Strategic Education Inc reported second-quarter revenue of $330 million, up approximately 3% year-over-year, with adjusted earnings per share rising 16% to $1.76. Operating income increased 9% to $53 million, or 35% excluding a $13 million one-time charge related to an Australian labor matter. The Education Technology Services division saw revenue grow 15% to $42 million, driven by a 32% increase in Sophia Learning subscribers, while US Higher Education operating income jumped 56% to $32 million on a 2% revenue gain. Australia and New Zealand revenue declined nearly 3% to $67 million, and operating income was just $1 million after the charge. Management expressed confidence in achieving 200 basis points of EBIT margin expansion for the year, even including the one-time charge.
Strategic Education IncQ2 revenue and adjusted EPS rose, with operating income up 9% and management confident in margin expansion.