Phoenix Education Partners (PXED) Q1 2026 earnings summary

Executive summary

• First quarter fiscal 2026 net revenue reached $262.0 million, up 2.9% year-over-year, driven by a 4.1% increase in average total degreed enrollment to 85,600, with strong retention and new student growth among working adult learners.

• Adjusted EBITDA rose 7.2% to $75.2 million, with margin improving to 28.7% from 27.5% year-over-year.

• Net income attributable to the company was $15.5 million ($0.40 diluted EPS), down from $46.4 million ($1.23 diluted EPS) due to non-cash share-based compensation and IPO-related expenses.

• Adjusted net income increased 5.3% to $53.6 million, with adjusted diluted EPS rising to $1.38 from $1.35.

• Completed IPO on October 10, 2025, with 4.9 million shares sold at $32.00 per share; no proceeds received by the company as shares were sold by existing shareholders.

Financial highlights

• Net revenue increased by $7.3 million to $262.0 million, mainly from enrollment growth.

• Adjusted EBITDA margin improved to 28.7% from 27.5% year-over-year.

• Net income margin declined to 5.9% from 18.2% year-over-year due to IPO and share-based compensation expenses.

• Cash and marketable securities totaled $218.1 million at quarter-end, up from $194.8 million at the prior fiscal year-end.

• Operating cash flow for the quarter was $31.1 million.

Outlook and guidance

• Fiscal 2026 net revenue guidance reiterated at $1,025–$1,035 million; adjusted EBITDA guidance at $244–$249 million.

• First quarter performance supports confidence in achieving full-year outlook.

• Management expects continued enrollment and retention improvements, supported by investments in student support and employer relationships.