Perdoceo Education (NasdaqGS:PRDO) Q4 2025 Earnings call February 19, 2026 05:00 PM ET Speaker2Hello, and thank you for standing by. At this time, I would like to welcome everyone to the Perdoceo Education Corporation fourth quarter and full year 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. I would now like to turn the call over to Nick Nelson, Alpha IR Group. Nick, please go ahead.Speaker1Thank you, operator. Good afternoon, everyone, and thank you for ...

Core Insights - Grand Canyon Education, Inc. reported a 5.8% increase in adjusted EBITDA to $123.3 million for Q4 2025 compared to $116.6 million in Q4 2024 [1] - The company experienced a net income of $86.7 million for Q4 2025, reflecting a 5.9% increase from $81.9 million in Q4 2024 [1] - For the full year 2025, adjusted EBITDA rose by 8.4% to $368.6 million, while net income decreased by 4.4% to $216.2 million compared to 2024 [2] Financial Performance - Q4 2025 diluted net income per share was $3.14, up from $2.84 in Q4 2024, with adjusted diluted net income per share at $3.21 compared to $2.95 [1] - Service revenue for Q4 2025 was $308.1 million, a 5.3% increase from $292.6 million in Q4 2024, driven by a 7.1% rise in university partner enrollments [1][2] - For the full year 2025, service revenue reached $1,106.1 million, marking a 7.1% increase from $1,033.0 million in 2024 [2] Enrollment Growth - Grand Canyon University (GCU) enrollments increased to 131,826 as of December 31, 2025, a 7.0% rise from the previous year [1] - Off-campus classroom and laboratory site enrollments grew by 16.6% to 5,738, with GCU online enrollments increasing by 8.7% to 107,148 [1] Tax and Operating Income - Income tax expense for Q4 2025 was $25.0 million, a 13.5% increase from $22.1 million in Q4 2024, with an effective tax rate of 22.4% [1] - Operating income for Q4 2025 was $108.1 million, an 8.1% increase from $100.0 million in Q4 2024, with an operating margin of 35.1% [1] Liquidity and Capital Resources - The company's liquidity position decreased by $24.5 million from December 31, 2024, primarily due to cash used for share repurchases and capital expenditures [2] - Unrestricted cash and cash equivalents were $300.1 million as of December 31, 2025, down from $324.6 million in 2024 [2] 2026 Outlook - For Q1 2026, the company expects diluted EPS between $2.70 and $2.73, with service revenue projected between $307.0 million and $308.0 million [3] - Full year 2026 diluted EPS is anticipated to be between $9.55 and $10.16, with service revenue expected between $1,167.5 million and $1,189.0 million [3]

Group 1: New Supermarket Opening - A new supermarket named "Wanfuxian Life Supermarket" opened in Tiexi District, Shenyang, on February 10, covering an area of 4,000 square meters, providing a new option for residents' New Year shopping [1][3] - The supermarket is not part of a well-known chain but is the first store developed locally in Shenyang, entering the competitive market of the Xinghua Street business district [3][6] - The store offers a wide range of daily necessities, including fresh produce, snacks, household goods, beverages, and staple foods, and has introduced a membership benefit for free parking for three hours to attract customers [3][5] Group 2: Market Competition - Tiexi District is densely populated and has a rich commercial landscape, with intense competition from various supermarkets and convenience stores within a one-kilometer radius of the new supermarket [6][7] - The new supermarket faces significant challenges in establishing itself in a highly competitive retail environment, requiring a clear market positioning and potentially unique product offerings or differentiated service experiences to stand out [6][9] Group 3: Ongoing Commercial Upgrades - The opening of "Wanfuxian Life Supermarket" is part of a broader upgrade of the Tiexi New Mart, which is undergoing renovations to rejuvenate the shopping center and attract more visitors [9] - The renovation includes the introduction of well-known restaurant brands, aiming to revitalize the shopping center and enhance its appeal in a rapidly evolving commercial landscape [9]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Phoenix Education Partners, Inc. due to allegations of materially misleading business information issued to the public [1]. Group 1: Legal Action and Investor Rights - Shareholders who purchased Phoenix Education securities may be entitled to compensation through a contingency fee arrangement, with no out-of-pocket costs [2]. - Rosen Law Firm is preparing a class action to seek recovery of investor losses [2]. Group 2: Data Breach Incident - A significant data breach at the University of Phoenix has affected nearly 3.5 million individuals, with the breach traced back to August 2025 when attackers accessed sensitive information [3]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company and being ranked No. 1 for securities class action settlements in 2017 [3]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [3].

Core Viewpoint - A class action lawsuit has been filed against China Liberal Education Holdings Ltd. for allegedly making materially false and misleading statements during the class period from January 22, 2025, to January 30, 2025, leading to significant investor losses [1][2]. Group 1: Lawsuit Details - The lawsuit is on behalf of all individuals and entities that purchased or acquired China Liberal securities during the specified class period [1]. - Investors have until March 31, 2026, to seek appointments as lead plaintiff in the case [2]. Group 2: Allegations Against the Company - The complaint alleges that individuals impersonating investment advisors on social media platforms fraudulently induced investors to purchase shares of China Liberal stock, which artificially inflated the stock price [6]. - On January 30, 2025, the price of China Liberal stock collapsed, resulting in significant losses for many investors [6]. - There are allegations that executives at China Liberal may have known about or participated in the fraudulent conduct, which raises questions about the accuracy of the company's statements regarding its business and operations [6].

