Perdoceo Education (PRDO) Q3 2025 earnings summary

Executive summary

• Q3 2025 operating performance exceeded expectations, with net income of $39.9 million and adjusted EPS of $0.65, up from $0.59 year-over-year, driven by the USAHS acquisition and CTU growth.

• Total student enrollments grew 15.1% year-over-year, primarily due to the USAHS acquisition and CTU growth.

• Continued investments in student technology, support processes, and AI-driven admissions strategies to enhance academic outcomes and student experiences.

• Returned $94.1 million to shareholders year-to-date through share repurchases and dividends.

Financial highlights

• Q3 2025 revenue rose 24.8% year-over-year to $211.9 million, with $38 million attributed to St. Augustine/USAHS and CTU enrollment growth.

• Operating income increased 13.8% to $51 million; adjusted operating income rose 27.4% to $61 million.

• Net cash flows from operations year-to-date were $185.1 million, up from $144 million in the prior year.

• Ended Q3 with $668.6 million in cash, equivalents, and short-term investments.

• Q3 net income was $39.9 million (up from $38.3 million); Q3 EPS was $0.60 (up from $0.57); adjusted EPS was $0.65 (up from $0.59).

Outlook and guidance

• Full-year 2025 adjusted operating income outlook raised to $234–$236 million, up from $188.9 million in 2024.

• Adjusted EPS expected between $2.54 and $2.56, versus $2.26 in 2024.

• Q4 adjusted operating income expected at $47.9–$49.9 million, with adjusted EPS of $0.53–$0.55.

• Revenue and total student enrollments expected to increase in Q4 and for the full year, with positive momentum into 2026.

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