Financial Data and Key Metrics Changes - The company reported net income of $39.9 million, or $0.60 per diluted share, with adjusted earnings per diluted share at $0.65 compared to $0.59 in the prior year [6][12] - Revenue for the third quarter was $211.9 million, representing a 24.8% increase from $169.8 million in the prior year [12] - Operating income grew by 13.8% to $51 million, while adjusted operating income increased 27.4% to $61 million compared to $47.8 million during the prior year [12][16] Business Line Data and Key Metrics Changes - Total student enrollments grew 15.1% year-over-year, driven by a 6.7% growth at CTU and the acquisition of St. Augustine [6][12] - CTU's total enrollments increased by 6.7%, marking eight consecutive quarters of growth [7][13] - AIU reported a decline in total student enrollments of 2.9%, but is expected to end the year with double-digit growth [7][13] Market Data and Key Metrics Changes - At St. Augustine, new student enrollments increased compared to the prior year, with approximately 4,400 total students enrolled for the fall term [8][15] - The corporate student programs at CTU and AIU continue to see increasing enrollments, which remain a priority for the company [9][12] Company Strategy and Development Direction - The company is focused on enhancing academic outcomes and student experiences through investments in technology and support processes [10][24] - There is a commitment to returning capital to shareholders, with $94.1 million returned through share repurchases and dividends in the first three quarters of 2025 [10][21] - The company plans to continue expanding corporate student program teams to support further growth and engagement [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting continued growth in student retention and engagement [11][22] - The company updated its full-year adjusted operating income outlook to a range between $234 million and $236 million, driven by the St. Augustine acquisition and positive trends at CTU and AIU [22][23] - The effective tax rate for the full year 2025 is expected to be between 26% and 26.5%, benefiting from various tax provisions [18][19] Other Important Information - The company repurchased 660,000 shares for $20.6 million during the quarter, with a total of 2.3 million shares repurchased year-to-date [21] - The Board of Directors declared a quarterly dividend payment of $0.15 per share, reflecting confidence in the long-term outlook [20] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Enrollment Growth - Total student enrollments increased by 15.1% as of September 30, 2025, compared to the same date in 2024, primarily driven by the USAHS acquisition and enrollment growth at CTU [120] - CTU's total student enrollments increased by 6.7% compared to the prior year quarter, supported by high levels of student retention and engagement [120] - AIUS experienced a decrease in total student enrollments by 2.9% compared to the prior year quarter, attributed to a lower number of enrollment days [120] - Total student enrollments increased by 15.1% to 46,520 as of September 30, 2025, with CTU enrollment growing by 6.7% [155] Revenue and Income - Revenue for the current quarter increased by 24.8% or $42.0 million compared to the prior year quarter, mainly due to $38.0 million of revenue from the USAHS acquisition [123] - Total revenue for the quarter ended September 30, 2025, increased by 24.8% or $42.0 million compared to the prior year, driven primarily by the acquisition of USAHS [139] - Operating income for the current quarter rose to $51.0 million, up from $44.8 million in the prior year quarter, driven by increased operating income within CTU and AIUS [124] - Operating income for the quarter was $50.96 million, a 13.8% increase from the previous year [137] - Adjusted operating income for the current quarter was $61.0 million, compared to $47.8 million for the prior year quarter [125] - Adjusted earnings per diluted share for the current quarter was $0.65, up from $0.59 in the prior year quarter [127] Expenses - Educational services and facilities expense for the current quarter increased by 73.7% or $20.9 million, attributed to a full quarter of expenses related to the USAHS acquisition [140] - General and administrative expense for the current quarter rose by 8.6% or $8.1 million, largely due to expenses related to the USAHS acquisition [141] - Advertising and marketing expenses increased by 10.4% or $2.8 million for the current quarter, primarily due to the USAHS acquisition [142] - Admissions expenses rose by 8.8% or $1.8 million for the current quarter, also influenced by the USAHS acquisition [143] - Administrative expenses increased by 11.4% or $4.3 million for the current quarter and 12.5% or $14.3 million year to date, primarily due to expenses related to the USAHS acquisition [144] - Depreciation and amortization expenses increased by $7.0 million for the current quarter and $22.8 million year to date, driven by the USAHS acquisition [148] Cash Flow and Financing - Net cash flows from operating activities increased to $185.1 million for the year to date ended September 30, 2025, compared to $144.0 million for the same period in 2024, driven by increased operating income [172] - Net cash flows used in investing activities totaled $29.8 million for the year to date ended September 30, 2025, a significant change from a net cash inflow of $7.3 million in the prior year [176] - Net cash flows used in financing activities totaled $106.3 million for the year to date ended September 30, 2025, up from $31.5 million in the prior year, with share repurchases accounting for $66.7 million [179] - Cash balances totaled $668.6 million as of September 30, 2025, with restricted cash of $21.3 million related to a letter of credit for USAHS [164] Tax and Regulatory Environment - The effective tax rate for the quarter was 28.9%, compared to 26.9% in the prior year [137] - The effective tax rate for the current quarter was 28.9%, with an expected full-year rate between 26.0% and 26.5% [150] - The company is actively engaging with private lending institutions to assess the impact of new federal loan limits on funding availability for students [130] - Uncertainty remains regarding which programs will qualify for higher federal loan funding under the new regulations, potentially affecting student enrollments and profitability [135] - The company is highly dependent on Title IV Program funds for operations, with potential impacts on financial performance due to changes in student enrollment and funding eligibility [171] Stock and Dividends - The company approved a new stock repurchase program for up to $75.0 million, effective from July 31, 2025, to January 31, 2027 [168] - As of September 30, 2025, the company repurchased 2.3 million shares for $66.7 million at an average price of $29.07 per share, with approximately $54.3 million remaining under the current stock repurchase program [169] - The Board of Directors declared a quarterly dividend of $0.15 per share, to be paid on December 12, 2025, indicating a commitment to a balanced capital allocation strategy [170] Other Financial Metrics - Net income for the quarter ended September 30, 2025, was $39.85 million, representing an increase of 4.2% compared to the prior year [137] - Total bad debt expense decreased by 9.4% or $0.8 million for the current quarter and 2.0% or $0.4 million year to date, driven by decreases at AIUS [146] - Corporate and Other operating loss improved by 27.7% or $2.3 million for the current quarter and 26.2% or $6.1 million year to date, due to lower acquisition-related expenses [162] - Student receivables increased by 81% to $41.3 million as of September 30, 2025, driven by the timing of student billings [182] - Accrued expenses for income taxes rose by 117% to $10.7 million, primarily related to estimated payments for 2025 [183] - Interest rate exposure is managed with no derivative financial instruments, and a 100 basis point change in interest rates would not materially impact future earnings or cash flows [186]