Investment Rating - The report does not explicitly provide an investment rating for the education sector in South Asia. Core Insights - The demographic transition in South Asia presents both challenges and opportunities for the education sector, with a projected decline of about 10% in the under-17 population by 2050, from 634 million in 2020 to 572 million [10] - The potential for reinvesting educational resources is significant, with an average of 0.6 percentage points of GDP available for basic education by 2050, even after achieving universal basic education [4] - The report emphasizes that a shrinking student population does not automatically lead to more efficient spending due to structural and political challenges [4] Summary by Sections Introduction - The demographic transition in South Asia is characterized by a decline in the school-age population, which varies across countries, with some experiencing growth while others face significant declines [10] Education Landscape - South Asia has seen improvements in access to education, with primary school attendance rates exceeding 90% in most countries, but quality remains a challenge, with high rates of learning poverty [11][12] - The region spends an average of only 3.5% of GDP on education, below the recommended 4% to 6% by UNESCO [12] Investment Efficiency - Inefficient allocation of education funds, primarily towards infrastructure and salaries, limits investments in areas that could enhance learning outcomes [14] - Strategic investments are needed to improve educational quality, including targeted campaigns and improved teaching practices [14] Demographic Opportunities - The demographic shift offers a chance to create fiscal space for improving education access and quality, but requires proactive policy choices to realize efficiency gains [15][16] - School consolidation is suggested as a method to manage costs while maintaining quality, though it faces political resistance [20][21] Projections and Scenarios - The report projects public education expenditure as a percentage of GDP from 2020 to 2050 across eight South Asian countries, considering various scenarios related to demographic changes and education system efficiency [23][24] - Four scenarios are analyzed: demographic changes only, universal enrollment by 2050, high-income country expenditure levels, and variable GDP growth rates [28][29] - Under the conservative GDP growth scenario, public expenditure on primary and secondary education could be reinvested to the equivalent of 1.7 percentage points of GDP by 2050 [29]

Core Viewpoint - A class action lawsuit has been filed on behalf of investors who purchased securities of China Liberal Education Holdings Limited (CLEU) during the specified class period from January 22, 2025, to January 30, 2025 [1] Summary by Relevant Sections - The lawsuit is aimed at investors who suffered losses in CLEU, indicating potential legal issues surrounding the company's securities during the class period [1] - Investors have until March 31, 2026, to file a lead plaintiff motion, highlighting the timeline for affected investors to take action [1]

Core Insights - Universal Technical Institute, Inc. reported strong financial performance for Q1 fiscal 2026, with revenue growth and strategic investments supporting future growth targets [1][3][5] Financial Highlights - Revenue reached $220.8 million, a 9.6% increase from $201.4 million in the same period last year [5][6] - Net income was $12.8 million, down from $22.2 million, primarily due to strategic growth expenses [5][6] - Adjusted EBITDA decreased by 23.5% to $27.1 million, attributed to $7.6 million in strategic growth investments [5][6] - Average full-time active students increased by 7.2% to 26,858, with new student starts rising by 2.6% to 5,449 [5][6] Operational Highlights - The company is executing its North Star strategy effectively, with strong performance in key campuses such as Austin, Miramar, Fort Myers, San Antonio, and Atlanta [3][4] - Four new campus locations have been announced, with openings contingent on regulatory approvals [5][6] Strategic Initiatives - The company is enhancing partnerships with policymakers and employers, exemplified by the Heartland Dental co-branded campus, to address the skilled labor gap [4][3] - Fiscal 2026 guidance remains optimistic, with expected revenue between $905 million and $915 million and adjusted EBITDA of approximately $156 million [8] Balance Sheet and Liquidity - As of December 31, 2025, total available liquidity was $233.2 million, including $93.6 million in cash and cash equivalents [9] - Total debt stood at $101.4 million, with $22.2 million in cash capital expenditures primarily for campus and program expansions [9]

Core Insights - Emily L. Nielson, Chief Human Capital Officer for Baltimore City Public Schools, received the 2026 Distinguished Service Award from the Council of the Great City Schools for her contributions to urban education [1][3] Group 1: Achievements and Impact - Since joining Baltimore City Public Schools in 2022, Nielson has led significant improvements in staffing and operational efficiency, serving approximately 75,000 students across 160 schools [2] - Under her leadership, teacher hiring increased by nearly 25% year over year in 2023, and teacher vacancies reached the lowest levels on record in 2025 [2] - Nielson improved hiring processes, reducing offer letter delivery time from three weeks to just three days [2] Group 2: Leadership and Collaboration - Nielson launched the Maryland-Virginia-DC CHRO network to foster regional collaboration among HR leaders of large districts [2] - She was selected for the inaugural cohort of Women Leading Ed Sustained Education Executive Network, highlighting her commitment to leadership in education [2] - Nielson actively participates in monthly Council job-alike meetings, sharing her expertise with HR leaders from urban school districts [3] Group 3: Recognition and Background - The award recognizes Nielson's dedicated service and successful modernization of the human resources department at Baltimore City Public Schools [3] - Nielson holds a Master of Public Policy from Harvard University, focusing on Human Resources, Labor, and Education Policy, and graduated magna cum laude from Harvard College [3]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Phoenix Education Partners, Inc. due to allegations of materially misleading business information issued to the public [1] Group 1: Legal Actions and Investor Rights - Investors who purchased Phoenix Education securities may be entitled to compensation through a contingency fee arrangement, with no out-of-pocket costs [2] - A class action is being prepared by Rosen Law Firm to seek recovery of investor losses [2] Group 2: Data Breach Incident - A major data breach at the University of Phoenix has affected nearly 3.5 million individuals, with the incident traced back to August when sensitive information was stolen [3] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company and being ranked No. 1 for the number of settlements in 2017 [3] - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [3] - Founding partner Laurence Rosen was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020, and many attorneys at the firm have received accolades from Lawdragon and Super Lawyers [3]