Phoenix Education Partners (PXED) Q4 2025 earnings summary

Executive summary

• Achieved strong financial and operational results in fiscal 2025, with net revenue up 6% to $1.01 billion and net income rising to $135.4 million year-over-year.

• Completed IPO in October 2025, with 4.9 million shares sold at $32.00 per share; all shares sold by existing shareholders, no proceeds to the company.

• Focused on serving working adults, with 75% of students employed and over 50% first-generation college attendees.

• Continued investment in technology, AI, and data-driven student support to drive efficiency and student outcomes.

• Average Total Degreed Enrollment increased to 79,300 in Q4 2025 and 81,900 for the fiscal year.

Financial highlights

• Q4 net revenue grew 7.2% year-over-year to $257 million, with fiscal year revenue reaching $1,007.2 million, up from $950.0 million.

• Adjusted EBITDA for Q4 rose 36% to $56.6 million; full-year adjusted EBITDA up 6.5% to $243.9 million.

• Adjusted EBITDA margin for fiscal year 2025 was 24.2%, nearly flat year-over-year.

• Net income for Q4 was $17.6 million, up from $10 million; full-year net income reached $135.4 million, up from $115.1 million.

• Cash and equivalents at year-end were $195 million, down from $383 million, mainly due to $251 million in distributions.

Outlook and guidance

• Fiscal 2026 revenue expected between $1.025 billion and $1.035 billion; adjusted EBITDA guidance of $244–$249 million.

• Quarterly dividends of $0.84 per share to begin in Q2 2026, subject to board approval.

• Expect mid-single-digit revenue growth in out years, with normalization of revenue per student as student mix improves.