Perdoceo Education (PRDO) investor relations material

Executive summary

• Revenue grew 24.2% year-over-year to $846.1 million in 2025, with Q4 revenue up 20% to $211.6 million compared to the prior year quarter.

• Operating income rose 12.5% to $196.0 million, and adjusted operating income increased 25.8% to $237.6 million.

• Net income for 2025 was $159.9 million ($2.42 per diluted share), up from $147.6 million ($2.19 per share) in 2024; adjusted EPS was $2.61.

• Total student enrollments increased 7.3% year-over-year to 44,400 as of December 31, 2025, with record retention and targeted investments in marketing and admissions.

• Strategic focus on student experience, academic outcomes, and workforce-aligned programs across all institutions.

Financial highlights

• Q4 net income was $35.3 million ($0.54 per share), with adjusted EPS for Q4 at $0.59.

• Net cash from operations was $225.2 million, up from $161.6 million in 2024.

• Year-end cash and equivalents totaled $643.5 million, up $51.9 million year-over-year.

• Gross margin for 2025 was 23.2%, with operating margin at 23.2%.

• Bad debt expense decreased to 3.5% of revenue, down $4.2 million year-over-year.

Outlook and guidance

• 2026 adjusted operating income expected between $250–$263 million, up from $237.6 million in 2025.

• Adjusted EPS for 2026 projected at $2.97–$3.12, a 16% increase at the midpoint.

• Q1 2026 adjusted operating income expected at $68–$70 million, with adjusted EPS of $0.83–$0.85.

• Revenue and enrollment growth anticipated across all institutions, with continued investment in technology and student support.

• Assumptions include stable student interest, no major regulatory changes, and continued access to federal student aid.