Financial Data and Key Metrics Changes - First quarter revenue grew 2.9% year over year to $262 million, driven by a 4.1% increase in average total degree enrollment to 85,600 students [6][13] - Adjusted EBITDA increased 7.2% to $75.2 million, with an adjusted EBITDA margin of 28.7%, up from 27.5% in the prior period [7][16] - Net income attributable to the company decreased to $15.5 million, or $0.40 diluted earnings per share, compared to $46.4 million, or $1.23 diluted earnings per share a year ago [13][14] Business Line Data and Key Metrics Changes - Employer-affiliated enrollment accounted for approximately 34% of total enrollment, up from 31% in the first quarter of 2025 [6] - Adjusted net income attributable to the company increased 5.3% to $53.6 million, up from $50.9 million in the prior year period [14] Market Data and Key Metrics Changes - The company reported a solid start to the year with financial performance consistent with expectations, reinforcing the full-year outlook provided in the previous earnings call [5][12] - The company maintained a strong balance sheet with no outstanding debt and ended the quarter with $218.1 million in cash and marketable securities [17] Company Strategy and Development Direction - The company remains focused on expanding access to higher education that delivers relevant, career-aligned skills for working adults, emphasizing flexible programs and strong academic outcomes [5] - The integration of AI into programs and operational processes is a priority, aimed at enhancing student outcomes and driving operational excellence [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of cash generation and announced a regular quarterly cash dividend of approximately $0.21 per share, reflecting a disciplined approach to capital allocation [11][17] - The company reiterated its full-year guidance for net revenue of $1.025 billion to $1.035 billion and adjusted EBITDA of $244 million to $249 million, indicating a strong outlook for the year [18] Other Important Information - A cybersecurity incident involving the Oracle E-Business Suite resulted in $4.5 million of expenses, but the incident did not impact student and academic programming [10][11] - The company is actively managing regulatory changes and does not anticipate any material adverse impact from recent developments in the Department of Education [22][71] Q&A Session Summary Question: Can you discuss the recent changes at the Department of Education and their impact? - Management noted that the recent Negotiated Rulemaking reached consensus on accountability measures, which they view positively, and all programs for which metrics were provided are passing [22][23] Question: How comprehensive was the preliminary data provided by the Department of Education? - Management indicated that greater than 50% of their programs had earnings information available, which is encouraging [29] Question: Are there any programs that might face challenges under the new regulations? - Management identified behavioral sciences as a potential area of risk due to historically lower earnings but remains optimistic based on preliminary data [32] Question: What impact have the detection and verification measures had on enrollment? - Management reported that the controls implemented have effectively reduced fraudulent attempts and improved productivity in the enrollment process [65][66] Question: How does the company view pricing as a growth lever? - Management believes that while pricing could be a lever, they can maintain affordability and improve margins through operational efficiencies [88] Question: What are the company's thoughts on AI and job displacement? - Management acknowledged that AI will lead to workforce changes and emphasized the importance of preparing students to be fluent in AI to remain competitive in the job market [90][92]

Financial Data and Key Metrics Changes - First quarter revenue grew 2.9% year over year to $262 million, driven by a 4.1% increase in average total degree enrollment to 85,600 students [5][12] - Net income attributable to the company decreased to $15.5 million, or $0.40 diluted earnings per share, compared to $46.4 million, or $1.23 diluted earnings per share a year ago [12] - Adjusted EBITDA increased 7.2% to $75.2 million, with an adjusted EBITDA margin of 28.7%, up from 27.5% in the prior period [13][14] Business Line Data and Key Metrics Changes - Employer-affiliated enrollment accounted for approximately 34% of total enrollment, up from 31% in the first quarter of 2025 [5] - Adjusted net income attributable to the company increased 5.3% to $53.6 million, up from $50.9 million in the prior year period [12] Market Data and Key Metrics Changes - The company reported a solid start to the year with financial performance consistent with expectations, reinforcing the full-year outlook provided in the previous earnings call [4][11] - The preliminary program performance metrics released by the Department of Education indicated that all University of Phoenix programs for which metrics were provided are passing [8] Company Strategy and Development Direction - The company remains focused on expanding access to higher education that delivers relevant, career-aligned skills for working adults, emphasizing flexible programs and strong academic outcomes [4] - AI is viewed as an important enabler of existing strategies, with a focus on preparing students to be AI-fluent and leveraging AI for operational excellence [6][10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of cash generation and announced a regular quarterly cash dividend of approximately $0.21 per share, reflecting a disciplined approach to capital allocation [10][16] - The company reiterated its net