[10-Q] Perdoceo Education Corporation Quarterly Earnings Report
Q2 2025 snapshot (Perdoceo Education 鈥� PRDO):
- Revenue surged 25.7 % YoY to $209.6 m, aided by the Dec-24 USAHS acquisition (18 % of quarterly sales) and continued growth at legacy units.
- Operating income climbed 11.7 % to $51.4 m; net income up 6.8 % to $41.0 m, delivering diluted EPS of $0.62 versus $0.57.
- YTD revenue $422.6 m (+26 %), net income $84.7 m (+8.8 %). Operating cash flow strengthened to $143.9 m (+55 %).
- Cash, equivalents & short-term investments reached $659.6 m after $46.1 m of buybacks (1.6 m shares) and $17.7 m in dividends; only $1 m remained under the prior $50 m authorization, but a new $75 m program was approved 7/31/25.
- Segment mix: CTU 56 % of revenue, AIUS 26 %, USAHS 18 % (-$2.0 m YTD operating loss during integration).
- Gross deferred revenue rose to $113.6 m, reflecting higher billing and enrollment; allowance for credit losses stable at $42.3 m.
- Balance sheet still debt-light; a $56.8 m failed sale-leaseback created a financing liability. Total cash plus investments exceed all liabilities by ~$675 m.
- Effective tax rate eased to 27.0 % (benefit from stock-comp and reserve releases).
- Regulatory/legal: DOJ False Claims Act suit and new CID remain unresolved; litigation reserve $1.5 m.
Takeaway: Solid top-line growth and cash generation offset margin dilution from USAHS and higher depreciation. Ample liquidity supports continued buybacks and dividends, while integration execution and regulatory outcomes are key watch items.
Riepilogo Q2 2025 (Perdoceo Education 鈥� PRDO):
- I ricavi sono aumentati del 25,7% su base annua, raggiungendo 209,6 milioni di dollari, grazie all'acquisizione di USAHS a dicembre 2024 (che rappresenta il 18% delle vendite trimestrali) e alla crescita continua delle unit脿 legacy.
- L'utile operativo 猫 salito dell'11,7% a 51,4 milioni di dollari; l'utile netto 猫 cresciuto del 6,8% a 41,0 milioni, con un utile diluito per azione di 0,62 dollari rispetto a 0,57 dollari.
- I ricavi da inizio anno ammontano a 422,6 milioni (+26%), l'utile netto a 84,7 milioni (+8,8%). Il flusso di cassa operativo si 猫 rafforzato a 143,9 milioni (+55%).
- La liquidit脿, equivalenti e investimenti a breve termine hanno raggiunto 659,6 milioni di dollari dopo riacquisti per 46,1 milioni (1,6 milioni di azioni) e dividendi per 17,7 milioni; 猫 rimasto solo 1 milione sotto la precedente autorizzazione da 50 milioni, ma 猫 stato approvato un nuovo programma da 75 milioni il 31/07/25.
- Composizione segmenti: CTU 56% dei ricavi, AIUS 26%, USAHS 18% (con una perdita operativa YTD di 2,0 milioni durante l'integrazione).
- Il ricavo differito lordo 猫 salito a 113,6 milioni, riflettendo un aumento di fatturazione e iscrizioni; l'accantonamento per perdite su crediti 猫 stabile a 42,3 milioni.
- Lo stato patrimoniale rimane leggero sul debito; una vendita e riacquisto fallita da 56,8 milioni ha generato una passivit脿 finanziaria. La liquidit脿 totale pi霉 investimenti supera le passivit脿 di circa 675 milioni.
- L'aliquota fiscale effettiva 猫 scesa al 27,0% (beneficio da compensi azionari e rilascio di riserve).
- Aspetti regolatori/legali: la causa DOJ per False Claims Act e il nuovo CID sono ancora irrisolti; riserva per contenziosi pari a 1,5 milioni.
Conclusione: La solida crescita dei ricavi e la generazione di cassa compensano la diluizione dei margini dovuta a USAHS e all鈥檃umento degli ammortamenti. L鈥檃mpia liquidit脿 supporta i riacquisti e i dividendi continui, mentre l鈥檈secuzione dell鈥檌ntegrazione e gli esiti regolatori restano fattori chiave da monitorare.
Resumen Q2 2025 (Perdoceo Education 鈥� PRDO):
- Los ingresos aumentaron un 25,7 % interanual hasta 209,6 millones de d贸lares, impulsados por la adquisici贸n de USAHS en diciembre de 2024 (18 % de las ventas trimestrales) y el crecimiento continuo en las unidades heredadas.
- El ingreso operativo subi贸 un 11,7 % hasta 51,4 millones; la utilidad neta creci贸 un 6,8 % hasta 41,0 millones, con ganancias diluidas por acci贸n de 0,62 d贸lares frente a 0,57 d贸lares.
- Los ingresos acumulados del a帽o alcanzaron 422,6 millones (+26 %), la utilidad neta 84,7 millones (+8,8 %). El flujo de caja operativo se fortaleci贸 a 143,9 millones (+55 %).
- El efectivo, equivalentes e inversiones a corto plazo alcanzaron 659,6 millones tras recompras por 46,1 millones (1,6 millones de acciones) y dividendos por 17,7 millones; qued贸 solo 1 mill贸n bajo la autorizaci贸n previa de 50 millones, pero se aprob贸 un nuevo programa de 75 millones el 31/07/25.
- Composici贸n por segmentos: CTU 56 % de los ingresos, AIUS 26 %, USAHS 18 % (p茅rdida operativa acumulada de 2,0 millones durante la integraci贸n).
- Los ingresos diferidos brutos aumentaron a 113,6 millones, reflejando mayor facturaci贸n e inscripciones; la provisi贸n para p茅rdidas crediticias se mantuvo estable en 42,3 millones.
- El balance sigue con poca deuda; una venta con arrendamiento fallida de 56,8 millones gener贸 un pasivo financiero. El efectivo total m谩s inversiones supera todas las obligaciones en aproximadamente 675 millones.
- La tasa efectiva de impuestos baj贸 al 27,0 % (beneficio por compensaci贸n accionaria y liberaci贸n de reservas).
- Regulatorio/legal: la demanda DOJ bajo la Ley de Reclamaciones Falsas y el nuevo CID siguen sin resolverse; reserva para litigios de 1,5 millones.
颁辞苍肠濒耻蝉颈贸苍: El s贸lido crecimiento de ingresos y generaci贸n de efectivo compensan la diluci贸n del margen por USAHS y mayor depreciaci贸n. La amplia liquidez respalda recompras y dividendos continuos, mientras que la ejecuci贸n de la integraci贸n y los resultados regulatorios son aspectos clave a vigilar.
2025雲� 2攵勱赴 鞖旍暯 (Perdoceo Education 鈥� PRDO):
- 毵れ稖鞚� 鞝勲厔 霃欔赴 雽�牍� 25.7% 歃濌皜頃� 2鞏� 960毵� 雼煬搿�, 2024雲� 12鞗� USAHS 鞚胳垬(攵勱赴 毵れ稖鞚� 18%)鞕� 旮办〈 靷梾攵�鞚� 歆�靻� 靹膘灔鞐� 頌橃瀰鞚�.
- 鞓侅梾鞚挫澋鞚� 11.7% 歃濌皜頃� 5,140毵� 雼煬, 靾滌澊鞚奠潃 6.8% 歃濌皜頃� 4,100毵� 雼煬毳� 旮半頄堨溂氅�, 頋劃 欤茧嫻靾滌澊鞚奠潃 0.62雼煬搿� 鞝勲厔 0.57雼煬 雽�牍� 靸侅姽.
- 鞐办磮 鞚错泟 毵れ稖鞚� 4鞏� 2,260毵� 雼煬(+26%), 靾滌澊鞚奠潃 8.8% 歃濌皜頃� 8,470毵� 雼煬. 鞓侅梾 順勱笀 頋愲鞚� 55% 歃濌皜頃� 1鞏� 4,390毵� 雼煬搿� 臧曧檾霅�.
- 順勱笀, 順勱笀靹� 鞛愳偘 氚� 雼赴 韴瀽旮堨潃 6鞏� 5,960毵� 雼煬鞐� 霃勲嫭頄堨溂氅�, 4,610毵� 雼煬(160毵� 欤�) 鞛愳偓欤� 毵れ瀰瓿� 1,770毵� 雼煬 氚半嫻旮� 歆�旮� 頉勳棎霃� 鞛旍暋 鞙犾. 鞚挫爠 5,000毵� 雼煬 鞀轨澑 頃滊弰 欷� 100毵� 雼煬毵� 雮晿鞙茧倶, 2025雲� 7鞗� 31鞚� 鞁犼窚 7,500毵� 雼煬 頂勲攴鸽灗 鞀轨澑.
- 靷梾 攵�氍� 甑劚: CTU 56%, AIUS 26%, USAHS 18% (韱淀暕 瓿检爼鞐愳劀 鞐办磮 鞚错泟 200毵� 雼煬 鞓侅梾 靻愳嫟 氚滌儩).
- 齑� 鞚挫棸 靾橃澋鞚� 1鞏� 1,360毵� 雼煬搿� 觳惮 氚� 霌彪 歃濌皜 氚橃榿; 雽�靻愳订雼龟笀鞚� 4,230毵� 雼煬搿� 鞎堨爼鞝� 鞙犾.
- 鞛 靸來儨響滊姅 鞐爠頌� 攵�毂勱皜 鞝侅潓; 5,680毵� 雼煬 攴滊 鞁ろ尐頃� 毵り皝 頉� 鞛Μ鞀� 瓯半灅搿� 旮堨湹 攵�毂� 氚滌儩. 齑� 順勱笀 氚� 韴瀽鞎§澊 氇摖 攵�毂勲ゼ 鞎� 6鞏� 7,500毵� 雼煬 齑堦臣.
- 鞙犿毃 靹胳湪鞚� 27.0%搿� 鞕勴檾霅�(欤检嫕 氤挫儊 氚� 欷�牍勱笀 頃挫牅搿� 鞚疙暅 順滍儩).
- 攴滌牅/氩曥爜 靷暛: DOJ 項堨渼 觳惮氩� 靻岇啞瓿� 鞁犼窚 CID電� 鞎勳 頃搓舶霅橃 鞎婌晿鞙茧┌, 靻岇啞 欷�牍勱笀鞚� 150毵� 雼煬.
鞖旍爯: 瓴碃頃� 毵れ稖 靹膘灔瓿� 順勱笀 彀届稖鞚� USAHS搿� 鞚疙暅 毵堨 頋劃 氚� 臧愱皜靸侁皝 歃濌皜毳� 靸侅噭頃�. 於╇秳頃� 鞙犽彊靹膘溂搿� 鞛愳偓欤� 毵れ瀰瓿� 氚半嫻旮� 歆�旮夓潉 歆�靻� 歆�鞗愴晿氅�, 韱淀暕 鞁ろ枆瓿� 攴滌牅 瓴瓣臣臧� 欤检殧 甏�彀� 韽澑韸胳瀯.
R茅sum茅 T2 2025 (Perdoceo Education 鈥� PRDO) :
- Le chiffre d'affaires a bondi de 25,7 % en glissement annuel pour atteindre 209,6 M$, soutenu par l'acquisition de USAHS en d茅cembre 2024 (18 % des ventes trimestrielles) et la croissance continue des unit茅s historiques.
- Le r茅sultat op茅rationnel a augment茅 de 11,7 % pour atteindre 51,4 M$ ; le r茅sultat net a progress茅 de 6,8 % 脿 41,0 M$, avec un BPA dilu茅 de 0,62 $ contre 0,57 $.
- Le chiffre d'affaires cumul茅 depuis le d茅but de l'ann茅e est de 422,6 M$ (+26 %), le r茅sultat net de 84,7 M$ (+8,8 %). Les flux de tr茅sorerie op茅rationnels se sont renforc茅s 脿 143,9 M$ (+55 %).
- La tr茅sorerie, les 茅quivalents et les investissements 脿 court terme ont atteint 659,6 M$ apr猫s 46,1 M$ de rachats d鈥檃ctions (1,6 million d鈥檃ctions) et 17,7 M$ de dividendes ; il ne restait qu鈥�1 M$ sous l鈥檃utorisation pr茅c茅dente de 50 M$, mais un nouveau programme de 75 M$ a 茅t茅 approuv茅 le 31/07/25.
- R茅partition par segment : CTU 56 % du chiffre d鈥檃ffaires, AIUS 26 %, USAHS 18 % (perte op茅rationnelle cumul茅e de 2,0 M$ durant l鈥檌nt茅gration).
- Le revenu diff茅r茅 brut a augment茅 脿 113,6 M$, refl茅tant une facturation et des inscriptions plus 茅lev茅es ; la provision pour pertes sur cr茅dits est stable 脿 42,3 M$.
- Le bilan reste peu endett茅 ; une op茅ration de vente-bailback rat茅e de 56,8 M$ a cr茅茅 un passif financier. La tr茅sorerie totale plus les investissements d茅passent les passifs d鈥檈nviron 675 M$.
- Le taux d鈥檌mposition effectif a diminu茅 脿 27,0 % (b茅n茅fice li茅 脿 la r茅mun茅ration en actions et aux lib茅rations de provisions).
- R茅glementaire/juridique : la poursuite DOJ au titre de la False Claims Act et le nouveau CID restent non r茅solus ; provision pour litiges de 1,5 M$.
Conclusion : La solide croissance du chiffre d鈥檃ffaires et la g茅n茅ration de tr茅sorerie compensent la dilution des marges li茅e 脿 USAHS et 脿 l鈥檃ugmentation des amortissements. Une liquidit茅 abondante soutient les rachats d鈥檃ctions et les dividendes continus, tandis que l鈥檈x茅cution de l鈥檌nt茅gration et les r茅sultats r茅glementaires restent des points cl茅s 脿 surveiller.
Q2 2025 脺berblick (Perdoceo Education 鈥� PRDO):
- Der Umsatz stieg im Jahresvergleich um 25,7 % auf 209,6 Mio. USD, unterst眉tzt durch die 脺bernahme von USAHS im Dezember 2024 (18 % des Quartalsumsatzes) und das anhaltende Wachstum der Bestandsunternehmen.
- Das operative Ergebnis kletterte um 11,7 % auf 51,4 Mio. USD; der Nettogewinn stieg um 6,8 % auf 41,0 Mio. USD, was ein verw盲ssertes Ergebnis je Aktie von 0,62 USD gegen眉ber 0,57 USD bedeutet.
- Der Umsatz seit Jahresbeginn betr盲gt 422,6 Mio. USD (+26 %), der Nettogewinn 84,7 Mio. USD (+8,8 %). Der operative Cashflow verbesserte sich um 55 % auf 143,9 Mio. USD.
- Bargeld, 脛quivalente und kurzfristige Investitionen erreichten 659,6 Mio. USD nach R眉ckk盲ufen im Wert von 46,1 Mio. USD (1,6 Mio. Aktien) und Dividenden von 17,7 Mio. USD; unter der vorherigen Genehmigung von 50 Mio. USD verblieb nur noch 1 Mio. USD, aber ein neues Programm 眉ber 75 Mio. USD wurde am 31.07.25 genehmigt.
