Averting Proxy Wars: 10 Companies Opting for Activist Investor Settlements

8. Stride, Inc. (NYSE:LRN)

Activist Investor: Fivespan Partners

Number of Hedge Fund Holders: 38

Stride, Inc. (NYSE:LRN) reached a cooperation agreement with Fivespan Partners following an activist campaign that threatened to escalate into a proxy contest at the company’s December 2026 annual meeting.

The activist hedge fund had sought board representation through director nominations and had also submitted a shareholder proposal and a books-and-records inspection demand. The campaign followed a significant deterioration in Stride, Inc.’s share price after operational challenges disrupted its growth trajectory.

A technology-platform rollout in 2025 contributed to higher student withdrawals and weaker enrollment growth. As a result, the stock has come under pressure, losing more than 50% of its market value from its 2025 highs. What’s next for the new Stride CEO?

Fivespan’s campaign also focused on capital allocation and corporate governance. Stride, Inc. had accumulated about $1.03 billion in cash and marketable securities as of June 30, 2026, making its capital structure and excess-cash deployment important issues for shareholders. The cooperation agreement requires the company to establish a Capital Allocation Committee to review its capital structure and allocation priorities. LRN shares returned around 15% so far in 2026.