The investable universe is still thin and volatile, but demand tailwinds are real. After the pandemic spike, sector breadth actually narrowed; Education-only ETFs were wound down in 2023, a tell that dedicated public exposure remained shallow and liquidity patchy.
Structurally, education is still under-digitized: <4% of global education spend goes to tech, yet digital outlays were forecast to reach roughly $404B by 2025, implying a long runway for software and platforms that actually drive learning outcomes or lower unit costs. Large addressable markets aren’t the issue: the broader education and training economy is tracking toward ~$10T by 2030, with workforce learning one of the fastest-growing segments.
Near-term fundamentals hinge on two levers. First, enterprise learning budgets: corporate training was ~$360B in 2023 with mid-single-digit CAGRs projected into the 2030s, supportive for at-scale learning platforms and assessment vendors tied to compliance, upskilling, and AI-adjacent productivity. Second, U.S. higher-ed policy: proposed changes around online-program managers (revenue-share, “bundled services”) were delayed into 2025 and prior TPS guidance was rescinded, leaving a live but reduced overhang for public names with exposure to tuition-share models.
Outlook: expect dispersion. AI is moving from buzz to workflow, with embedded generation, adaptive practice, and grading copilots supporting engagement and margin mix; but category concentration, policy risk, and scarce pure-plays mean factor volatility will remain elevated versus broad software.
Sources: HolonIQ, Research and Markets
Methodology
For our list, we scoured through the Edtech industry and picked pure-play (preferably) EdTech, and EdTech adjacent stocks with the highest number of hedge funds holding stake in them, as of Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Nerdy, Inc. (NYSE:NRDY)
Number of Hedge Fund Holders: 6
Nerdy, Inc. (NRDY) is one of the best EdTech stocks to buy now. On November 7, Cantor Fitzgerald’s Yi Fu Lee maintained a Neutral stance but took the price target down to $1.00 from $1.50. That follows his August adjustment from $1.75 to $1.50. The sequence frames a cautious but watchful sell-side posture following Q3.
Nerdy reported Q3 results on November 6 that leaned defensive but operationally cleaner: revenue came in at about $37 million, roughly flat year over year, while adjusted EBITDA improved to a $10.2 million loss, better than guidance for a $11–13 million loss, as marketing and variable staffing were trimmed without derailing product work. The company also narrowed GAAP and non-GAAP net losses versus a year ago, signaling tighter cost control heading into Q4.
Nerdy, Inc. (NRDY) operates a purpose-built, proprietary live-online learning platform led by its flagship, Varsity Tutors. It connects learners with experts for one-on-one and small-group sessions, large/cohort classes, and on-demand support, and serves both consumers and school districts through Varsity Tutors for Schools.
9. Pearson plc (NYSE:PSO)
Number of Hedge Fund Holders: 13
Pearson plc (NYSE:PSO) is one of the best EdTech Stocks to buy now.
On October 23, 2025, Pearson’s virtual-school network Connections Academy announced a partnership with the Center for Energy Workforce Development (CEWD) to steer students toward careers in the fast-growing U.S. energy sector. The collaboration plugs CEWD’s Energy Industry Fundamentals 2.0 curriculum, about 120 hours of online instruction with labs and interactive exercises, directly into Connections Academy’s college-and-career readiness track, with an industry-recognized credential available upon completion.
Pearson frames the move as career-connected learning: pairing coursework with mentorship and exposure to energy roles across fossil, nuclear, and renewables at a time when AI, data-center expansion, rising energy consumption, and onshoring are driving strong labor demand. Executives from both sides pitched the tie-up as a way to close the “awareness gap” and build a future-ready pipeline of technicians, trades, and engineering talent. The program complements Connections Academy’s “tri-credit” model launched in 2023, which can award high-school credit, micro-credentials, and eligibility for college credit through partner institutions.
Pearson plc (NYSE:PSO) is a global learning company spanning digital courseware, assessments, qualifications, and virtual schooling. Through Connections Academy, it serves U.S. K-12 students online, and more broadly operates across nearly 200 countries with roughly 18,000 employees focused on linking education to employability and lifelong learning.
8. Docebo Inc. (NASDAQ:DCBO)
Number of Hedge Fund Holders: 14
Docebo Inc. (NASDAQ:DCBO) is one of the best EdTech Stocks to buy now.
On November 7, 2025, Needham’s Ryan MacDonald reiterated Buy on Docebo and trimmed his price target to $38 from $42. The call landed the same day Docebo reported Q3 and briefed investors on a business mix that’s shifting away from a single OEM toward broader enterprise and public-sector demand.
Management said its largest OEM now accounts for a smaller share of ARR than a year ago and that growth excluding this OEM is running faster, pointing to a healthier underlying engine.