- Segmentmix: CTU 56 % des Umsatzes, AIUS 26 %, USAHS 18 % (operativer Verlust seit Jahresbeginn von 2,0 Mio. USD w盲hrend der Integration).
- Die Brutto-aufgeschobenen Einnahmen stiegen auf 113,6 Mio. USD, was h枚here Abrechnungen und Einschreibungen widerspiegelt; die R眉ckstellung f眉r Kreditverluste blieb stabil bei 42,3 Mio. USD.
- Die Bilanz bleibt schuldenarm; ein gescheiterter Sale-and-Leaseback in H枚he von 56,8 Mio. USD f眉hrte zu einer Finanzverbindlichkeit. Gesamtes Bargeld plus Investitionen 眉bersteigen alle Verbindlichkeiten um ca. 675 Mio. USD.
- Der effektive Steuersatz sank auf 27,0 % (Vorteil durch Aktienverg眉tungen und R眉ckstellungen).
- Regulatorisch/rechtlich: DOJ-Klage wegen False Claims Act und neue CID sind noch nicht gel枚st; R眉ckstellung f眉r Rechtsstreitigkeiten betr盲gt 1,5 Mio. USD.
Fazit: Solides Umsatzwachstum und Cashflow kompensieren Margenverw盲sserung durch USAHS und h枚here Abschreibungen. Die gro脽z眉gige Liquidit盲t unterst眉tzt fortgesetzte Aktienr眉ckk盲ufe und Dividenden, w盲hrend die Integration und regulatorische Entwicklungen wichtige Beobachtungspunkte bleiben.
- Revenue growth 25.7 % YoY driven by both organic enrollment and USAHS acquisition.
- Net income up 6.8 % and diluted EPS $0.62, marking the fifth straight quarterly EPS increase.
- Operating cash flow $143.9 m exceeds net income, boosting liquidity to $659.6 m.
- Board authorized new $75 m share-repurchase program after nearly exhausting prior plan.
- Minimal long-term debt; cash and investments comfortably cover all liabilities.
- Operating expenses up 31 % YoY, compressing operating margin from 27.6 % to 24.5 %.
- USAHS posted a $2.0 m YTD operating loss, indicating integration/margin risks.
- $56.8 m failed sale-leaseback liability adds fixed financing cost through 2050.
- Ongoing DOJ False Claims Act litigation and new CID could lead to material penalties or Title IV restrictions.
- Bad-debt expense rose to $13.0 m YTD, reflecting higher credit-loss provisioning.
Insights
TL;DR 鈥� Revenue beats and cash builds; margins tighten, but capital return intact.
Perdoceo posted double-digit revenue and EPS gains despite elevated expenses tied to the USAHS acquisition. Free cash flow conversion remains robust (OCF > net income), and $660 m of liquid assets provides exceptional balance-sheet optionality. Share count fell 1 % YTD and a fresh $75 m authorization signals confidence. Key positives include 26 % YTD revenue growth, 19.6 % net margin and minimal leverage. Offsets are higher depreciation (+230 %) and integration drag that pushed USAHS into a modest loss. Valuation catalysts rest on successful USAHS margin expansion and resolution of DOJ matters. Overall impact viewed as moderately positive for equity holders.
TL;DR 鈥� Strong finances, but legal clouds and sale-leaseback liability temper outlook.
The filing flags persistent regulatory exposure: an active False Claims Act suit and a fresh DOJ CID probing admissions pay and Fast Track credits. Historical precedents indicate settlements can reach eight-figure sums and impose operating restrictions. Litigation reserve is only $1.5 m, suggesting potential under-provisioning. The failed sale-leaseback adds $56.8 m of financing obligations plus interest, marginally increasing fixed-cost leverage. Bad-debt expense also ticked up 8 %. While liquidity is ample, unresolved probes could curtail future cash deployment and affect Title IV eligibility. I classify the disclosure as medium-risk, counter-balancing otherwise healthy fundamentals.
Riepilogo Q2 2025 (Perdoceo Education 鈥� PRDO):
- I ricavi sono aumentati del 25,7% su base annua, raggiungendo 209,6 milioni di dollari, grazie all'acquisizione di USAHS a dicembre 2024 (che rappresenta il 18% delle vendite trimestrali) e alla crescita continua delle unit脿 legacy.
- L'utile operativo 猫 salito dell'11,7% a 51,4 milioni di dollari; l'utile netto 猫 cresciuto del 6,8% a 41,0 milioni, con un utile diluito per azione di 0,62 dollari rispetto a 0,57 dollari.
- I ricavi da inizio anno ammontano a 422,6 milioni (+26%), l'utile netto a 84,7 milioni (+8,8%). Il flusso di cassa operativo si 猫 rafforzato a 143,9 milioni (+55%).
- La liquidit脿, equivalenti e investimenti a breve termine hanno raggiunto 659,6 milioni di dollari dopo riacquisti per 46,1 milioni (1,6 milioni di azioni) e dividendi per 17,7 milioni; 猫 rimasto solo 1 milione sotto la precedente autorizzazione da 50 milioni, ma 猫 stato approvato un nuovo programma da 75 milioni il 31/07/25.
- Composizione segmenti: CTU 56% dei ricavi, AIUS 26%, USAHS 18% (con una perdita operativa YTD di 2,0 milioni durante l'integrazione).
- Il ricavo differito lordo 猫 salito a 113,6 milioni, riflettendo un aumento di fatturazione e iscrizioni; l'accantonamento per perdite su crediti 猫 stabile a 42,3 milioni.
- Lo stato patrimoniale rimane leggero sul debito; una vendita e riacquisto fallita da 56,8 milioni ha generato una passivit脿 finanziaria. La liquidit脿 totale pi霉 investimenti supera le passivit脿 di circa 675 milioni.
- L'aliquota fiscale effettiva 猫 scesa al 27,0% (beneficio da compensi azionari e rilascio di riserve).
- Aspetti regolatori/legali: la causa DOJ per False Claims Act e il nuovo CID sono ancora irrisolti; riserva per contenziosi pari a 1,5 milioni.
Conclusione: La solida crescita dei ricavi e la generazione di cassa compensano la diluizione dei margini dovuta a USAHS e all鈥檃umento degli ammortamenti. L鈥檃mpia liquidit脿 supporta i riacquisti e i dividendi continui, mentre l鈥檈secuzione dell鈥檌ntegrazione e gli esiti regolatori restano fattori chiave da monitorare.
Resumen Q2 2025 (Perdoceo Education 鈥� PRDO):
- Los ingresos aumentaron un 25,7 % interanual hasta 209,6 millones de d贸lares, impulsados por la adquisici贸n de USAHS en diciembre de 2024 (18 % de las ventas trimestrales) y el crecimiento continuo en las unidades heredadas.
- El ingreso operativo subi贸 un 11,7 % hasta 51,4 millones; la utilidad neta creci贸 un 6,8 % hasta 41,0 millones, con ganancias diluidas por acci贸n de 0,62 d贸lares frente a 0,57 d贸lares.
- Los ingresos acumulados del a帽o alcanzaron 422,6 millones (+26 %), la utilidad neta 84,7 millones (+8,8 %). El flujo de caja operativo se fortaleci贸 a 143,9 millones (+55 %).
- El efectivo, equivalentes e inversiones a corto plazo alcanzaron 659,6 millones tras recompras por 46,1 millones (1,6 millones de acciones) y dividendos por 17,7 millones; qued贸 solo 1 mill贸n bajo la autorizaci贸n previa de 50 millones, pero se aprob贸 un nuevo programa de 75 millones el 31/07/25.
- Composici贸n por segmentos: CTU 56 % de los ingresos, AIUS 26 %, USAHS 18 % (p茅rdida operativa acumulada de 2,0 millones durante la integraci贸n).
- Los ingresos diferidos brutos aumentaron a 113,6 millones, reflejando mayor facturaci贸n e inscripciones; la provisi贸n para p茅rdidas crediticias se mantuvo estable en 42,3 millones.
- El balance sigue con poca deuda; una venta con arrendamiento fallida de 56,8 millones gener贸 un pasivo financiero. El efectivo total m谩s inversiones supera todas las obligaciones en aproximadamente 675 millones.
- La tasa efectiva de impuestos baj贸 al 27,0 % (beneficio por compensaci贸n accionaria y liberaci贸n de reservas).
- Regulatorio/legal: la demanda DOJ bajo la Ley de Reclamaciones Falsas y el nuevo CID siguen sin resolverse; reserva para litigios de 1,5 millones.
颁辞苍肠濒耻蝉颈贸苍: El s贸lido crecimiento de ingresos y generaci贸n de efectivo compensan la diluci贸n del margen por USAHS y mayor depreciaci贸n. La amplia liquidez respalda recompras y dividendos continuos, mientras que la ejecuci贸n de la integraci贸n y los resultados regulatorios son aspectos clave a vigilar.
2025雲� 2攵勱赴 鞖旍暯 (Perdoceo Education 鈥� PRDO):
- 毵れ稖鞚� 鞝勲厔 霃欔赴 雽�牍� 25.7% 歃濌皜頃� 2鞏� 960毵� 雼煬搿�, 2024雲� 12鞗� USAHS 鞚胳垬(攵勱赴 毵れ稖鞚� 18%)鞕� 旮办〈 靷梾攵�鞚� 歆�靻� 靹膘灔鞐� 頌橃瀰鞚�.
- 鞓侅梾鞚挫澋鞚� 11.7% 歃濌皜頃� 5,140毵� 雼煬, 靾滌澊鞚奠潃 6.8% 歃濌皜頃� 4,100毵� 雼煬毳� 旮半頄堨溂氅�, 頋劃 欤茧嫻靾滌澊鞚奠潃 0.62雼煬搿� 鞝勲厔 0.57雼煬 雽�牍� 靸侅姽.
- 鞐办磮 鞚错泟 毵れ稖鞚� 4鞏� 2,260毵� 雼煬(+26%), 靾滌澊鞚奠潃 8.8% 歃濌皜頃� 8,470毵� 雼煬. 鞓侅梾 順勱笀 頋愲鞚� 55% 歃濌皜頃� 1鞏� 4,390毵� 雼煬搿� 臧曧檾霅�.
- 順勱笀, 順勱笀靹� 鞛愳偘 氚� 雼赴 韴瀽旮堨潃 6鞏� 5,960毵� 雼煬鞐� 霃勲嫭頄堨溂氅�, 4,610毵� 雼煬(160毵� 欤�) 鞛愳偓欤� 毵れ瀰瓿� 1,770毵� 雼煬 氚半嫻旮� 歆�旮� 頉勳棎霃� 鞛旍暋 鞙犾. 鞚挫爠 5,000毵� 雼煬 鞀轨澑 頃滊弰 欷� 100毵� 雼煬毵� 雮晿鞙茧倶, 2025雲� 7鞗� 31鞚� 鞁犼窚 7,500毵� 雼煬 頂勲攴鸽灗 鞀轨澑.
- 靷梾 攵�氍� 甑劚: CTU 56%, AIUS 26%, USAHS 18% (韱淀暕 瓿检爼鞐愳劀 鞐办磮 鞚错泟 200毵� 雼煬 鞓侅梾 靻愳嫟 氚滌儩).
- 齑� 鞚挫棸 靾橃澋鞚� 1鞏� 1,360毵� 雼煬搿� 觳惮 氚� 霌彪 歃濌皜 氚橃榿; 雽�靻愳订雼龟笀鞚� 4,230毵� 雼煬搿� 鞎堨爼鞝� 鞙犾.
- 鞛 靸來儨響滊姅 鞐爠頌� 攵�毂勱皜 鞝侅潓; 5,680毵� 雼煬 攴滊 鞁ろ尐頃� 毵り皝 頉� 鞛Μ鞀� 瓯半灅搿� 旮堨湹 攵�毂� 氚滌儩. 齑� 順勱笀 氚� 韴瀽鞎§澊 氇摖 攵�毂勲ゼ 鞎� 6鞏� 7,500毵� 雼煬 齑堦臣.
- 鞙犿毃 靹胳湪鞚� 27.0%搿� 鞕勴檾霅�(欤检嫕 氤挫儊 氚� 欷�牍勱笀 頃挫牅搿� 鞚疙暅 順滍儩).
- 攴滌牅/氩曥爜 靷暛: DOJ 項堨渼 觳惮氩� 靻岇啞瓿� 鞁犼窚 CID電� 鞎勳 頃搓舶霅橃 鞎婌晿鞙茧┌, 靻岇啞 欷�牍勱笀鞚� 150毵� 雼煬.
鞖旍爯: 瓴碃頃� 毵れ稖 靹膘灔瓿� 順勱笀 彀届稖鞚� USAHS搿� 鞚疙暅 毵堨 頋劃 氚� 臧愱皜靸侁皝 歃濌皜毳� 靸侅噭頃�. 於╇秳頃� 鞙犽彊靹膘溂搿� 鞛愳偓欤� 毵れ瀰瓿� 氚半嫻旮� 歆�旮夓潉 歆�靻� 歆�鞗愴晿氅�, 韱淀暕 鞁ろ枆瓿� 攴滌牅 瓴瓣臣臧� 欤检殧 甏�彀� 韽澑韸胳瀯.
R茅sum茅 T2 2025 (Perdoceo Education 鈥� PRDO) :
- Le chiffre d'affaires a bondi de 25,7 % en glissement annuel pour atteindre 209,6 M$, soutenu par l'acquisition de USAHS en d茅cembre 2024 (18 % des ventes trimestrielles) et la croissance continue des unit茅s historiques.
- Le r茅sultat op茅rationnel a augment茅 de 11,7 % pour atteindre 51,4 M$ ; le r茅sultat net a progress茅 de 6,8 % 脿 41,0 M$, avec un BPA dilu茅 de 0,62 $ contre 0,57 $.
- Le chiffre d'affaires cumul茅 depuis le d茅but de l'ann茅e est de 422,6 M$ (+26 %), le r茅sultat net de 84,7 M$ (+8,8 %). Les flux de tr茅sorerie op茅rationnels se sont renforc茅s 脿 143,9 M$ (+55 %).
- La tr茅sorerie, les 茅quivalents et les investissements 脿 court terme ont atteint 659,6 M$ apr猫s 46,1 M$ de rachats d鈥檃ctions (1,6 million d鈥檃ctions) et 17,7 M$ de dividendes ; il ne restait qu鈥�1 M$ sous l鈥檃utorisation pr茅c茅dente de 50 M$, mais un nouveau programme de 75 M$ a 茅t茅 approuv茅 le 31/07/25.
- R茅partition par segment : CTU 56 % du chiffre d鈥檃ffaires, AIUS 26 %, USAHS 18 % (perte op茅rationnelle cumul茅e de 2,0 M$ durant l鈥檌nt茅gration).
- Le revenu diff茅r茅 brut a augment茅 脿 113,6 M$, refl茅tant une facturation et des inscriptions plus 茅lev茅es ; la provision pour pertes sur cr茅dits est stable 脿 42,3 M$.
- Le bilan reste peu endett茅 ; une op茅ration de vente-bailback rat茅e de 56,8 M$ a cr茅茅 un passif financier. La tr茅sorerie totale plus les investissements d茅passent les passifs d鈥檈nviron 675 M$.
