Perdoceo Education (PRDO) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 25.7% year-over-year to $209.6 million, driven by the St. Augustine/USAHS acquisition and organic growth at CTU and AIUS.

• Net income for Q2 was $41.0 million, with adjusted EPS at $0.67, supported by strong enrollment growth and improved operating performance.

• Total student enrollments increased 17.4% year-over-year, with CTU up 7.4%, AIUS up 7.1%, and USAHS contributing nearly 4,000 students.

• Investments in technology, marketing, and student support enhanced academic outcomes and student experiences.

• Board approved a 15.4% dividend increase to $0.15/share and a new $75 million share repurchase program.

Financial highlights

• Q2 2025 revenue was $209.6 million, up from $166.7 million in Q2 2024; year-to-date revenue reached $422.6 million.

• Operating income for Q2 was $51.4 million, with adjusted operating income at $61.5 million; year-to-date operating income was $103.1 million.

• Net income for Q2 was $41.0 million; year-to-date net income was $84.7 million.

• Cash, cash equivalents, and short-term investments totaled $659.6 million at quarter end.

• Net cash flows from operations year-to-date were $143.9 million.

Outlook and guidance

• Full-year 2025 adjusted operating income outlook raised to $230–$236 million, with adjusted EPS expected between $2.48 and $2.55.

• Q3 2025 adjusted operating income expected at $57–$59 million, with adjusted EPS of $0.60–$0.62.

• Revenue and enrollment growth expected each quarter for the remainder of 2025, with positive momentum into 2026.

• Full-year 2025 effective tax rate projected between 26% and 26.5%; capital expenditures expected at 1.5% of revenue.

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