Aug 6, 2026, 4:01 PM ETConsumer Defensive

Perdoceo Education Corporation — Second Quarter 2026 Earnings Summary

PRDOPERDOCEO EDUCATION CORP

Financial Performance

Total revenue increased 1.8% to $213.4 million for the quarter ended June 30, 2026, compared to $209.6 million in the prior year quarter; year-to-date revenue increased 3.0% to $435.1 million compared to $422.6 million.
Earnings per diluted share increased 21.0% to $0.75 for the quarter (vs. $0.62) and was $1.60 year-to-date (vs. $1.27).
Adjusted earnings per diluted share grew 19.4% to $0.80 for the quarter (vs. $0.67) and 24.1% to $1.70 year-to-date (vs. $1.37).
Operating income increased 6.8% to $54.9 million for the quarter (vs. $51.4 million) and 14.4% to $118.0 million year-to-date (vs. $103.1 million).
Adjusted operating income increased 4.4% to $64.2 million for the quarter (vs. $61.5 million) and 9.3% to $136.7 million year-to-date (vs. $125.1 million).
Net income was $48.0 million for the quarter (vs. $41.0 million) and $101.9 million year-to-date (vs. $84.7 million).
Net cash provided by operating activities was $74.6 million for the quarter (down 5.3% from $78.8 million) and $144.0 million year-to-date (up 0.1% from $143.9 million).
Cash, cash equivalents, restricted cash, and available-for-sale short-term investments totaled $734.8 million as of June 30, 2026, up from $643.5 million as of December 31, 2025.
Deferred revenue increased to $80.4 million as of June 30, 2026, from $37.8 million as of December 31, 2025.

Third quarter 2026 operating income outlook is $54.5 million to $55.5 million (vs. $51.0 million actual in 2025).
Full year 2026 operating income outlook is $221.2 million to $226.2 million (vs. $196.0 million actual in 2025).
Third quarter 2026 adjusted operating income outlook is $64.0 million to $65.0 million (vs. $61.0 million actual in 2025).
Full year 2026 adjusted operating income outlook is $258.0 million to $263.0 million (vs. $237.6 million actual in 2025).
Third quarter 2026 earnings per diluted share outlook is $0.68 to $0.69 (vs. $0.60 actual in 2025).
Full year 2026 earnings per diluted share outlook is $2.91 to $2.97 (vs. $2.42 actual in 2025).
Third quarter 2026 adjusted earnings per diluted share outlook is $0.73 to $0.74 (vs. $0.65 actual in 2025).
Full year 2026 adjusted earnings per diluted share outlook is $3.10 to $3.16 (vs. $2.61 actual in 2025).
Outlook assumptions include consistent student interest and retention, no material impact from federal budget reconciliations or legislative activity, no significant regulatory changes, and no material impact from the elimination of the Grad PLUS loan program.
Outlook assumes an effective income tax rate of approximately 27.5% for Q3 and 23.5% for the full year.

Total student enrollments increased 0.7% to 46,830 as of June 30, 2026, compared to 46,500 in the prior year.
Colorado Technical University (CTU) enrollments increased 0.6% to 32,110; revenue increased 0.9% for the quarter and 2.5% year-to-date.
American InterContinental University System (AIUS) enrollments decreased 1.0% to 10,510; revenue decreased 1.8% for the quarter and 0.7% year-to-date, primarily due to non-Title IV and professional development programs.
University of St. Augustine for Health Sciences (USAHS) enrollments increased 6.0% to 4,210; revenue increased 10.2% for the quarter and 10.0% year-to-date.
USAHS operating income turned positive at $3.6 million for the quarter (vs. a loss of $1.7 million) and $10.0 million year-to-date (vs. a loss of $2.0 million).
CTU operating income decreased 5.1% for the quarter to $44.5 million (vs. $46.8 million), impacted by increased legal fees related to previously disclosed legal matters; excluding these fees, operating income would have increased.

The company operates accredited postsecondary academic institutions offering fully online, campus-based, and hybrid learning programs.
CTU and AIUS utilize intellipath® learning platforms and data analytics to enhance personalized learning.
USAHS focuses on graduate health sciences degrees in physical therapy, occupational therapy, speech language therapy, and nursing.

Potential declines in enrollment or interest in programs and ability to attract prospective students.
Compliance risks regarding Title IV Programs, 90/10 regulations, and other Department of Education standards.
Impact of "borrower defense to repayment" regulations and federal loan discharge efforts.
Risks associated with federal budget reconciliations, legislative activity, and government shutdowns affecting student aid availability.
Increased competition and potential negative publicity regarding for-profit education institutions.
Legal challenges and litigation matters, including settlement impacts with the U.S. Federal Trade Commission.

CEO Todd Nelson described the quarter as delivering "strong operating performance" and building on "sustainable growth" achieved over the past two years.
Management highlighted the breadth of program offerings as enabling the execution of "sustainable and responsible growth."
The company stated its balance sheet remains strong, providing flexibility to invest organically, evaluate incremental investment strategies, and return capital to shareholders.

The Board of Directors declared a quarterly dividend of $0.17 per share, an increase of 13.3% from the prior quarter, payable on September 10, 2026.
Capital allocation strategy prioritizes investments in student enrollment, student support, and technology projects, alongside evaluating acquisitions and stock repurchases under an authorized program.
Capital expenditures decreased 43.8% to $1.5 million for the quarter and 26.8% to $3.3 million year-to-date compared to the prior year.
The company executed stock repurchases, with treasury stock purchases totaling $14.9 million year-to-date.
Cash dividends and dividend equivalents paid totaled $19.7 million year-to-date.
No business acquisitions occurred in the current year-to-date period, compared to $0.9 million in the prior year.