- Le taux d鈥檌mposition effectif a diminu茅 脿 27,0 % (b茅n茅fice li茅 脿 la r茅mun茅ration en actions et aux lib茅rations de provisions).
- R茅glementaire/juridique : la poursuite DOJ au titre de la False Claims Act et le nouveau CID restent non r茅solus ; provision pour litiges de 1,5 M$.
Conclusion : La solide croissance du chiffre d鈥檃ffaires et la g茅n茅ration de tr茅sorerie compensent la dilution des marges li茅e 脿 USAHS et 脿 l鈥檃ugmentation des amortissements. Une liquidit茅 abondante soutient les rachats d鈥檃ctions et les dividendes continus, tandis que l鈥檈x茅cution de l鈥檌nt茅gration et les r茅sultats r茅glementaires restent des points cl茅s 脿 surveiller.
Q2 2025 脺berblick (Perdoceo Education 鈥� PRDO):
- Der Umsatz stieg im Jahresvergleich um 25,7 % auf 209,6 Mio. USD, unterst眉tzt durch die 脺bernahme von USAHS im Dezember 2024 (18 % des Quartalsumsatzes) und das anhaltende Wachstum der Bestandsunternehmen.
- Das operative Ergebnis kletterte um 11,7 % auf 51,4 Mio. USD; der Nettogewinn stieg um 6,8 % auf 41,0 Mio. USD, was ein verw盲ssertes Ergebnis je Aktie von 0,62 USD gegen眉ber 0,57 USD bedeutet.
- Der Umsatz seit Jahresbeginn betr盲gt 422,6 Mio. USD (+26 %), der Nettogewinn 84,7 Mio. USD (+8,8 %). Der operative Cashflow verbesserte sich um 55 % auf 143,9 Mio. USD.
- Bargeld, 脛quivalente und kurzfristige Investitionen erreichten 659,6 Mio. USD nach R眉ckk盲ufen im Wert von 46,1 Mio. USD (1,6 Mio. Aktien) und Dividenden von 17,7 Mio. USD; unter der vorherigen Genehmigung von 50 Mio. USD verblieb nur noch 1 Mio. USD, aber ein neues Programm 眉ber 75 Mio. USD wurde am 31.07.25 genehmigt.
- Segmentmix: CTU 56 % des Umsatzes, AIUS 26 %, USAHS 18 % (operativer Verlust seit Jahresbeginn von 2,0 Mio. USD w盲hrend der Integration).
- Die Brutto-aufgeschobenen Einnahmen stiegen auf 113,6 Mio. USD, was h枚here Abrechnungen und Einschreibungen widerspiegelt; die R眉ckstellung f眉r Kreditverluste blieb stabil bei 42,3 Mio. USD.
- Die Bilanz bleibt schuldenarm; ein gescheiterter Sale-and-Leaseback in H枚he von 56,8 Mio. USD f眉hrte zu einer Finanzverbindlichkeit. Gesamtes Bargeld plus Investitionen 眉bersteigen alle Verbindlichkeiten um ca. 675 Mio. USD.
- Der effektive Steuersatz sank auf 27,0 % (Vorteil durch Aktienverg眉tungen und R眉ckstellungen).
- Regulatorisch/rechtlich: DOJ-Klage wegen False Claims Act und neue CID sind noch nicht gel枚st; R眉ckstellung f眉r Rechtsstreitigkeiten betr盲gt 1,5 Mio. USD.
Fazit: Solides Umsatzwachstum und Cashflow kompensieren Margenverw盲sserung durch USAHS und h枚here Abschreibungen. Die gro脽z眉gige Liquidit盲t unterst眉tzt fortgesetzte Aktienr眉ckk盲ufe und Dividenden, w盲hrend die Integration und regulatorische Entwicklungen wichtige Beobachtungspunkte bleiben.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark one)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE QUARTERLY PERIOD ENDED
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE TRANSITION PERIOD FROM TO
Commission File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report: N/A
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company, as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No
Number of shares of registrant’s common stock, par value $0.01, outstanding as of July 25, 2025:
PERDOCEO EDUCATION CORPORATION
FORM 10-Q
TABLE OF CONTENTS
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PART I—FINANCIAL INFORMATION |
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Item 1. |
Financial Statements |
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Condensed Consolidated Balance Sheets |
1 |
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Condensed Consolidated Statements of Income (Unaudited) |
2 |
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Condensed Consolidated Statements of Comprehensive Income (Unaudited) |
2 |
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Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) |
3 |
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Condensed Consolidated Statements of Cash Flows (Unaudited) |
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Notes to Unaudited Condensed Consolidated Financial Statements |
5 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
19 |
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Item 3. |
Quantitative and Qualitative Disclosures about Market Risk |
29 |
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Item 4. |
Controls and Procedures |
30 |
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PART II—OTHER INFORMATION |
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Item 1. |
Legal Proceedings |
31 |
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Item 1A. |
Risk Factors |
31 |
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
31 |
Item 5. |
Other Information |
31 |
Item 6. |
Exhibits |
32 |
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SIGNATURES |
34 |
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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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June 30, |
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December 31, |
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(In Thousands, Except Share and Per Share Amounts) |
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2025 |
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2024 |
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ASSETS |
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(unaudited) |
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CURRENT ASSETS: |
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Cash and cash equivalents, unrestricted |
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$ |
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Restricted cash |
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Total cash, cash equivalents and restricted cash |
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Short-term investments |
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Total cash and cash equivalents, restricted cash and short-term investments |
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Student receivables, gross |
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Allowance for credit losses |
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Student receivables, net |
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Receivables, other |
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Prepaid expenses |
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Inventories |
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Other current assets |
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Total current assets |
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NON-CURRENT ASSETS: |
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Property and equipment, net of accumulated depreciation of $ |
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Right of use asset, net - operating |
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Right of use asset, net - finance |
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Goodwill |
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Intangible assets, net of amortization of $ |
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Student receivables, gross |
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Allowance for credit losses |
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Student receivables, net |
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Deferred income tax assets, net |
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Other assets |
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TOTAL ASSETS |
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$ |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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CURRENT LIABILITIES: |
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Lease liability-finance |
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Accounts payable |
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Accrued expenses: |
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Payroll and related benefits |
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Advertising and marketing costs |
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Income taxes |
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Other |
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Deferred revenue |
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Total current liabilities |
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NON-CURRENT LIABILITIES: |
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Lease liability-operating |
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Lease liability-finance |
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Sale lease-back financing |
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Construction financing |
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Other liabilities |
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Total non-current liabilities |
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(Note 9) |
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STOCKHOLDERS' EQUITY: |
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stock, $ |
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Common stock, $ |
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Accumulated other comprehensive income |
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Retained earnings |
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Treasury stock, at cost; |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
1
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
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For the Quarter Ended June 30, |
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For the Year to Date Ended June 30, |
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(In Thousands, Except Per Share Amounts) |
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2025 |
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2024 |
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2024 |
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REVENUE: |
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Tuition and fees, net |
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Other |
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Total revenue |
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OPERATING EXPENSES: |
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Educational services and facilities |
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General and administrative |
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Depreciation and amortization |
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Asset impairment |
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Total operating expenses |
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Operating income |
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OTHER INCOME: |
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Interest income |
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Interest expense |
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( |
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Miscellaneous (expense) income |
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Total other income |
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PRETAX INCOME |
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Provision for income taxes |
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NET INCOME |
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NET INCOME PER SHARE - BASIC: |
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$ |
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$ |
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$ |
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$ |
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NET INCOME PER SHARE - DILUTED: |
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$ |
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$ |
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$ |
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$ |
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WEIGHTED AVERAGE SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
|
|
For the Quarter Ended June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||
(In Thousands) |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
NET INCOME |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustments |
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Unrealized gain (loss) on investments |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Total other comprehensive income (loss) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
COMPREHENSIVE INCOME |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(UNAUDITED)
|
|
Common Stock |
|
|
Treasury Stock |
|
|
|
|
|
Accumulated Other |
|
|
|
|
|
|
|
||||||||||||||
(In Thousands) |
|
Issued Shares |
|
|
$0.01 Par |
|
|
Purchased Shares |
|
|
Cost |
|
|
Additional Paid-in Capital |
|
|
Comprehensive Income |
|
|
Retained Earnings |
|
|
Total |
|
||||||||
BALANCE, April 1, 2025 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Net income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
||
Unrealized gain on investments, net of tax |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
||
Dividends to shareholders, per share $ |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
Treasury stock purchased |
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
Share-based compensation expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
||
Common stock issued |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|||
BALANCE, June 30, 2025 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Common Stock |
|
|
Treasury Stock |
|
|
|
|
|
Accumulated Other |
|
|
|
|
|
|
|
||||||||||||||
(In Thousands) |
|
Issued Shares |
|
|
$0.01 Par |
|
|
Purchased Shares |
|
|
Cost |
|
|
Additional Paid-in Capital |
|
|
Comprehensive Loss |
|
|
Retained Earnings |
|
|
Total |
|
||||||||
BALANCE, April 1, 2024 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||
Net income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
||
Foreign currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Unrealized loss on investments, net of tax |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Dividends to shareholders, per share $ |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
Share-based compensation expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
||
Common stock issued |
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
||||
BALANCE, June 30, 2024 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Common Stock |
|
|
Treasury Stock |
|
|
|
|
|
Accumulated Other |
|
|
|
|
|
|
|
||||||||||||||
(In Thousands) |
|
Issued Shares |
|
|
$0.01 Par |
|
|
Purchased Shares |
|
|
Cost |
|
|
Additional Paid-in Capital |
|
|
Comprehensive Income |
|
|
Retained Earnings |
|
|
Total |
|
||||||||
BALANCE, January 1, 2025 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Net income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
||
Unrealized gain on investments, net of tax |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
||
Dividends to shareholders, per share $ |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
Treasury stock purchased |
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
Earnout payments for business acquisition |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|||
Share-based compensation expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
||
Common stock issued |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|||
BALANCE, June 30, 2025 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Common Stock |
|
|
Treasury Stock |
|
|
|
|
|
Accumulated Other |
|
|
|
|
|
|
|
||||||||||||||
(In Thousands) |
|
Issued Shares |
|
|
$0.01 Par |
|
|
Purchased Shares |
|
|
Cost |
|
|
Additional Paid-in Capital |
|
|
Comprehensive Loss |
|
|
Retained Earnings |
|
|
Total |
|
||||||||
BALANCE, January 1, 2024 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||
Net income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
||
Foreign currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Unrealized loss on investments, net of tax |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Dividends to shareholders, per share $ |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
Treasury stock purchased |
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
Share-based compensation expense |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|||
Common stock issued |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|||
BALANCE, June 30, 2024 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
For the Year to Date Ended June 30, |
|
|||||
(In Thousands) |
|
2025 |
|
|
2024 |
|
||
|
|
|
|
|
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
|
|
$ |
|
||
Adjustments to reconcile net income to net |
|
|
|
|
|
|
||
cash provided by operating activities: |
|
|
|
|
|
|
||
Asset impairment |
|
|
- |
|
|
|
|
|
Depreciation and amortization expense |
|
|
|
|
|
|
||
Bad debt expense |
|
|
|
|
|
|
||
Compensation expense related to share-based awards |
|
|
|
|
|
|
||
Deferred income taxes |
|
|
- |
|
|
|
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
( |
) |
|
Net cash provided by operating activities |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchases of available-for-sale investments |
|
|
( |
) |
|
|
( |
) |
Sales of available-for-sale investments |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
( |
) |
|
|
( |
) |
Business acquisition |
|
|
|
|
|
- |
|
|
Net cash used in investing activities |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Issuance of common stock |
|
|
|
|
|
|
||
Purchase of treasury stock |
|
|
( |
) |
|
|
( |
) |
Payments of employee tax associated with stock compensation |
|
|
( |
) |
|
|
( |
) |
Payments of cash dividends and dividend equivalents |
|
|
( |
) |
|
|
( |
) |
Earnout payments for business acquisition |
|
|
( |
) |
|
|
- |
|
Principal payments for finance lease |
|
|
( |
) |
|
|
- |
|
Principal payments for failed sale leaseback |
|
|
( |
) |
|
|
- |
|
Net cash used in financing activities |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
|
|
|
|
||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period |
|
|
|
|
|
|
||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. DESCRIPTION OF THE COMPANY
Perdoceo’s accredited academic institutions offer a quality postsecondary education to a diverse student population, with fully online, campus-based and hybrid learning programs. The Company’s academic institutions – Colorado Technical University (“CTU”), the American InterContinental University System (“AIUS” or “AIU System”) and University of St. Augustine for Health Sciences ("USAHS") – provide degree programs from the associate through doctoral level as well as non-degree seeking and professional development programs. Our academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. USAHS prepares medical professionals to provide quality medical care to communities across the country primarily through its graduate health sciences degree offerings in physical therapy, occupational therapy, speech language therapy and nursing, as well as continuing education programs. Perdoceo's academic institutions are committed to providing quality education that closes the gap between learners who seek to advance their careers and employers and communities needing a qualified workforce.
As used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “the Company,” “Perdoceo” and “PEC” refer to Perdoceo Education Corporation and our wholly-owned subsidiaries.
2. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the rules and regulations for reporting the Quarterly Report on Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated balance sheet at December 31, 2024 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. This report should be read in conjunction with our 2024 Form 10-K. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation.
Operating results for the quarter and year to date ended June 30, 2025 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025.
On December 2, 2024, the Company acquired the University of St. Augustine for Health Sciences (the "USAHS acquisition"). Results of operations related to the USAHS acquisition are included in the consolidated financial statements from the date of acquisition. See Note 3 "Business Acquisition" for further information.
The unaudited condensed consolidated financial statements presented herein include the accounts of Perdoceo Education Corporation and our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.
Our reporting segments are determined in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280 – Segment Reporting and are based upon how the Company analyzes performance and makes decisions. Each segment represents a postsecondary education provider that offers a variety of academic programs. We organize our business across
3. BUSINESS ACQUISITION
On December 2, 2024, the Company completed the acquisition of the University of St. Augustine for Health Sciences ("USAHS").
USAHS is among the nation’s reputable universities offering graduate health sciences degrees, primarily in physical therapy, occupational therapy, speech language therapy and nursing, as well as continuing education programs. Founded in 1979, USAHS educates students through its network of campuses in San Marcos, California; St. Augustine and Miami, Florida; and Austin and Dallas, Texas and through its online programs.
The purchase price of $
5
inherent value of the acquired workforce as well as revenue growth opportunities following the acquisition. All of this goodwill balance will not be deductible for income tax reporting purposes. Management's purchase price allocation is provisional as the fair value of deferred tax assets are still being finalized, primarily due to the timing of the acquisition which occurred in December 2024.
