Stride Shares Plunge Due to Enrollment Challenges; Revenue Forecast Dims

Shares of Stride, an edutech company, plummeted on Wednesday, losing approximately half of their market value following a disappointing annual revenue forecast. The company attributed the lowered outlook primarily to challenges in securing new student enrollments, according to a Reuters report. Stride's stock price declined by 50% to $75.98, marking its most significant single-day loss to date. The company projects fiscal year 2026 revenue between $2.48 billion and $2.55 billion, below the $2.59 billion consensus estimate among analysts. CEO James Rhyu cited implementation issues stemming from a recent platform upgrade, which negatively impacted customer experience and subsequently increased withdrawal rates while lowering conversion rates. In response to the announcement, BMO Capital Markets downgraded Stride to "market perform," and both BMO and Barrington Research reduced their price targets for the stock.