Financial Data and Key Metrics Changes - On a constant currency basis, revenue grew by 4% from the prior year, with disciplined expense management limiting operating expense growth to just 2%, resulting in operating income of $49 million, a 12% increase from the prior year [5] - Adjusted earnings per share increased by 16% to $1.54 compared to $1.33 from the prior year [6] - Operating margin increased by 110 basis points to 15.2% [5] Business Line Data and Key Metrics Changes - The Education Technology Services (ETS) division saw revenue and operating income both increase by 50% from the prior year to $37 million and $15 million respectively, with its share of operating income growing from 23% to 31% [6] - Sofia Learning, the direct-to-consumer portal, grew both average and total subscribers and revenue by 40% [7] - US higher education operating income increased by 5% from the prior year, with operating expenses decreasing by $2 million, or 1% [9] Market Data and Key Metrics Changes - Total enrollment in US higher education decreased by 1% from the prior year, but slightly higher revenue per student helped offset the decline, resulting in revenue being down by only 0.5% [7] - Employer affiliated enrollment increased by 8% from the prior year, now representing 32% of all US higher education enrollment [8] - In the Australia/New Zealand segment, total enrollment decreased by 3% from the prior year, but revenue increased slightly to $71 million [10] Company Strategy and Development Direction - The company is focusing on the Australian domestic market, where mid to high single-digit new student growth has been observed [10] - There is a plan to increase marketing investments in the domestic market in the back half of the year, which is expected to support growth in 2026 [19][39] - The company remains optimistic about the future growth of the Australia/New Zealand segment once international enrollment restrictions are lifted [10][37] Management's Comments on Operating Environment and Future Outlook - Management noted that the softness in new student enrollment is primarily at Strayer University, particularly among unaffiliated students, but expects enrollment to normalize in the mid-single-digit range over the long term [25] - The company does not expect any material adverse impact from the recent legislative changes, including the "one big beautiful bill" [21] - Management expressed confidence in the strong performance of the ETS division and its potential to contribute significantly to earnings [6][32] Other Important Information - The company repurchased approximately 325,000 shares during the quarter for a total of $28 million, with $169 million remaining on the share repurchase authorization [10] - The caps on employer-affiliated tuition assistance programs are expected to be a net positive for the company [40] Q&A Session Summary Question: Clarification on unaffiliated enrollment decline - Management indicated that the decline in unaffiliated enrollment is primarily at Strayer University and that the rate of decline was slightly better in the second quarter than in the first quarter [15] Question: Domestic vs. international enrollment split in ANZ - Management noted that the split between domestic and international enrollment has shifted towards more domestic due to regulatory restrictions on international students [19] Question: Legislative and regulatory impacts on higher education - Management stated that they do not expect any material adverse impact from the "one big beautiful bill" and are still digesting its components [21] Question: Weakness at Strayer and leading indicators - Management acknowledged pressure on unaffiliated undergraduate students at Strayer but expects enrollment to normalize over the long term [25] Question: Update on large employer partnerships - Management reported strong revenue growth from a large employer partnership and indicated that onboarding is progressing well [32]

A record number of American students are applying to colleges in the United Kingdom, this year, according to new data released last week. (Photo: Peter Thompson/Heritage Images via Getty Images)https://t.co/5y2HjQvtqn https://t.co/0HaXac082o ...

Career Path & Overcoming Obstacles - The individual overcame a lack of role models and parental discouragement to pursue astronomy [3][4] - Financial constraints required a government grant to afford living expenses while studying in Madrid [5] - Only 10% of physics students passed all courses in a given year, highlighting the academic challenges [6] - The individual faced gender disparity in astronomy, with only 28% of astronomers being women [9] - Initial postdoctoral position was short-term and not in the individual's area of expertise [11][12] - Personal tragedy (father's death) led to a re-evaluation of life priorities and a renewed commitment to pursuing astronomy [13][14][15] - Therapy helped overcome self-sabotaging patterns and build confidence [17][18] Achievements & Opportunities - The individual obtained a PhD and secured a postdoctoral position at the University of Arizona [10][15] - Experience in astronomical instrumentation, initially viewed as a failure, proved valuable in securing a staff astronomer position in Hawaii [11][12][19] - The individual worked for the James Webb Space Telescope in Baltimore, a significant opportunity [21]

A year after it took office, the Labour government’s long-term vision for higher education in Britain remains frustratingly vague. Much more focus is required https://t.co/GUW8rHiK0r ...