The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of acquisition date (dollars in thousands):
|
|
USAHS |
|
|
|
|
December 2, 2024 |
|
|
Assets: |
|
|
|
|
Student and other receivables |
|
$ |
|
|
Prepaid assets |
|
|
|
|
Property, plant and equipment |
|
|
|
|
ROU assets |
|
|
|
|
Intangible assets |
|
|
|
|
Trade name (indefinite-lived) |
|
|
|
|
Customer relationships ( |
|
|
|
|
Course curriculum ( |
|
|
|
|
Accreditation rights ( |
|
|
|
|
Deferred tax asset, net |
|
|
|
|
Other assets |
|
|
|
|
Goodwill |
|
|
|
|
Total assets acquired |
|
$ |
|
|
Liabilities: |
|
|
|
|
Accounts payable and other accrued liabilities |
|
$ |
|
|
Deferred revenue |
|
|
|
|
Lease liabilities |
|
|
|
|
Construction financing |
|
|
|
|
Total liabilities assumed |
|
$ |
|
|
|
|
|
|
|
Net assets acquired |
|
$ |
|
|
4. RECENT ACCOUNTING PRONOUNCEMENTS
Recent accounting guidance adopted in 2025
In December 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities on an annual basis 1) disclose specific categories in the rate reconciliation, and 2) provide additional information for reconciling items that meet a quantitative threshold. The amendments require disclosure about income taxes paid by federal, state and foreign taxes, and by individual jurisdictions in which income taxes paid is equal or greater than 5 percent of total income taxes paid. The amendment also requires entities to disclose income or loss from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense or benefit from continuing operations disaggregated by federal, state and foreign. For all public business entities, ASU 2023-09 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. We have evaluated and adopted this guidance. The adoption did not significantly impact the presentation of our financial condition, results of operations and disclosures.
In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. For all public business entities, ASU 2022-03 is effective for annual periods and interim periods beginning after December 15, 2024; early adoption is permitted. We have evaluated and adopted this guidance. The adoption did not significantly impact the presentation of our financial condition, results of operations and disclosures.
6
5. FINANCIAL INSTRUMENTS
Investments consist of the following as of June 30, 2025 and December 31, 2024 (dollars in thousands):
|
|
June 30, 2025 |
|
|||||||||||||
|
|
|
|
|
Gross Unrealized |
|
|
|
|
|||||||
|
|
Cost |
|
|
Gain |
|
|
(Loss) |
|
|
Fair Value |
|
||||
Short-term investments (available-for-sale): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-governmental debt securities |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Treasury and federal agencies |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Total short-term investments (available-for-sale) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
|
|
December 31, 2024 |
|
|||||||||||||
|
|
|
|
|
Gross Unrealized |
|
|
|
|
|||||||
|
|
Cost |
|
|
Gain |
|
|
(Loss) |
|
|
Fair Value |
|
||||
Short-term investments (available-for-sale): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-governmental debt securities |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Treasury and federal agencies |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Total short-term investments (available-for-sale) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
In the table above, unrealized holding gains (losses) relate to short-term investments that have been in a continuous unrealized gain (loss) position for less than
Our non-governmental debt securities primarily consist of corporate bonds, certificates of deposit and commercial paper. Our treasury and federal agencies primarily consist of U.S. Treasury bills and federal home loan debt securities.
There were
Fair Value Measurements
FASB ASC Topic 820 – Fair Value Measurement establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.
As of June 30, 2025, we held investments that are required to be measured at fair value on a recurring basis. These investments (available-for-sale) consist of non-governmental debt securities and treasury and federal agencies securities. Available-for-sale securities included in Level 2 are estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for identical or similar assets or liabilities in inactive markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Financial instruments measured at fair value on a recurring basis subject to the disclosure requirements of FASB ASC Topic 820 - Fair Value Measurements at June 30, 2025 and December 31, 2024 were as follows (dollars in thousands):
|
|
As of June 30, 2025 |
|
|||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Total |
|
|||
Cash and cash equivalents - money market funds |
|
$ |
|
|
$ |
- |
|
|
$ |
|
||
Cash and cash equivalents - commercial paper |
|
|
- |
|
|
|
|
|
|
|
||
Short-term investments - non-governmental debt securities |
|
|
- |
|
|
|
|
|
|
|
||
Short-term investments - treasury and federal agencies |
|
|
- |
|
|
|
|
|
|
|
||
Totals |
|
$ |
|
|
$ |
|
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
|
|
As of December 31, 2024 |
|
|||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Total |
|
|||
Cash and cash equivalents - money market funds |
|
$ |
|
|
$ |
- |
|
|
$ |
|
||
Cash and cash equivalents - federal agency debt securities |
|
|
- |
|
|
|
|
|
|
|
||
Short-term investments - non-governmental debt securities |
|
|
- |
|
|
|
|
|
|
|
||
Short-term investments - treasury and federal agencies |
|
|
- |
|
|
|
|
|
|
|
||
Totals |
|
$ |
|
|
$ |
|
|
$ |
|
|||
7
Equity Method Investment
We make periodic operating maintenance payments to an equity affiliate. The total fees recorded during the quarters and years to date ended June 30, 2025 and 2024 were as follows (dollars in thousands):
|
Maintenance Fee Payments |
|
|
For the quarter ended June 30, 2025 |
$ |
|
|
For the quarter ended June 30, 2024 |
$ |
|
|
For the year to date ended June 30, 2025 |
$ |
|
|
For the year to date ended June 30, 2024 |
$ |
|
|
6. REVENUE RECOGNITION
Disaggregation of Revenue
The following tables disaggregate our revenue by major source for the quarters and years to date ended June 30, 2025 and 2024 (dollars in thousands):
|
|
For the Quarter Ended June 30, 2025 |
|
|
For the Quarter Ended June 30, 2024 |
|
||||||||||||||||||||||||||||||||||
|
|
CTU |
|
|
AIUS |
|
|
USAHS (3) |
|
|
Corporate and Other |
|
|
Total |
|
|
CTU |
|
|
AIUS |
|
|
USAHS (3) |
|
|
Corporate and Other |
|
|
Total |
|
||||||||||
Tuition and fees, net (1) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
|
|||||||
Other revenue (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|||||||||
Total revenue |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
|
$ |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
For the Year to Date Ended June 30, 2025 |
|
|
For the Year to Date Ended June 30, 2024 |
|
||||||||||||||||||||||||||||||||||
|
|
CTU |
|
|
AIUS |
|
|
USAHS (3) |
|
|
Corporate and Other |
|
|
Total |
|
|
CTU |
|
|
AIUS |
|
|
USAHS (3) |
|
|
Corporate and Other |
|
|
Total |
|
||||||||||
Tuition and fees, net (1) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
|
|||||||
Other revenue (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|||||||||
Total revenue |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
|
$ |
|
|||||||||
__________________
Performance Obligations
Our revenue, which is derived primarily from academic programs taught to students who attend our universities, is generally segregated into two categories: (1) tuition and fees, and (2) other. Tuition and fees represent costs to our students for educational services provided by our universities and are reflected net of scholarships and tuition discounts. Our universities charge tuition and fees at varying amounts and bill students a single charge that covers tuition, certain fees and required program materials, such as textbooks and supplies, which we treat as a single performance obligation. Generally, we bill student tuition at the beginning of each academic term for our degree programs and recognize the tuition as revenue on a straight-line basis over the academic term. As part of a student’s course of instruction, certain fees, such as technology fees and graduation fees, are billed separately to students. These fees are generally earned over the applicable term and are not considered separate performance obligations. We generally bill student tuition upon enrollment for our non-degree professional development programs and recognize the tuition as revenue on a straight-line basis over the length of the offering.
Other revenue, which primarily consists of contract training revenue and miscellaneous non-student related revenue, is billed and recognized as goods are delivered or services are performed.
8
Contract Assets
For each term, the portion of tuition and fee payments received from students but not yet earned is recorded as deferred revenue and reported as a current liability on our condensed consolidated balance sheets, as we expect to earn these revenues within the next year. A contract asset is recorded for each student for the current term for which they are enrolled for the amount charged for the current term that has not yet been received as payment and to which we do not have the unconditional right to receive payment because the student has not reached the point in the student’s current academic term at which the amount billed is no longer refundable to the student. On a student by student basis, the contract asset is offset against the deferred revenue balance for the current term and the net deferred revenue balance is reflected within current liabilities on our condensed consolidated balance sheets. For certain of our institutions, students are billed as they enroll in courses, including courses related to future periods. Any billings for future periods would meet the definition of a contract asset as we do not have the unconditional right to receive payment as the course has not yet started. Contract assets related to future periods are offset against the respective deferred revenue associated with the future period.
Due to the short-term nature of our academic terms, the contract asset balance which exists at the beginning of each quarter will no longer be a contract asset at the end of that quarter, with the exception of the contract assets associated with future periods. The decrease in contract asset balances are a result of one of the following: it becomes a student receivable balance once a student reaches the point in a student’s academic term where the amount billed is no longer refundable to the student; a refund is made to withdrawn students for the portion entitled to be refunded under each institutions’ refund policy; we receive funds to apply against the contract asset balance; or a student makes a change to the number of classes they are enrolled in which may cause an adjustment to their previously billed amount. As of the end of each quarter, a new contract asset is determined on a student by student basis based on the most recently started term and a student’s progress within that term as compared to the date at which the student is no longer entitled to a refund under each institution’s refund policy. Contract assets associated with future periods remain as contract assets until the course begins and the student reaches the point in that course that they are no longer entitled to a refund.
The amount of deferred revenue balances which are being offset with contract assets balances as of June 30, 2025 and December 31, 2024 were as follows (dollars in thousands):
|
|
As of |
|
|||||
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
||
Gross deferred revenue |
|
$ |
|
|
$ |
|
||
Gross contract assets |
|
|
( |
) |
|
|
( |
) |
Deferred revenue, net |
|
$ |
|
|
$ |
|
||
Deferred Revenue
Changes in our deferred revenue balances for the quarters and years to date ended June 30, 2025 and 2024 were as follows (dollars in thousands):
|
|
For the Quarter Ended June 30, 2025 |
|
|
For the Quarter Ended June 30, 2024 |
|
||||||||||||||||||||||||||
|
|
CTU |
|
|
AIUS |
|
|
USAHS (2) |
|
|
Total |
|
|
CTU |
|
|
AIUS |
|
|
USAHS (2) |
|
|
Total |
|
||||||||
Gross deferred revenue, April 1 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
|||||||
Revenue earned from prior balances |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Billings during period(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|||||||
Revenue earned for new billings during the period |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Other adjustments |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
||||||
Gross deferred revenue, June 30 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the Year to Date Ended June 30, 2025 |
|
|
For the Year to Date Ended June 30, 2024 |
|
||||||||||||||||||||||||||
|
|
CTU |
|
|
AIUS |
|
|
USAHS (2) |
|
|
Total |
|
|
CTU |
|
|
AIUS |
|
|
USAHS (2) |
|
|
Total |
|
||||||||
Gross deferred revenue, January 1 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
|||||||
Revenue earned from prior balances |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Billings during period(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|||||||
Revenue earned for new billings during the period |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Other adjustments |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
- |
|
|
|
|
||||
Gross deferred revenue, June 30 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
|||||||
______________
9
Tuition Refunds
If a student withdraws from one of our academic institutions prior to the completion of the academic term, we refund the portion of tuition and fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded to a student is calculated based upon the percent of the term attended and the amount of tuition and fees paid by the student as of their withdrawal date. In certain circumstances, we have recognized revenue for students who have withdrawn that we are not entitled to retain. We have estimated a reserve for these limited circumstances based on historical evidence in the amount of $
7. STUDENT RECEIVABLES
Student receivables represent funds owed to us in exchange for the educational services provided to a student. Student receivables are reflected net of an allowance for credit losses at the end of the reporting period. Student receivables, net, are reflected on our condensed consolidated balance sheets as components of both current and non-current assets.
Our students pay for their costs through a variety of funding sources, including federal loan and grant programs, institutional payment plans, employer tuition assistance, Veterans’ Administration and other military funding and grants, private and institutional scholarships and cash payments, as well as private loans. Cash receipts from government related sources are typically received during the current academic term. We typically receive funds after the end of an academic term for students who receive employer tuition assistance. Students who have not applied for any type of financial aid or students whose financial aid may not fully cover the cost of their tuition and fees generally set up a payment plan with the institution and make payments on a monthly basis per the terms of the payment plan. For those balances that are not received during the academic term, the balance is typically due within the current academic year which is approximately
Our standard student receivable allowance is based on an estimate of lifetime expected credit losses for student receivables. Our estimation methodology considers a number of quantitative and qualitative factors that, based on our collection experience, we believe have an impact on our repayment risk and ability to collect student receivables. Changes in the trends in any of these factors may impact our estimate of the allowance for credit losses. These factors include, but are not limited to: internal repayment history, changes in the current economic, legislative or regulatory environments, internal cash collection forecasts and the ability to complete the federal financial aid process with the student. These factors are monitored and assessed on a regular basis. Overall, our allowance estimation process for student receivables is validated by trend analysis of our collections and write-off experience as well as monitoring any emerging factors that we believe impact the ability to collect our student receivables.
We have student receivables that are due greater than 12 months from the date of our condensed consolidated balance sheets. As of June 30, 2025 and December 31, 2024, the amount of non-current student receivables under payment plans that are longer than 12 months in duration, net of allowance for credit losses, was $
Allowance for Credit Losses
We define student receivables as a portfolio segment under ASC Topic 326 – Financial Instruments – Credit Losses. Changes in our current and non-current allowance for credit losses related to our student receivable portfolio in accordance with the guidance under ASU 2016-13 for the quarters and years to date ended June 30, 2025 and 2024 were as follows (dollars in thousands):
|
|
For the Quarter Ended June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Balance, beginning of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Provision for credit losses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amounts written-off |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Recoveries |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance, end of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
10
Fair Value Measurements
The carrying amount reported in our consolidated balance sheets for the current portion of student receivables approximates fair value because of the nature of these financial instruments as they generally have short maturity periods. It is not practicable to estimate the fair value of the non-current portion of student receivables, since observable market data is not readily available, and no reasonable estimation methodology exists.
8. LEASES
We lease most of our administrative and educational facilities under non-cancelable operating or finance leases expiring at various dates through
We determine if a contract contains a lease when the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Upon identification and commencement of a lease, we establish a right of use (“ROU”) asset and a lease liability.
