Perdoceo Education (PRDO) Q1 2025 earnings summary

Executive summary

• Revenue increased 26.6% year-over-year to $213.0 million, driven by the St. Augustine (USAHS) acquisition and CTU enrollment growth.

• Net income for Q1 2025 was $43.7 million ($0.65 per diluted share), up from $39.4 million ($0.59 per share) year-over-year; adjusted EPS was $0.70.

• Total student enrollments grew 16.7% year-over-year, with CTU up 10.6%, AIUS down 4.5%, and USAHS contributing 4,200 students.

• The USAHS acquisition, completed in December 2024, contributed $39.2 million in revenue for the quarter.

• Strategic investments in marketing, admissions, and technology supported enrollment growth and operational efficiency.

Financial highlights

• Adjusted operating income rose 28.9% to $63.5 million; adjusted EPS was $0.70, up from $0.60.

• Net cash from operations was $65.1 million, up from $54.5 million in the prior year.

• Cash, cash equivalents, and short-term investments totaled $612.2 million at quarter-end.

• Capital expenditures were $1.7 million (0.8% of revenue); full-year capex expected at 1–2% of revenue.

• Tuition and fees accounted for 99.5% of revenue; other revenue was 0.5%.

Outlook and guidance

• Full-year 2025 adjusted operating income expected between $220 million and $235 million; adjusted EPS guidance is $2.40–$2.56.

• Q2 2025 adjusted operating income expected at $59–$61 million; adjusted EPS at $0.64–$0.66.

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

• Anticipates continued organic revenue and enrollment growth for each remaining quarter in 2025.

• Effective tax rate for 2025 projected between 25.5% and 26.5%.