Perdoceo agrees to acquire South University
Total student enrollment was 47,260 as of September 30, 2026, up 1.6% compared with September 30, 2025.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Perdoceo Education Corporation (PRDO) reported third-quarter revenue of $215.9 million, up 1.9%, and net income of $44.4 million versus $39.9 million a year earlier. Earnings per diluted share rose 16.7% to $0.70; adjusted earnings per diluted share was $0.77, up 18.5%. Net cash provided by operating activities was $79.7 million versus $41.2 million. Year to date, revenue was $651.0 million and earnings per diluted share was $2.31 versus $1.87.
PRDO’s full-year 2026 outlook, subject to stated assumptions, is earnings per diluted share of $2.93-$2.97 and adjusted earnings per diluted share of $3.15-$3.19. The board declared a quarterly dividend of $0.17 per share, payable December 11, 2026, to holders of record November 27, 2026.
PRDO agreed to acquire 100% of South University’s membership interests from South University – Member, Inc. Consideration includes approximately $130 million-$150 million at closing, $18 million in deferred installments over 24 months following closing, and up to $56 million in earn-out payments tied to EBITDA thresholds for fiscal years 2027, 2028 and 2029. PRDO expects to fund the purchase price and any deferred consideration and earn-outs fully from available cash balances and to complete the acquisition as early as April 2027. It expects the transaction to be immediately accretive to adjusted operating income beginning in 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointYear-to-date diluted EPS increased 23.5% to $2.31.
- Moderate pointThird-quarter operating income increased 8.1% to $55.1 million.
- Moderate pointQuarterly operating cash flow increased 93.4% to $79.7 million.
- Moderate pointUSAHS quarterly revenue increased 9.8% to $41.695 million.
Negative
- Moderate pointCTU quarterly operating income declined 6.1%; increased legal fees were included.
Filing Explained
Perdoceo reports it repurchased 0.6 million shares for
8-K Event Classification
Key Figures
Key Terms
Non-GAAP financial measures financial
EBITDA thresholds financial
Earn-out payments financial
Title IV Programs regulatory
Earnings Snapshot
For 2026, earnings per diluted share outlook is $0.63-$0.67 for the fourth quarter and $2.93-$2.97 for the year; adjusted earnings per diluted share outlook is $0.68-$0.72 for the quarter and $3.15-$3.19 for the year, subject to the company’s stated assumptions.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were PRDO’s third-quarter 2026 results?
What is PRDO’s 2026 earnings outlook?
What are the terms of PRDO’s South University acquisition?
When will PRDO pay its quarterly dividend?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
(Exact Name of Registrant as Specified in Charter)
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(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 5, 2026, Perdoceo Education Corporation (the “Company”) issued a press release describing the Company’s financial results for the quarter and year to date ended September 30, 2026 and providing the Company’s 2026 outlook. A copy of the press release is being furnished as Exhibit 99.1, and the information contained therein is incorporated herein by reference. Following the issuance of the press release, the Company will host a conference call and webcast on which its financial results for the quarter and year to date ended September 30, 2026 and 2026 outlook will be discussed.
The information contained in Item 2.02 of this Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall the information be deemed incorporated by reference into any filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The exhibits required by Item 601 of Regulation S-K are listed in the “Exhibit Index” which is contained in this Current Report on Form 8-K and are incorporated by reference herein.
Exhibit Index
Exhibit Number |
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Description of Exhibits |
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99.1 |
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Press release of the Company dated November 5, 2026 reporting the Company’s financial results for the quarter and year to date ended September 30, 2026.
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PERDOCEO EDUCATION CORPORATION |
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By: |
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/s/ Ashish R. Ghia |
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Ashish R. Ghia |
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Senior Vice President, Chief Financial Officer and Treasurer |
Date: November 5, 2026
PRDO ANNOUNCES 3Q26 RESULTS …PG 1
Exhibit 99.1
PERDOCEO EDUCATION CORPORATION REPORTS THIRD QUARTER AND
YEAR TO DATE 2026 RESULTS
Earnings per diluted share increased 23.5% for the year to date ended September 30, 2026
Schaumburg, IL. (November 5, 2026) – Perdoceo Education Corporation (Nasdaq: PRDO), a provider of postsecondary education programs through its academic institutions, today reported operating and financial results for the third quarter and year to date ended September 30, 2026.
"Third quarter operating performance was ahead of our expectations, as our portfolio of academic institutions experienced strong prospective student interest and student retention trended near historical highs,” said Todd Nelson, President and Chief Executive Officer. “Importantly, we remain committed to investing in student support and technology that we believe will further enhance both student experiences and academic outcomes. Looking ahead, we are on track to complete our acquisition of South University as early as April 2027, and expect to continue generating long-term, sustainable and responsible growth."
