Transactions                                
Earned award vesting percentage     33.33%                          
Performance Share Units | Vest immediately upon achievement of the performance goals | Executive Officers                                
Equity Transactions                                
Earned award vesting percentage             33.33%                  
Performance Share Units | Vest annually over two years | Executive Officers                                
Equity Transactions                                
Earned award vesting percentage             66.67%                  
Performance Share Units | Vesting Based on Performance | Chief Executive Officer                                
Equity Transactions                                
Granted (in shares)                           30,364    
Granted (in dollars per share) | $ / shares                           $ 24.70    
Performance Share Units | Vesting Based on Performance | Executive Officers                                
Equity Transactions                                
Granted (in shares)                           82,710    
Granted (in dollars per share) | $ / shares                           $ 45.33    
Performance Share Units | Revenue | Fiscal Year 2020 TRIP                                
Equity Transactions                                
Earned award vesting percentage                             60.00%  
Performance Share Units | EBITDA | Fiscal Year 2020 TRIP                                
Equity Transactions                                
Earned award vesting percentage                             40.00%  
Performance Share Units | Vest annually over two years. | Chief Executive Officer                                
Equity Transactions                                
Earned award vesting percentage     66.67%                          
Vesting period     2 years                          
Performance Share Units | Vest annually over two years. | Executive Officers                                
Equity Transactions                                
Vesting period             2 years                  
Performance Share Units | Vesting Based On Performance And Service | Chief Executive Officer                                
Equity Transactions                                
Number of shares earned upon reaching performance threshold     10,020                          
Certified achievement percentage     133.00%                          
Performance Share Units | Vesting Based On Performance And Service | Executive Officers                                
Equity Transactions                                
Number of shares earned upon reaching performance threshold             27,293                  
Certified achievement percentage             133.00%                  
Performance Shares Tranche #1 | Fiscal Year 2019 LTIP                                
Equity Transactions                                
Earned award vesting percentage                             45.00%  
Performance Shares Tranche #1 | Fiscal Year 2020 TRIP | Calendar Year 2021                                
Equity Transactions                                
Earned award vesting percentage                             70.00%  
Performance Shares Tranche #1 | Fiscal Year 2022 LTIP                                
Equity Transactions                                
Share-based Compensation Arrangement by Share-based Payment Award, Probable Percentage of Metric Target will be Achieved                         70.00%      
Performance Shares Tranche #1 | Fiscal Year 2023 LTIP                                
Equity Transactions                                
Fair value | $                       4,800,000        
Share based payment award fair market value decrease | $                       $ 800,000        
Performance Shares Tranche #1 | Vest immediately | Fiscal Year 2022 LTIP                                
Equity Transactions                                
Earned award vesting percentage                         50.00%      
Performance Shares Tranche #1 | Vest immediately | Fiscal Year 2023 LTIP                                
Equity Transactions                                
Earned award vesting percentage                       50.00%        
Performance Shares Tranche #1 | Vest immediately | Fiscal Year 2024 LTIP                                
Equity Transactions                                
Earned award vesting percentage                     75.00%          
Performance Shares Tranche #1 | Vest annually over two years. | Fiscal Year 2023 LTIP                                
Equity Transactions                                
Earned award vesting percentage                       50.00%        
Performance Shares Tranche #1 | Vest annually over two years. | Fiscal Year 2024 LTIP                                
Equity Transactions                                
Earned award vesting percentage                     25.00%          
Performance Shares Tranche #2 | Fiscal Year 2019 LTIP                                
Equity Transactions                                
Earned award vesting percentage                             25.00%  
Certified achievement percentage       193.00%                        
Performance Shares Tranche #2 | Fiscal Year 2020 TRIP | Calendar Year 2022                                
Equity Transactions                                
Earned award vesting percentage                             30.00%  
Performance Shares Tranche #2 | Vest annually over two years. | Fiscal Year 2022 LTIP                                
Equity Transactions                                
Earned award vesting percentage                         50.00%      
Performance Shares Tranche #3 | Fiscal Year 2019 LTIP                                
Equity Transactions                                
Earned award vesting percentage                               30.00%
