Phoenix Education Partners (PXED) Registration Filing summary

Company overview and business model

• Operates as a leading online higher education provider focused on working adults, offering degree and non-degree programs primarily through the University of Phoenix.

• Serves over 1.1 million alumni, with nearly 1.3 million degrees conferred since inception.

• Programs are designed for career relevance, flexibility, and affordability, leveraging AI-driven technology platforms.

• B2B employer relationships are a significant growth area, representing 30% of enrollment in FY2024.

• Offers 72 degree and 33 certificate programs, with a student body primarily composed of working adults, many of whom are first-generation college students and caregivers.

Financial performance and metrics

• FY2024 net revenue: $950 million; net income: $115 million; Adjusted EBITDA: $229 million (24.1% margin).

• Nine months ended May 31, 2025: net revenue $750 million, net income $118 million, Adjusted EBITDA $187 million.

• Average Total Degreed Enrollment increased from 78,900 in FY2024 to 82,700 in the first nine months of FY2025.

• Strong cash position with $267 million in cash and marketable securities as of May 31, 2025.

• No outstanding debt as of May 31, 2025; $100 million revolving credit facility committed.

Use of proceeds and capital allocation

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

• Plans to pay a quarterly cash dividend of $0.84 per share per annum (2.6% yield at $32/share), subject to board discretion.

• Ongoing investments in technology, marketing, and student support; $500 million invested in technology over the past five years.