Third Quarter 2026 Results as Compared to Prior Year Quarter
Year to Date 2026 Results as Compared to Prior Year to Date
*See GAAP (U.S. generally accepted accounting principles) to non-GAAP reconciliations attached to this press release.
PRDO ANNOUNCES 3Q26 RESULTS …PG 2
TOTAL STUDENT ENROLLMENTS
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As of September 30, |
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Total Student Enrollments |
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2026 |
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2025 |
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% Change |
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CTU (1) |
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31,870 |
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32,030 |
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-0.5 |
% |
AIUS (1) |
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10,830 |
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10,070 |
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7.5 |
% |
USAHS |
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4,560 |
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4,420 |
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3.2 |
% |
Total |
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47,260 |
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46,520 |
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1.6 |
% |
REVENUE
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For the Quarter Ended September 30, |
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For the Year to Date Ended September 30, |
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Revenue ($ in thousands) |
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2026 |
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2025 |
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% Change |
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2026 |
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2025 |
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% Change |
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CTU |
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$ |
117,388 |
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$ |
117,069 |
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0.3 |
% |
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$ |
353,681 |
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$ |
347,622 |
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1.7 |
% |
AIUS |
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56,591 |
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56,667 |
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-0.1 |
% |
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171,579 |
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172,445 |
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-0.5 |
% |
USAHS |
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41,695 |
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37,971 |
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9.8 |
% |
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125,160 |
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113,851 |
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9.9 |
% |
Corporate and Other |
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189 |
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165 |
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NM |
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541 |
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539 |
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NM |
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Total |
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$ |
215,863 |
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$ |
211,872 |
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1.9 |
% |
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$ |
650,961 |
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$ |
634,457 |
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2.6 |
% |
PRDO ANNOUNCES 3Q26 RESULTS …PG 3
OPERATING INCOME
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For the Quarter Ended September 30, |
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For the Year to Date Ended September 30, |
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Operating Income ($ in thousands) |
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2026 |
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2025 |
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% Change |
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2026 |
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2025 |
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% Change |
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CTU |
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$ |
44,867 |
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$ |
47,762 |
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-6.1 |
% |
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$ |
139,889 |
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$ |
141,369 |
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-1.0 |
% |
AIUS |
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11,561 |
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9,257 |
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24.9 |
% |
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36,732 |
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31,973 |
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14.9 |
% |
USAHS |
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4,617 |
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66 |
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NM |
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14,569 |
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(1,958 |
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NM |
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Corporate and Other |
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(5,950 |
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(6,126 |
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NM |
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(18,092 |
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(17,299 |
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NM |
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Total |
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$ |
55,095 |
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$ |
50,959 |
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8.1 |
% |
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$ |
173,098 |
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$ |
154,085 |
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12.3 |
% |
ADJUSTED OPERATING INCOME
The Company believes it is useful to present non-GAAP financial measures, such as adjusted operating income and adjusted earnings per diluted share, which exclude certain cash and non-cash items, as a means to better understand its operating performance. (See the table below and the GAAP to non-GAAP reconciliations attached to this press release for further details.)
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For the Quarter Ended September 30, |
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For the Year to Date Ended September 30, |
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Adjusted Operating Income ($ in thousands) |
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2026 |
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2025 |
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2026 |
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2025 |
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Operating income |
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$ |
55,095 |
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$ |
50,959 |
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$ |
173,098 |
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$ |
154,085 |
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Depreciation and amortization |
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9,405 |
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10,015 |
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28,096 |
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31,970 |
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Legal fees related to M&A activity |
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1,607 |
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12 |
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1,867 |
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257 |
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Adjusted Operating Income |
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$ |
66,107 |
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$ |
60,986 |
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$ |
203,061 |
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$ |
186,312 |
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Increase (Decrease) |
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8.4 |
% |
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9.0 |
% |
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PRDO ANNOUNCES 3Q26 RESULTS …PG 4
NET INCOME, EARNINGS PER DILUTED SHARE AND ADJUSTED EARNINGS PER DILUTED SHARE
For the quarter ended September 30, 2026, the Company recorded:
For the year to date ended September 30, 2026, the Company recorded:
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For the Quarter Ended September 30, |
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For the Year to Date Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Net income ($ in thousands) |
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$ |
44,388 |
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$ |
39,850 |
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$ |
146,310 |
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$ |
124,566 |
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Earnings per diluted share |
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$ |
0.70 |
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$ |
0.60 |
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$ |
2.31 |
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$ |
1.87 |
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Adjusted earnings per diluted share |
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$ |
0.77 |
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$ |
0.65 |
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$ |
2.48 |
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$ |
2.02 |
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% Increase (Decrease) |
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18.5 |
% |
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22.8 |
% |
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BALANCE SHEET AND CASH FLOW
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For the Quarter Ended September 30, |
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For the Year to Date Ended September 30, |
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Selected Cash Flow Items ($ in thousands) |
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2026 |
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2025 |
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% Change |
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2026 |
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2025 |
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% Change |
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Net cash provided by operating activities |
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$ |
79,744 |
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$ |
41,225 |
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93.4 |
% |
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$ |
223,762 |
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$ |
185,130 |
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20.9 |
% |
Capital expenditures |
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$ |
2,162 |
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$ |
1,853 |
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16.7 |
% |
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$ |
5,448 |
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$ |
6,342 |
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-14.1 |
% |
PRDO ANNOUNCES 3Q26 RESULTS …PG 5
CAPITAL ALLOCATION
On November 5, 2026, the board of directors declared a quarterly dividend of $0.17 per share, which will be paid on December 11, 2026 to holders of record of common stock as of November 27, 2026. Any decision to pay future cash dividends will be made by the board of directors and depend on the Company’s available retained earnings, financial condition and other relevant factors. During the quarter ended September 30, 2026, the Company also repurchased 0.6 million shares for $19.9 million, with $65.1 million remaining under its current share repurchase program.
