Phoenix Education Partners (PXED) Registration Filing summary

Company overview and business model

• Operates as a leading online higher education provider focused on working adults, primarily through the University of Phoenix, with a mission to deliver personalized, career-relevant, and affordable education.

• Offers 72 degree programs and 33 non-degree certificates, with 97% of net revenue from degree programs; 70% of enrollment is undergraduate, 16% master's, 11% associate's, and 3% doctoral.

• B2B employer relationships are a key growth area, representing 30% of enrollment in FY2024, up from 20% in FY2022.

• Technology and AI investments drive student retention, satisfaction, and operational efficiency, with $500 million invested over five years.

Financial performance and metrics

• FY2024 net revenue: $950 million (up 13.7% YoY); net income: $115 million (up 74.6% YoY); Adjusted EBITDA: $229 million (up 45.5% YoY).

• Net income margin increased to 12.1% in FY2024 from 7.9% in FY2023; Adjusted EBITDA margin rose to 24.1% from 18.9%.

• Average Total Degreed Enrollment grew to 78,900 in FY2024 (up 11.1% YoY) and 82,700 for the first nine months of FY2025.

• Cash and cash equivalents as of May 31, 2025: $203.5 million; no outstanding debt.

Use of proceeds and capital allocation

• All IPO proceeds will go to selling stockholders; the company will not receive any proceeds.

• Entered into a $100 million revolving credit facility for liquidity and operational flexibility.

• Distributed $149 million to limited partners and $15 million to noncontrolling interests in the first nine months of FY2025.