revenue guidance of $1.025 billion to $1.035 billion and adjusted EBITDA guidance of $244 million to $249 million for fiscal 2026 [17] Other Important Information - The company recorded $4.5 million in expenses related to a cybersecurity incident, which did not impact student and academic programming [9][10] - The company maintains a strong balance sheet with no outstanding debt and substantial cash and marketable securities totaling $218.1 million as of November 30, 2025 [15][16] Q&A Session Summary Question: Comments on enrollment growth and regulatory changes - Management noted that the recent Negotiated Rulemaking discussions were positive, with all programs passing preliminary performance metrics [20][21] Question: Coverage of programs in preliminary data - Over 50% of programs had earnings information available, covering a significant portion of the company's offerings [26] Question: Challenges in specific programs - Behavioral sciences programs may face challenges due to historically lower earnings, but preliminary data was positive [28] Question: Impact of fraud detection measures - The company has seen a downward trend in fraudulent attempts since implementing new controls [30] Question: New student enrollment trends - New student enrollment has been up year over year, with expectations for continued growth in Q2 and Q3 [31] Question: B2B growth and employer engagement - The company is seeing broad-based growth across programs, with effective account management driving deeper penetration with current employer affiliates [41][59] Question: Pricing strategy - The company has maintained consistent pricing since 2018, with affordability becoming increasingly important [66] Question: Future job displacement due to AI - Management acknowledged the potential for job displacement and emphasized the need for reskilling in AI [70]

Exhibit 99.1 News Release Phoenix Education Partners, Inc. Reports First Quarter Fiscal Year 2026 Results Phoenix, January 13, 2026 – Phoenix Education Partners, Inc. (NYSE: PXED) (the "Company" or "Phoenix Education Partners"), the parent company of The University of Phoenix, Inc. (the "University"), today reported financial results for the three months ended November 30, 2025, with first quarter revenue of $262.0 million. "Guided by our mission to serve working adults through skills-aligned, career-releva ...

Core Viewpoint - Phoenix Education Partners, Inc. will host a conference call on January 13, 2026, to discuss its financial results for the first quarter and fiscal year ending November 30, 2025 [1] Group 1: Company Overview - Phoenix Education Partners, Inc. is the parent company of the University of Phoenix, which specializes in online education for working adults [2] - The University of Phoenix was founded in 1976 and aims to provide access to higher education opportunities for students to achieve professional goals and improve organizational performance [2]

Financial Data and Key Metrics Changes - Net revenue for Q4 2025 grew 7.2% year-over-year to $257 million, supported by a 5.7% increase in average total degree enrollment to 79,300 students [14][15] - For the full year, net revenue increased 6% to $1.01 billion, compared to $950 million in fiscal 2024, driven by a 3.7% increase in average total degree enrollment to 81,900 [15][16] - Net income for fiscal 2025 was $135.4 million, up from $115.1 million in the prior year, reflecting strong operating performance and continued margin expansion [15][16] Business Line Data and Key Metrics Changes - Average total degree enrollment grew to nearly 82,000 in fiscal 2025, up from approximately 79,000 in fiscal 2024, with strong retention supporting this growth [7][11] - Enrollment through employer relationships increased to 32% of average total degree enrollment, up from 30% in fiscal 2024, indicating sustained demand from working adults [8] Market Data and Key Metrics Changes - The university's student body primarily consists of working adults, with 75% currently employed while pursuing a degree, and the average age of students is 38 years [5] - Over 50% of students are first-generation college attendees, and nearly two-thirds are caring for a family while pursuing their degree [5] Company Strategy and Development Direction - The company aims to expand access to higher education through flexible, career-relevant programs that empower working adults [4][6] - Continued focus on improving student outcomes and increasing operating efficiencies through AI and automation is a key strategic initiative [8][11] - The company is open to selective mission-aligned acquisitions to extend its reach into career-relevant learning [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fiscal 2026 outlook, expecting revenue in the range of $1.025 billion to $1.035 billion and adjusted EBITDA between $244 million and $249 million [19][20] - Strong retention trends and steady demand across programs were highlighted as positive indicators for future performance [11][30] Other Important Information - The College of Nursing received a 10-year accreditation for its Master of Science in Nursing program, reinforcing the commitment to academic excellence [9] - The company has a strong balance sheet with no debt and total cash and marketable securities of $195 million as of August 31, 2025 [17] Q&A Session Summary Question: Expectations for FY 2026 revenue growth - Management explained that the implied guidance for revenue growth of 2%-3% is due to various factors including timing differences in the academic calendar and a scholarship not offered in FY 2025 [22][23] Question: Total degree enrollment by verticals, specifically healthcare - Management confirmed healthy growth in nursing programs and noted that