The Company expects both quarterly dividend payments and share repurchases to be an integral and growing part of its balanced capital allocation strategy that also prioritizes investments in student enrollment, student support and technology projects, as well as evaluating acquisition opportunities.
AGREEMENT TO ACQUIRE South University
On September 14, 2026, the Company announced that it has entered into a definitive agreement to acquire 100% of the membership interests of South University Savannah, LLC (“South University” or “South”) from South University – Member, Inc. (the “Seller”). South, together with its subsidiaries, is a leading health sciences-focused institution serving students through eleven (11) campus locations across Georgia, Florida, Alabama, South Carolina, Virginia, Texas and North Carolina, and through South University Online. South is institutionally accredited by The Southern Association of Colleges and Schools Commission on Colleges (“SACSCOC”) through 2034.
To acquire 100% ownership of South, Perdoceo expects to pay cash consideration as follows:
The purchase price and the deferred consideration and earn-out payments, if any, are expected to be funded fully using the Company’s available cash balances.
The Company expects to complete the acquisition as early as April 2027. Once completed, the acquisition will firmly establish Perdoceo’s graduate health sciences offerings and further extend the breadth and depth of its academic program offerings. Perdoceo expects the transaction to be immediately accretive to the Company’s adjusted operating income beginning in 2027 and to provide further growth in adjusted operating income in 2028.
The foregoing description of the Purchase Agreement and the transactions contemplated thereby does not purport to be complete, and is qualified in its entirety by, the full text of the Purchase Agreement, a copy of which was filed as an exhibit to the Company’s Form 8-K, filed on September 14, 2026. Please refer to that Form 8-K for additional information, including, material terms and conditions related to the pending acquisition.
PRDO ANNOUNCES 3Q26 RESULTS …PG 6
OUTLOOK
The Company is providing the following fourth quarter and full year 2026 outlook, subject to the key assumptions identified below. Please see the GAAP to non-GAAP reconciliations for adjusted operating income and adjusted earnings per diluted share attached to this press release for further details.
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Total Company Outlook |
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For the Quarter Ending December 31, |
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For the Year Ending December 31, |
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OUTLOOK |
ACTUAL |
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OUTLOOK |
ACTUAL |
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2026 |
2025 |
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2026 |
2025 |
Operating Income |
$47.9M - $50.9M |
$41.9M |
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$221.0M - $224.0M |
$196.0M |
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Depreciation and amortization |
$8.5M |
$9.7M |
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$36.6M |
$41.6M |
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Legal fees related to M&A activity |
$0.5M |
- |
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$2.4M |
$0.3M |
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Adjusted Operating Income |
$56.9M - $59.9M |
$51.6M |
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$260.0M - $263.0M |
$237.9M |
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Earnings Per Diluted Share |
$0.63 - $0.67 |
$0.54 |
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$2.93 - $2.97 |
$2.42 |
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Amortization of acquired intangible assets |
0.06 |
0.06 |
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0.25 |
0.26 |
Legal fees related to M&A Activity |
0.01 |
- |
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0.04 |
- |
Tax effect of adjustments |
(0.02) |
(0.01) |
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(0.07) |
(0.07) |
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Adjusted Earnings Per Diluted Share |
$0.68 - $0.72 |
$0.59 |
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$3.15 - $3.19 |
$2.61 |
Operating income, which is the most directly comparable GAAP measure to adjusted operating income, and earnings per diluted share, which is the most directly comparable GAAP measure to adjusted earnings per diluted share, may not follow the same trends stated in the outlook above because of future adjustments made for certain significant and non-cash items. The operating income, adjusted operating income, earnings per share and adjusted earnings per share outlook provided above for the fourth quarter and year ending December 31, 2026 are based on the following key assumptions and factors, among others: (i) prospective student interest in our academic institutions' programs and trends in student retention and engagement remain consistent with management’s recent experiences, (ii) no material impact from current or future federal budget reconciliations or other legislative activity on the availability of current levels of federal student aid or the conditions associated with participating in such aid programs, (iii) no significant impact from new or proposed regulations, or from updated interpretations of current regulations, administrative actions by or changes in the structure of federal agencies or other adverse changes in the legal or regulatory environment, including government shutdowns, which may require operational changes in the way the Company’s academic institutions attract, connect with, enroll, support and educate current and prospective students, among other impacts, (iv) any impact on total student enrollments due to elimination of the Grad PLUS loan program will not be material as prospective students are assumed to have access to private lending sources, (v) no significant operating impacts from the settlement with the U.S. Federal Trade Commission or other legal or regulatory matters, (vi) no material disruptions to