Perdoceo Education Q4 Earnings Call Highlights

Core Insights - Perdoceo Education reported strong financial performance for 2025, with significant growth in revenue, operating income, and student enrollment, exceeding internal expectations [4][6][20] Financial Performance - Revenue for Q4 2025 rose 20% to $211.6 million from $176.4 million in the prior-year period, while full-year revenue increased 24.2% to $846.1 million [2][6][8] - Net income for Q4 was $35.3 million, or $0.54 per diluted share, with adjusted earnings per diluted share increasing 20% to $0.59 [3][7] - Full-year net income reached $159.9 million, or $2.42 per diluted share, compared to $147.6 million, or $2.19 per diluted share, in the previous year [7] Student Enrollment and Retention - Total student enrollments increased by 7.3% year-over-year, with Colorado Technical University (CTU) achieving its ninth consecutive quarter of growth [5][9] - The American InterContinental University System (AIU) saw total enrollments rise by 11.2%, supported by a new academic session [9] Operational Highlights - Adjusted operating income for Q4 was $51.6 million, up from $42.7 million a year earlier, reflecting operational efficiencies and growth from the University of St. Augustine acquisition [3][7] - The company graduated approximately 15,000 students in 2025 and anticipates even higher graduation numbers in 2026 due to strong retention rates [8][9] Capital Allocation and Shareholder Returns - Perdoceo returned $157.6 million to shareholders in 2025, including $120.8 million in share buybacks, and approved a new $100 million repurchase authorization [5][16] - The company declared a quarterly dividend of $0.15 per share, payable in March 2026 [17] 2026 Outlook - For 2026, Perdoceo expects adjusted operating income between $250 million and $263 million, and adjusted earnings per diluted share ranging from $2.97 to $3.12, indicating a 16% increase at the midpoint [20][21] - The outlook is based on continued high student retention, increasing prospective student interest, and ongoing investments in technology and student support [22]