healthcare remains a significant opportunity for growth [34][35] Question: Assumptions for enrollment growth and revenue per student for 2026 - Management indicated that revenue per student is expected to normalize, and they anticipate stronger growth in the latter part of FY 2026 [41][42] Question: Impact of suspicious activity controls on enrollments - Management discussed the effectiveness of advanced algorithms in identifying suspicious activity and the improvements seen in enrollment productivity after moving controls to the application process [50][52] Question: Technology investment and capacity for future growth - Management stated that the current technology platform has the capacity to manage growth well beyond 10,000 additional students without significant further investment [58][60] Question: Updates on Department of Education policies - Management reassured that there have been no significant changes affecting the university from recent Department of Education announcements and expressed confidence in managing any potential impacts [64][66]

Financial Data and Key Metrics Changes - Net revenue for Q4 2025 grew 7.2% year-over-year to $257 million, supported by a 5.7% increase in average total degree enrollment to 79,300 students [14][15] - For the full year, net revenue increased 6% to $1.01 billion, compared to $950 million in fiscal 2024, driven by a 3.7% increase in average total degree enrollment to 81,900 [15][16] - Net income for fiscal 2025 was $135.4 million, up from $115.1 million in the prior year, reflecting strong operating performance and continued margin expansion [15][16] Business Line Data and Key Metrics Changes - Average total degree enrollment grew to nearly 82,000 in fiscal 2025, up from approximately 79,000 in fiscal 2024, with strong retention supporting this growth [7][14] - Enrollment through employer relationships increased to 32% of average total degree enrollment, up from 30% in fiscal 2024, indicating sustained demand from working adults [8] Market Data and Key Metrics Changes - The university's student body primarily consists of working adults, with 75% currently employed while pursuing a degree, and the average age of students is 38 years [5][6] - Over 50% of students are first-generation college attendees, and nearly two-thirds are caring for a family while pursuing their degree [5] Company Strategy and Development Direction - The company aims to expand access to higher education through flexible, career-relevant programs that empower working adults [4][6] - Continued focus on improving student outcomes and increasing operational efficiencies through AI and automation is a key strategy [8][11] - The company plans to maintain capital allocation priorities that support sustainable enrollment growth and invest in initiatives that enhance student outcomes [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for fiscal 2026, expecting revenue in the range of $1.025 billion to $1.035 billion and adjusted EBITDA between $244 million and $249 million [19][20] - The company noted strong retention trends and steady demand across programs, indicating a positive trajectory for future growth [11][30] Other Important Information - The College of Nursing received a 10-year accreditation for its Master of Science in Nursing program, highlighting the commitment to academic excellence [9] - The company has a strong balance sheet with no debt and significant cash flow, supporting continued investment in student initiatives [17] Q&A Session Summary Question: Expectations for FY26 revenue growth - Management explained that while they exited FY25 with strong growth, the guidance for FY26 reflects a conservative outlook due to various factors including timing differences and the impact of a scholarship offered in FY24 that was not repeated [22][23][27] Question: Total degree enrollment by verticals, specifically healthcare - Management confirmed healthy growth in nursing programs and noted that while most programs are growing, education saw flatness due to productivity challenges [34][37] Question: Assumptions for enrollment growth and revenue per student for FY26 - Management indicated that they expect some normalization in revenue per student and highlighted strong new student demand and retention as key drivers for FY26 [41][42][46] Question: Impact of suspicious activity controls on enrollments - Management discussed the effectiveness of their controls in identifying suspicious activity and the improvements seen in enrollment productivity after moving controls to the application process [50][52][54] Question: Technology investment and capacity for future growth - Management stated that the current technology platform has the capacity to manage growth well beyond 10,000 additional students without significant further investment [58][61] Question: Updates on Department of Education policies - Management reassured that there have been no significant changes affecting the university from recent Department of Education announcements and expressed confidence in their ongoing relationship with the department [64][68]

