Financial Data and Key Metrics Changes - Strategic Education, Inc. reported a revenue growth of 5% in Q1 2025, with adjusted operating income increasing by 16% [5] - The operating margin improved to 13.6%, and adjusted earnings per share rose by 16% to $1.29, compared to $1.11 in Q1 2024 [5] Business Line Data and Key Metrics Changes - U.S. higher education revenue grew by 1%, with operating income increasing by 7% year-over-year [7] - The education technology services (ETS) segment saw a significant revenue growth of 45% and operating income increased by 37%, driven by higher employer-affiliated enrollment and new partnerships [11] - In Australia and New Zealand (ANZ), total enrollment decreased by 1%, but revenue increased by 6% on a constant currency basis, primarily due to pricing [8] Market Data and Key Metrics Changes - Total enrollment in U.S. higher education slightly increased, with employer-affiliated enrollment rising by 7% [6] - In ANZ, international enrollment declined due to regulatory changes, while domestic enrollment grew as part of the strategy to focus on the domestic market [8][31] Company Strategy and Development Direction - The company is focusing on strengthening corporate partnerships and deepening relationships in Workforce Edge to drive future growth [20] - There is a strategic shift towards increasing domestic enrollment in Australia, with enhanced marketing efforts [31] Management's Comments on Operating Environment and Future Outlook - Management noted that the flat enrollment growth in the U.S. is part of normal cyclicality and expects normalization to mid-single digit growth [18] - The company remains confident in achieving its long-term performance goals, including adjusted operating margin expansion in 2025 [40] Other Important Information - The company repurchased approximately 390,000 shares for a total of $32 million during the quarter, with $197 million remaining in share repurchase authorization [13] Q&A Session Summary Question: Concerns about U.S. higher education enrollment growth - Management indicated that the flat growth is part of normal cyclicality and expects mid-single digit growth to return [18][20] Question: Drivers behind strong EPS performance - The strength in Sofia Learning and Workforce Edge partnerships contributed to the solid EPS performance [22][23] Question: International enrollment decline in ANZ - Management explained that new regulations have made it harder for transfer students to enroll, impacting international enrollment [34] Question: Adjusted operating expenses and spending levels - Management confirmed that spending plans remain on track, with some timing differences in headcount affecting Q1 results [37] Question: Domestic versus international enrollment mix in ANZ - Management noted a shift towards more domestic enrollment, with historical trends showing a 50/50 split [45][46] Question: Update on large employer partner launch - The launch has been well-received, with demand running ahead of internal models [49][51]