Financial Data and Key Metrics Changes - For the fourth quarter of 2025, net income was $35.3 million or $0.54 per diluted share, while adjusted earnings per diluted share increased 20% to $0.59 compared to $0.49 in the prior year [8][15] - Full-year net income was $159.9 million or $2.42 per diluted share, compared to $147.6 million or $2.19 per diluted share in the prior year, with adjusted earnings per diluted share increasing 15.5% to $2.61 from $2.26 [13][29] - Full-year revenue increased 24.2% or $164.8 million to $846.1 million, with operating income growing 12.5% to $196 million and adjusted operating income increasing 25.8% to $237.6 million [14][29] Business Line Data and Key Metrics Changes - Total student enrollments grew 7.3% year-over-year, driven by 11.2% growth at AIUS, 6.6% growth at CTU, and 2.6% growth at St. Augustine [8][17] - CTU's revenue for the full year was $461.6 million, up 4.1% from the prior year, while operating income increased 3.4% to $180.6 million [19] - AIU System reported full-year revenue of $226 million, with operating income increasing 9.8% to $36 million [20] Market Data and Key Metrics Changes - The University of St. Augustine for Health Sciences ended the fall 2025 term with approximately 3,900 total students enrolled, reflecting growth in programs such as nursing and speech-language pathology [19][21] - The corporate student programs continue to provide accredited degree opportunities to employees, enhancing employee development and retention [10] Company Strategy and Development Direction - The company prioritizes student experience and academic outcomes, aiming for sustainable and responsible growth [5][10] - Strategic investments in technology and talent are being made to expand programs and enhance academic outcomes across institutions [10][32] - The company plans to continue investing in marketing and admissions to support future enrollment growth [20][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with positive momentum, expecting continued growth in revenue and operating income [11][29] - The company anticipates that high levels of student retention and engagement will continue into 2026, with prospective student interest expected to increase [30][31] - Management noted that changes in the regulatory environment are not expected to significantly impact prospective student interest or necessitate operational changes [30] Other Important Information - The company returned $157.6 million of capital to shareholders in 2025, including $120.8 million in share repurchases and $36.9 million in dividends [10][11] - A new share repurchase authorization of up to $100 million was approved by the board [11][27] - The effective tax rate for the full year was 26.3%, with expectations for 2026 to be between 23.5% and 24.5% [24][25] Q&A Session Summary Question: What are the expectations for student enrollment growth in 2026? - Management expects total enrollments at CTU to grow in 2026, supported by high levels of prospective student interest and continued investments in marketing and admissions [31] Question: How does the company plan to handle the impact of regulatory changes? - Management believes that there will not be a material impact on prospective students from regulatory changes, including the elimination of certain loan programs [30] Question: What is the outlook for adjusted operating income in 2026? - The company expects adjusted operating income to range between $250 million and $263 million for 2026, reflecting organic revenue and enrollment growth [29]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $163.2 million, an increase of $10.1 million or 7% from the prior year period [22] - Net income available to common shareholders was $5.6 million, nearly seven times higher than the $700,000 in the prior year [23] - EPS increased significantly to $0.30 per diluted share in Q3 2025 versus $0.04 in the prior year [23] - Adjusted EBITDA increased 60% to $20.7 million compared to $12.9 million in the prior year, with an adjusted EBITDA margin of 13% compared to 8% in the prior year [23] Business Line Data and Key Metrics Changes - At APUS, Q3 revenue increased by 8% to $83.1 million, driven by a corresponding 8% increase in net course registrations [24] - Rasmussen's Q3 revenue was $60.8 million, a 16% increase, fueled by a 12% increase in on-ground enrollment and an 11% increase in online enrollment [24] - Hondros College of Nursing saw a 19% increase in Q3 revenue to $18.4 million, with total enrollment increasing 18% to approximately 3,700 students [25] Market Data and Key Metrics Changes - Registrations at APUS increased 8% year-over-year, while enrollments at Rasmussen increased 10% compared to Q3 2024 [9] - Enrollments at Hondros College of Nursing continued strong momentum, increasing 18% compared to Q3 2024 [9] - The government shutdown has muted military enrollments at APUS for October and November, but several military branches are now authorizing tuition assistance benefits [15][16] Company Strategy and Development Direction - The company is focused on simplifying operations and has received HLC approval for the combination of its institutions, with a new application submitted to the U.S. Department of Education [10][11] - The sale of Graduate School USA allows the company to concentrate on core degree-granting businesses, particularly in military and healthcare sectors [10] - The company aims to leverage existing capacity and improve financial results through operational simplification and strategic growth initiatives [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the team despite the government shutdown and emphasized the importance of tuition assistance as a recruiting tool for military service members [17] - The company remains optimistic about long-term growth potential and plans to share more details during the upcoming Investor Day [32] - Management believes that the combination of institutions will enhance revenue and expense synergies, despite procedural delays [39][41] Other Important Information - The company redeemed all outstanding preferred stock for $43.1 million and completed the sale of two corporate administrative office buildings for net proceeds of $22.5 million [26] - Cash flow from operations for the nine months ended September 30, 2025, increased 56% to $73.5 million, with total cash and equivalents increasing 22% to $193.1 million [25][26] Q&A Session Summary Question: Plans for driving re-enrollments at APUS due to tuition assistance disruption - Management noted that military branches are using tuition assistance funds to allow service members to register, and they expect demand to return as the government shutdown resolves [36][37] Question: Impact of new process on integration of institutions - Management confirmed commitment to the integration and stated that the new process is procedural, with expectations for implementation in Q3 2026 [39][40] Question: Confirmation of fourth quarter guidance assumptions - Management acknowledged a slowdown in registrations due to the government shutdown but expects a return to normal trajectory in December [46] Question: Cost-saving measures and their permanence - Management discussed temporary and permanent reductions in variable costs and operational streamlining, ensuring that revenue generation remains unaffected [48][50] Question: Trends in nursing program demand - Management reported strong growth in nursing enrollments, driven by attractive compensation and job availability, with a focus on first licensure programs [54][56] Question: Enrollment trends and demographics at Rasmussen - Management indicated a shift towards enrolling more BSN students, reflecting effective marketing strategies and macro demand [108]