Stride Inc (LRN)

Return on equity (ROE)

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Net income US$ in thousands 287,941 204,183 126,867 107,130 71,451
Total stockholders’ equity US$ in thousands 1,479,620 1,176,020 947,296 812,581 804,648
ROE 19.46% 17.36% 13.39% 13.18% 8.88%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $287,941K ÷ $1,479,620K
= 19.46%

The return on equity (ROE) for Stride Inc. demonstrates a consistent upward trend over the observed period from June 30, 2021, to June 30, 2025. Specifically, the ROE increased from 8.88% in fiscal year 2021 to 13.18% in 2022, reflecting a significant improvement in the company's ability to generate profit relative to shareholders' equity. The upward momentum continued into 2023, with the ROE marginally rising to 13.39%, indicating sustained profitability and effective utilization of equity capital. This positive trajectory accelerates further into 2024, where the ROE reaches 17.36%, suggesting enhanced operational efficiency or improved net profitability. The most recent data for 2025 shows the ROE climbing to 19.46%, solidifying the company’s trend of increasing returns on shareholders’ equity.

This progression signals that Stride Inc. has been progressively enhancing its profitability metrics and capital efficiency over the period. The steady growth in ROE may be attributed to factors such as improved profit margins, efficient asset management, or strategic operational initiatives. Overall, the rising ROE indicates a strengthening of the company's ability to generate profit from shareholders’ investments, which could potentially attract more investor confidence and support a positive outlook for future financial performance.