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]