Perdoceo Education Corporation reported fourth‑quarter and full‑year 2025 results that exceeded many analysts’ expectations. Revenue rose 20.0% to $211.6 million in Q4 and 24.2% to $846.1 million for the year, compared with $176.4 million and $681.3 million in the same periods a year earlier. Operating income climbed 20.8% to $41.9 million in the quarter and 25.8% to $196.0 million for the year, while adjusted operating income reached $51.6 million and $237.6 million, respectively. Net income was $35.3 million in Q4 and $159.9 million for the year, translating to diluted earnings per share of $0.54 and $2.42.
The revenue growth was driven by enrollment expansion across the company’s three core institutions. Colorado Technical University, American InterContinental University System, and the newly acquired University of St. Augustine for Health Sciences each reported higher student headcounts, with CTU and AIUS reporting enrollment increases of 8.1% and 11.8% in Q4 2024, respectively. The acquisition of USAHS in December 2024 added a high‑margin health‑science portfolio that contributed significantly to the year‑over‑year revenue lift.
Margin performance remained robust despite a 39.6% year‑over‑year rise in cost of sales. Gross profit grew 49.9% to $104.5 million, outpacing the cost increase and supporting the 20.8% rise in operating income. The company’s ability to maintain operating margins above 20% reflects disciplined cost control and a favorable mix shift toward higher‑margin programs.
Management guided for 2026 with a projected adjusted EPS range of $2.78 to $2.93, up from the prior guidance of $2.70 to $2.90. Adjusted operating income for the full year is expected to fall between $250 million and $263 million, a modest increase from the $237.6 million reported for 2025. President and CEO Todd Nelson highlighted “strong educational achievements and robust financial performance” and noted that the company’s share‑repurchase program had been expanded to $100 million, underscoring confidence in capital allocation.
The company also cautioned that future growth will depend on stable student demand and the absence of major regulatory disruptions. Risks cited include potential changes to federal student aid programs and the elimination of the Grad Plus loan program. Insider selling by senior executives was noted, and market reaction was tempered by the mixed comparison of results to analyst estimates, with revenue beating some consensus figures but missing others, and EPS matching the $0.54 estimate used in the report.
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