This report does not constitute a rating action. For its first quarter of fiscal 2025 (ended March 31), Teaching Strategies' revenue growth was near 1%. The American Rescue Plan Act (ARPA) funded sales in the first quarter of 2024, which led to a tough comparison in the first quarter of 2025. Normalizing for the effects of ARPA funding (which expired in 2024), year-over-year revenue growth in the first quarter of 2025 would have been closer to 7%. Additionally, bookings were adversely affected by market disruptions such as layoffs and office closures at the HHS and Department of Education following the onset of the Trump Administration, leading some Head Start programs and public school districts to delay spending amid the uncertainty.
