Perdoceo Education Corporation

First-quarter revenue increased 4.1% to $221.7 million from $213 million. Net income was $54 million, or $0.85 per diluted share, versus $43.7 million, or $0.65 per diluted share, a 30.8% increase in EPS. Adjusted EPS was $0.90 versus $0.70, and operating income rose 22% to $63.1 million while adjusted operating income increased 14.1% to $72.5 million. Total student enrollments increased 1.1% year over year; CTU enrollment grew 1.9% to 34,050, AIUS declined 2.2%, and St. Augustine increased 3.1%. For 2026, management expects adjusted operating income of $254 million to $263 million and adjusted EPS of $3.05 to $3.16. For Q2 2026, adjusted operating income is expected to be $63 million to $64 million and adjusted EPS $0.79 to $0.80. Management also expects full-year revenue to increase versus 2025, with St. Augustine expected to deliver revenue growth each quarter and double-digit adjusted operating income growth for the year.

Todd Nelson emphasized that the quarter came in ahead of expectations and reflected the company’s ‘balanced approach’ of driving growth while reinvesting in student onboarding, enrollment, academic support, and technology. He highlighted near-multi-year-high retention, growth at CTU and St. Augustine, and continued AI-related pilots and classroom use as part of efforts to improve student outcomes and operating effectiveness. His tone was constructive and focused on sustainable, responsible long-term growth.

Ashish Ghia said the quarter benefited from organic revenue growth across all institutions and operating efficiencies that were partly reinvested in student-related processes. He cited $69.4 million of operating cash flow, $680 million in cash and investments at quarter-end, and $18 million of capital returned to shareholders through dividends and buybacks, plus $1.7 million of capex in the quarter. He guided 2026 effective tax rate to 22.5% to 23.5%, cash taxes to 23% to 24% of pretax income, and full-year capex to about 1.5% of revenue, while noting $91.9 million remains authorized under the share repurchase program.

There was no external analyst Q&A in the transcript, so management’s main back-and-forth was the prepared commentary on guidance and risks. Ashish addressed regulation and funding concerns directly, saying changes to the regulatory or legislative environment, including the elimination of Grad PLUS and graduate loan limits, would not materially affect prospective student interest or enrollments. He also noted Q2 and full-year enrollment comparisons will be affected by academic-calendar timing, especially at AIU System, and that CTU will face tougher year-over-year compares after strong prior-year quarters and a record number of expected 2026 graduates.