Strategic Education Plans $50 Million in 2027 Growth Spending, Sees Revenue Roughly Flat

Strategic Education plans about $50 million in growth spending for 2027 while forecasting roughly flat revenue, as continuing Australian restrictions are expected to offset growth in its Education Technology Services business.

The company expects productivity savings to cover nearly half the planned investment cost. Those savings are forecast to limit operating expense growth to 2%, while the investments are expected to pressure segment margins.

Strategic Education also expects net positive new-student enrollment growth in 2027. In the United States, it expects declines among unaffiliated students to moderate, with that group potentially reaching breakeven or returning to growth by year-end.

Management described third-quarter strength across Education Technology Services, its employer strategy and its U.S. health care portfolio. The company’s 2027 revenue outlook accounts for continued Australian restrictions offsetting expected growth in Education Technology Services.