Stride Inc (LRN)

Pretax margin

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	381,609	396,157	354,385	313,430	267,688	246,543	227,536	208,692	172,547	153,305	137,442	126,405	147,074	125,045	99,996	75,861	95,306	86,315	65,977	62,299
Revenue (ttm)	US$ in thousands	2,405,317	2,285,854	2,193,315	2,110,972	2,040,069	1,989,375	1,938,822	1,892,389	1,837,358	1,809,080	1,760,518	1,711,590	1,686,666	1,628,965	1,599,388	1,566,026	1,536,760	1,408,181	1,273,190	1,154,604
Pretax margin		15.87%	17.33%	16.16%	14.85%	13.12%	12.39%	11.74%	11.03%	9.39%	8.47%	7.81%	7.39%	8.72%	7.68%	6.25%	4.84%	6.20%	6.13%	5.18%	5.40%

June 30, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $381,609K ÷ $2,405,317K
= 15.87%

Stride Inc.’s pretax margin demonstrates a generally upward trend over the analyzed period, reflecting an improvement in profitability before accounting for income taxes. Starting at approximately 5.40% as of September 30, 2020, the pretax margin experienced slight fluctuations but maintained a relatively stable level through the subsequent quarters, with a low point of around 4.84% in September 2021.

From late 2021 onward, a consistent increase is evident, with notable gains observed from March 2022 onward, where the margin increased from 7.68% to over 9% by September 2022. The upward momentum continued through 2023, reaching 11.03% in September 2023 and 11.74% by the end of 2023. The trend extends further into 2024, with the margin rising sharply to 12.39% in March 2024, 13.12% in June 2024, and reaching a peak of approximately 14.85% by September 2024.

The data indicates that Stride Inc. has progressively improved its pretax profitability over the period, likely due to effective management of costs or enhanced revenue performance. The steady increase in pretax margin over the final years suggests a positive shift in operational efficiency or pricing strategies, positioning the company for stronger profitability before taxes in recent periods.