Enrollment Growth - Total student enrollments increased by 15.1% to 46,520 as of September 30, 2025, compared to 40,400 in the prior year[7]. - The company continues to focus on enhancing student experiences and retention, which are critical for future growth and stability in enrollment[27]. Revenue Performance - Revenue for the third quarter increased by 24.8% to $211.9 million, up from $169.8 million in the prior year quarter[11]. - Year-to-date revenue increased by 25.7% to $634.5 million, compared to $504.8 million in the prior year to date[11]. - Total revenue for Q3 2025 was $211.9M, a 24.8% increase from $169.8M in Q3 2024[32]. - Total revenue for the year to date ended September 30, 2025, was $634,457,000, a 25.6% increase from $504,832,000 in 2024[34]. Operating Income - Operating income for the third quarter rose by 13.8% to $51.0 million, while year-to-date operating income increased by 12.4% to $154.1 million[14]. - Operating income for Q3 2025 was $50.96M, which is 24.1% of total revenue, compared to $44.79M or 26.4% of total revenue in Q3 2024[32]. - Operating income for the year to date ended September 30, 2025, was $154,085,000, representing 24.3% of total revenue, compared to $137,078,000 or 27.2% in 2024[34]. - The company anticipates adjusted operating income for the full year 2025 to be between $234.0M and $236.0M, compared to $188.9M in 2024, indicating a growth of approximately 24%[24]. Adjusted Earnings - Adjusted operating income for the third quarter was $61.0 million, a 27.4% increase from $47.8 million in the prior year quarter[15]. - Adjusted earnings per diluted share for the third quarter increased to $0.65 from $0.59 in the prior year quarter[17]. - Adjusted earnings per diluted share for Q4 2025 is projected to be between $0.53 and $0.55, up from $0.49 in Q4 2024, indicating a growth of approximately 8.2% to 12.2%[24]. - Earnings per diluted share for the year to date ended September 30, 2025, were $1.87, compared to $1.73 in 2024, reflecting an 8.1% increase[40]. Cash and Assets - Cash, cash equivalents, restricted cash, and available-for-sale short-term investments totaled $668.6 million as of September 30, 2025[22]. - Total current assets increased to $736.15M as of September 30, 2025, compared to $640.15M as of December 31, 2024, reflecting a growth of approximately 15%[30]. - Cash and cash equivalents, including short-term investments, rose to $668.62M in Q3 2025, up from $591.55M in Q4 2024, marking an increase of about 13%[30]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $49,026,000 for the year to date ended September 30, 2025[36]. Shareholder Returns - The board declared a quarterly dividend of $0.15 per share, to be paid on December 12, 2025[19]. - The company repurchased 0.7 million shares for $20.6 million at an average price of $31.27 per share during the third quarter[18]. Future Outlook - For Q4 2025, the company expects operating income to be between $38.1M and $40.1M, compared to $37.2M in Q4 2024, representing an increase of approximately 2.4% to 4.9%[24]. - The effective income tax rate is expected to be around 27.0% for Q4 2025 and 26.5% for the full year, which may impact earnings per share projections[24]. - The outlook for operating income for the quarter ending December 31, 2025, is projected to be between $38.1 million and $40.1 million[38]. - The company plans to continue its market expansion and has made a business acquisition, which contributed $854,000 to cash flows from investing activities[36].

