Strategic Education, Inc.STRA
Strategic Education, Inc. Segments Disclosure
Segment and Geographic Information
Strategic Education is an educational services company that provides access to high-quality education through campus-based and online post-secondary education offerings, as well as through programs to develop job-ready skills for high-demand markets. Strategic Education’s portfolio of companies is dedicated to closing the skills gap by placing adults on the most direct path between learning and employment. The Company’s organizational structure includes three operating and reportable segments: U.S. Higher Education, Education Technology Services, and Australia/New Zealand.
The USHE segment provides flexible and affordable certificate and degree programs to working adults primarily through Capella University and Strayer University, including the Jack Welch Management Institute MBA, which is an offering of Strayer University. USHE also operates non-degree web and mobile application development courses through Hackbright Academy and Devmountain, which are offerings of Strayer University.
The Education Technology Services segment primarily develops and maintains relationships with employers to build employee education benefits programs that provide employees access to affordable and industry-relevant training, certificate, and degree programs. The employer relationships developed by the Education Technology Services segment are an important source of student enrollment for Capella University and Strayer University, and a significant portion of the revenue attributed to the Education Technology Services segment is driven by the volume of enrollment derived from these employer relationships. Education Technology Services also supports employer partners through Workforce Edge, a platform which provides employers a full-service education benefits administration solution, and Sophia Learning, which offers low-cost online general education-level courses recommended by the American Council on Education for credit at other colleges and universities.
The ANZ segment is comprised of Torrens University, Think Education, and Media Design School at Strayer (“MDS”) in Australia and New Zealand, which collectively offer certificate and degree programs in business, design, education, hospitality, healthcare, and technology through campuses in Australia, New Zealand, and online. On September 8, 2025, MDS became a wholly owned subsidiary and international additional location of Strayer University and is included within Strayer University’s Middle States Commission on Higher Education accreditation. The New Zealand Qualification Authority approved the transaction and MDS continues to operate as a New Zealand private training establishment. MDS continues to be part of the ANZ reportable segment.
The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer.
Revenue and operating expenses are generally directly attributable to the segments. Inter-segment revenues are not presented separately, as these amounts are immaterial. The Company’s CODM does not evaluate operating segments using asset information. The Company’s CODM assesses the segments’ performance by using each segment’s income from operations, which includes certain enterprise shared services allocations attributable to each of the segments. The Company’s CODM uses income from operations for each segment in the annual budget and forecasting process. On a monthly basis, the CODM reviews budget-to-actual, latest forecast-to-actual, and year-over-year actual variances when reviewing segment performance and making decisions about the allocation of resources to each segment.
A summary of financial information by reportable segment for the year ended December 31, 2023 is presented in the following table (in thousands):
| U.S. Higher Education | Australia/New Zealand | Education Technology Services | Total | ||||||||||||||||||||
| Revenues | $ | 818,953 | $ | 233,518 | $ | 80,453 | $ | 1,132,924 | |||||||||||||||
| Segment expenses | |||||||||||||||||||||||
| Direct segment expenses | 703,035 | 178,922 | 47,283 | 929,240 | |||||||||||||||||||
| Enterprise shared services allocation | 56,290 | 18,734 | 4,082 | 79,106 | |||||||||||||||||||
| Segment income from operations | $ | 59,628 | $ | 35,862 | $ | 29,088 | $ | 124,578 | |||||||||||||||
| Unallocated expenses | |||||||||||||||||||||||