the availability of the current levels of federal student aid whether due to the restructuring of federal agencies, government shutdowns, staffing related changes or layoffs or changes to congressional funding priorities, (vii) any impact on inquiry volume due to increased use of Artificial Intelligence by prospective students in lieu of traditional Internet search engines will be offset by inquiry growth from other channels, (viii) legal fees relating to current litigation matters and the proposed acquisition remain generally in line with the Company's current expectations, (ix) earnings per diluted share outlook assumes an effective income tax rate of approximately 25.5% for the fourth quarter and approximately 23.3% for the full year, and (x) excludes any future impact from the Company’s stock repurchase program. Although these estimates and assumptions are based upon management’s good faith beliefs regarding current and future circumstances and actions that may be undertaken, actual results could differ materially from these estimates. In addition, decisions the Company makes in the future as it continues to evaluate diverse strategies to enhance stockholder value may impact the outlook provided above.
PRDO ANNOUNCES 3Q26 RESULTS …PG 7
CONFERENCE CALL INFORMATION
Perdoceo Education Corporation will host a conference call on Thursday, November 5, 2026 at 5:00 p.m. Eastern time to discuss the third quarter results and 2026 outlook. Interested parties can access the live webcast of the conference call at www.perdoceoed.com in the Investor Relations section of the website. Participants can also listen to the conference call by dialing 1-833-461-5787 (domestic) or 1-585-542-9983 (international). Both dial-in numbers will use the access code 341148805. Viewers can also access the conference call by following this link https://events.q4inc.com/attendee/341148805. Please log-in or dial-in at least 10 minutes prior to the start time to ensure a connection. An archived version of the webcast will be accessible for 90 days at www.perdoceoed.com in the Investor Relations section of the website.
ABOUT PERDOCEO EDUCATION CORPORATION
Perdoceo’s accredited academic institutions offer a quality postsecondary education to a diverse student population, with fully online, campus-based and hybrid learning programs. The Company’s academic institutions – Colorado Technical University (“CTU”), the American InterContinental University System (“AIUS” or “AIU System”) and University of St. Augustine for Health Sciences ("USAHS") – provide degree programs from the associate through doctoral level as well as non-degree seeking and professional development programs. Our academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. USAHS prepares medical professionals to provide quality medical care to communities across the country primarily through its graduate health sciences degree offerings in physical therapy, occupational therapy, speech language therapy and nursing, as well as continuing education programs. Perdoceo's academic institutions are committed to providing quality education that closes the gap between learners who seek to advance their careers and employers and communities needing a qualified workforce. For more information, please visit www.perdoceoed.com.
Except for the historical and current factual information contained herein, the matters set forth in this release, including statements identified by words such as “believe,” “will,” “expect,” “continue,” “outlook,” “remain,” “focused on,” “should” and similar expressions, are forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on information currently available to us and are subject to various assumptions, risks, uncertainties and other factors that could cause our results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Except as expressly required by the federal securities laws, we undertake no obligation to update or revise such factors or any of the forward-looking statements contained herein to reflect future events, developments or changed circumstances, or for any other reason. These risks and uncertainties, the outcomes of which could materially and adversely affect our financial condition and results of operations, include, but are not limited to, the following: declines in enrollment or interest in our programs or our ability to attract and connect with prospective students; our continued compliance with and eligibility to participate in Title IV Programs under the Higher Education Act of 1965, as amended, and the regulations thereunder (including the new 90/10 regulations, and earnings premium, financial responsibility and administrative capability standards prescribed by the U.S. Department of Education, the "Department"), as well as applicable accreditation standards and state regulatory requirements; the impact of various versions of “borrower defense to repayment” regulations; the final outcome of various legal challenges to the Department's loan discharge and forgiveness efforts; rulemaking or changing interpretations of existing regulations, guidance or historical practices by the Department, or any state or accreditor and increased focus by Congress and governmental agencies on, or increased negative publicity about, for-profit education institutions; the impact of any federal budget reconciliations or other legislative activities on the availability of adequate levels of federal student aid or the conditions associated with participating in such aid programs; the success of our initiatives to improve student experiences, retention and academic outcomes; our continued ability to participate in educational assistance programs for key employers, veterans or other military personnel; our ability to pay dividends on our common stock and execute our stock repurchase program; increased competition; the impact of management changes; our ability to successfully defend litigation and other claims brought against us; our ability to complete the proposed acquisition of South University; and changes in the overall U.S. economy. Further information about these and other relevant risks and uncertainties may be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and its subsequent filings with the Securities and Exchange Commission.
