Financial Data and Key Metrics Changes - On an adjusted constant currency basis, revenue rose 5% from the previous year, with adjusted earnings increasing by 41% to $1.64 compared to $1.16 from the prior year [5][6] - Operating income grew by 39%, and operating expenses increased by less than 1%, resulting in a 400 basis point margin expansion [5][6] Business Line Data and Key Metrics Changes - The Education Technology Services division saw revenue and operating income increase by 46% and 48% year-over-year, reaching $38 million and $16 million, respectively [6] - U.S. higher education revenue grew by 3% from the prior year, driven by higher revenue per student despite a slight decrease in total enrollment [7][9] - The Australia and New Zealand segment experienced a 2% decrease in revenue to $70 million, with operating income declining from $15 million to $13 million [10] Market Data and Key Metrics Changes - Employer-affiliated enrollment in U.S. higher education increased approximately 8% from the prior year, now representing 33% of all U.S. higher education enrollment [7] - The healthcare portfolio within U.S. higher education generated strong total enrollment growth of 7% from the prior year, representing half of all U.S. higher education enrollments [7][8] Company Strategy and Development Direction - The company is focused on leveraging technology to enhance productivity, with an expectation to save upwards of $100 million in operating expenses by the end of 2027 [15][16] - The strategy includes a strong emphasis on employer partnerships and direct-to-consumer offerings, particularly through the Sofia Learning platform [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new student growth in Australia and New Zealand in 2026, anticipating a return to total enrollment growth by the end of that year [19][27] - The company remains confident in achieving its long-term financial targets, with no current indicators suggesting a deviation from the outlined notional model [20] Other Important Information - The company repurchased approximately 429,000 shares for a total of $34 million during the quarter, with $134 million remaining on its share repurchase authorization [10] Q&A Session Summary Question: What drove the healthy revenue per student gain in the quarter? - Management indicated that lower drop rates and higher course enrollments per student contributed to the revenue per student increase, with expectations for continued benefits [14] Question: Can you provide details on the expense reductions in the U.S.? - Management noted an aggressive productivity initiative aimed at reducing operating expenses, with a run rate of approximately $30 million in reductions already achieved [15][16] Question: How are Strayer and Capella performing relative to each other? - Capella has shown stronger growth, while Strayer has faced challenges primarily due to a reduction in non-affiliated students [18] Question: What is the outlook for the Australia and New Zealand segment? - Management expects new student growth in 2026, with hopes for total enrollment growth by the end of that year [19][27] Question: What is the exposure to military and veteran students amid the government shutdown? - Management stated that there has been no significant impact observed, as the company has very few direct military students [30][31]

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]

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]

Financial Data and Key Metrics Changes - SEI's revenue grew by 5% in Q1 2025, with adjusted operating income increasing by 16% [4] - Operating margin increased to 13.6%, and adjusted earnings per share grew 16% to $1.29 compared to $1.11 in Q1 2024 [5] Business Line Data and Key Metrics Changes - Total enrollment in U.S. Higher Education slightly increased, driven by a 7% rise in employer-affiliated enrollment, offset by lower unaffiliated enrollment [5] - U.S. Higher Education revenue grew by 1%, and operating income increased by 7% from the previous year [6] - ANZ total enrollment decreased by 1%, primarily due to lower international enrollment related to regulatory changes [6] - ANZ revenue increased by 6% on a constant currency basis, driven by pricing, despite reporting an operating loss of $2.2 million [7][8] - Education Technology Services (ETS) segment revenue grew by 45%, with operating income increasing by 37% [9] Market Data and Key Metrics Changes - The percentage of total U.S. higher education enrollment from corporate partnerships reached 31%, an increase of 200 basis points from the prior year [6] - Enrollments in Workforce Edge increased nearly 50%, reaching approximately 2,300 students [10] Company Strategy and Development Direction - The company is focusing on expanding corporate partnerships and deepening relationships in Workforce Edge to drive future growth [15] - There is a strategic shift towards increasing domestic enrollment in Australia and New Zealand [25] Management Comments on Operating Environment and Future Outlook - Management noted that the enrollment slowdown is part of normal cyclicality, with expectations for mid-single-digit growth in the future [14] - Confidence was expressed regarding the performance in 2025 aligning with the notional model outlined at Investor Day [31] 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 [10] Q&A Session Summary Question: U.S. Higher Education enrollment growth has slowed; any specific changes? - Management indicated no changes in marketing or advertising, attributing the slowdown to normal cyclicality [14] Question: What is driving the strong EPS numbers? - The strength in Sofia and increased marketing investments were highlighted as key drivers [17] Question: Comments on persistence rates? - Persistence rates were stable, with slight improvements noted [23] Question: Discussion on international enrollment and domestic growth in ANZ? - Management explained that regulatory changes impacted international enrollment, while domestic marketing efforts have been increased [25][27] Question: Adjusted operating expenses were up; any comments? - Management confirmed that spending plans remain on track, with some timing differences in headcount affecting the first quarter [29] Question: Confidence in revenue growth aligning with the notional model? - Management expressed confidence that revenue growth would align with the 4% to 6% target [39]