Financial Data and Key Metrics Changes - Net revenue for Q4 2025 grew 7.2% year-over-year to $257 million, supported by a 5.7% increase in average total degree enrollment to 79,300 students [13][15] - For the full year, net revenue increased 6% to $1.01 billion, compared to $950 million in fiscal 2024, driven by a 3.7% growth in average total degree enrollment [15][16] - Adjusted EBITDA rose 36% to $56.6 million in Q4 2025, reflecting improved retention and increased net revenue [14] - Net income for fiscal 2025 was $135.4 million, up from $115.1 million in the prior year, indicating strong operating performance and margin expansion [15][16] Business Line Data and Key Metrics Changes - Average total degree enrollment grew to nearly 82,000 in fiscal 2025, up from approximately 79,000 in fiscal 2024, with strong retention throughout the year [7][11] - Enrollment through employer relationships increased to 32% of average total degree enrollment, up from 30% in fiscal 2024, indicating sustained demand from working adults [8] Market Data and Key Metrics Changes - The university's student body primarily consists of working adults, with 75% currently employed while pursuing a degree, and the average age of students is 38 years [5] - Over 50% of students are first-generation college attendees, and nearly two-thirds are caring for a family while pursuing their degree [5] Company Strategy and Development Direction - The company aims to expand access to higher education through flexible, career-relevant programs tailored to the needs of working adults [4][12] - Continued focus on improving student outcomes and increasing operational efficiencies through AI and automation is a key strategy [8][11] - The company plans to maintain capital allocation priorities that support sustainable enrollment growth and invest in initiatives that enhance student outcomes [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong retention trends and steady demand across programs as they look ahead to fiscal year 2026 [11][19] - The company noted that the recent federal government shutdown had no material impact on business or fiscal 2026 outlook [10] - Management highlighted the importance of controls in place to manage unusual enrollment activity, which had previously affected productivity [49][51] Other Important Information - The College of Nursing received a 10-year accreditation for its Master of Science in Nursing program, reflecting the commitment to academic excellence [9] - The company completed its IPO in October 2025, selling 4.9 million shares at $32 per share, with no proceeds going to the company [18] Q&A Session Summary Question: Expectations for FY26 revenue growth - Management explained that while they exited FY25 with strong growth, the guidance for FY26 reflects a conservative outlook due to various factors including timing differences and previous scholarship offerings [21][22] Question: Total degree enrollment by verticals, specifically healthcare - Management confirmed healthy growth in nursing programs and noted that healthcare remains a significant opportunity for growth [32][33] Question: Enrollment growth and revenue per student assumptions for FY26 - Management indicated that they expect some normalization in revenue per student and highlighted the importance of attracting higher quality students [38][39] Question: Impact of suspicious activity controls on enrollments - Management discussed the effectiveness of their controls in managing unusual enrollment activity and expressed confidence in their ability to maintain these controls moving forward [47][51] Question: Technology investment and capacity for future growth - Management affirmed that their technology platform has the capacity to support significant enrollment growth without substantial additional investment [56][58] Question: Policy changes and their implications - Management stated that there have been no significant changes in policy that would adversely affect the university, and they remain confident in their relationship with the Department of Education [61][65]

Core Insights - Phoenix Education Partners, Inc. reported a fourth quarter revenue of $257.4 million and a fiscal year 2025 revenue of $1,007.2 million, marking a year-over-year increase in both periods [1][5]. Financial Performance - For the fourth quarter of 2025, net revenue was $257.4 million, up from $240.2 million in the fourth quarter of 2024, representing a growth of approximately 7.3% [3]. - The average total degreed enrollment for the fourth quarter of 2025 was 79,300, compared to 75,000 in the same quarter of 2024, indicating a 5.7% increase [3]. - Net income for the fourth quarter of 2025 was $17.6 million, compared to $10.0 million in the fourth quarter of 2024, reflecting a 76% increase [3]. - Adjusted EBITDA for the fourth quarter of 2025 was $56.6 million, up from $41.6 million in the fourth quarter of 2024, showing a growth of 36.1% [4]. Annual Results - For fiscal year 2025, net revenue totaled $1,007.2 million, compared to $950.0 million in fiscal year 2024, marking a 6% increase [5]. - The average total degreed enrollment for fiscal year 2025 was 81,900, compared to 78,900 in fiscal year 2024, indicating a 3.8% increase [5]. - Net income for fiscal year 2025 was $135.4 million, compared to $115.1 million in fiscal year 2024, representing a 17.5% increase [5]. - Adjusted EBITDA for fiscal year 2025 was $243.9 million, compared to $229.1 million in fiscal year 2024, reflecting a growth of 6.5% [5]. Initial Public Offering - On October 10, 2025, Phoenix Education Partners completed an IPO of 4.9 million shares at a price of $32.00 per share, with no proceeds received by the company as the shares were sold by existing shareholders [8]. Balance Sheet and Liquidity - As of August 31, 2025, the company's cash and cash equivalents totaled $194.8 million, down from $382.9 million as of August 31, 2024, primarily due to $250.6 million in distributions and $22.5 million in capital expenditures [10]. - The company had no outstanding debt as of August 31, 2025, and entered into a $100 million senior secured revolving credit facility on November 13, 2025 [11]. Business Outlook - For fiscal year 2026, the company expects revenue to be in the range of $1,025.0 million to $1,035.0 million, with adjusted EBITDA projected between $244.0 million and $249.0 million [12].