Quantitative information related to leases is presented in the following table (dollars in thousands):
11
|
For the Quarter Ended June 30, 2025 |
|
For the Quarter Ended June 30, 2024 |
|
||
Lease expenses (1) |
|
|
|
|
||
Operating fixed lease expenses |
$ |
|
$ |
|
||
Finance lease and failed sale leaseback amortization expense |
|
|
|
- |
|
|
Finance lease and failed sale leaseback interest expense |
|
|
|
- |
|
|
Variable lease expenses |
|
|
|
|
||
Sublease income (2) |
|
( |
) |
|
- |
|
Total lease expenses |
$ |
|
$ |
|
||
|
|
|
|
|
||
Other information |
|
|
|
|
||
Gross operating cash flows for operating leases (3) |
$ |
( |
) |
$ |
( |
) |
Gross operating cash flows for finance leases and failed sale leasebacks |
|
( |
) |
|
- |
|
Gross financing cash flows for finance leases |
|
( |
) |
|
- |
|
Operating cash flows from subleases (3) |
|
|
|
- |
|
|
|
|
|
|
|
||
|
For the Year to Date Ended June 30, 2025 |
|
For the Year to Date Ended June 30, 2024 |
|
||
Lease expenses (1) |
|
|
|
|
||
Operating fixed lease expenses |
$ |
|
$ |
|
||
Finance lease and failed sale leaseback amortization expense |
|
|
|
- |
|
|
Finance lease and failed sale leaseback interest expense |
|
|
|
- |
|
|
Variable lease expenses |
|
|
|
|
||
Sublease income (2) |
|
( |
) |
|
- |
|
Total lease expenses |
$ |
|
$ |
|
||
|
|
|
|
|
||
Other information |
|
|
|
|
||
Gross operating cash flows for operating leases (3) |
$ |
( |
) |
$ |
( |
) |
Gross operating cash flows for finance leases and failed sale leasebacks |
|
( |
) |
|
- |
|
Gross financing cash flows for finance leases |
|
( |
) |
|
- |
|
Gross financing cash flows for failed sale leaseback |
|
( |
) |
|
- |
|
Operating cash flows from subleases (3) |
|
|
|
- |
|
|
|
As of June 30, 2025 |
|
As of June 30, 2024 |
|
||
Weighted average remaining lease term (in months) – operating leases |
|
|
|
|
||
Weighted average remaining lease term (in months) – finance leases |
|
|
|
- |
|
|
|
|
|
|
|
||
Weighted average discount rate – operating leases |
|
% |
|
% |
||
Weighted average discount rate– finance leases |
|
% |
|
- |
|
|
|
|
|
|
|
||
__________________
Failed Sale-Leaseback
Upon construction commencement of the new St. Augustine campus in April 2023, the Company determined that it was the deemed owner for accounting purposes during the construction period under a build to suit (“BTS”) arrangement due to the extent of the Company’s involvement in the project. Accordingly, the Company had recognized all cash and non-cash assets contributed by the landlord to the project as of December 31, 2024 as a component of construction in progress with a corresponding construction financing liability. As of December 31, 2024, the Company had recognized $
12
Upon lease commencement, the Company determined that it did not meet the criteria under ASC 606-10-25-30 to derecognize the asset as the Company retained control of the asset and the risks and rewards of ownership did not transfer to the landlord. As such the transaction is considered a failed sale leaseback and the Company will retain the asset on its condensed consolidated balance sheet and depreciate the asset over its useful life. A financing obligation liability was recognized in the amount of the net proceeds received in the amount of $
Future minimum lease payments for sale-leaseback financing transactions as of June 30, 2025 are as follows:
|
|
Sale Leaseback |
|
|
|
|
|
|
|
|
|
|
|
|
2025 (1) |
|
$ |
|
|
2026 |
|
|
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 and thereafter |
|
|
|
|
Total minimum lease payments |
|
$ |
|
|
|
|
|
|
|
Less – Amount representing interest |
|
|
( |
) |
Present value of minimum lease payments |
|
|
|
|
Plus - liability remaining at term end representing residual value of asset |
|
|
|
|
Failed sale leaseback liability |
|
|
|
|
__________________
9. CONTINGENCIES
An accrual for estimated legal fees and settlements of $
We record a liability when we believe that it is both probable that a loss will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least quarterly, developments in our legal matters that could affect the amount of liability that was previously accrued and make adjustments as further information develops, circumstances change or contingencies are resolved. Significant judgment is required to determine both probability and the estimated amount. We may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (1) if the damages sought are indeterminate; (2) if the proceedings are in early stages; (3) if there is uncertainty as to the outcome of pending appeals, motions or settlements; (4) if there are significant factual issues to be determined or resolved; and (5) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any.
United States of America, ex rel. Fiorisce LLC v. Perdoceo Education Corporation, Colorado Technical University, Inc. and American InterContinental University, Inc. On July 19, 2023, we became aware of an amended complaint filed in the U.S. District Court for the District of Colorado on May 19, 2023. The original complaint was filed under seal on February 25, 2021 by a former employee of Colorado Technical University through a limited liability company, on behalf of herself, any other interested parties affiliated with the LLC and the federal government. On July 18, 2023, the district court ordered the complaint unsealed and we were notified that the U.S. Department of Justice ("DOJ") had declined to intervene in the action on February 3, 2023. The company had previously received a Civil Investigative Demand ("CID") on April 8, 2022 from the DOJ and had been cooperating with the DOJ in its review. After the federal government declined to intervene in this case, the relator elected to pursue the litigation on behalf of the federal government. If she is successful, she would receive a portion of the federal government’s recovery. The amended complaint alleges violations of the False Claims Act related to the company’s compliance with federal financial aid credit hour requirements in connection with its use of its learning management system. Relator claims that defendants’ conduct caused the government to make payments of federal funds to defendants which the government would not have made if not for defendants’ alleged violation of the law. Relator seeks treble damages plus civil penalties and attorneys’ fees. On January 4, 2024, the Court granted a motion to dismiss with respect to Perdoceo Education Corporation and American InterContinental University, Inc. which removes them as defendants in the case. The Court’s dismissal was “without prejudice”, which allows the relator in the case the opportunity to amend and refile a further amended complaint with respect to those two parties. On May 16, 2025, the Court granted the relator’s request to amend its
13
complaint for a second time to again include Perdoceo Education Corporation, but not American InterContinental University, Inc., as a defendant. Relator filed its second amended complaint on May 19, 2025.
On September 7, 2024, the Company received a new CID from the DOJ pursuant to the False Claims Act. The CID requests information and documentation from CTU regarding its compensation practices for its admissions staff as well as information about how CTU has discussed its Fast Track credit program with prospective students. The information sought covers the time period from November 13, 2017 to the present. The Company is cooperating with the DOJ with a view towards resolving this inquiry as promptly as possible.
Because of the many questions of fact and law that may arise, the outcome of these legal proceedings is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for these actions. Accordingly, we have not recognized any liability associated with these actions.
We receive from time-to-time requests from state attorneys general, federal and state government agencies and accreditors relating to our institutions, to specific complaints they have received from students or former students or to student loan forgiveness claims which seek information about students, our programs, and other matters relating to our activities. These requests can be broad and time consuming to respond to, and there is a risk that they could expand and/or lead to a formal action or claims of non-compliance. We are subject to a variety of other claims, lawsuits, arbitrations and investigations that arise from time to time out of the conduct of our business, including, but not limited to, matters involving prospective students, students or former students, alleged violations of the Telephone Consumer Protection Act, both individually and on behalf of a putative class, and employment matters. Periodically matters arise that we consider outside the scope of ordinary routine litigation incidental to our business. While we currently believe that these matters, individually or in aggregate, will not have a material adverse impact on our financial position, cash flows or results of operations, these matters are subject to inherent uncertainties, and management’s view of these matters may change in the future. Were an unfavorable outcome to occur in any one or more of these matters, there exists the possibility of a material adverse impact on our business, reputation, financial position and cash flows.
10. INCOME TAXES
The determination of the annual effective tax is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which we operate and the ongoing development of tax planning strategies during the year. In addition, our provision for income taxes can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.
The following is a summary of our provision for income taxes and effective tax rate:
|
|
For the Quarter Ended June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||
(Dollars in Thousands) |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Pretax income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Provision for income taxes |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Effective rate |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
||||
The effective tax rate for the quarter and year to date ended June 30, 2025 was impacted by the tax effect of stock-based compensation, which decreased the effective tax rate for the quarter and year to date by
The income tax rate for the quarter and year to date ended June 30, 2025 does not take into account the possible future reduction of the liability for unrecognized tax benefits. The impact of a reduction to the liability will be treated as a discrete item in the period the reduction occurs. We recognize interest and penalties related to unrecognized tax benefits in tax expense. As of June 30, 2025, we had accrued $
Our tax returns are routinely examined by federal, state and local tax authorities and these audits are at various stages of completion at any given time. The Company’s federal income tax filings are open to examinations for the tax years ended December 31, 2021 and forward.
14
On July 4, 2025, President Trump signed into law Public Law No. 119-21 (2025) (the “Act”), nicknamed the “One Big Beautiful Bill,” which introduces comprehensive tax reform measures. The Company is currently evaluating the potential impacts of the legislation. Certain provisions of the Act may result in favorable adjustments to deferred taxes and income taxes payable, particularly those related to the
11. SHARE-BASED COMPENSATION
Overview
The Perdoceo Education Corporation Amended and Restated 2016 Incentive Compensation Plan (the “2016 Plan”) became effective (as the Career Education Corporation 2016 Incentive Compensation Plan) on May 24, 2016, and the amendment and restatement of the 2016 Plan became effective on June 3, 2021, upon its approval by the Company’s stockholders. Under the 2016 Plan, Perdoceo may grant to eligible participants awards of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, performance units, annual incentive awards, and substitute awards, which generally may be settled in cash or shares of our common stock. The vesting of all types of awards is subject to possible acceleration in certain circumstances. If a plan participant terminates employment for any reason other than by death or disability during the vesting period, the right to unvested awards is generally forfeited.
Restricted Stock Units
For each of the quarters ended June 30, 2025 and 2024, the Company granted less than
For the years to date ended June 30, 2025 and 2024, the Company granted approximately
All restricted stock units granted in 2025 and 2024 are to be settled in shares of our common stock.
Stock Options
There were
Share-Based Compensation Expense
For the quarters ended June 30, 2025 and 2024, the total share-based compensation expense was approximately $
As of June 30, 2025, we estimate that total compensation expense of approximately $
12. STOCK REPURCHASE PROGRAM
On February 20, 2024, the Board of Directors of the Company approved a stock repurchase program for up to $
The timing of purchases and the number of shares repurchased under the program is determined by the Company’s management and will depend on a variety of factors including stock price, trading volume and other general market and economic conditions, its
15
assessment of alternative uses of capital, regulatory requirements and other factors. Repurchases will be made in open market transactions, including block purchases, conducted in accordance with Rule 10b-18 under the Exchange Act as well as may be made pursuant to trading plans established under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The stock repurchase program does not obligate the Company to purchase shares and the Company may, in its discretion, begin, suspend or terminate repurchases at any time, without any prior notice.
During the year to date ended June 30, 2025, we repurchased
As of June 30, 2025, approximately $
13. WEIGHTED AVERAGE COMMON SHARES
Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock units were settled for common shares during the period.
The weighted average number of common shares used to compute basic and diluted net income per share for the quarters and years to date ended June 30, 2025 and 2024 were as follows (shares in thousands):
|
For the Quarter Ended June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Basic common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock equivalents |
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
||||
Certain unexercised stock option awards are excluded from our computations of diluted earnings per share, as these shares were out-of-the-money and their effect would have been anti-dilutive. There were
14. SEGMENT REPORTING
Our segments are determined in accordance with FASB ASC Topic 280—Segment Reporting and are based on how the Company's chief operating decision maker ("CODM") evaluates performance and allocates resources. Perdoceo's CODM as defined under ASC Topic 280 is its . Each segment is comprised of an accredited postsecondary education institution that offers a variety of academic programs.
As of June 30, 2025, our
16
Summary financial information by reporting segment is as follows (dollars in thousands):
|
|
For the Quarter Ended June 30, |
|
|||||||||||||||||||||
|
|
Revenue |
|
|
Operating Income (Loss) |
|
||||||||||||||||||
|
|
2025 |
|
|
% of Total |
|
|
2024 |
|
|
% of Total |
|
|
2025 |
|
|
2024 |
|
||||||
CTU |
|
$ |
|
|
|
% |
|
$ |
|
|
|
% |
|
$ |
|
|
$ |
|
||||||
AIUS |
|
|
|
|
|
% |
|
|
|
|
|
% |
|
|
|
|
|
|
||||||
USAHS (1) |
|
|
|
|
|
% |
|
|
- |
|
|
|
% |
|
|
( |
) |
|
|
- |
|
|||
Corporate and Other |
|
|
|
|
|
% |
|
|
|
|
|
% |
|
|
( |
) |
|
|
( |
) |
||||
Total |
|
$ |
|
|
|
% |
|
$ |
|
|
|
% |
|
$ |
|
|
$ |
|
||||||
|
|
For the Year to Date Ended June 30, |
|
|||||||||||||||||||||
|
|
Revenue |
|
|
Operating Income (Loss) |
|
||||||||||||||||||
|
|
2025 |
|
|
% of Total |
|
|
2024 |
|
|
% of Total |
|
|
2025 |
|
|
2024 |
|
||||||
CTU |
|
$ |
|
|
|
% |
|
$ |
|
|
|
% |
|
$ |
|
|
$ |
|
||||||
AIUS |
|
|
|
|
|
% |
|
|
|
|
|
% |
|
|
|
|
|
|
||||||
USAHS (1) |
|
|
|
|
|
% |
|
|
- |
|
|
|
% |
|
|
( |
) |
|
|
- |
|
|||
Corporate and Other |
|
|
|
|
|
% |
|
|
|
|
|
% |
|
|
( |
) |
|
|
( |
) |
||||
Total |
|
$ |
|
|
|
% |
|
$ |
|
|
|
% |
|
$ |
|
|
$ |
|
||||||
|
|
Total Assets as of (2) |
|
|||||
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
||
CTU |
|
$ |
|
|
$ |
|
||
AIUS |
|
|
|
|
|
|
||
USAHS (1) |
|
|
|
|
|
|
||
Corporate and Other |
|
|
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
||
17
Significant expense category by reporting segment is as follows (dollars in thousands):
|
|
For the Quarter Ended June 30, 2025 |
|
|
For the Quarter Ended June 30, 2024 |
|
||||||||||||||||||
Significant expense categories |
|
CTU |
|
|
AIUS |
|
|
USAHS (1) |
|
|
CTU |
|
|
AIUS |
|
|
USAHS (1) |
|
||||||
Academics and student related |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|||||
Advertising and marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
Admissions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
Administrative (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
Bad debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
All other expenses (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the Year to Date Ended June 30, 2025 |
|
|
For the Year to Date Ended June 30, 2024 |
|
||||||||||||||||||
Significant expense categories |
|
CTU |
|
|
AIUS |
|
|
USAHS (1) |
|
|
CTU |
|
|
AIUS |
|
|
USAHS (1) |
|
||||||
Academics and student related |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|||||
Advertising and marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
Admissions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
Administrative (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
Bad debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
All other expenses (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
_________________________
15. SUBSEQUENT EVENT
On July 31, 2025, the Board of Directors of the Company approved a stock repurchase program for up to $
18
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The discussion below and other items in this Quarterly Report on Form 10-Q contain “forward-looking statements,” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, that reflect our current expectations regarding our future growth, results of operations, cash flows, performance and business prospects and opportunities, as well as assumptions made by, and information currently available to, our management. We have tried to identify forward-looking statements by using words such as “anticipate,” “believe,” “expect,” “plan,” “may,” “should,” ”will,” “continue to,” “focused on” and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. These statements are based on information currently available to us and are subject to various risks, uncertainties, and other factors, including, but not limited to, those matters discussed in Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2024 that could cause our actual growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Except as expressly required by the federal securities laws, we undertake no obligation to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future events, developments, or changed circumstances or for any other reason. Among the factors that could cause actual results to differ materially from those expressed in, or implied by, our forward-looking statements are the following:
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the Company’s unaudited condensed consolidated financial statements and the notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q. The MD&A is intended to help investors understand the results of operations, financial condition and present business environment. The MD&A is organized as follows:
19
OVERVIEW
Perdoceo’s accredited academic institutions offer a quality postsecondary education to a diverse student population, with fully online, campus-based and hybrid learning programs. The Company’s academic institutions – Colorado Technical University (“CTU”), the American InterContinental University System (“AIUS” or “AIU System”) and University of St. Augustine for Health Sciences ("USAHS") – provide degree programs from the associate through doctoral level as well as non-degree seeking and professional development programs. Our academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. USAHS prepares medical professionals to provide quality medical care to communities across the country primarily through its graduate health sciences degrees offerings in physical therapy, occupational therapy, speech language therapy and nursing, as well as continuing education programs. Perdoceo's academic institutions are committed to providing quality education that closes the gap between learners who seek to advance their careers and employers and communities needing a qualified workforce.