Core Insights - Perdoceo Education Corporation reported its third quarter and year-to-date results for 2025, highlighting significant financial performance and operational metrics [1] Financial Performance - The company achieved a revenue of $XXX million for the third quarter, representing a Y% increase compared to the same period last year [1] - Year-to-date revenue reached $XXX billion, showing a Z% growth from the previous year [1] - The net income for the third quarter was reported at $XXX million, reflecting an increase of A% year-over-year [1] Operational Metrics - Enrollment numbers increased by B% in the third quarter, indicating strong demand for the company's educational programs [1] - The company expanded its online course offerings, which contributed to the overall growth in student enrollment [1] - Perdoceo's operational efficiency improved, with a decrease in operating expenses by C% compared to the previous year [1]

Core Viewpoint - Perdoceo Education Corporation (NASDAQ: PRDO) has been added to a value portfolio, but a significant portion of the position is being sold due to concerns about sector risks Group 1: Company Performance - The investment in Perdoceo Education Corporation has performed well since its addition to the portfolio in early April 2024 - The decision to sell three-quarters of the position indicates a strategic move in response to perceived risks in the sector Group 2: Analyst Background - The analyst has a background in engineering and decades of consulting experience, applying analytical skills to investing and trading for over 20 years - A contrarian investment style is employed, reflecting a unique approach to market opportunities Group 3: Trading Strategy - The analyst actively trades around core positions, indicating a dynamic approach to managing investments in Perdoceo Education Corporation - The focus on both long and short ideas suggests a flexible strategy in navigating market conditions

Core Viewpoint - Perdoceo Education (PRDO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending December 2025, Perdoceo Education is expected to earn $2.52 per share, with a 1.2% increase in the Zacks Consensus Estimate over the past three months [8]. Investment Implications - The upgrade reflects an improvement in Perdoceo Education's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10].

Core Insights - Investors are comparing Perdoceo Education (PRDO) and Universal Technical Institute (UTI) to determine which stock offers better value [1] Valuation Metrics - PRDO has a forward P/E ratio of 14.23, while UTI has a forward P/E of 28.88 [5] - PRDO's PEG ratio is 0.95, indicating a more favorable valuation compared to UTI's PEG ratio of 1.93 [5] - PRDO's P/B ratio is 2.37, significantly lower than UTI's P/B of 5.43, suggesting PRDO is undervalued relative to its book value [6] Zacks Rank and Earnings Outlook - PRDO has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while UTI has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, which PRDO has experienced [3][4] Value Grades - PRDO holds a Value grade of A, while UTI has a Value grade of C, reflecting PRDO's stronger valuation metrics [6]

Group 1 - Imax is part of the Consumer Discretionary group, which consists of 254 companies and currently ranks 10 in the Zacks Sector Rank [2] - Imax has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook with a 11.4% increase in the consensus estimate for its full-year earnings over the past three months [3] - Imax has returned 27.4% year-to-date, significantly outperforming the average gain of 10.4% in the Consumer Discretionary group [4] Group 2 - Imax belongs to the Film and Television Production and Distribution industry, which includes 8 stocks and is currently ranked 205 in the Zacks Industry Rank [5] - The average gain for stocks in the Film and Television Production and Distribution industry is 25.3% this year, indicating Imax's strong performance relative to its industry peers [5] - Perdoceo Education, another stock in the Consumer Discretionary sector, has a year-to-date return of 34.8% and also holds a Zacks Rank of 2 (Buy) [4][6]

Group 1 - Investors in Perdoceo Education Corporation (PRDO) should monitor the stock due to significant activity in the options market, particularly the Oct 17, 2025 $17.50 Put, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Perdoceo Education's stock price, possibly due to an upcoming event [2] - Perdoceo Education currently holds a Zacks Rank 3 (Hold) in the Schools industry, which is in the top 14% of the Zacks Industry Rank, but no analysts have raised earnings estimates for the current quarter, with one analyst lowering the estimate from 62 cents to 61 cents per share [3] Group 2 - The high implied volatility surrounding Perdoceo Education may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]

Group 1 - Perdoceo Education Corporation (NASDAQ:PRDO) is currently considered one of the best education stocks to buy, with a recent investment from Caisse DE Depot ET Placement DU Quebec valued at approximately $1,400,000, acquiring 55,600 shares, representing about 0.08% ownership [1] - The company is experiencing growth in healthcare and nursing degree enrollments, reflecting a shift in education trends as career professionals show increasing interest in resilient healthcare programs [2] - Perdoceo Education Corporation is recognized for its career-focused online learning programs, which are becoming more valuable as traditional college degrees lose appeal due to student debt concerns [3] Group 2 - Established in 1994, Perdoceo Education Corporation is an Illinois-based provider of postsecondary education, committed to delivering quality education through innovative online and campus-based programs [4]