Enrollment and Student Demographics - For the fiscal year ended August 31, 2025, the University's Average Total Degreed Enrollment was 81,900, including 66,300 undergraduate and 15,600 graduate students[20]. - Enrollment through employer relationships represented approximately 32% of the Average Total Degreed Enrollment in fiscal year 2025[20]. - The average age of new students is 38, with 95% being over the age of 22, and 53% are first-generation college students[26]. - As of August 31, 2025, students had earned more than 900,000 skills badges, demonstrating mastery of competencies directly applicable to job requirements[25]. Financial Performance - The University's net revenue increased from $835 million in fiscal year 2023 to $1,007 million in fiscal year 2025, and net income rose from $66 million to $135 million during the same period[32]. - 88.6% of the University's cash basis revenue for eligible tuition and fees was derived from federal program funds during fiscal year 2025[57]. - Student loans represented approximately 65% of the gross Title IV program funds received by the University in fiscal year 2025[61]. - Federal grants accounted for approximately 35% of the gross Title IV program funds received by the University in fiscal year 2025[61]. - The University's 90/10 Rule percentages were 88.6% and 88.3% for fiscal years 2025 and 2024, respectively, indicating compliance with Title IV funding requirements[110]. Regulatory Compliance and Accreditation - The University is institutionally accredited by the HLC, with the next reaffirmation scheduled for 2032-2033[48]. - The University has a long-standing record of regulatory compliance with a robust accreditation portfolio[49]. - The University is subject to extensive regulatory requirements imposed by federal and state agencies[59]. - The University has been institutionally accredited by the HLC since 1978, with reaccreditation obtained for the period through 2032-33[75]. - The University must maintain state authorization to operate and participate in Title IV programs, with potential loss of authorization impacting financial condition and operations[197]. Regulatory Risks and Challenges - The Department of Education's current state authorization rules require institutions to meet state requirements for Title IV eligibility when offering distance education[67]. - The University must comply with ongoing changes in state authorization from both the Department of Education and SARA to maintain its operational status[71]. - Changes in state authorization requirements could materially affect the University’s ability to provide distance education and participate in federal programs[71]. - New federal regulations effective July 1, 2024, may increase the risk of regulatory noncompliance for the University, potentially affecting its Title IV program participation[82]. - The Department of Education may impose letter of credit requirements or other adverse actions against the University if it fails to comply with regulations[83]. Borrower Defense and Financial Liabilities - Approximately 48,000 borrower defense applications were received by the University from June 2020 to April 2024, with one-third dated on or before June 22, 2022, potentially subject to automatic discharge under the Sweet settlement[94]. - The Sweet settlement mandates automatic loan discharge for certain borrower defense applications pending as of June 22, 2022, affecting about 150 institutions, including the University[93]. - The University faces potential financial liability related to borrower defense claims, which could impact its financial stability and operational costs[86]. - The Department of Education approved over 1,200 Borrower Defense to Repayment (BDR) claims, discharging nearly $37 million in federal student loans related to the University's "Let's Get to Work" ad campaign[95]. - The University believes there are a substantial number of additional pending BDR claims that have not yet been formally notified by the Department of Education[96]. Changes in Federal Regulations - The amendments to the Higher Education Act will eliminate the federal Grad PLUS loan program effective July 1, 2026[55]. - The Department of Education's recent rulemaking initiatives may lead to new regulations impacting federal student aid funding and institutional accountability, which could affect enrollment and revenue[85]. - The Department of Education's financial value transparency rule will require colleges to disclose student debt burdens and program costs, impacting student enrollment decisions starting in 2026[113]. - New accountability standards may condition federal direct loan eligibility on graduates' median earnings compared to less-credentialed working adults[176]. - Legislative changes to Title IV programs could materially affect the University's enrollment and financial condition[178]. Operational Changes and Initiatives - The University has made substantial investments in technology resources, leveraging AI to improve retention and student-facing capabilities[28]. - The University completed the closure of remaining out-of-state locations in fiscal year 2024, focusing on enhancing online offerings[127]. - The Campus Footprint Initiative, aimed at transforming the University's physical presence, began in October 2012 and concluded its initial phase in 2016[126]. - The University updated its curriculum to require Mississippi students to complete applicable courses before applying for Arizona licensure, effective September 1, 2025[202]. Fraud Prevention and Compliance - There has been a measurable increase in fraudulent applications and enrollments, particularly from individuals receiving Title IV funds[215]. - Additional checks and balances have been implemented to ensure only qualified individuals apply for programs and seek Title IV funds[215]. - New guidance from the Department of Education emphasizes the need for institutions to prevent fraud and protect Title IV program integrity[215]. - Failure to comply with Department of Education standards could result in financial penalties or loss of eligibility for Title IV programs[215]. - Accrediting agencies require processes to verify that the student registering is the same as the one participating in the program[215].

