Perdoceo Education (PRDO) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased 4.1% year-over-year to $221.7 million, driven by growth at all academic institutions, especially CTU and USAHS.

• Net income for Q1 2026 was $54 million ($0.85 per diluted share), up 30.8% year-over-year; adjusted EPS rose 28.6% to $0.90.

• Operating income increased 22% to $63.1 million; adjusted operating income grew 14.1% to $72.5 million.

• Total student enrollments reached 48,740, up 1.1% year-over-year, with CTU and USAHS showing growth, while AIUS declined.

• Strategic investments in technology, including AI, enhanced student experiences and operational effectiveness.

Financial highlights

• Revenue: $221.7 million (+4.1% YoY); CTU +4.0%, AIUS +0.4%, USAHS +9.8%.

• Net income: $54.0 million (+23.6% YoY); adjusted EPS: $0.90 vs. $0.70 prior year; GAAP EPS: $0.85 vs. $0.65.

• Operating income: $63.1 million (+22.0% YoY); adjusted operating income: $72.5 million (+14.1% YoY).

• Net cash flows from operations were $69.4 million, up from $65.1 million in the prior-year quarter.

• Cash, equivalents, and short-term investments totaled $680 million at quarter-end.

Outlook and guidance

• Full-year 2026 adjusted operating income expected between $254 million and $263 million, up from $237.6 million in 2025.

• Adjusted EPS projected at $3.05–$3.16, a 19% increase at midpoint over 2025.

• Q2 2026 adjusted operating income expected at $63–$64 million; adjusted EPS $0.79–$0.80, including a $0.05 non-recurring tax benefit.

• Guidance assumes stable student interest, no major regulatory or federal aid disruptions, and effective tax rates of 20% (Q2) and 23% (full year).

• Capital expenditures for 2026 expected at approximately 1.5% of revenue.