Phoenix Education Partners (PXED) Q3 2026 earnings summary

Executive summary

• Net revenue for Q3 2026 was $271.8 million, nearly flat year-over-year; nine-month revenue rose 0.9% to $756.3 million, driven by improved student retention and modest enrollment growth, especially through employer relationships, which rose to 36% of total enrollment.

• Net income for Q3 2026 was $39.2 million ($1.01 diluted EPS), down 27.3% from $53.8 million ($1.42 diluted EPS) in Q3 2025, primarily due to higher share-based compensation, advertising, and restructuring expenses related to the IPO.

• Adjusted EBITDA for Q3 2026 was $78.1 million (28.7% margin), down 6.4% year-over-year; adjusted diluted EPS was $1.43.

• Strategic focus remains on working adult learners, AI integration, and employer-informed curriculum, with initiatives like the Built for Real Life campaign and a new collaboration with OpenAI to accelerate AI skill development.

• Recognized by Wabash as a platinum supplier for workforce development collaboration and appointed new leadership roles.

Financial highlights

• Q3 2026 net revenue: $271.8 million; nine-month 2026 net revenue: $756.3 million.

• Q3 2026 net income: $39.2 million; nine-month 2026 net income: $65.4 million.

• Adjusted EBITDA for Q3 2026: $78.1 million (28.7% margin); nine-month adjusted EBITDA: $188.1 million (24.9% margin).

• Cash and equivalents plus marketable securities as of May 31, 2026: $269.4 million, up from $194.8 million as of August 31, 2025; no outstanding debt.

• Operating cash flow for the nine months was $116.7 million, supporting dividends and share repurchases.

Outlook and guidance

• Fiscal 2026 net revenue expected between $1,020 million and $1,025 million.

• Adjusted EBITDA guidance raised to $246 million–$250 million, reflecting cost discipline and operational initiatives.

• Quarterly dividend of $0.21/share announced and planned to continue; $50 million stock repurchase program underway, with $4 million executed in Q3 2026.

• Management believes current liquidity and cash flow are sufficient for foreseeable needs.