Stride vs. Grand Canyon Education: Which Education Stock to Buy Now?

Sraddha Singha November 28, 2025

LOPE LRN

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Key Takeaways

Stride's career-learning momentum offers long-term potential, but platform glitches cloud near-term growth.
LOPE's diversified programs and ABSN platform provide durable revenue visibility despite rising costs.
Valuation favors LRN's discounted entry point, while EPS trends and ROE lean toward LOPE's growth profile.

The market shift toward a hybrid and cloud-based learning system focusing on adult learning programs besides K-12 offerings is boding well for United States education-services companies, like Stride, Inc. (LRN - Free Report) and Grand Canyon Education, Inc. (LOPE - Free Report) .

Stride is currently focusing on boosting its career learning program offerings through an AI adaptive platform, wherever necessary, alongside fixing its technical glitches to boost long-term enrollment growth and revenue visibility. On the other hand, Grand Canyon Education is banking on its diversified program offerings and the hybrid ABSN platform for incremental leverage, while battling operational pressures and market-driven constraints.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for Stride Stock

This Virginia-based education company is benefiting from offering a hybrid education model that combines online and blended solutions, merging digital flexibility with in-person engagement. As the market is shifting from traditional school choices to more virtual and career-oriented options, the diversified offerings by Stride fit perfectly into the puzzle. In the first quarter of fiscal 2026, its Career Learning segment’s revenues grew 16.3% year over year to $257.8 million, with enrollments growing 20%. This segment’s revenues outpaced the revenue growth for the General Education segment, which was 10.2% year over year in the fiscal first quarter.

Moreover, LRN’s focus on hybrid innovation also benefits from state-level funding flexibility, enabling partnerships with school districts that seek scalable, cost-effective solutions. The K12 Tutoring collaboration with the Lake Forest School District in Delaware to offer innovative, tailored educational solutions to students can be considered in this regard.

Apart from offering diversified programs, LRN’s investments in affordable learning offerings are encouraging. Stride is working on sculpting programs that meet the current market demand trends, as well as being affordable at the same time. At the start of fiscal 2026, the company rolled out free ELA tutoring for every second and third grader in its serving community. This program enables a child to work on reading, writing and communication skills.

However, Stride’s fiscal 2026 start was unsatisfactory due to the technical glitches witnessed after the rollout of two technology platforms, including a front-end learning platform and a back-office platform. At the start of August 2025, it started to witness withdrawals due to poor platform performance, such as login issues, leading to low conversion rates. The new upgrade did not go as planned, leading to approximately 10,000-15,000 fewer enrollments, which could have been achieved otherwise. This scenario is expected to pull back near-term prospects for Stride.

The Case for Grand Canyon Education Stock

This Arizona-based for-profit education services company is gaining from a strong programmatic diversification approach. With healthcare representing nearly 30% of its total enrollments, Grand Canyon Education is currently invested in expanding across education, business, counseling, social work, engineering and technology, including cybersecurity. By catering to the labor demand across these fields, the company’s diversified portfolio offers it a competitive edge in the market, along with uninterrupted revenue visibility and sustained growth.

Besides, LOPE’s hybrid ABSN platform is another positive aspect to be noted. The ABSN platform is an efficient system for funneling advanced-standing students into nursing through affordable and flexible eight-week courses, with more than 19,400 students already enrolled.

The company’s strategic marketing adjustments, like shifting more spend toward social media outreach, expanding reach among younger students at a lower cost than traditional high-school-based recruiting, are boding well as well. Coupled with robust employer partnerships, innovative delivery models and a proven track record of workforce-aligned education, Grand Canyon Education continues to demonstrate durable, multi-pillar growth supported by long-term structural demand.

Despite a strong business portfolio, LOPE is facing headwinds in the form of high costs and a decline in revenue per student in certain segments. A rise in benefit and technology service costs due to heavy investments in digital infrastructure and partner initiatives is pressuring the bottom line. Headwinds reflect a mix of cost inflation, revenue mix shifts, regulatory uncertainty and broader demographic pressures that create challenges even as LOPE’s core growth drivers remain intact.

Stock Performance & Valuation

As witnessed from the chart below, in the past six months, Grand Canyon Education’s share price performance stands well above Stride’s, even though both stocks reflect a declining trend.