###
PRDO ANNOUNCES 3Q26 RESULTS …PG 8
CONTACT
Investors:
Alpha IR Group
Nick Nelson
(312) 445-2870
PRDO@alpha-ir.com
or
Media:
Perdoceo Education Corporation
(847) 585-2600
media@perdoceoed.com
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
|
|
(unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
CURRENT ASSETS: |
|
|
|
|
|
|
||
Cash and cash equivalents, unrestricted |
|
$ |
188,542 |
|
|
$ |
110,970 |
|
Restricted cash |
|
|
308 |
|
|
|
21,310 |
|
Short-term investments |
|
|
588,010 |
|
|
|
511,211 |
|
Total cash and cash equivalents, restricted cash and short-term investments |
|
|
776,860 |
|
|
|
643,491 |
|
|
|
|
|
|
|
|
||
Student receivables, net |
|
|
31,538 |
|
|
|
27,197 |
|
Receivables, other |
|
|
6,395 |
|
|
|
5,037 |
|
Prepaid expenses |
|
|
16,486 |
|
|
|
16,881 |
|
Inventories |
|
|
2,111 |
|
|
|
4,049 |
|
Other current assets |
|
|
158 |
|
|
|
208 |
|
Total current assets |
|
|
833,548 |
|
|
|
696,863 |
|
|
|
|
|
|
|
|
||
NON-CURRENT ASSETS: |
|
|
|
|
|
|
||
Property and equipment, net |
|
|
76,836 |
|
|
|
83,314 |
|
Right of use assets, net - operating |
|
|
37,946 |
|
|
|
43,290 |
|
Right of use assets, net - finance |
|
|
6,422 |
|
|
|
10,259 |
|
Goodwill |
|
|
265,697 |
|
|
|
265,697 |
|
Intangible assets, net |
|
|
65,419 |
|
|
|
77,945 |
|
Student receivables, net |
|
|
5,409 |
|
|
|
4,811 |
|
Deferred income tax assets, net |
|
|
57,438 |
|
|
|
57,438 |
|
Other assets |
|
|
8,567 |
|
|
|
8,100 |
|
TOTAL ASSETS |
|
$ |
1,357,282 |
|
|
$ |
1,247,717 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
|
|
||
Lease liabilities - operating |
|
$ |
7,987 |
|
|
$ |
6,032 |
|
Lease liabilities - finance |
|
|
5,635 |
|
|
|
5,458 |
|
Accounts payable |
|
|
17,456 |
|
|
|
14,271 |
|
Accrued expenses: |
|
|
|
|
|
|
||
Payroll and related benefits |
|
|
34,419 |
|
|
|
44,363 |
|
Advertising and marketing costs |
|
|
7,690 |
|
|
|
7,838 |
|
Income taxes |
|
|
6,716 |
|
|
|
5,627 |
|
Other |
|
|
22,421 |
|
|
|
16,374 |
|
Deferred revenue |
|
|
81,443 |
|
|
|
37,844 |
|
Total current liabilities |
|
|
183,767 |
|
|
|
137,807 |
|
|
|
|
|
|
|
|
||
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
||
Lease liabilities - operating |
|
|
37,497 |
|
|
|
43,752 |
|
Lease liabilities - finance |
|
|
1,882 |
|
|
|
6,097 |
|
Sale lease-back financing |
|
|
57,274 |
|
|
|
56,992 |
|
Other liabilities |
|
|
30,453 |
|
|
|
30,657 |
|
Total non-current liabilities |
|
|
127,106 |
|
|
|
137,498 |
|
|
|
|
|
|
|
|
||
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
||
Preferred stock |
|
|
- |
|
|
|
- |
|
Common stock |
|
|
929 |
|
|
|
921 |
|
Additional paid-in capital |
|
|
730,706 |
|
|
|
720,574 |
|
Accumulated other comprehensive (loss) income |
|
|
(6,251 |
) |
|
|
1,070 |
|
Retained earnings |
|
|
834,624 |
|
|
|
718,365 |
|
Treasury stock |
|
|
(513,599 |
) |
|
|
(468,518 |
) |
Total stockholders' equity |
|
|
1,046,409 |
|
|
|
972,412 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
1,357,282 |
|
|
$ |
1,247,717 |
|
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts and percentages)
|
|
For the Quarter Ended September 30, |
|
|||||||||||||
|
|
2026 |
|
|
% of |
|
|
2025 |
|
|
% of |
|
||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tuition and fees, net |
|
$ |
214,715 |
|
|
|
99.5 |
% |
|
$ |
210,674 |
|
|
|
99.4 |
% |
Other |
|
|
1,148 |
|
|
|
0.5 |
% |
|
|
1,198 |
|
|
|
0.6 |
% |
Total revenue |
|
|
215,863 |
|
|
|
|
|
|
211,872 |
|
|
|
|
||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Educational services and facilities |
|
|
47,951 |
|
|
|
22.2 |
% |
|
|
49,141 |
|
|
|
23.2 |
% |
General and administrative |
