On Feb. 13, 2026, Divisadero Street Capital Management, LP disclosed in an SEC filing that it sold out its entire position in Stride (LRN +0.15%) in the fourth quarter.
What happened
According to a Feb. 13, 2026, SEC filing, Divisadero Street Capital Management, LP sold 375,000 shares of Stride during the fourth quarter of 2025. The firm held a position valued at $55.9 million in the previous quarter based on the closing market price. This position represented approximately 2.4% of the firm’s reported assets, but the recent 13F revealed no position in Stride as of Dec. 31, 2025.
NYSE: LRN
Key Data Points
What else to know
- The fund sold out of its Stride stake.
- Top five holdings post-filing:
- NYSE: SGHC: $140.3 million (6.4% of AUM)
- NASDAQ: INDV: $99.9 million (4.5% of AUM)
- NYSE: AS: $93.0 million (4.2% of AUM)
- NYSE: CVNA: $92.0 million (4.2% of AUM)
- NYSE: SN: $86.0 million (3.9% of AUM)
- As of Feb. 13, 2026, Stride shares were priced at $84.89, down 39.1% over the past year.
- Stride’s one-year return trailed the S&P 500 by 50.8 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-02-13) | $84.89 |
| Market capitalization | $3.6 billion |
| Revenue (TTM) | $2.5 billion |
| Net income (TTM) | $318 million |
Company snapshot
- Stride, Inc. delivers technology-based education services, including online curriculum, software systems, and educational support for K-12 and adult learners, with additional offerings in career learning and professional development.
- The company generates revenue primarily through contracts with public and private schools, districts, and charter boards, as well as through its direct-to-consumer channels and career training and talent development services for employers.
- Key customers include public and private educational institutions, school districts, charter boards, individual learners, employers, and government agencies, with a focus on the U.S. K-12 and adult education markets.
Stride, Inc. operates at scale within the education and training services industry, leveraging proprietary technology and a broad curriculum portfolio to serve diverse learning needs. The company’s strategic focus on both K-12 and adult career education enables it to address evolving market demands and regulatory environments. Its integrated approach and established customer relationships provide a competitive edge in delivering flexible, technology-driven learning solutions.
What this transaction means for investors
Divisadero added to some of its top holdings in the quarter while reducing others, including completely exiting its Stride position. This is after the fund initiated a new position in the stock in the third quarter.
Stride reported just 7.5% year-over-year revenue growth in the fourth quarter, a noticeable decline from prior quarters. The company experienced a platform issue that disrupted the customer experience. The issue appears resolved, but the news caused significant volatility in the stock.
Despite management reporting that demand remains robust, the platform upgrade failure may have shaken the confidence of some investors in the company’s execution. Regardless, the company reaffirmed its full-year revenue guidance of $2.480 billion to $2.555 billion, up slightly from $2.4 billion in the previous fiscal year.
