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Stride Stock Falls 13% as Board Replaces CEO James Rhyu
Shares of Stride Inc. (NYSE:LRN) plummeted nearly 13% in Thursday trading following the unexpected announcement that its board of directors has replaced Chief Executive Officer James Rhyu. Board member Robert Knowling has been appointed as the new CEO, effective immediately.
Leadership Overhaul
The company stated that James Rhyu ceased his roles as CEO and board chair on Tuesday, ending a more than 13-year tenure with the company, including the last five years as its chief executive. In his place, the board appointed Robert Knowling, an independent director for over eight years with extensive executive experience in the technology and education sectors.
Concurrent with the change, lead independent director Steven Fink was named the new chair of the board. "As we look to the future with a focus on accelerating the execution of our roadmap and driving long-term growth, the Board determined that now is the right time to transition leadership," Fink said in a statement. Stride also appointed Brian Shepherd, former CEO of CSG Systems International, to its board.
Financials and Market Impact
AdThe market's negative reaction, a 12.8% drop in share price, came despite Stride releasing strong preliminary financial results for its 2026 fiscal year. The juxtaposition suggests investor concern over the abruptness of the leadership transition.
Stride provided the following preliminary results for the fiscal year ended June 30, 2026:
- Total Revenue: Expected to be $2,518.1 million, up from $2,405.3 million in the prior year.
- Income from Operations: Forecast at $450.8 million, an increase from $360.1 million.
- Net Income: Projected to reach $338.2 million, compared to $287.9 million in fiscal 2025.
- Adjusted EBITDA: Expected to be $617.6 million, up from $571.0 million.
Stride will release its full fourth-quarter and fiscal year 2026 results on August 4, 2026.
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