Financial Performance - Fourth quarter 2025 revenue was $257.4 million, an increase of 7.5% from $240.2 million in the fourth quarter of 2024[3] - Fiscal year 2025 revenue totaled $1,007.2 million, up 6.0% from $950.0 million in fiscal year 2024[4] - Net income for fourth quarter 2025 was $17.6 million, a 76% increase from $10.0 million in fourth quarter 2024[3] - Adjusted EBITDA for fourth quarter 2025 was $56.6 million, up 36.2% from $41.6 million in fourth quarter 2024[4] - Fiscal year 2025 Adjusted EBITDA was $243.9 million, an increase of 6.0% from $229.1 million in fiscal year 2024[7] - Operating income for the year ended August 31, 2025, was $172,131,000, up 13.3% from $151,986,000 in 2024[27] - Net income attributable to Phoenix Education Partners, Inc. for the three months ended August 31, 2025, was $17,496,000, compared to $9,822,000 in 2024, reflecting a 78.3% increase[27] - Basic earnings per share for the year ended August 31, 2025, was $3.77, an increase from $3.19 in 2024, marking a 18.2% growth[27] - Net income for Q3 2025 was $17,570,000, compared to $10,019,000 in Q3 2024, representing a 75.7% increase[33] - Adjusted Net Income for the year ended August 31, 2025, was $172,980,000, up from $166,529,000 in 2024, reflecting a 3.3% growth[33] Enrollment and Operational Metrics - Average Total Degreed Enrollment for fourth quarter 2025 was 79,300, compared to 75,000 in the same quarter of 2024, reflecting a growth of 4.3%[3] - The company completed the closure of its ground campuses, with only one physical location currently enrolling new students[33] Cash and Assets - As of August 31, 2025, cash and cash equivalents totaled $194.8 million, down from $382.9 million as of August 31, 2024[10] - Total current assets decreased to $265,950,000 as of August 31, 2025, down from $441,466,000 in 2024, a decline of 39.7%[30] - Cash and restricted cash at the end of the year was $173,001,000, down from $356,170,000 at the beginning, reflecting a decrease of 51.4%[31] Liabilities and Equity - The company had no outstanding debt as of August 31, 2025, and entered into a $100.0 million senior secured revolving credit facility on November 13, 2025[11] - Total liabilities decreased to $253,507,000 as of August 31, 2025, compared to $346,320,000 in 2024, a reduction of 26.8%[30] - Total equity decreased to $240,055,000 as of August 31, 2025, down from $348,930,000 in 2024, a decline of 31.1%[30] Cash Flow and Credit Losses - Net cash provided by operating activities for the year ended August 31, 2025, was $87,387,000, down from $163,236,000 in 2024, a decrease of 46.5%[31] - The company reported a provision for credit losses on accounts receivable of $47,674,000 for the year ended August 31, 2025, compared to $40,532,000 in 2024, an increase of 17.7%[31] Special Items and Expenses - Special items and share-based compensation for Q3 2025 totaled $39,632,000, compared to $29,931,000 in Q3 2024, a 32.5% increase[33] - Restructuring lease expenses for the year ended August 31, 2025, were $6,365,000, down from $15,201,000 in 2024[33] - Strategic alternatives expenses for Q3 2025 were $19,941,000, significantly higher than $6,012,000 in Q3 2024[33] Future Outlook - The company expects fiscal year 2026 revenue to be in the range of $1,025.0 million to $1,035.0 million[12] Tax Rates - The non-GAAP effective tax rates were 24.6% for fiscal year 2025 and 24.7% for fiscal year 2024[34]