Britain is very good at having elite universities. Peek below the creamiest layer, however, and higher education in the country starts to look much less clever https://t.co/0VNVBFCiu3 ...

AI's Impact on Education - AI is poised to disrupt education, potentially breaking it in a similar way to how the internet democratized access to information [1][2] - AI could provide personalized tutoring, potentially offering education equivalent to a Harvard graduate school degree at zero cost, especially in regions like Africa and South Asia [3] - The core function of universities is being challenged by AI, leading to a reevaluation of the long-term viability of higher education institutions [3] Potential Transformation of Education - AI's impact may extend beyond higher education, influencing how education is approached from childhood [2] - Ubiquitous access to knowledge and information, combined with AI, could revolutionize education globally [3]

Financial Risks & Challenges - Harvard faces potential funding cuts and tax hikes, leading to a projected $1 billion budget shortfall annually [1] - Harvard's private equity portfolio almost doubled from 20% to 40% between 2019 and the current year, representing a potential asset misallocation [1] - Harvard sold $1 billion of private equity assets at a 7% discount, indicating potential distress [1] - Potential excise tax on foundation assets could reach 4%, costing Harvard approximately $25 billion annually [1] Systemic Issues & Potential Restructuring - Rampant Title 9 violations, including discrimination against Asian students, and anti-semitism are present within Harvard and other Ivy League schools [1] - The internet and AI are democratizing access to education, potentially disrupting the traditional higher education model [1] - The core function of universities, both in education and research, is being challenged by independent research institutions and alternative learning methods [1][2] - Traditional funding models for higher education are breaking down, impacting the ability of institutions to maintain their capital and infrastructure [3][4] Strategic Responses - Harvard is reportedly in discussions with the White House after initial defiance, suggesting a need to address federal concerns [1]

Education Trends - Over 50% of China's young people are completing higher education [1] - Chinese young people aim to acquire the most impressive credentials to differentiate themselves [1]

Higher Education & Philanthropy - A major donor expresses concern about Harvard University's direction, citing a loss of traditional values, the rise of "wokeism," cancel culture, and anti-Semitism [3] - The donor believes Harvard lost its way but sees potential for a return to leadership under new leadership focusing on open discourse and Western education fundamentals [2] - The donor has diversified charitable giving to higher education, managing risk by contributing to other universities with strong academic programs [6] - The donor emphasizes the importance of both STEM and liberal arts education, particularly for public service and leadership roles, highlighting the value of understanding economic, political, and philosophical considerations [7][8] Cultural & Political Commentary - The donor views the issues at Harvard as part of a larger cultural dynamic affecting America [3] - The donor appreciates the Trump administration's pushback against "wokeism" and polarizing cultural dynamics [4] - The donor hopes higher education will refocus on creating contributors to society in leadership roles [4]

Education Trends & Challenges - Globally, tertiary enrollment has doubled to 235 million over the last 20 years, while international students have tripled to 6 million in the same period [3] - In Japan, approximately 80% of 18-year-olds pursue higher education; in the Philippines, over 48 million students attend universities [3] - A significant portion (around 50%) of US graduates take jobs that don't require degrees, and about 75% remain in those roles for over a decade [6] - The rise of AI, like ChatGPT, has led to a surge in plagiarism, with cases increasing from 48% to 64% in just one year [12] - The diploma mill industry, selling fake degrees, is estimated to be a $7 billion USD industry worldwide [12] Shift in Education's Purpose - Education is increasingly perceived as a means to an end (finishing, releasing) rather than a process of learning and growth [11][14] - Degrees, once passports to opportunities, are now often seen as entry tickets, leading to diminishing returns as supply outpaces demand [4][5] - There's a growing job mismatch, leading to frustration among workers and industries [7] - The original purpose of education has been lost, with students focusing on compliance rather than genuine growth and competence [14] The Concept of Kokorosashi - Kokorosashi, a Japanese concept, emphasizes the importance of aligning one's passion and skills to create a positive impact on society [17] - It encourages individuals to consider how their skills can benefit others, transforming expertise into service and credentials into contribution [18] - A degree should be viewed as a launchpad for personal and collective success, driven by a sense of responsibility and commitment to societal progress [27][28]