Strayer Education (STRA) Stock Forecast & Price Target

Strategic Education Inc. demonstrated significant financial growth, with adjusted diluted earnings per share (EPS) increasing by 41.3% year-over-year to $1.64 on a constant currency basis, reflecting improved profitability. The company's total revenue for the third quarter rose by 5.1% to $321.7 million, alongside a notable increase in employer-affiliated enrollment by 8.6%, which now represents 32.7% of total U.S. Higher Education enrollment, indicating the strength of its corporate partnerships. Additionally, free cash flow improved by 2.3% to $127.0 million in the first nine months of 2025, coupled with a substantial 42.2% revenue growth in the Sophia Learning platform, underscoring the effectiveness of its direct-to-consumer initiatives and the expansion of its educational services.

Strategic Education Inc. experienced a decline in total student enrollment, which decreased by 2.1% year-over-year, reflecting a trend of falling enrollment figures, particularly in unaffiliated enrollment, which was down 5.1% for four consecutive quarters. The company's U.S. Higher Education segment also reported a 1.0% decline in enrollment and a significant reduction in operating income by 15.9%, indicating a downturn in profitability and operational efficiency. Additionally, revenue from the Australia/New Zealand segment fell by 4.7%, further exacerbating concerns regarding the overall financial health of the company amidst a competitive education market.