Adam Buckstein's Stride Thesis $LRN

Adam Buckstein from ASB partners explores Stride Inc. (formerly K12), the largest provider of virtual public schools in the U.S. Adam dives deep into the company's business model, regulatory framework, and competitive position, as well as the company's unique funding structure, post-COVID enrollment growth, market misconceptions, and the complex compliance challenges it faces. The conversation also dives into Stride’s outcomes, criticisms, AI’s future role in education, and the stock’s dramatic drop following an LMS implementation misstep. _____________________________________________________________[00:00:00] Podcast and guest introduction[00:03:30] Stride’s virtual school structure[00:05:34] Funding model vs. for-profit colleges[00:07:16] Why parents choose virtual schools[00:09:19] Learning coach growth post-COVID[00:10:16] Payment structure for Stride[00:12:22] Outcome debates and challenges[00:17:38] Competitive landscape with Pearson[00:21:07] Stickiness of Stride contracts[00:23:22] Curriculum costs and customization[00:25:10] Economic sensitivity discussion[00:28:43] Student acquisition and marketing[00:32:44] October enrollment drop explained[00:35:42] LMS transition and enrollment loss[00:38:22] New Mexico lawsuit context[00:43:26] Outcome data interpretation issues[00:45:27] AI impact on Stride’s model[00:47:17] Financials and cash flow strength[00:51:10] Market overreaction to issues[00:54:09] Risks if outcomes lag in-person[00:56:33] Teachers union and school choiceLinks:Yet Another Value Blog - https://www.yetanothervalueblog.com See our legal disclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimerProduction and editing by The Podcast Consultant - https://thepodcastconsultant.com/