Strategic Education Inc. (NASDAQ:STRA) reported a 1% year-over-year decline in revenue for the first quarter of 2026, primarily due to a slight decrease in consolidated enrollment. Despite this, the company achieved a 3% growth in operating income, driven by a 2% reduction in adjusted operating expenses, resulting in a slight margin expansion to 14.3%. The Education Technology Services (ETS) division experienced significant growth, with a 21% increase in revenue, reaching $42 million. This growth was fueled by the success of Sofia Learning subscriptions and new Workforce Edge partnerships, which now account for 46% of the company's consolidated operating income. In the U.S. higher education sector, employer-affiliated enrollment rose by 10%, while overall revenue declined by 4% due to decreases in unaffiliated enrollment and increased discounts. In Australia and New Zealand, total enrollment fell by 3% due to regulatory constraints, resulting in a $2.4 million operating loss. Management remains optimistic about achieving EBIT and EPS targets for the year, citing expected improvements in enrollment trends and productivity enhancements.