The company also emphasized momentum with systems-integrator partners and new government wins, including an expansion at the U.S. Department of Energy and, through Deloitte, the U.S. Air Force Cyber Academy: evidence of a deeper foothold in federal and SLED channels. Together, these updates framed Q3 as a quarter of mix improvement and institutional traction alongside steady top-line progress.
Docebo Inc. (NASDAQ:DCBO) is an enterprise learning-platform provider whose AI-enabled LMS and adjacent modules help organizations design, deliver, and measure training at scale across commercial and public-sector customers.
7. Chegg, Inc. (NYSE:CHGG)
Number of Hedge Fund Holders: 21
Chegg, Inc. (NYSE:CHGG) is one of the best EdTech Stocks to buy now.
On October 27, 2025, Chegg said its board concluded a year-long strategic review and decided the company will remain a standalone public company. The review, run with Goldman Sachs, considered alternatives including a sale and a go-private deal; directors unanimously determined independence offers the best path to maximize long-term shareholder value. As part of the move, Executive Chairman Dan Rosensweig returned to the roles of president and CEO, while Nathan Schultz became an executive advisor to the CEO and board.
Chegg also announced a restructuring aimed at strengthening cash flow and reorienting toward the $40+ billion skilling market. Management said reduced Google traffic and AI’s impact on publishers have pressured its academic business, so Chegg will deliver services with a lower cost structure and reinvest in higher-growth areas such as language learning and workplace readiness. The plan includes reducing 388 roles (about 45% of the workforce), targeting a $100–$110 million reduction in 2026 non-GAAP expenses, and incurring $15–$19 million in mostly cash severance charges. Chegg reiterated Q3 2025 revenue and adjusted EBITDA guidance and said “Skills” businesses are expected to generate roughly $70 million of 2025 revenue with double-digit growth in 2026. Additional details are slated for the November 10, 2025 earnings call.
Chegg, Inc. (NYSE:CHGG), based in Santa Clara, California, operates a learning platform centered on Chegg Study and increasingly AI-powered support, alongside Busuu and professional upskilling offerings.
6. Udemy, Inc. (NASDAQ:UDMY)
Number of Hedge Fund Holders: 23
Udemy, Inc. (NASDAQ:UDMY) is one of the best EdTech stocks to buy now.
On October 30, 2025, KeyBanc’s Jason Celino maintained an Overweight on Udemy and lowered the price target to $9 from $11, noting in his Q3 recap that an accelerated shift toward subscriptions informed the adjustment.
On October 29, 2025, Udemy reported third-quarter results that modestly topped expectations: revenue came in at about $195.7 million, with management emphasizing the ongoing transition to recurring subscription revenue across the platform. Commentary around the print and subsequent coverage focused on the subscription mix and its implications for near-term growth versus longer-term durability, which aligns with KeyBanc’s framing of the quarter.
Udemy said the quarter reflected continued traction in its subscription businesses following the strategy update earlier this year, and it directed investors to its earnings materials and webcast for additional detail. Third-party recaps similarly highlighted the subscription transition alongside the revenue beat and operating improvements discussed with investors.
Udemy, Inc. (NASDAQ:UDMY), based in San Francisco, operates a global learning marketplace and an enterprise offering, Udemy Business, delivering curated course libraries and hands-on learning tools to organizations worldwide.
5. Perdoceo Education Corporation (NASDAQ:PRDO)
Number of Hedge Fund Holders: 28
Perdoceo Education Corporation (NASDAQ:PRDO) is one of the best EdTech Stocks to buy now.
On November 5, 2025, Barrington Research’s Alexander Paris reiterated Outperform on Perdoceo with a $42 price target following the company’s release of Q3 results. Perdoceo Education Corporation (NASDAQ:PRDO) reported Q3 results on November 4.
Revenue rose 24.8% to $211.9 million, with EPS $0.60 GAAP / $0.65 adjusted, and operating income $51.0 million. Management said results ran ahead of expectations because prospective student interest remained strong and retention and engagement stayed high, supported by continued investments in academics, student technology, and support processes.
Mix also shifted: Perdoceo’s December 2024 acquisition of University of St. Augustine for Health Sciences (USAHS) contributed $38.0 million of Q3 revenue and 4,420 enrollments not present a year ago, while CTU grew modestly and AIU System was roughly flat. Total enrollments reached 46,520 (up 15.1%), and the company ended the quarter with $668.6 million in cash and investments after returning $30.3 million via buybacks and dividends.
Perdoceo Education Corporation (NASDAQ:PRDO) provides postsecondary programs through Colorado Technical University, American InterContinental University System, and USAHS, serving career-focused learners across online and hybrid formats.
4. Coursera, Inc. (NYSE:COUR)
Number of Hedge Fund Holders: 30
Coursera, Inc. (NYSE:COUR) is one of the best EdTech stocks to buy now.
