Stride is the leading Education-as-a-Service (EaaS) provider of K-12 virtual learning services as well as adult vocational training, commanding 22% of the US virtual K-12 education technology market. The company partners with local public school districts to provide online learning technology complete with accredited curricula and teacher training. The company leverages AI to personalize learning experiences and predictive analytics to identify how best to improve student academic performance.

The company generated $1.9 billion revenue in 2024 with a 5-year CAGR of 10%, with gross margins nearing 40% and earnings per share doubling from 2021 to 2024. As such, the company has proven scalability with significant operating leverage. The growth runway remains very large as the company enters additional states, and as existing states in which they operate expand coverage to greater student populations. These together with strategic growth acquisitions along the way are expected to expand its Total Addressable Market (TAM) over the next 10 years. With shares trading at a forward P/E of 20x, we believe this is a solid long-term secular growth opportunity shielded from macroeconomic volatility, trading for a very reasonable valuation.