|
|
103,412 |
|
|
|
47.9 |
% |
|
|
101,757 |
|
|
|
48.0 |
% |
Depreciation and amortization |
|
|
9,405 |
|
|
|
4.4 |
% |
|
|
10,015 |
|
|
|
4.7 |
% |
Total operating expenses |
|
|
160,768 |
|
|
|
74.5 |
% |
|
|
160,913 |
|
|
|
75.9 |
% |
Operating income |
|
|
55,095 |
|
|
|
25.5 |
% |
|
|
50,959 |
|
|
|
24.1 |
% |
OTHER INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
7,033 |
|
|
|
3.3 |
% |
|
|
6,652 |
|
|
|
3.1 |
% |
Interest expense |
|
|
(1,474 |
) |
|
|
-0.7 |
% |
|
|
(1,592 |
) |
|
|
-0.8 |
% |
Miscellaneous income |
|
|
172 |
|
|
|
0.1 |
% |
|
|
2 |
|
|
|
0.0 |
% |
Total other income |
|
|
5,731 |
|
|
|
2.7 |
% |
|
|
5,062 |
|
|
|
2.4 |
% |
PRETAX INCOME |
|
|
60,826 |
|
|
|
28.2 |
% |
|
|
56,021 |
|
|
|
26.4 |
% |
Provision for income taxes |
|
|
16,438 |
|
|
|
7.6 |
% |
|
|
16,171 |
|
|
|
7.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME |
|
|
44,388 |
|
|
|
20.6 |
% |
|
|
39,850 |
|
|
|
18.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME PER SHARE - BASIC: |
|
$ |
0.71 |
|
|
|
|
|
$ |
0.62 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME PER SHARE -DILUTED: |
|
$ |
0.70 |
|
|
|
|
|
$ |
0.60 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
WEIGHTED AVERAGE SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
62,325 |
|
|
|
|
|
|
64,647 |
|
|
|
|
||
Diluted |
|
|
63,251 |
|
|
|
|
|
|
66,007 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|||||||||||||||
|
|
For the Quarter Ended September 30, |
|
|
|
|
||||||||||
(In Thousands) |
|
2026 |
|
|
|
|
|
2025 |
|
|
|
|
||||
NET INCOME |
|
$ |
44,388 |
|
|
|
|
|
$ |
39,850 |
|
|
|
|
||
OTHER COMPREHENSIVE (LOSS) INCOME, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized (loss) gain on investments |
|
|
(3,967 |
) |
|
|
|
|
|
508 |
|
|
|
|
||
Total other comprehensive (loss) income |
|
|
(3,967 |
) |
|
|
|
|
|
508 |
|
|
|
|
||
COMPREHENSIVE INCOME |
|
$ |
40,421 |
|
|
|
|
|
$ |
40,358 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts and percentages)
|
|
For the Year to Date Ended September 30, |
|
|||||||||||||
|
|
2026 |
|
|
% of |
|
|
2025 |
|
|
% of |
|
||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tuition and fees, net |
|
$ |
647,463 |
|
|
|
99.5 |
% |
|
$ |
630,897 |
|
|
|
99.4 |
% |
Other |
|
|
3,498 |
|
|
|
0.5 |
% |
|
|
3,560 |
|
|
|
0.6 |
% |
Total revenue |
|
|
650,961 |
|
|
|
|
|
|
634,457 |
|
|
|
|
||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Educational services and facilities |
|
|
145,907 |
|
|
|
22.4 |
% |
|
|
147,924 |
|
|
|
23.3 |
% |
General and administrative |
|
|
303,860 |
|
|
|
46.7 |
% |
|
|
300,478 |
|
|
|
47.4 |
% |
Depreciation and amortization |
|
|
28,096 |
|
|
|
4.3 |
% |
|
|
31,970 |
|
|
|
5.0 |
% |
Total operating expenses |
|
|
477,863 |
|
|
|
73.4 |
% |
|
|
480,372 |
|
|
|
75.7 |
% |
Operating income |
|
|
173,098 |
|
|
|
26.6 |
% |
|
|
154,085 |
|
|
|
24.3 |
% |
OTHER INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
20,288 |
|
|
|
3.1 |
% |
|
|
19,588 |
|
|
|
3.1 |
% |
Interest expense |
|
|
(4,492 |
) |
|
|
-0.7 |
% |
|
|
(4,885 |
) |
|
|
-0.8 |
% |
Miscellaneous income (expense) |
|
|
268 |
|
|
|
0.0 |
% |
|
|
(24 |
) |
|
|
0.0 |
% |
Total other income |
|
|
16,064 |
|
|
|
2.5 |
% |
|
|
14,679 |
|
|
|
2.3 |
% |
PRETAX INCOME |
|
|
189,162 |
|
|
|
29.1 |
% |
|
|
168,764 |
|
|
|
26.6 |
% |
Provision for income taxes |
|
|
42,852 |
|
|
|
6.6 |
% |
|
|
44,198 |
|
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME |
|
|
146,310 |
|
|
|
22.5 |
% |
|
|
124,566 |
|
|
|
19.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME PER SHARE - BASIC: |
|
$ |
2.34 |
|
|
|
|
|
$ |
