Stride Inc (LRN)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	474,047	299,403	269,744	240,187	204,183	184,773	170,548	154,417	126,867	111,585	99,042	90,341	107,130	89,535	70,405	52,902	71,451	65,844	50,809	46,902
Total stockholders’ equity	US$ in thousands	1,479,620	1,417,370	1,318,100	1,214,350	1,176,020	1,103,210	1,032,680	958,493	947,296	899,361	841,899	786,823	812,581	780,570	734,233	719,906	804,648	786,779	752,429	719,021
ROE		32.04%	21.12%	20.46%	19.78%	17.36%	16.75%	16.52%	16.11%	13.39%	12.41%	11.76%	11.48%	13.18%	11.47%	9.59%	7.35%	8.88%	8.37%	6.75%	6.52%

June 30, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $474,047K ÷ $1,479,620K
= 32.04%

The analysis of Stride Inc.'s return on equity (ROE) from September 2020 through June 2025 reveals a consistent upward trend over the period. Initially, the ROE was modest, recording at 6.52% as of September 30, 2020, and gradually increasing through the subsequent quarters. By December 2020, it reached 6.75%, and continued to improve, hitting 8.37% in March 2021 and 8.88% by June 2021.

Throughout 2021, the ROE exhibited steady growth, with notable increases in late 2021; it rose to 9.59% at year-end and further accelerated to 11.47% in the first quarter of 2022. This positive momentum persisted into 2022, with ROE reaching 13.18% by June, then stabilizing around 11.48% in September and 11.76% in December.

The trend of increasing ROE continued into 2023, with the figure climbing to 12.41% in the first quarter, 13.39% in June, and reaching 16.11% by September. Later in the same year, the ROE slightly edged upward to 16.52% in December and then to 16.75% in March 2024.

The upward trajectory persisted into 2024, with the ROE climbing to 17.36% in June and to 19.78% in September. By the end of 2024, it stood at 20.46%, and further increased to 21.12% in the first quarter of 2025. The most notable growth occurred in the second quarter of 2025, where the ROE surged to 32.04%.

This sustained increase in ROE over the period indicates improvements in the company's efficiency in generating profits from shareholders' equity. The pronounced escalation toward the latter part of the observed timeline suggests strong operational performance, potentially driven by strategic initiatives, revenue growth, margin improvements, or efficiency gains. The trend reflects positively on Stride Inc.'s ability to enhance shareholder value over time.