BMO Capital said earlier today that the Texas Roscoe School district chose not to renew Stride's contract for operating grades K-8 at Lone Star Online Academy for the upcoming school year. The stock in afternoon trading is down 13%, or $13.01, to $84.70. Though data is limited, Lone Star Online Academy is one of Stride's largest schools, representing roughly 5% of its 2025 enrollment, the analyst tells investors in a research note. BMO reminds investors that Stride was able to enroll roughly three-quarters of students last year after losing the Gallup McKinley contract. However, this one may be more difficult given Lone Star Online Academy's size and as Stride's other Texas virtual schools do not offer grades K-2, contends BMO. The firm keeps a Market Perform rating on the shares.