1.91 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME PER SHARE -DILUTED: |
|
$ |
2.31 |
|
|
|
|
|
$ |
1.87 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
WEIGHTED AVERAGE SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
62,494 |
|
|
|
|
|
|
65,215 |
|
|
|
|
||
Diluted |
|
|
63,446 |
|
|
|
|
|
|
66,510 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|||||||||||||||
|
|
For the Year to Date Ended September 30, |
|
|
|
|
||||||||||
(In Thousands) |
|
2026 |
|
|
|
|
|
2025 |
|
|
|
|
||||
NET INCOME |
|
$ |
146,310 |
|
|
|
|
|
$ |
124,566 |
|
|
|
|
||
OTHER COMPREHENSIVE (LOSS) INCOME, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized (loss) gain on investments |
|
|
(7,321 |
) |
|
|
|
|
|
1,064 |
|
|
|
|
||
Total other comprehensive (loss) income |
|
|
(7,321 |
) |
|
|
|
|
|
1,064 |
|
|
|
|
||
COMPREHENSIVE INCOME |
|
$ |
138,989 |
|
|
|
|
|
$ |
125,630 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
|
For the Year to Date Ended September 30, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
146,310 |
|
|
$ |
124,566 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization expense |
|
|
28,096 |
|
|
|
31,970 |
|
Bad debt expense |
|
|
15,447 |
|
|
|
20,928 |
|
Compensation expense related to share-based awards |
|
|
9,207 |
|
|
|
8,603 |
|
Changes in operating assets and liabilities |
|
|
24,702 |
|
|
|
(937 |
) |
Net cash provided by operating activities |
|
|
223,762 |
|
|
|
185,130 |
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchases of available-for-sale investments |
|
|
(273,583 |
) |
|
|
(303,248 |
) |
Sales of available-for-sale investments |
|
|
190,797 |
|
|
|
278,926 |
|
Purchases of property and equipment |
|
|
(5,448 |
) |
|
|
(6,342 |
) |
Business acquisition |
|
|
- |
|
|
|
854 |
|
Net cash used in investing activities |
|
|
(88,234 |
) |
|
|
(29,810 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Issuance of common stock |
|
|
933 |
|
|
|
1,581 |
|
Purchase of treasury stock |
|
|
(34,831 |
) |
|
|
(66,721 |
) |
Payments of employee tax associated with stock compensation |
|
|
(10,250 |
) |
|
|
(7,544 |
) |
Payments of cash dividends and dividend equivalents |
|
|
(30,256 |
) |
|
|
(27,383 |
) |
Release of cash held in escrow |
|
|
(516 |
) |
|
|
(300 |
) |
Earnout payments for business acquisition |
|
|
- |
|
|
|
(1,757 |
) |
Principal payments for finance lease |
|
|
(4,038 |
) |
|
|
(3,681 |
) |
Principal payments for failed sale leaseback |
|
|
- |
|
|
|
(489 |
) |
Net cash used in financing activities |
|
|
(78,958 |
) |
|
|
(106,294 |
) |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
56,570 |
|
|
|
49,026 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period |
|
|
132,280 |
|
|
|
131,753 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period |
|
$ |
188,850 |
|
|
$ |
180,779 |
|
|
|
|
|
|
|
|
||
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1)
(In thousands, unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the Quarter Ended September 30, |
|
|
For the Year to Date Ended September 30, |
|
||||||||||
|
|
ACTUAL |
|
|
ACTUAL |
|
||||||||||
Adjusted Operating Income |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Operating income |
|
$ |
55,095 |
|
|
$ |
50,959 |
|
|
$ |
173,098 |
|
|
$ |
154,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization (2) |
|
|
9,405 |
|
|
|
10,015 |
|
|
|
28,096 |
|
|
|
31,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Legal fees related to M&A activity |
|
|
1,607 |
|
|
|
12 |
|
|
|
1,867 |
|
|
|
257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted Operating Income |
|
$ |
66,107 |
|
|
$ |
60,986 |