On December 2, 2024, the Company acquired the University of St. Augustine for Health Sciences (the "USAHS acquisition"). Results of operations related to the USAHS acquisition are included in the consolidated financial statements from the date of acquisition.
Our reporting segments are determined in accordance with Financial Accounting Standards Board (“FASB”)Accounting Standards Codification (“ASC”)Topic 280 – Segment Reporting and are based upon how the Company analyzes performance and makes decisions. Each segment represents a postsecondary education provider that offers a variety of academic programs. We organize our business across three reporting segments: CTU, AIUS and USAHS.
Regulatory Environment and Political Uncertainty
As indicated in “Scrutiny of the For-Profit Postsecondary Education Sector” section within Item 1, "Business" in our Annual Report on Form 10-K for the year ended December 31, 2024, the for-profit industry is scrutinized by various policymakers, agencies and interest groups. Congressional hearings and roundtable discussions were previously held regarding certain aspects of the education industry, including issues surrounding student debt as well as publicly reported student outcomes that may be used as part of an institution’s recruiting and admissions practices, and reports were issued that are highly critical of for-profit colleges and universities. Many of the most highly criticized institutions have been closed now for several years.
The November 2024 federal elections resulted in a new President and Congress. We cannot predict the actions that the new Administration or Congress may take or their effect on the higher education sector. The new Congress or Administration may delay, block, modify, or eliminate certain Title IV and other regulations applicable to higher education institutions. In addition, the new Administration may interpret, apply, and enforce Title IV and other regulations in a manner different from current Department guidance and practice. We expect to continue to need to operate nimbly, making necessary changes to the extent possible to comply with new rules or interpretations as well as new interpretations of existing rules.
We encourage you to review Item 1, “Business,” and Item 1A, “Risk Factors,” in our Annual Report on Form 10-K to learn more about our highly regulated industry and related risks and uncertainties, in addition to the MD&A in our 2025 Quarterly Reports on Form 10-Q.
Note Regarding Non-GAAP measures
We believe it is useful to present non-GAAP financial measures which exclude certain non-cash items as a means to understand the performance of our core business. As a general matter, we use non-GAAP financial measures in conjunction with results presented in accordance with GAAP to help analyze the performance of our core business, assist with preparing the annual operating plan, and measure performance for some forms of compensation. In addition, we believe that non-GAAP financial information is used by analysts and others in the investment community to analyze our historical results and to provide estimates of future performance.
We believe certain non-GAAP measures allow us to compare our current operating results with respective historical periods and with the operational performance of other companies in our industry because it does not give effect to potential differences caused by items we do not consider reflective of underlying operating performance. We believe the items we are adjusting for are operating expenses which are not reflective of our underlying business. In evaluating the use of non-GAAP measures, investors should be aware that in the future we may incur expenses similar to the adjustments presented below. Our presentation of non-GAAP measures should not be construed as an inference that our future results will be unaffected by expenses that are unusual, non-routine or non-recurring. A non-GAAP measure has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for net income, operating income, earnings per diluted share, or any other performance measure derived in accordance with and reported under GAAP or as an alternative to cash flow from operating activities or as a measure of our liquidity.
20
Non-GAAP financial measures, when viewed in a reconciliation to respective GAAP financial measures, provide an additional way of viewing the Company's results of operations and the factors and trends affecting the Company's business. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the respective financial results presented in accordance with GAAP.
2025 Second Quarter Overview
During the second quarter ended June 30, 2025 ("current quarter"), our academic institutions remained focused on furthering their goal of changing lives through education and preparing learners for essential skills needed in today’s job market. CTU and AIUS offer a wide array of career-focused degree programs which help learners thrive in today’s evolving job market, while USAHS prepares professionals to serve communities across the country with quality medical care. The total enrollment growth at our academic institutions during the current quarter reinforced and validated our strategy of prioritizing student experiences and academic outcomes that, we believe, should ultimately support sustainable and responsible growth.
Total student enrollments increased 17.4% at June 30, 2025 as compared to June 30, 2024. CTU's total student enrollments increased 7.4% as compared to the prior year quarter end, primarily supported by high levels of student retention and engagement, growth within the corporate student program and higher levels of prospective student interest. Total student enrollments increased 7.1% at AIUS for the current quarter end as compared to the prior year quarter end, driven by the academic calendar at AIUS that resulted in a higher number of enrollment days in the current quarter as compared to the prior year quarter and underlying organic enrollment growth. Lastly, for USAHS, the summer term which began in May of 2025 had total student enrollments of 4,000 as of the current quarter end. New enrollments for the summer term included growth in programs such as nursing and speech language therapy as well as the introduction of new modalities for the Doctorate of Physical Therapy program. USAHS has a traditional university calendar with three academic terms and multiple campuses for in-person classes in California, Texas and Florida. USAHS continues to expand its program offerings in terms of new modalities and current campus locations, with the goal of maximizing the geographical area they serve while providing students with a wider choice in taking their courses between online instruction and in person instruction at a campus location as well as hybrid options in between.
For the current quarter, our academic institutions experienced increased levels of prospective student interest and we continued to refine our marketing and admissions spending strategies, including selectively leveraging generative artificial intelligence to identify and engage with prospective students who, we believe, are more likely to succeed at one of our academic institutions. We also continued to upgrade and enhance our technology within admissions, enrollment and student support processes to ensure that our teams are well-equipped to guide and support the growing number of students enrolled at one of our academic institutions throughout their education journey. Additionally, we maintained our commitment to training and developing our admissions, enrollment, and student support teams, ensuring they are fully prepared to assist the increasing number of students throughout their educational journey at our academic institutions.
We expect the high levels of student retention and student engagement we experienced through the second quarter of 2025, as well as the prospective student interest experienced, to continue through the remainder of 2025. As a result, full year revenue is expected to be higher for 2025 due to the USAHS acquisition as well as growth in revenue and student enrollments within CTU and AIUS.
Financial Highlights
Revenue for the current quarter increased by 25.7% or $42.8 million as compared to the prior year quarter, primarily due to $36.7 million of revenue from the USAHS acquisition which was completed in December 2024 and therefore did not have comparable results in the prior year quarter. CTU and AIUS also contributed to the increase in revenue due to growth in total student enrollments driven by strong student retention and engagement trends along with increased prospective student interest.
Operating income for the current quarter increased to $51.4 million as compared to operating income of $46.0 million in the prior year quarter, driven by increased operating income within CTU and reduced operating losses within Corporate and Other. The increase in operating income for the current quarter was a result of revenue growth at CTU and lower acquisition-related expenses in Corporate and Other as compared to the prior year quarter.
The Company believes it is useful to present non-GAAP financial measures, which exclude certain non-cash items, as a means to understand the core performance of its operations. (See tables below for a GAAP to non-GAAP reconciliation.) Adjusted operating income was $61.5 million for the current quarter as compared to $49.1 million for the prior year quarter.
Adjusted operating income and adjusted earnings per diluted share for the quarters and years to date ended June 30, 2025 and 2024 is presented below (dollars in thousands, unless otherwise noted):
21
|
|
For the Quarter Ended |
|
|
For the Year to Date Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
Adjusted Operating Income |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
$ |
51,399 |
|
|
$ |
46,006 |
|
|
$ |
103,126 |
|
|
$ |
92,284 |
|
Depreciation and amortization |
|
|
10,148 |
|
|
|
3,069 |
|
|
|
21,955 |
|
|
|
6,085 |
|
Adjusted Operating Income |
|
$ |
61,547 |
|
|
$ |
49,075 |
|
|
$ |
125,081 |
|
|
$ |
98,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the Quarter Ended |
|
|
For the Year to Date Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
Adjusted Earnings Per Diluted Share |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reported Earnings Per Diluted Share |
|
$ |
0.62 |
|
|
$ |
0.57 |
|
|
$ |
1.27 |
|
|
$ |
1.16 |
|
Pre-tax adjustments included in operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization for acquired intangible assets |
|
|
0.06 |
|
|
|
0.02 |
|
|
|
0.13 |
|
|
|
0.04 |
|
Total pre-tax adjustments |
|
$ |
0.06 |
|
|
$ |
0.02 |
|
|
$ |
0.13 |
|
|
$ |
0.04 |
|
Tax effect of adjustments (1) |
|
|
(0.01 |
) |
|
|
- |
|
|
|
(0.03 |
) |
|
|
(0.01 |
) |
Total adjustments after tax |
|
|
0.05 |
|
|
|
0.02 |
|
|
|
0.10 |
|
|
|
0.03 |
|
Adjusted Earnings Per Diluted Share |
|
$ |
0.67 |
|
|
$ |
0.59 |
|
|
$ |
1.37 |
|
|
$ |
1.19 |
|
Recent Legislative Development
On July 4, 2025, President Trump signed into law Public Law No. 119-21 (2025) (the “Act”), nicknamed the “One Big Beautiful Bill,” a multi-faceted reconciliation package that includes changes impacting many areas of government spending. The Act includes a number of changes to federal student aid programs under the Higher Education Act of 1965, as amended (“HEA”), including eliminating and replacing Grad PLUS loans for new graduate and professional students, imposing new annual and lifetime borrowing limits across multiple loan programs, establishing an earnings-based eligibility requirement for federal loans that applies equally to all higher education institutions, and adopting new loan repayment options. The changes generally take effect beginning July 1, 2026, and apply prospectively to new borrowers, however some of the changes will require regulations to be promulgated by the Department. Also, existing students as of the effective date are grandfathered in existing loan programs for up to three years while they complete their existing program of study.
Loan Limits
Under existing law, federal loan limits for undergraduate students are tiered by academic year, with separate ceilings for subsidized and unsubsidized federal Stafford Loans. Graduate and professional students, in turn, may borrow under the Grad PLUS loan program up to the full cost of attendance without regard to any loan limits, subject only to basic credit criteria and the cost of attendance. Parent PLUS loans similarly allowed creditworthy parents to borrow without regard to specific loan limits, provided the amount did not exceed their child’s cost of attendance minus other aid.
For undergraduate students, the Act maintains annual and aggregate borrowing limits, with different limits for dependent and independent students. For graduate and professional students, the Act replaces the Grad PLUS loan program with new higher unsubsidized Direct Stafford loan annual and aggregate loan limits, with both annual and aggregate limits for professional students being higher than for graduate students. The Act also sets a lifetime aggregate loan limit that is inclusive of any undergraduate debt. Parent PLUS loans now include both annual and aggregate loan limits. The Act also provides a lifetime aggregate student loan limit, which applies to all federal student loan borrowers, regardless of academic program or degree level.
While we continue to evaluate the Act, the Company believes that the new federal loan levels are generally sufficient to meet the level of borrowing typical students make while enrolled in our institutions’ programs. Pursuant to the Act’s transition provisions, current graduate and professional students and parents of dependent undergraduate students, who received a federal loan prior to July 1, 2026, may continue borrowing under the prior Grad and Parent PLUS loan programs for up to three additional academic years, or the remainder of the borrower’s expected time to credential, whichever is less, provided the student remains continuously enrolled in
22
the same program. See Item 1, “Business - Student Financial Aid and Related Federal Regulation,” in our Annual Report on Form 10-K for the year ended December 31, 2024 for more information.
New Earnings Premium Requirement
The Act introduces a new earnings-based eligibility requirement for federal loan access that applies to all institutions, public, private nonprofit, and for-profit. Under the eligibility requirement, graduates from an institution’s programs other than undergraduate certificate programs must meet or exceed specified earnings thresholds. Programs that do not meet these benchmarks risk losing access to federal student loans only, not grants.
Under the new earnings metric, by program, the Department evaluates the median earnings of graduates who received Title IV federal student aid four years after completion. The calculation includes only those graduates who are actively employed in two of three years and not enrolled in additional postsecondary education. For undergraduate programs, a program fails the test if median earnings for those graduates fall below those of working adults aged 25 to 34 with only a high school diploma or equivalent. For graduate and professional programs, the comparison group is working adults in the same age range whose highest credential is a bachelor’s degree. If a program fails this test in two of the three most recent years for which data is available, it becomes ineligible to participate in federal student loan programs.
The Act includes institutional obligations and several procedural safeguards. The Department is required by the Act to establish a formal appeals process. During the pendency of an appeal, the Secretary may permit the institution to maintain participation in federal financial aid programs. Institutions are required to provide timely warnings to students enrolled in any program that fails to meet the earnings threshold in a given year. For programs that lose eligibility under this framework, institutions may seek to regain access to federal student loans after a period of at least two years. It is anticipated the Department will publish regulations, after completion of a negotiated rulemaking, notice and comment, to fully implement the earnings measure under the Act.
The Company believes that this new universally applied earnings requirement will be less restrictive than the existing gainful employment rules. Although the gainful employment rules remain in place following the passage of the Act, existing legal challenges and the passage of this new universal requirement present potential opportunities for the Department to eliminate it as a redundant program assessment measure. We are continuing to evaluate this new requirement, but as with gainful employment, given the complexity of the rule, lack of availability of the earnings data used to calculate the metrics and lack of formal regulations, we are unable to determine the ultimate impact of this requirement on our business at this time. See Item 1, “Business - Student Financial Aid and Related Federal Regulation – GE and FVT Negotiated Rulemaking,” in our Annual Report on Form 10-K for the year ended December 31, 2024 for more information.
Borrower Defense and Closed School Loan Discharge Relief
The Act delays implementation of the Biden administration regulations on borrower defense to repayment and closed school loan discharges for 10 years, to July 1, 2035, which reinstates the rules promulgated under the first Trump administration. These regulations remain the subject of a legal challenge currently pending with the Supreme Court of the United States. See Item 1, “Business - Student Financial Aid and Related Federal Regulation – Compliance with Federal Regulatory Standards and Effect of Federal Regulatory Violations – ‘Borrower Defense to Repayment’” in our Annual Report on Form 10-K for the year ended December 31, 2024 for more information.
Streamlined Loan Repayment Programs
The Act consolidates federal student loan repayment options, reducing them to two primary plans starting July 1, 2026: a standard repayment plan where borrowers make fixed payments with terms ranging from 10 to 25 years based on amount borrowed, and a new income-driven Repayment Assistance Plan (“RAP”) that offers loan forgiveness after 30 years. Existing income-driven repayment plans will be phased out by July 2026, requiring both new and existing borrowers to transition to the new repayment structure. These changes may affect students’ ability to manage loan repayment and could influence enrollment decisions, particularly among non-traditional and graduate students.
The ultimate impact of the Act on our business, financial condition, and results of operations will depend on the final implementing regulations and the responses of our current and prospective students and other stakeholders.
