Stride : Third Quarter 2024 Q3 FY24 Financial Supplemental Slides

Q3 FY2024

Earnings Presentation

April 23, 2024

Safe Harbor

This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this presentation are forward-looking statements. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "continues," "likely," "may," "opportunity," "potential," "projects," "will," "will be," "expects," "plans," "intends" and similar expressions to identify forward looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements.

These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve or us to comply with federal, state and local regulations, resulting in a loss of funding, an obligation to repay funds previously received, or contractual remedies; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve as curriculum standards, testing programs and state accountability metrics evolve; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school in which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud facilities, resulting from cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; and failure to prevent or mitigate a cybersecurity incident that affects our systems; and other risks and uncertainties associated with our business described in

the Company's filings with the Securities and Exchange Commission.

Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this presentation is as of today's date, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

2

Compelling

Long-term

Investment

Thesis

Disruptor in Education

Sustainable & Growing Virtual School Business

New Products &

Technologies

Experienced

• Diverse Leadership Team

Financial Track Record

Innovator with the scale, expertise & long-term customer relationships to change education

Accelerating secular shift toward virtual education and school choice

Leveraging capabilities and assets to address market failures or shortcomings

Deep educational regulatory & policy expertise

Consistent revenue and profitability growth with a strong balance sheet to support organic and inorganic growth

3

Quarterly Highlights

01		02
Continued strong in-year	198.4K enrollments tops
enrollment trends	pandemic highs
In-year demand and retention	Parent demand for school
strength leading to q-o-q	choice continues to increase
enrollment growth

9M FY24 Performance

• Revenue: $1,505.9M +11% y-o-y
• Adjusted Operating Income1: $206.0M +51% y-o-y
• Adjusted EBITDA1: $278.7M

+34% y-o-y

03		04
		Organic and
Raising Full Year Guidance	Inorganic Opportunities
Mid-point of revenue and	Strong balance sheet and
profitability guidance exceed	disciplined capital allocation
long-term CAGR targets from	strategy allow for flexibility
investor day

Q3 Performance

• Revenue: $520.8M +11% y-o-y
• Adjusted Operating Income1: $96.4M +20% y-o-y
• Adjusted EBITDA1: $120.5M

+16% y-o-y

1. To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), and adjusted EBITDA. Management believes that these additional metrics provide useful information to investors relating to our financial

performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the Appendix to this presentation

4

Year-over-year Growth in Key Financial Metrics

Revenue ($M)

600
			483		505	521
		470	480
500	458
425
400
300
200
100
0
Q1	Q2	Q3	Q4	Q1	Q2	Q3
		FY23			FY24

Adjusted Operating Income1 ($M)

110						95	96
90		76	80
70				64
50
30					15
10
(10)
(30)	(20)
	Q1	Q2	Q3	Q4	Q1	Q2	Q3
		FY23				FY24

Demonstrated demand for	Enrollment growth above	Strong track record
school options	pandemic highs	of profitability

1. To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income, and adjusted EBITDA. Management believes that these additional metrics provide useful information to investors relating to our financial performance. A

reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the Appendix to this presentation

5

Strong In-year Enrollment Trends

Enrollments Trends

• Enrollments exceed pandemic highs
• General Education enrollments increased 10K, up 9% y-o-y
• Career Learning enrollments increased 6.6K, up 10% y-o-y

	Three Months Ended March 31,
	2024	2023		Change
Revenue ($M)
General Education	328.9	289.6	↑	14%
Career Learning
• Middle - High School	167.9	150.8	↑	11%
• Adult	24.0	29.9	↓	(20%)
Total Career Learning	191.9	180.7	↑	6%
Total Revenues	520.8	470.3	↑	11%

Enrollments (K)
Average Enrollment	198.4	181.8	↑	9%
•	General Education, K-12	124.6	114.6	↑	9%
•	Career Learning, Middle - High School	73.8	67.2	↑	10%

6

Guiding to Strong Revenue and Profitability Growth

	Previous FY24		Updated FY24
	Guidance		Guidance1
	Low	High		Low	High
Revenue	$1.99B	$2.04B		$2.02B	$2.04B
Adj. Operating Income2	$265.0M	$285.0M		$280.0M	$290.0M
Capital Expenditures	$60.0M	$65.0M		$60.0M	$65.0M
Effective Tax Rate	25%	27%	24%	26%

Guidance Reflects Continued Demand for Offerings

• FY24 Revenue: +10% Y-O-Y
• • Mid-pointof Guidance
• FY24 AOI2: +42% Y-O-Y
• • Mid-pointof Guidance

1. Guidance as of April 23, 2024; 2. To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non- GAAP financial measures including adjusted operating income (loss), and adjusted EBITDA. Management believes that these additional metrics provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the Appendix to

this presentation.

7

Strong Balance Sheet with Low Debt

Cash position, low leverage ratio, and consistent cash flows

provide options for capital allocation

Select balance sheet and other information

As of March 31, 2024 ($M)

Cash, Cash Equivalents	570.7
& Marketable Securities
Accounts Receivable, Net	577.8
		Leverage
Accounts Payable	37.2	ratio1 of 0.27x

Total Debt Obligations	475.2

1. Leverage ratio is a non-GAAP measure defined as Net Debt (total debt obligations of $475.2M less cash and cash equivalents of $376.6M) divided by Adjusted EBITDA of $367.4M
for the twelve months ended March 31, 2024	8

Disciplined Capital Allocation

Prioritizing organic growth, new product and technology development and synergistic M&A

Organic

Growth

Strategic Acquisitions

Capital

Return

• Invest in academic quality and student/customer experience to support outcomes and retention
• Technology advancements to improve personalization and outcomes
• Implement innovative products across portfolio
• Leverage platform across markets/verticals
• High-growth,high-margin targets providing synergies
• Evaluate approaches to return cash to stockholders over the long term

9

Compelling Long-Term Growth Targets

Total Revenue ($B)

Adj. Operating Income ($M)

EPS ($)

$800M

$3.50B	$3.30B

10% CAGR

$3.00B to mid-point

		$600M
$2.50B		$2.70B
$2.00B	$1.84B	$400M
$1.50B
		$200M
$1.00B
$0.50B		$0M
	FY2023	FY2028 Target

20% CAGR

to mid-point

$585M

$415M

$201M

FY2023

FY2028 Target

$9.00

$8.00

$7.00

$6.00

$5.00

$4.00

$3.00

$2.00

$1.00

$-

$8.35

20% CAGR

to mid-point

$6.15

$2.97

FY2023

FY2028 Target

1. To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we	Depicts low-high range for target
also present non-GAAP financial measures including adjusted operating income (loss), and adjusted EBITDA. Management	10

believes that these additional metrics provide useful information to investors relating to our financial performance.