Strategic Education Reports Q3 2026 Results Amid Australian Regulatory Headwinds
Strategic Education (STRA) reported third-quarter revenue of $325.1 million, a 1.6% year-over-year increase driven by growth in its Education Technology Services (ETS) segment and higher per-student revenue in U.S. Higher Education. Despite these gains, the company faced significant challenges in its Australia/New Zealand segment due to severe Australian government restrictions on international student visas, which led to a 9.1% decline in ANZ enrollment. The regulatory environment necessitated a $134.1 million non-cash impairment charge for the Australia/New Zealand segment. Management warned that full-year 2026 results are unlikely to meet previous outlooks and projected flat consolidated revenue for 2027. While U.S. Higher Education saw record student retention of 89.2% and growth in healthcare enrollment, these successes were offset by the deteriorating international landscape.
Topics: education technology EPS beat impairment charge regulatory impact revenue growth