Phoenix Education Partners (PXED) Q4 2026 earnings summary

Executive summary

• FY2026 revenue rose 1.0% to $1,017.0M and average total degreed enrollment increased 2.2% to 83,700; adjusted EBITDA grew 2.1% to $249.0M.

• FY2026 net income was $88.9M versus $133.9M, with IPO-related share-based compensation and higher advertising expense contributing to the decline.

• FY2027 is viewed as a transition year amid AI-search pressure; strategic investments and employer-channel initiatives are intended to support a return to growth in FY2028.

Financial highlights

• Q4 net revenue was $260.7M, up 1.3%; net income was $23.5M versus $17.5M, and adjusted EBITDA rose 8.6% to $61.5M.

• Q4 adjusted net income increased 5.0% to $41.6M; adjusted diluted EPS was $1.07 versus $1.03.

• FY2026 diluted EPS was $2.29 versus $3.51; adjusted net income was $173.1M, essentially unchanged, and adjusted diluted EPS was $4.47 versus $4.50.

• FY2026 operating income was $122.7M versus $172.1M; adjusted EBITDA was $249.0M versus $243.9M.

Outlook and guidance

• FY2027 revenue guidance is $970M–$1,000M and adjusted EBITDA guidance is $225M–$240M; assumptions include search conditions consistent with Q4 and no meaningful recovery.

• Guidance includes Fuel50 following its September 30, 2026 acquisition; it is expected to contribute $10M of revenue over 11 months, with no material adjusted EBITDA contribution.

• Guidance includes ~ $35M of cost savings, mostly workforce-related, to offset lower revenue and expanded strategic investment; Q1 is expected to have the toughest YoY adjusted EBITDA comparison.

• Retention, progression, new-student pricing and growth initiatives are expected to offset some search pressure; pricing contribution is not material in FY2027 and compounds in later years.