Strategic Education reported third quarter 2026 results that missed analyst expectations for both revenue and earnings. The company recorded a significant $134.1 million non-cash impairment charge related to its Australia/New Zealand (ANZ) segment, driven by regulatory changes affecting international student immigration. While the Education Technology Services segment showed strong growth, overall enrollment declines in the core U.S. Higher Education and ANZ segments pressured the top line.
Key Highlights
- Revenue of $325.1 million missed the consensus estimate of $326.55 million and represented a modest 1.6% year-over-year increase.
- U.S. Higher Education enrollment decreased 1.1% to 84,725 students, although employer-affiliated enrollment rose to 34.7% of the total.
- Education Technology Services revenue surged 12% to $42.8 million, fueled by a 22% increase in Sophia Learning subscribers.
- The ANZ segment saw a 9.1% enrollment decline to 17,101 students due to Australian regulatory shifts, leading to the $134.1 million goodwill impairment.