Regulatory Update
On July 24, 2025, the Department announced its intent to establish two negotiated rulemaking committees scheduled to meet this fall. One committee will consider changes to the Federal student loan programs and the other committee will consider changes to institutional and programmatic accountability, including the Pell Grant Program and other changes. This rulemaking is necessary to implement the statutory changes to the Title IV, HEA programs included in the Act, as well as to implement other Administration priorities. We believe the negotiated rulemaking will also include discussion of the current gainful employment and financial value transparency regulations that overlap with requirements under the Act's earnings premium provisions. While the Secretary has
23
authority to early implement aspects of new regulations that do not adversely affect regulated entities, under the Administrative Procedure Act's master calendar provisions, any new regulations would generally not become effective until July 1, 2027 if final regulations are published in the federal register on or before November 1, 2026.
CONSOLIDATED RESULTS OF OPERATIONS
The summary of selected financial data table below should be referenced in connection with a review of the following discussion of our results of operations for the quarters and years to date ended June 30, 2025 and 2024 (dollars in thousands):
|
|
For the Quarter Ended June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||||||||||||||||||||||||||
|
|
2025 |
|
|
% of Total Revenue |
|
|
2024 |
|
|
% of Total Revenue |
|
|
2025 vs 2024 % Change |
|
|
2025 |
|
|
% of Total Revenue |
|
|
2024 |
|
|
% of Total Revenue |
|
|
2025 vs 2024 % Change |
|
||||||||||
TOTAL REVENUE |
|
$ |
209,581 |
|
|
|
|
|
$ |
166,740 |
|
|
|
|
|
|
25.7 |
% |
|
$ |
422,585 |
|
|
|
|
|
$ |
335,004 |
|
|
|
|
|
|
26.1 |
% |
||||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Educational services and facilities (1) |
|
|
50,241 |
|
|
|
24.0 |
% |
|
|
27,516 |
|
|
|
16.5 |
% |
|
|
82.6 |
% |
|
|
98,783 |
|
|
|
23.4 |
% |
|
|
57,374 |
|
|
|
17.1 |
% |
|
|
72.2 |
% |
General and administrative: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advertising and marketing |
|
|
27,039 |
|
|
|
12.9 |
% |
|
|
23,132 |
|
|
|
13.9 |
% |
|
|
16.9 |
% |
|
|
54,997 |
|
|
|
13.0 |
% |
|
|
47,371 |
|
|
|
14.1 |
% |
|
|
16.1 |
% |
Admissions |
|
|
22,351 |
|
|
|
10.7 |
% |
|
|
19,964 |
|
|
|
12.0 |
% |
|
|
12.0 |
% |
|
|
44,816 |
|
|
|
10.6 |
% |
|
|
40,854 |
|
|
|
12.2 |
% |
|
|
9.7 |
% |
Administrative |
|
|
42,946 |
|
|
|
20.5 |
% |
|
|
40,140 |
|
|
|
24.1 |
% |
|
|
7.0 |
% |
|
|
85,893 |
|
|
|
20.3 |
% |
|
|
75,937 |
|
|
|
22.7 |
% |
|
|
13.1 |
% |
Bad debt |
|
|
5,457 |
|
|
|
2.6 |
% |
|
|
6,075 |
|
|
|
3.6 |
% |
|
|
-10.2 |
% |
|
|
13,015 |
|
|
|
3.1 |
% |
|
|
12,631 |
|
|
|
3.8 |
% |
|
|
3.0 |
% |
Total general and administrative expense |
|
|
97,793 |
|
|
|
46.7 |
% |
|
|
89,311 |
|
|
|
53.6 |
% |
|
|
9.5 |
% |
|
|
198,721 |
|
|
|
47.0 |
% |
|
|
176,793 |
|
|
|
52.8 |
% |
|
|
12.4 |
% |
Depreciation and amortization |
|
|
10,148 |
|
|
|
4.8 |
% |
|
|
3,069 |
|
|
|
1.8 |
% |
|
|
230.7 |
% |
|
|
21,955 |
|
|
|
5.2 |
% |
|
|
6,085 |
|
|
|
1.8 |
% |
|
|
260.8 |
% |
Asset impairment |
|
|
- |
|
|
|
0.0 |
% |
|
|
838 |
|
|
|
0.5 |
% |
|
NM |
|
|
|
- |
|
|
|
0.0 |
% |
|
|
2,468 |
|
|
|
0.7 |
% |
|
NM |
|
||
OPERATING INCOME |
|
|
51,399 |
|
|
|
24.5 |
% |
|
|
46,006 |
|
|
|
27.6 |
% |
|
|
11.7 |
% |
|
|
103,126 |
|
|
|
24.4 |
% |
|
|
92,284 |
|
|
|
27.5 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
PRETAX INCOME |
|
|
56,238 |
|
|
|
26.8 |
% |
|
|
53,014 |
|
|
|
31.8 |
% |
|
|
6.1 |
% |
|
|
112,743 |
|
|
|
26.7 |
% |
|
|
105,865 |
|
|
|
31.6 |
% |
|
|
6.5 |
% |
PROVISION FOR INCOME TAXES |
|
|
15,210 |
|
|
|
7.3 |
% |
|
|
14,585 |
|
|
|
8.7 |
% |
|
|
4.3 |
% |
|
|
28,027 |
|
|
|
6.6 |
% |
|
|
27,994 |
|
|
|
8.4 |
% |
|
|
0.1 |
% |
Effective tax rate |
|
|
27.0 |
% |
|
|
|
|
|
27.5 |
% |
|
|
|
|
|
|
|
|
24.9 |
% |
|
|
|
|
|
26.4 |
% |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME |
|
$ |
41,028 |
|
|
|
19.6 |
% |
|
$ |
38,429 |
|
|
|
23.0 |
% |
|
|
6.8 |
% |
|
$ |
84,716 |
|
|
|
20.0 |
% |
|
$ |
77,871 |
|
|
|
23.2 |
% |
|
|
8.8 |
% |
Revenue
The current quarter and year to date revenue increased by 25.7% or $42.8 million and 26.1% or $87.6 million, respectively, as compared to the prior year periods. The increase was primarily driven by the acquisition of USAHS completed in December 2024 that was not part of the comparative prior year periods as well as increases in revenue for both the current quarter and year to date at both CTU and AIUS.
Educational Services and Facilities Expense (dollars in thousands)
|
|
For the Quarter Ended June 30, |
|
For the Year to Date Ended June 30, |
||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 vs 2024 % Change |
|
2025 |
|
|
2024 |
|
|
2025 vs 2024 % Change |
||||
Educational services and facilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Academics & student related |
|
$ |
44,338 |
|
|
$ |
26,055 |
|
|
70.2% |
|
$ |
86,421 |
|
|
$ |
53,666 |
|
|
61.0% |
Occupancy |
|
|
5,903 |
|
|
|
1,461 |
|
|
304.0% |
|
|
12,362 |
|
|
|
3,708 |
|
|
233.4% |
Total educational services and facilities |
|
$ |
50,241 |
|
|
$ |
27,516 |
|
|
82.6% |
|
$ |
98,783 |
|
|
$ |
57,374 |
|
|
72.2% |
The educational services and facilities expense for the current quarter and year to date increased by 82.6% or $22.7 million and 72.2% or $41.4 million, respectively, as compared to the prior year periods. The increase was primarily due to a full quarter of expenses related to the USAHS acquisition as compared to no expenses in the prior year periods for USAHS.
24
General and Administrative Expense (dollars in thousands)
|
|
For the Quarter Ended June 30, |
|
For the Year to Date Ended June 30, |
||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 vs 2024 % Change |
|
2025 |
|
|
2024 |
|
|
2025 vs 2024 % Change |
||||
General and administrative: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Advertising and marketing |
|
$ |
27,039 |
|
|
$ |
23,132 |
|
|
16.9% |
|
$ |
54,997 |
|
|
$ |
47,371 |
|
|
16.1% |
Admissions |
|
|
22,351 |
|
|
|
19,964 |
|
|
12.0% |
|
|
44,816 |
|
|
|
40,854 |
|
|
9.7% |
Administrative |
|
|
42,946 |
|
|
|
40,140 |
|
|
7.0% |
|
|
85,893 |
|
|
|
75,937 |
|
|
13.1% |
Bad debt |
|
|
5,457 |
|
|
|
6,075 |
|
|
-10.2% |
|
|
13,015 |
|
|
|
12,631 |
|
|
3.0% |
Total general and administrative expense |
|
$ |
97,793 |
|
|
$ |
89,311 |
|
|
9.5% |
|
$ |
198,721 |
|
|
$ |
176,793 |
|
|
12.4% |
The general and administrative expense for the current quarter and year to date increased by 9.5% or $8.5 million and 12.4% or $21.9 million, respectively, as compared to the prior year periods. The increase was primarily due to a full quarter of expenses related to the USAHS acquisition as compared to no expenses in the prior year quarter.
Advertising and marketing expense for the current quarter and year to date increased by 16.9% or $3.9 million and 16.1% or $7.6 million, respectively, as compared to the prior year periods. Excluding USAHS expenses, advertising expenses would have remained relatively flat as compared to the prior year periods.
Admissions expense for the current quarter and year to date increased by 12.0% or $2.4 million and 9.7% or $4.0 million, respectively, as compared to the prior year periods. Excluding USAHS expenses, admissions expenses would have increased 5.3% or $1.1 million and 3.0% or $1.2 million, respectively, as compared to the prior year periods.
The administrative expense for the current quarter and year to date increased by 7.0% or $2.8 million and 13.1% or $10.0 million, respectively, as compared to the prior year periods. Excluding USAHS expenses, administrative expenses would have decreased 7.1% or $2.9 million for the current quarter as compared to the prior year period, and remained relatively flat for the year to date as compared to the prior year period.
Bad debt expense incurred by each of our segments during the quarters and years to date ended June 30, 2025 and 2024 was as follows (dollars in thousands):
|
|
For the Quarter Ended June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||||||||||||||||||||||||||
|
|
2025 |
|
|
% of |
|
|
2024 |
|
|
% of |
|
|
2025 vs 2024 % Change |
|
|
2025 |
|
|
% of |
|
|
2024 |
|
|
% of |
|
|
2025 vs 2024 % Change |
|
||||||||||
Bad debt expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CTU |
|
$ |
2,545 |
|
|
|
2.2 |
% |
|
$ |
5,000 |
|
|
|
4.4 |
% |
|
|
-49.1 |
% |
|
$ |
8,419 |
|
|
|
3.5 |
% |
|
$ |
8,028 |
|
|
|
3.5 |
% |
|
|
4.9 |
% |
AIUS |
|
|
2,635 |
|
|
|
4.8 |
% |
|
|
1,073 |
|
|
|
2.0 |
% |
|
|
145.6 |
% |
|
|
4,259 |
|
|
|
3.9 |
% |
|
|
4,601 |
|
|
|
4.3 |
% |
|
|
-7.4 |
% |
USAHS (1) |
|
|
279 |
|
|
|
0.8 |
% |
|
|
- |
|
|
NA |
|
|
NM |
|
|
|
340 |
|
|
|
0.4 |
% |
|
|
- |
|
|
NA |
|
|
NM |
|
||||
Corporate and Other |
|
|
(2 |
) |
|
NM |
|
|
|
2 |
|
|
NM |
|
|
NM |
|
|
|
(3 |
) |
|
NM |
|
|
|
2 |
|
|
NM |
|
|
NM |
|
||||||
Total bad debt expense |
|
$ |
5,457 |
|
|
|
2.6 |
% |
|
$ |
6,075 |
|
|
|
3.6 |
% |
|
|
-10.2 |
% |
|
$ |
13,015 |
|
|
|
3.1 |
% |
|
$ |
12,631 |
|
|
|
3.8 |
% |
|
|
3.0 |
% |
________________
(1) USAHS includes results of operations starting from the acquisition date on December 2, 2024.
Bad debt expense for the current quarter decreased by 10.2% or $0.6 million and increased by 3.0% or $0.4 million for the current year to date, as compared to the prior year periods. The improvement in the current quarter was primarily driven by CTU, fully offsetting an increase at AIUS and expense associated with the USAHS acquisition. The year to date increase was primarily due to a full quarter of USAHS expense, compared to none in the prior year period.
We regularly evaluate our reserve rates, which includes a quarterly update of our analysis of historical student receivable collectability based on the most recent data available and a review of current known factors which we believe could affect future collectability of our student receivables, such as the number of students that do not complete the financial aid process. We continue to expect quarterly fluctuations in bad debt expense.
Depreciation and Amortization
Depreciation and amortization expense for the current quarter and year to date increased by $7.1 million and $15.9 million as compared to the prior year periods, driven by the USAHS acquisition, which includes amortization for definite-lived intangible assets as well as amortization related to finance leases for ground-based campuses.
25
Operating Income
Operating income for the current quarter and year to date increased by 11.7% or $5.4 million and 11.7% or $10.8 million as compared to the prior year periods. This improvement was primarily driven by increased revenue, which more than offset the increases in operating expenses, as compared to the prior year periods.
Provision for Income Taxes
For the quarter and year to date ended June 30, 2025, we recorded a provision for income taxes of $15.2 million reflecting an effective tax rate of 27.0% and $28.0 million reflecting an effective tax rate of 24.9%, respectively, as compared to a provision for income taxes of $14.6 million reflecting an effective tax rate of 27.5% and $28.0 million reflecting an effective tax rate of 26.4% for the respective prior year periods. The effective tax rate for the current quarter and year to date was benefitted by the tax effect of stock-based compensation, which decreased the effective tax rate for the quarter and year to date by 0.3% and 2.9%, respectively. The effective tax rate for the current quarter and year to date also includes the release of previously recorded tax reserves, which decreased the effective tax rate by 1.7% and 1.5%, respectively. The effective tax rate for the prior year quarter and year to date includes release of previously recorded tax reserves, which reduced the effective tax rate by 1.2% and 1.3%, respectively.
For the full year 2025, we expect our effective tax rate to be between 26.0% and 26.5%.
