Perdoceo Education (NASDAQ:PRDO) said it finished 2025 “on a strong note,” with management pointing to revenue, operating income, and total student enrollment growth that came in ahead of internal expectations. On the company’s fourth-quarter and full-year 2025 earnings call, executives highlighted continued gains in student retention, increased investments in marketing and admissions, and contributions from the University of St. Augustine for Health Sciences acquisition completed in December 2024.
Fourth-quarter results and operational highlights
For the fourth quarter, Perdoceo reported net income of $35.3 million, or $0.54 per diluted share. Adjusted earnings per diluted share increased 20% to $0.59, up from $0.49 in the prior-year quarter, excluding certain non-cash items, management said. Adjusted operating income for the quarter was $51.6 million, compared with $42.7 million a year earlier.
Management also noted ongoing investments in technology, including exploring the use of artificial intelligence as a tool to enhance academic outcomes. At the University of St. Augustine for Health Sciences, Ghia said the institution has continued to expand program offerings by introducing new modalities at current campus locations to provide prospective students with additional flexibility.
Full-year 2025 performance and enrollment trends
For full-year 2025, Perdoceo reported net income of $159.9 million, or $2.42 per diluted share, compared with $147.6 million, or $2.19 per diluted share, in the prior year. Adjusted earnings per diluted share increased 15.5% to $2.61 from $2.26. Operating income increased 12.5% to $196.0 million, while adjusted operating income rose 25.8% to $237.6 million, reflecting the St. Augustine acquisition, organic growth, and “operational efficiencies” at CTU and AIU System, the company said.
Revenue increased 24.2% to $846.1 million, a gain of $164.8 million. Ghia said results included selective investments in marketing, admissions, and personnel, partially offset by lower bad debt expense. Bad debt expense was 3.5% of revenue, down $4.2 million year over year.
On the call, Chief Executive Officer Todd Nelson said Perdoceo’s academic institutions graduated approximately 15,000 students in 2025 and that the company expects to graduate even more students in 2026 as retention remains near multi-year highs.
Total student enrollments at Dec. 31 increased 7.3% from the prior year-end, driven by growth across the company’s academic institutions, according to management. Nelson attributed CTU’s enrollment momentum to continued progress in the corporate student program and strong prospective student interest. He said this marked the ninth consecutive quarter of enrollment growth for CTU.
- AIU System: Total enrollments increased 11.2%, supported in part by an academic session that started in December, according to Ghia.
- CTU: Total enrollments grew 6.6% to a record 30,000 at year-end, supported by retention and engagement, corporate student program expansion, and sustained interest from prospective students.
- University of St. Augustine: The institution ended the fall term with approximately 3,900 students; Nelson said spring term enrollments were trending in line with expectations.
Ghia also cautioned that quarterly enrollment comparability at AIU System is affected by the number of enrollment days and the academic session calendar.
Segment details: CTU, AIU System, and St. Augustine
For CTU, full-year revenue was $461.6 million, up 4.1%, while operating income increased 3.4% to $180.6 million. Ghia said a “significant portion” of the revenue increase was reinvested in faculty, course development, and student support services, along with higher admissions and marketing spend to support future enrollment growth.
In the fourth quarter, CTU revenue rose 2.5% to $114.0 million, while operating income declined by $2.8 million, which management attributed in part to the increased investments and non-recurring compensation-related personnel items during the quarter.
AIU System posted full-year revenue of $226.0 million and operating income of $36.0 million, up 9.8%. For the quarter, revenue was $53.8 million and operating income increased 3.4% to $4.0 million. Ghia said AIU System’s quarterly expenses also included non-recurring compensation-related personnel investments.
At the University of St. Augustine for Health Sciences, Perdoceo reported full-year revenue of $157.6 million. Excluding depreciation and amortization, adjusted operating income was $33.5 million. Ghia said spring term 2026 was “off to a strong start,” and the company expects new enrollment growth for summer and fall terms based on current prospective student interest.
Corporate and other operating losses were $23.8 million for the year, improving from $30.5 million in the prior year, which Ghia attributed primarily to lower acquisition-related expenses.
Capital allocation, taxes, and balance sheet
Perdoceo emphasized a “balanced” capital allocation approach. During 2025, the company repurchased 4.1 million shares for $120.8 million and paid $36.9 million in dividends, returning $157.6 million to shareholders in total. In the fourth quarter alone, it repurchased 1.8 million shares for $54.1 million, bringing the average repurchase price for the year to $29.17 per share. Management said the board approved a new share repurchase authorization of up to $100 million.
The board also declared a quarterly dividend of $0.15 per share, payable March 13, 2026, to shareholders of record as of March 2, 2026.
On taxes, Ghia said the company recorded a fourth-quarter income tax provision of $12.7 million, resulting in a full-year effective tax rate of 26.3%. Perdoceo expects a 2026 effective tax rate between 23.5% and 24.5%, which management said includes an estimated benefit related to stock-based compensation and the release of previously recorded tax reserves for uncertain tax positions. The company paid $49.3 million in federal, state, and foreign income taxes in 2025.
Net cash provided by operations was $225.2 million in 2025, up from $161.6 million in the prior year, which management attributed primarily to improvement in adjusted operating income. Perdoceo ended the year with $643.5 million in cash, cash equivalents, restricted cash, and available-for-sale short-term investments, up about $51.9 million from the prior year-end. Capital expenditures were $8.6 million in 2025, and the company expects 2026 capital expenditures to be approximately 1.5% of revenue.
2026 outlook: higher adjusted operating income and EPS expected
Looking to 2026, Perdoceo guided for adjusted operating income of $250 million to $263 million, compared with $237.6 million in 2025. Adjusted earnings per diluted share are expected to range from $2.97 to $3.12, versus $2.61 in 2025, representing a 16% increase at the midpoint, according to management.
For the first quarter of 2026, the company expects adjusted operating income of $68 million to $70 million, compared with $63.5 million in the prior-year quarter, and adjusted earnings per diluted share of $0.83 to $0.85, versus $0.70 in the first quarter of 2025.
Ghia said the outlook assumes continued high student retention and engagement, increasing prospective student interest, and ongoing investments in technology, data analytics, real estate, academics, and student support processes. The company also plans to continue expanding corporate student program teams at CTU and AIU System.
On closing remarks, Nelson said he was “very pleased” with 2025 operating and financial performance and said the company’s capital position supports its goal of “sustainable and responsible growth.”
About Perdoceo Education (NASDAQ:PRDO)
Perdoceo Education Corporation (NASDAQ: PRDO) is a for-profit postsecondary education provider offering certificate, associate, bachelor’s and master’s degree programs. The company operates primarily through two brand platforms—Colorado Technical University and American InterContinental University—delivering career-focused education both on campus and online. These programs span fields such as business, information technology, healthcare and criminal justice, targeting working adults seeking to advance or pivot their careers.
With headquarters in Schaumburg, Illinois, Perdoceo serves students across the United States and internationally through its online offerings.
