Strategic Education, Inc. (STRA), operating primarily through Capella University and Strayer University, reported positive net income and maintained strong liquidity in Q2 2026 despite persistent regulatory risks linked to federal student aid funding. The company’s business model hinges on federal Title IV funding, which requires strict compliance with regulations such as the 90/10 Rule and gainful employment mandates. Multi-jurisdictional operations across the U.S., Australia, and New Zealand introduce further complexity in regulatory adherence and operational risk. Growth levers focus on expanding online education programs and managing enrollment quality. Key risks remain tied to potential loss of federal aid eligibility, state authorization challenges, and borrower defense claims.