Stride Stock Tumbles 40% in Past Year — But This Hedge Fund Just Bet $58 Million on It
Voss Capital disclosed a sizable bet on Stride(NYSE:LRN) in a May 15, 2026 SEC filing, revealing it purchased 711,726 shares during the first quarter. Based on the average closing price over the period, the transaction is valued at approximately $57.73 million.
The filing shows the hedge fund’s total position in Stride increased by $65.97 million, a figure that reflects both the new shares and price fluctuations. The move comes as Stride’s stock has lost roughly 40% of its value over the past year, creating what some value-oriented managers see as a compelling entry point.
Stride, based in Herndon, Virginia, runs a technology-driven education platform that serves K-12 students and adult learners seeking career credentials. Its proprietary curriculum, assessment tools, and virtual schooling infrastructure have made it a key player in the increasingly crowded edtech space. But the stock’s slide — driven largely by softer adult-segment revenue and broader market rotation out of growth names — has tested investor patience.
Voss Capital, however, appears to be looking past the price action. In its latest quarterly report, Stride posted a 12.3% revenue gain in its Career Learning division for the fiscal third quarter, with middle and high school Career Learning revenue jumping nearly 16%. That growth helped offset weakness in the adult segment, where demand for upskilling products slowed. Enrollment in career-oriented programs rose 11.6%, reinforcing management’s thesis that families and students increasingly favor education tied directly to workforce outcomes.
Overall revenue edged up 2.7% to $629.9 million during the quarter, while adjusted EBITDA climbed to $171.3 million. For the first nine months of fiscal 2026, revenue rose 7.4% to $1.88 billion, and adjusted EBITDA increased 13.4% to $467.8 million. The company also tightened its full-year guidance and ended March with $856 million in cash, cash equivalents, and marketable securities — a cushion that provides flexibility for further investment in curriculum, software, and school partnerships.
Although quarterly earnings slipped slightly year over year, the broader trajectory remains positive. Stride is spending heavily to expand its career-focused programming and digital infrastructure, yet it continues to generate meaningful profitability. If that trend holds, the current share price could eventually reflect the underlying business momentum.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cellebrite, Euronet Worldwide, and Stride. The Motley Fool has a disclosure policy.
This article was originally published by The Motley Fool.