Perdoceo Education (PRDO) Q1 2026 earnings summary

Executive summary

• First quarter 2026 operating performance exceeded expectations, with revenue up 4.1% to $221.7 million, net income rising to $54.0 million, and strong student retention and enrollment growth at CTU and USAHS, offsetting declines at AIUS.

• Operating income increased 22% to $63.1 million, and adjusted operating income rose 14.1% to $72.5 million, reflecting disciplined expense management and investments in technology and marketing.

• Academic institutions focused on supporting adult learners and healthcare workforce development through flexible online and hybrid programs.

• Strategic investments in technology and AI enhanced student experiences and operational effectiveness.

• Total student enrollments reached 48,740, up 1.1% year-over-year.

Financial highlights

• Net income for Q1 2026 was $54.0 million, or $0.85 per diluted share, up 23.6% year-over-year; adjusted EPS rose to $0.90 from $0.70.

• Revenue was $221.7 million (+4.1% YoY); CTU +4.0%, AIUS +0.4%, USAHS +9.8%.

• Operating income was $63.1 million (+22.0% YoY); adjusted operating income $72.5 million.

• Net cash flows from operations were $69.4 million, up from $65.1 million in the prior year.

• Cash, equivalents, and short-term investments totaled $680.0 million at quarter end.

Outlook and guidance

• Full-year 2026 adjusted operating income expected between $254 million and $263 million, with adjusted EPS projected at $3.05–$3.16, a 19% increase at midpoint over 2025.

• Q2 2026 adjusted operating income expected at $63–$64 million, with adjusted EPS of $0.79–$0.80, including a $0.05 non-recurring tax benefit.

• Effective tax rate for 2026 projected between 22.5% and 23.5%.

• Capital expenditures for 2026 expected to be about 1.5% of revenue.

• Guidance assumes stable student interest and no major regulatory or federal aid disruptions.