| Amortization of intangible assets | (11,457) | ||||||||||||||||||||||
| Merger and integration costs | (1,544) | ||||||||||||||||||||||
| Restructuring costs | (16,256) | ||||||||||||||||||||||
| Consolidated income from operations | $ | 95,321 | |||||||||||||||||||||
| Other income | 5,405 | ||||||||||||||||||||||
| Consolidated income before income taxes | $ | 100,726 | |||||||||||||||||||||
A summary of financial information by reportable segment for the year ended December 31, 2024 is presented in the following table (in thousands):
| U.S. Higher Education | Australia/New Zealand | Education Technology Services | Total | ||||||||||||||||||||
| Revenues | $ | 857,890 | $ | 257,119 | $ | 104,921 | $ | 1,219,930 | |||||||||||||||
| Segment expenses | |||||||||||||||||||||||
| Direct segment expenses | 719,214 | 200,776 | 57,910 | 977,900 | |||||||||||||||||||
| Enterprise shared services allocation | 61,511 | 18,949 | 4,294 | 84,754 | |||||||||||||||||||
| Segment income from operations | $ | 77,165 | $ | 37,394 | $ | 42,717 | $ | 157,276 | |||||||||||||||
| Unallocated expenses | |||||||||||||||||||||||
| Restructuring costs | (1,648) | ||||||||||||||||||||||
| Consolidated income from operations | $ | 155,628 | |||||||||||||||||||||
| Other income | 5,804 | ||||||||||||||||||||||
| Consolidated income before income taxes | $ | 161,432 | |||||||||||||||||||||
A summary of financial information by reportable segment for the year ended December 31, 2025 is presented in the following table (in thousands):
| U.S. Higher Education | Australia/New Zealand | Education Technology Services | Total | ||||||||||||||||||||
| Revenues | $ | 868,239 | $ | 251,584 | $ | 148,397 | $ | 1,268,220 | |||||||||||||||
| Segment expenses | |||||||||||||||||||||||
| Direct segment expenses | 707,373 | 194,212 | 81,148 | 982,733 | |||||||||||||||||||
| Enterprise shared services allocation | 58,994 | 21,918 | 8,435 | 89,347 | |||||||||||||||||||
| Segment income from operations | $ | 101,872 | $ | 35,454 | $ | 58,814 | $ | 196,140 | |||||||||||||||
| Unallocated expenses | |||||||||||||||||||||||
| Restructuring costs | (21,909) | ||||||||||||||||||||||
| Consolidated income from operations | $ | 174,231 | |||||||||||||||||||||
| Other income | 3,162 | ||||||||||||||||||||||
| Consolidated income before income taxes | $ | 177,393 | |||||||||||||||||||||
The following table presents a schedule of significant non-cash items included in segment income from operations by reportable segment for the years ended December 31, 2023, 2024, and 2025 (in thousands):
| 2023 | 2024 | 2025 | |||||||||||||||
| Depreciation and amortization | |||||||||||||||||
| U.S. Higher Education | $ | 33,655 | $ | 31,663 | $ | 30,730 | |||||||||||
| Australia/New Zealand | 8,954 | 9,065 | 9,628 | ||||||||||||||
| Education Technology Services | 2,526 | 3,468 | 5,169 | ||||||||||||||
| Amortization of intangible assets | 11,457 | — | — | ||||||||||||||
| Merger and integration costs | 336 | — | — | ||||||||||||||
| Restructuring costs | 385 | 182 | 2,883 | ||||||||||||||
| Consolidated depreciation and amortization | $ | 57,313 | $ | 44,378 | $ | 48,410 | |||||||||||
| Stock-based compensation | |||||||||||||||||
| U.S. Higher Education | $ | 17,653 | $ | 19,337 | $ | 18,395 | |||||||||||
| Australia/New Zealand | (117) | 3,951 | 1,581 | ||||||||||||||
| Education Technology Services | 1,729 | 1,940 | 2,749 | ||||||||||||||
| Restructuring costs | 507 | 343 | 229 | ||||||||||||||
| Consolidated stock-based compensation | $ | 19,772 | $ | 25,571 | $ | 22,954 | |||||||||||
Geographic Information
The Company’s revenues by geographic area, which are primarily generated by students enrolled at institutions in those areas, for the years ended December 31, 2023, 2024, and 2025 were as follows (in thousands):
| 2023 | 2024 | 2025 | |||||||||||||||
| United States | $ | 899,406 | $ | 962,811 | $ | 1,016,636 | |||||||||||
| Australia/New Zealand | 233,518 | 257,119 | 251,584 | ||||||||||||||
The Company’s long-lived assets are comprised of Property and equipment, net and Right-of-use lease assets. The Company’s long-lived assets by geographic area as of December 31, 2024 and 2025 were as follows (in thousands):
| December 31, 2024 | December 31, 2025 | ||||||||||
| United States | $ | 108,418 | $ | 100,774 | |||||||
| Australia/New Zealand | 106,502 | 97,739 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.