On October 24, 2025, Wall Street started weighing in on Coursera following its Q3 print. Needham’s Ryan MacDonald reiterated a Buy with a $14 price target, staying constructive after the quarter and framing Coursera’s performance and reinvestment as supportive of the bull case.
Coursera reported Q3 2025 results on October 23. Coursera’s Q3 worked because the consumer engine accelerated and cash conversion improved. Revenue rose 10% to $194.2M, driven by 13% growth in Consumer to $130.3M as learners chased job-market skills and new AI-native features increased engagement. Consumer gross margin expanded about 180 bps, while Enterprise grew 6% but mixed slightly softer on margin. Operating discipline showed up in cash: operating cash flow hit $33.9M and free cash flow was $26.6M.
Adjusted EBITDA rose 17% to $15.6M with an 8.0% margin. Management raised full-year revenue guidance to $750–$754M, crediting durable Consumer momentum, product integrations such as the ChatGPT app ecosystem, and an Anthropic content partnership that deepens the catalog.
Coursera, Inc. (NYSE:COUR) operates a global online learning platform spanning Consumer, Enterprise (Udemy Business-style peer: Coursera for Business), and Degree segments, partnering with universities and industry to deliver courses, certificates, and degrees worldwide. The company is based in Mountain View, California.
3. Grand Canyon Education, Inc. (NASDAQ:LOPE)
Number of Hedge Fund Holders: 36
Grand Canyon Education, Inc. (NASDAQ:LOPE) is one of the best EdTech stocks to buy now.
On November 5, 2025, Grand Canyon Education reported Q3 results that showed the core engine – partner enrollments and off-campus nursing sites – still grinding higher even as one-time items weighed on GAAP profit. Service revenue rose on the back of 7.9% partner-enrollment growth, led by Grand Canyon University online and faster expansion at accelerated BSN classroom-and-lab sites, where economics are richer for GCE under its partner agreements.
Management also flagged contract tweaks with certain universities that lower GCE’s revenue share but remove reimbursements for some faculty costs, pressuring revenue per student while improving underlying efficiency. A litigation-related reserve hit operating income this quarter, but on an adjusted basis margins improved year over year, showing resilient demand for the company’s scaled services platform across 20 university partners. The company issued Q4 2025 guidance, including service revenue of $305–$310 million and diluted EPS of $3.07–$3.18.
Grand Canyon Education, Inc. (NASDAQ:LOPE) is based in Phoenix. It’s a technology-enabled education services provider. It supplies enrollment marketing, learning-management technology, student-support operations, and clinical-site build-outs to universities, most notably Grand Canyon University, helping partners grow online and ground programs at scale.
2. Stride, Inc. (NYSE:LRN)
Number of Hedge Fund Holders: 41
Stride, Inc. (NYSE:LRN) is one of the best EdTech stocks to buy now
On November 3, 2025, Stride authorized a new stock repurchase program of up to $500 million, effective through October 31, 2026. The company said the plan gives it flexibility to buy shares in the open market or via private transactions, with timing and size driven by price and market conditions.
Management emphasized confidence in long-term demand for online learning and in the company’s cash generation and balance sheet, framing the authorization as a way to repurchase stock at attractive prices while still funding growth investments. The board can suspend or discontinue the program at any time, and Stride has no obligation to purchase a set amount.
Stride, Inc. (NYSE:LRN), based in Reston, Virginia, is a technology-enabled education company that serves learners from K-12 through adult career training. It provides virtual and hybrid public-school programs, career learning and skills training, and professional development, reaching students in all 50 states and more than 100 countries.
1. Duolingo, Inc. (NASDAQ:DUOL)
Number of Hedge Fund Holders: 55
Duolingo, Inc. (NASDAQ:DUOL) is one of the best EdTech stocks to buy now.
On November 6, 2025, Goldman Sachs’ Eric Sheridan kept Duolingo at Neutral and cut the target to $250 from $425. His note framed the post-print debate: user growth cooled versus Q2, even as subscription monetization stayed strong (helped by Max and Family Plan), gross margin hovered near 72%, and newer subjects like Chess are scaling fast.
A day earlier, on November 5, Duolingo posted Q3 2025 revenue of $271.7 million, up 41% year over year, with daily actives above 50 million, up 36%. Management credited steady product upgrades and AI-assisted features for higher engagement and better conversion into paid tiers, while choosing to pace monetization to protect the app experience.
The outlook was raised, but Q4 guidance leaned conservative versus the momentum in the quarter, which cooled the stock and set up Goldman’s Neutral stance the next day.
Duolingo, Inc. (NASDAQ:DUOL) is headquartered in Pittsburgh. The company operates a freemium learning platform best known for languages and now branching into music and chess, layering paid tiers over an ad-supported base with increasingly AI-driven personalization.
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