Total Revenue

+18% (from $520.8M to $613.4M)

Robust enrollment growth across both General Education and Career Learning segments drove the revenue expansion, with higher enrollments—particularly in the Middle–High School programs (a key component of Career Learning)—boosting overall sales compared to the previous period. " " "

General Education revenue

+13% (from $328.9M to $370.8M)

Enrollment increases and improved school mix continued to benefit General Education, building on past trends where enrollment growth and a rise in revenue per enrollment delivered strong revenue performance " " vs. " " "

Career Learning revenue

+26% (from $191.9M to $242.6M)

Strong performance in Career Learning, anchored by robust enrollment gains—especially in the Middle–High School segment—has driven an accelerated revenue increase compared to the previous period, reflecting amplified enrollment and pricing benefits " " vs. " " "

Middle–High School revenue

+33% (from $167.9M to $223.9M)

A remarkable 33% gain is attributed to significant increases in enrollments and improved revenue per enrollment for Middle–High School programs, reinforcing trends observed in earlier periods but at an even stronger pace " " vs. " " "

Adult segment revenue

-22% (down from $24.0M to $18.7M)

The Adult segment continues to face challenges, with a sharp 22% decline reflecting strategic shifts and operational challenges that have been persistent from previous periods, even as other segments drive overall revenue growth " " vs. " " "

Income from operations

+48% (from $88,313K to $130,786K)

Enhanced operational efficiency and revenue leverage have contributed to a 48% increase in operating income, built on the higher top-line performance and improved cost management seen in prior periods " " vs. "

Net income attributable to common stockholders

+43% (from $69,687K to $99,346K)

Stronger revenues and improved gross margins have resulted in a 43% boost in net income, reflecting benefits from increased enrollments and more efficient cost controls that carried forward from the previous period " " vs. "

Basic EPS

Increased from $1.63 to $2.31

EPS growth mirrors the profitability uplift from higher revenue and operating income, with cost efficiencies and a solid overall balance sheet boosting earnings per share relative to Q3 2024. " "

Enrollment Momentum

Record enrollments, broad‐based growth and strong demand were noted across Q1, Q2, and Q4—with consistent year‐over‐year increases in both general and career learning programs. " " "

Enrollment increased by over 21%, with application volumes nearly doubling versus two years ago and quadrupling versus four years ago. Management noted robust future outlook despite enrollment window constraints. " " " "

Consistent strong momentum with evolving operational challenges in enrollment capacity

Operational Efficiency and Cost Management

Improvements in gross margins, disciplined SG&A spending, and effective use of operating leverage were highlighted across Q1, Q2, and Q4. " " "

Q3 2025 focused on sustaining efficiency while balancing reinvestment in technology, teacher support, and new tools—with expectations of gross margins remaining at current high levels. "

Steady efficiency maintained through disciplined cost management while strategically investing for long‑term growth

Career Learning Dynamics

Career Learning showed consistent enrollment and revenue growth in Q1, Q2, and Q4, though challenges such as a less developed marketing funnel were noted. " " "

In Q3 2025, career learning middle and high school programs achieved a 34% enrollment growth with a 33% revenue uptick, while management acknowledged ongoing tests to further unlock the market potential. " "

Robust growth continues with further opportunities to optimize market strategies and capture incremental demand

Tutoring Opportunity

Tutoring was discussed as a diversification initiative in Q1 and Q2—with early platform rollouts and technology enhancements noted in Q4, signaling strategic expansion beyond core programs. " " "

Q3 2025 emphasized using the tutoring platform to address challenges in lower grades, especially to improve subpar third‑grade reading scores, leveraging high‑dosage tutoring. "

Shift from general diversification to targeted educational impact in lower grades, emphasizing practical learning outcomes

State Expansion and Policy Tailwinds

Q1 and Q2 earnings calls detailed state expansion efforts and noted that state funding increases partially offset other headwinds; policy support (a “positive halo”) was acknowledged even though no major expansion was planned in FY 2025 " "

In Q3 2025 no explicit discussion on state expansion or policy tailwinds was provided apart from noting enrollment constraints driven by closed windows, which are not directly related to state policy changes. "

Reduced emphasis in Q3 while underlying state policy dynamics remain a long‑term consideration

Capacity Expansion and Enrollment Caps

In Q1 and Q2, management focused on negotiating increases in enrollment caps and confirmed stable program counts; Q4 discussions reiterated the importance of expanding capacity to meet demand. " " "

Q3 2025 highlighted significant demand leading to closed enrollment windows, with no new capacity expansion announced, keeping enrollment caps unchanged. "

Persistent capacity challenges as demand outpaces existing enrollment windows without new expansions

Revenue per Enrollment Pressure

Across Q1, Q2, and Q4, revenue per enrollment was discussed as being flat or slightly down—impacted by factors like the ESSER funding roll‑off and state mix dynamics, with clear guidance provided. " " "

In Q3 2025, the expectation is a slight decline (less than 1%) in revenue per enrollment, attributed to state mix effects despite an overall favorable funding context. " "

Stable pressure with a slight decline, reflecting balanced dynamics between reduced federal funds and supportive state funding

Dilution Impact on EPS

Q1 reported EPS improvement without detailed mention of dilution; Q2 provided in‑depth analysis of dilution from convertible notes and capped calls affecting GAAP EPS. " "

In Q3 2025, analysts noted a discrepancy in EPS due to share count assumptions—with management confirming the impact and offering further clarification. "

Ongoing scrutiny over share count adjustments and dilution effects, with minor impacts on EPS metrics

ESSER Funding Headwinds

Q1 noted a minor (<1.5%) revenue impact from ESSER roll‑off, and Q4 mentioned headwinds offset by improved state funding; in Q2, management stated ESSER funding was essentially no longer a factor. " " "

There was no mention of ESSER funding headwinds in Q3 2025, indicating that this issue has largely receded in current discussions.

Diminishing impact over time, with ESSER headwinds nearly phased out by Q2 and not referenced in Q3

Adult Learning Segment Challenges

Q1, Q2, and Q4 consistently discussed challenges in the Adult Learning segment—including revenue declines, IT product softness, and transitions (e.g., MedCerts moving from B2C to B2B)—balanced by growth in areas like Allied Health. " " "

No mention of Adult Learning challenges was made in Q3 2025, suggesting a potential temporary lull in emphasis on this segment.

Reduced current focus despite ongoing longer‑term challenges, possibly indicating a shift in priority for management’s discussion