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 | $                           $ 4,000,000.0    
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%    
v3.24.2.u1
Equity Incentive Plan - Deferred Stock Units ("DSU") (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2022
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Shares        
Vested (in shares) (238,863)      
Deferred Stock Units        
Shares        
Nonvested at the beginning of the period (in shares)   99,535 69,117 59,354
Granted (in shares)   13,171 30,418 14,769
Vested (in shares)   (16,102)   (5,006)
Nonvested at the end of the period (in shares)   96,604 99,535 69,117
Weighted-Average Grant Date Fair Value        
Nonvested at the beginning of the period (in dollars per share)   $ 27.38 $ 24.27 $ 22.01
Granted (in dollars per share)   59.43 34.43 33.24
Vested (in dollars per share)   22.91   23.97
Nonvested at the end of the period (in dollars per share)   $ 32.49 $ 27.38 $ 24.27
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   $ 0.9 $ 0.7 $ 0.5
v3.24.2.u1
Commitments and Contingencies (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Buildings  
Commitments and contingencies  
Guarantees related to lease commitments $ 0.2
v3.24.2.u1
Severance (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Severance      
Severance costs $ 4.6 $ 3.4 $ 3.7
Executives and other employees      
Severance      
Costs associated with accelerated vesting of equity awards $ 0.5 $ 0.5 $ 0.1
v3.24.2.u1
Acquisitions and Investments (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Jul. 08, 2022
Oct. 31, 2021
Aug. 31, 2018
Jun. 30, 2022
Jun. 30, 2024
Jun. 30, 2023
Mar. 31, 2022
Aug. 31, 2020
Schedule of Equity Method Investments                
Investment     $ 6,700         $ 2,300
Ownership percentage     39.50%         46.10%
Convertible note     $ 5,000          
Ownership percentage on an if-converted basis     55.00%          
Interest rate spread added to base rate (as a percent)     25.00%          
Term of debt     48 months          
Convertible into Series D Preferred shares     3,670          
Impairment loss       $ 4,500        
Loans receivable   $ 3,000            
Loans receivable interest rate   5.00%            
Maturity term of loans receivable   5 years            
Loans receivable funded amount             $ 3,000  
Investment, Type [Extensible Enumeration]         lrn:TalloIncMember      
Credit loss expense on convertible note       4,100        
Credit loss expense on promissory note       3,000        
Reversal of accrued interest on convertible note and promissory note       400        
Goodwill       $ 241,000 $ 246,676 $ 246,676    
Intangible assets         $ 60,282 $ 74,771    
Acquisition of Tallo Assets                
Schedule of Equity Method Investments                
Cash purchase price $ 1,000              
Working capital 400              
Cash and contingent consideration paid 7,300              
Goodwill 5,700              
Intangible assets $ 1,300              
Acquisition of Tallo Assets | Customer relationships                
Schedule of Equity Method Investments                
Amortization period 10 years              
v3.24.2.u1
Related Party Transactions (Details) - Future of School - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2019
Related Party Transactions          
Contributions made to related party $ 0.0 $ 0.0 $ 1.2    
Accrued contributions to related party $ 2.3     $ 3.5 $ 2.5
v3.24.2.u1
Employee Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
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 $ 7.7 $ 7.7 $ 6.1
v3.24.2.u1
Supplemental Disclosure of Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Supplemental Disclosure of Cash Flow Information      
Cash paid for interest $ 7,521 $ 6,946 $ 6,641
Cash paid for taxes 85,228 37,131 35,972
Supplemental disclosure of non-cash financing activities:      
Right-of-use assets obtained from acquisitions   385  
Right-of-use assets obtained in exchange for new finance lease liabilities 35,652 30,514 23,232
Supplemental disclosure of non-cash investing activities:      
Stock-based compensation expense capitalized on software development 816 700 374
Stock-based compensation expense capitalized on curriculum development $ 76 84 88
Non-cash purchase price related to business combinations   5,861 1,145
Business Combinations:      
Acquired assets   1,132 394
Intangible assets, net   1,309 2,157
Goodwill   5,655 600
Assumed liabilities   (385) (58)
Deferred revenue   $ (441) $ (1,030)
v3.24.2.u1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
ALLOWANCE FOR DOUBTFUL ACCOUNTS      
Valuation and Qualifying Account Activity      
Balance at Beginning of Period $ 30,031,273 $ 26,993,037 $ 21,383,543
Additions (Deductions) Charged to Cost and Expenses 22,843,961 8,047,729 8,555,918
Deductions from Allowance 21,577,267 5,009,493 2,946,424
Balance at End of Period 31,297,967 30,031,273 26,993,037
INVENTORY RESERVES      
Valuation and Qualifying Account Activity      
Balance at Beginning of Period 4,145,280 6,457,046 5,647,283
Additions (Deductions) Charged to Cost and Expenses 1,778,825 2,392,785 880,809
Deductions from Allowance 2,867 4,704,551 71,046
Balance at End of Period 5,921,239 4,145,280 6,457,046
COMPUTER RESERVE      
Valuation and Qualifying Account Activity      
Balance at Beginning of Period 1,345,832 2,039,771 2,273,372
Additions (Deductions) Charged to Cost and Expenses 1,129,323 332,197 135,948
Deductions from Allowance 688,930 1,026,136 369,549
Balance at End of Period 1,786,225 1,345,832 2,039,771
INCOME TAX VALUATION ALLOWANCE      
Valuation and Qualifying Account Activity      
Balance at Beginning of Period 6,790,724 6,677,352 5,047,078
Additions to Net Deferred Tax Asset Allowance 596,455 113,372 1,630,274
Balance at End of Period $ 7,387,179 $ 6,790,724 $ 6,677,352