|
|
$ |
203,061 |
|
|
$ |
186,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the Quarter Ending December 31, |
|
|
For the Year Ending December 31, |
|
||||||||||
|
|
OUTLOOK |
|
|
ACTUAL |
|
|
OUTLOOK |
|
|
ACTUAL |
|
||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
$47.9M - $50.9M |
|
|
$ |
41,915 |
|
|
$221.0M - $224.0M |
|
|
$ |
196,000 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization (2) |
|
$8.5M |
|
|
|
9,657 |
|
|
$36.6M |
|
|
|
41,627 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Legal fees related to M&A activity |
|
$0.5M |
|
|
|
54 |
|
|
$2.4M |
|
|
|
311 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted Operating Income |
|
$56.9M - $59.9M |
|
|
$ |
51,626 |
|
|
$260.0M - $263.0M |
|
|
$ |
237,938 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (cont’d)
|
|
|
|
|
|
|
||||||||||
|
|
For the Quarter Ended September 30, |
|
|
For the Year to Date Ended September 30, |
|
||||||||||
|
|
ACTUAL |
|
|
ACTUAL |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Earnings Per Diluted Share |
|
$ |
0.70 |
|
|
$ |
0.60 |
|
|
$ |
2.31 |
|
|
$ |
1.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pre-tax adjustments included in operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization for acquired intangible assets (2) |
|
|
0.07 |
|
|
|
0.06 |
|
|
|
0.20 |
|
|
|
0.19 |
|
Legal fees related to M&A activity |
|
|
0.03 |
|
|
- |
|
|
|
0.03 |
|
|
- |
|
||
Total pre-tax adjustments |
|
$ |
0.10 |
|
|
$ |
0.06 |
|
|
$ |
0.23 |
|
|
$ |
0.19 |
|
Tax effect of adjustments (3) |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
(0.04 |
) |
Total adjustments after tax |
|
|
0.07 |
|
|
|
0.05 |
|
|
|
0.17 |
|
|
|
0.15 |
|
Adjusted Earnings Per Diluted Share |
|
$ |
0.77 |
|
|
$ |
0.65 |
|
|
$ |
2.48 |
|
|
$ |
2.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the Quarter Ending December 31, |
|
|
For the Year Ending December 31, |
|
||||||||||
|
|
OUTLOOK |
|
|
ACTUAL |
|
|
OUTLOOK |
|
|
ACTUAL |
|
||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Earnings Per Diluted Share |
|
$0.63 - $0.67 |
|
|
$ |
0.54 |
|
|
$2.93 - $2.97 |
|
|
$ |
2.42 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pre-tax adjustments included in operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization for acquired intangible assets (2) |
|
0.06 |
|
|
|
0.06 |
|
|
0.25 |
|
|
|
0.26 |
|
||
Legal fees related to M&A activity |
|
0.01 |
|
|
- |
|
|
0.04 |
|
|
- |
|
||||
Total pre-tax adjustments |
|
0.07 |
|
|
$ |
0.06 |
|
|
0.29 |
|
|
$ |
0.26 |
|
||
Tax effect of adjustments (3) |
|
(0.02) |
|
|
(0.01) |
|
|
(0.07) |
|
|
(0.07) |
|
||||
Total adjustments after tax |
|
0.05 |
|
|
|
0.05 |
|
|
0.22 |
|
|
|
0.19 |
|
||
Adjusted Earnings Per Diluted Share |
|
$0.68 - $0.72 |
|
|
$ |
0.59 |
|
|
$3.15 - $3.19 |
|
|
$ |
2.61 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (cont’d)
Adjusted operating income and adjusted earnings per diluted share have limitations as an analytical tool, and should not be considered in isolation, or as a substitute for net income, operating income, earnings per diluted share, or any other performance measure derived in accordance with and reported under GAAP or as an alternative to cash flow from operating activities or as a measure of liquidity.
Non-GAAP financial measures, when viewed in a reconciliation to corresponding GAAP financial measures, provide an additional way of viewing the Company’s results of operations and the factors and trends affecting the Company’s business. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding financial results presented in accordance with GAAP.