SEGMENT RESULTS OF OPERATIONS
The following tables present unaudited segment results for the reported periods (dollars in thousands):
|
|
For the Quarter Ended June 30, |
|
|||||||||||||||||||||||||||||
|
|
REVENUE |
|
|
OPERATING INCOME (LOSS) |
|
|
OPERATING MARGIN |
|
|||||||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
2024 |
|
||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
CTU |
|
$ |
117,970 |
|
|
$ |
112,828 |
|
|
|
4.6 |
% |
|
$ |
46,262 |
|
|
$ |
42,890 |
|
|
|
7.9 |
% |
|
|
39.2 |
% |
|
|
38.0 |
% |
AIUS |
|
|
54,723 |
|
|
|
53,722 |
|
|
|
1.9 |
% |
|
|
12,080 |
|
|
|
12,926 |
|
|
|
-6.5 |
% |
|
|
22.1 |
% |
|
|
24.1 |
% |
USAHS (1) |
|
|
36,697 |
|
|
|
- |
|
|
NM |
|
|
|
(1,694 |
) |
|
|
- |
|
|
NM |
|
|
|
-4.6 |
% |
|
NA |
|
|||
Corporate and other |
|
|
191 |
|
|
|
190 |
|
|
|
0.5 |
% |
|
|
(5,249 |
) |
|
|
(9,810 |
) |
|
|
46.5 |
% |
|
NM |
|
|
NM |
|
||
Total |
|
$ |
209,581 |
|
|
$ |
166,740 |
|
|
|
25.7 |
% |
|
$ |
51,399 |
|
|
$ |
46,006 |
|
|
|
11.7 |
% |
|
|
24.5 |
% |
|
|
27.6 |
% |
|
|
For the Year to Date Ended June 30, |
|
|||||||||||||||||||||||||||||
|
|
REVENUE |
|
|
OPERATING INCOME (LOSS) |
|
|
OPERATING MARGIN |
|
|||||||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
2024 |
|
||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
CTU |
|
$ |
237,549 |
|
|
$ |
226,397 |
|
|
|
4.9 |
% |
|
$ |
92,359 |
|
|
$ |
85,046 |
|
|
|
8.6 |
% |
|
|
38.9 |
% |
|
|
37.6 |
% |
AIUS |
|
|
108,782 |
|
|
|
108,227 |
|
|
|
0.5 |
% |
|
|
23,964 |
|
|
|
22,212 |
|
|
|
7.9 |
% |
|
|
22.0 |
% |
|
|
20.5 |
% |
USAHS (1) |
|
|
75,880 |
|
|
|
- |
|
|
NM |
|
|
|
(2,024 |
) |
|
|
- |
|
|
NM |
|
|
|
-2.7 |
% |
|
NA |
|
|||
Corporate and other |
|
|
374 |
|
|
|
380 |
|
|
|
-1.6 |
% |
|
|
(11,173 |
) |
|
|
(14,974 |
) |
|
|
25.4 |
% |
|
NM |
|
|
NM |
|
||
Total |
|
$ |
422,585 |
|
|
$ |
335,004 |
|
|
|
26.1 |
% |
|
$ |
103,126 |
|
|
$ |
92,284 |
|
|
|
11.7 |
% |
|
|
24.4 |
% |
|
|
27.5 |
% |
________________
(1) USAHS includes results of operations beginning on the acquisition date of December 2, 2024. Operating loss for the current quarter and year to date includes $7.2 million and $16.1 million, respectively, of depreciation and amortization expense associated with acquired tangible and intangible assets as well as finance leases.
|
|
TOTAL STUDENT ENROLLMENTS |
|
|||||||||
|
|
As of June 30, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|||
CTU |
|
|
31,900 |
|
|
|
29,700 |
|
|
|
7.4 |
% |
AIUS |
|
|
10,600 |
|
|
|
9,900 |
|
|
|
7.1 |
% |
USAHS (1) |
|
|
4,000 |
|
|
|
- |
|
|
NM |
|
|
Total |
|
|
46,500 |
|
|
|
39,600 |
|
|
|
17.4 |
% |
26
______________
(1) Perdoceo completed the acquisition of USAHS on December 2, 2024.
Total student enrollments represent all students who are active as of the last day of the reporting period. Active students are defined as those students who are considered in attendance by participating in class related activities during the previous two weeks of the most recent academic term. Total student enrollments do not include learners participating in: a) non-degree seeking and professional development programs, and b) degree seeking, non-Title IV, self-paced programs at our universities.
CTU. Current quarter and year to date revenue increased by 4.6% or $5.1 million and 4.9% or $11.2 million, respectively, as compared to the prior year periods. The increase was driven by total student enrollment growth of 7.4% at June 30, 2025 as compared to the prior year quarter end. CTU's total student enrollment growth was supported by high levels of student retention and engagement, growth in the corporate student program and higher levels of prospective student interest.
Current quarter and year to date operating income for CTU increased by 7.9% or $3.4 million and 8.6% or $7.3 million, respectively, as compared to the prior year periods driven by the increase in revenue discussed above, which more than offset increased operating expenses.
AIUS. Current quarter and year to date revenue increased slightly by 1.9% or $1.0 million and 0.5% or $0.6 million, respectively, as compared to the prior year periods. The increase was driven by total student enrollment growth of 7.1% at June 30, 2025 as compared to the prior year quarter end. The increase in total student enrollments was driven by the academic calendar at AIUS that resulted in a higher number of enrollment days in the quarter as compared to prior year quarter and underlying organic enrollment growth.
Current quarter operating income for AIUS decreased by 6.5% or $0.8 million as compared to the prior year quarter, primarily driven by a non-recurring expense benefit recorded in the prior year quarter. The year to date operating income for AIUS increased by 7.9% or $1.8 million as compared to the prior year period, primarily driven by lower operating expenses as compared to the prior year period.
USAHS. Revenue for the current quarter and year to date was approximately $36.7 million and $75.9 million, respectively. USAHS reported operating losses of approximately $1.7 million for the current quarter and $2.0 million for the current year to date. These losses were primarily driven by $7.2 million and $16.1 million, for the current quarter and year to date, respectively, in depreciation and amortization expenses related to acquired tangible and intangible assets, as well as finance leases.
Corporate and Other. This category includes unallocated costs that are incurred on behalf of the entire company. Total Corporate and Other operating loss for the current quarter and year to date improved by 46.5% or $4.6 million and 25.4% or $3.8 million, respectively, as compared to the prior year periods, primarily due to lower acquisition-related costs in both the current quarter and year to date as compared to the prior year periods.
SUMMARY OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES
A detailed discussion of the accounting policies and estimates that we believe are most critical to our financial condition and results of operations that require management’s most subjective and complex judgments in estimating the effect of inherent uncertainties is included under the caption “Summary of Critical Accounting Policies and Estimates” included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024. Note 2 “Summary of Significant Accounting Policies” of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024 also includes a discussion of these and other significant accounting policies.
LIQUIDITY, FINANCIAL POSITION AND CAPITAL RESOURCES
As of June 30, 2025, cash, cash equivalents, restricted cash and available-for-sale short-term investments (“cash balances”) totaled $659.6 million. Restricted cash as of June 30, 2025 was $21.6 million and primarily related to a letter of credit USAHS is required to maintain with the Department of Education. Our cash flows from operating activities have historically been adequate to fulfill our liquidity requirements. We have historically financed our operating activities, organic growth and acquisitions primarily through cash generated from operations and existing cash balances. We expect to continue to generate cash during the remainder of 2025. We anticipate that we will be able to satisfy the cash requirements associated with, among other things, our working capital needs, capital expenditures, lease commitments and quarterly dividend payments through at least the next 12 months primarily with cash generated by operations and existing cash balances.
We maintain a balanced capital allocation strategy that focuses on maintaining a strong balance sheet and adequate liquidity, while (i) investing in organic projects at our universities, in particular technology-related initiatives which are designed to benefit our students, as well as real estate updates, and (ii) evaluating diverse strategies to enhance stockholder value, including acquisitions,
27
quarterly dividend payments and share repurchases. Ultimately, our goal is to deploy resources in a way that drives long term stockholder value while supporting and enhancing the academic value of our institutions.
On July 31, 2025, the Board of Directors of the Company approved a new stock repurchase program for up to $75.0 million which will commence on July 31, 2025 and expires January 31, 2027. The new stock repurchase program replaced the previous stock repurchase program approved on February 20, 2024. The timing of purchases and the number of shares repurchased under the program is determined by the Company’s management and will depend on a variety of factors including stock price, trading volume and other general market and economic conditions, its assessment of alternative uses of capital, regulatory requirements and other factors. The Board of Directors approved the aforementioned stock repurchase program believing it advantageous to the Company and its stockholders to repurchase shares of the Company’s common stock from time to time at prices below what the Board of Directors believed to be the intrinsic value of the Company’s common stock.
On July 31, 2025 the Board of Directors declared a quarterly dividend of $0.15 per share, which will be paid on September 12, 2025 for holders of record of common stock as of September 2, 2025. This marks a 15.4% increase in the quarterly dividend, the second such increase since dividends commenced in 2023. Any decision to pay future cash dividends, however, will be made by the board of directors and depend on the Company’s available retained earnings, financial condition and other relevant factors. The Company expects quarterly dividend payments to be an integral and growing part of its balanced capital allocation strategy that also prioritizes investments in student support and technology projects, while also evaluating acquisitions and share repurchases.
The discussion above reflects management’s expectations regarding liquidity; however, as a result of the significance of the Title IV Program funds received by our students, we are highly dependent on these funds to operate our business. Any reduction in the level of Title IV funds that our students are eligible to receive or any impact on timing or our ability to receive Title IV Program funds, or any requirement to post a significant letter of credit to the Department, may have a significant impact on our operations and our financial condition. In addition, our financial performance is dependent on the level of student enrollments which could be impacted by external factors. See Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Sources and Uses of Cash
Operating Cash Flows
During the years to date ended June 30, 2025 and 2024, net cash flows provided by operating activities totaled $143.9 million and $93.0 million, respectively. The increase in net cash flows from operating activities for the current quarter was primarily driven by increased operating income.
Our primary source of cash flows from operating activities is tuition collected from our students. Our students derive the ability to pay tuition costs through the use of a variety of funding sources, including, among others, federal loan and grant programs, state grant programs, private loans and grants, institutional payment plans, private and institutional scholarships and cash payments.
For further discussion of Title IV Program funding and other funding sources for our students, see Item 1, “Business - Student Financial Aid and Related Federal Regulation,” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Our primary uses of cash to support our operating activities include, among other things, cash paid and benefits provided to our employees for services, to vendors for products and services, to lessors for rents and operating costs related to leased facilities, to suppliers for textbooks and other institution supplies, and to federal, state and local governments for income and other taxes.
Investing Cash Flows
During the years to date ended June 30, 2025 and 2024, net cash flows used in investing activities totaled $7.3 million and $60.1 million, respectively.
Purchases and Sales of Available-for-Sale Investments. Purchases and sales of available-for-sale investments resulted in a net cash outflow of $3.6 million and $58.1 million for the years to date ended June 30, 2025 and 2024, respectively.
Capital Expenditures. Capital expenditures increased to $4.5 million for the year to date ended June 30, 2025 as compared to $2.0 million for the year to date ended June 30, 2024. For the full year 2025, we expect capital expenditures to be approximately 1.5% of revenue.
Business Acquisition. The Company received a working capital true up of $0.8 million in relation to the USAHS acquisition during the year to date ended June 30, 2025.
28
Financing Cash Flows
During the years to date ended June 30, 2025 and 2024, net cash flows used in financing activities totaled $74.7 million and $23.0 million, respectively. Payments to repurchase shares of our common stock were $46.1 million for the year to date ended June 30, 2025 and $6.8 million for the year to date ended June 30, 2024.
Payments of employee tax associated with stock compensation. Payments of employee tax associated with stock compensation were $7.5 million and $3.4 million for the years to date ended June 30, 2025 and 2024, respectively.
Payments of cash dividends and dividend equivalents. During the years to date ended June 30, 2025 and 2024, the Company made dividend and dividend equivalent payments of $17.7 million and $14.6 million, respectively.
Principal payments for finance leases and failed sale leaseback. During the year to date ended June 30, 2025, the Company made payments of $2.9 million for finance leases and a failed sale leaseback, both related to USAHS.
Earnout payments related to business acquisition. During the year to date ended June 30, 2025, the Company made cash earnout payments of $1.8 million related to the Coding Dojo acquisition.
Changes in Financial Position
Selected condensed consolidated balance sheet account changes from December 31, 2024 to June 30, 2025 were as follows (dollars in thousands):
|
|
June 30, |
|
|
December 31, |
|
|
|
|
|||
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|||
ASSETS |
|
|
|
|
|
|
|
|
|
|||
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
|||
Student receivables, net |
|
|
33,228 |
|
|
|
22,807 |
|
|
|
46 |
% |
|
|
|
|
|
|
|
|
|
|
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|||
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
|||
Accrued expenses - other |
|
|
15,785 |
|
|
|
21,239 |
|
|
|
-26 |
% |
Deferred revenue |
|
|
81,699 |
|
|
|
36,740 |
|
|
|
122 |
% |
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
|||
Sale lease-back financing |
|
|
56,766 |
|
|
|
- |
|
|
NA |
|
|
Construction financing |
|
|
- |
|
|
|
56,500 |
|
|
|
-100 |
% |
Student receivables, net: The increase is driven by timing of student billings for academic terms at our universities.
Accrued expenses - other: The decrease primarily relates to cash and stock earnout payments for a previous acquisition.
Deferred revenue: The increase in deferred revenue is driven by timing of academic terms and related student billings.
Sale lease-back financing. The increase in sale lease-back financing liability is primarily due to the recategorization of construction financing upon lease commencement due to a failed sale leaseback transaction.
Construction financing. The decrease in construction financing liability is primarily due to the recategorization of sale leaseback upon lease commencement.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to financial market risks, primarily changes in interest rates. We use various techniques to manage our interest rate risk. We have no derivative financial instruments or derivative commodity instruments, and believe the risk related to cash equivalents and available-for-sale investments is limited due to the adherence to our investment policy, which focuses on capital preservation and liquidity. In addition, we use asset managers who conduct initial and ongoing credit analyses on our investment portfolio and monitor that investments are in compliance with our investment policy. Despite the investment risk mitigation strategies we employ, we may incur investment losses as a result of unusual and unpredictable market developments and may experience reduced investment earnings if the yields on investments deemed to be low risk remain low or decline.
Interest Rate Exposure
Our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if we are forced to sell investments that have declined in market value due to changes in interest rates. At June 30, 2025, a 100 basis
29
point increase or decrease in average interest rates applicable to our investments or borrowings would not have a material impact on our future earnings, fair values or cash flows.
Our financial instruments are recorded at their fair values as of June 30, 2025 and December 31, 2024. We believe that the exposure of our consolidated financial position and results of operations and cash flows to adverse changes in interest rates applicable to our investments is not significant.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We completed an evaluation as of the end of the period covered by this Quarterly Report on Form 10-Q (“Report”) under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2025, our disclosure controls and procedures were effective to provide reasonable assurance that (i) the information required to be disclosed by us in this Report was recorded, processed, summarized and reported within the time periods specified in the rules and forms provided by the U.S. Securities and Exchange Commission (“SEC”), and (ii) information required to be disclosed by us in our reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations on the Effectiveness of Controls
Our management does not expect that our disclosure controls and procedures or our internal controls will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in a cost-effective control system, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within our Company have been detected.
These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.
30
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
Note 9 “Contingencies” to our unaudited condensed consolidated financial statements is incorporated herein by reference.
Item 1A. Risk Factors
In addition to the information set forth in this Quarterly Report on Form 10-Q, the reader should carefully consider the factors discussed in Part I, Item 1A “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission on February 18, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
On February 20, 2024, the Board of Directors of the Company approved a stock repurchase program which authorizes the Company to repurchase up to $50.0 million of the Company’s outstanding common stock. See Note 12 “Stock Repurchase Program” to our unaudited condensed consolidated financial statements for further information.
The following table sets forth information regarding purchases made by us of shares of our common stock on a monthly basis during the year to date ended June 30, 2025:
Issuer Purchases of Equity Securities
Period |
|
Total Number |
|
|
Average Price |
|
|
Total Number |
|
|
Maximum |
|
||||
December 31, 2024 |
|
|
|
|
|
|
|
|
|
|
$ |
47,106,022 |
|
|||
January 1, 2025—January 31, 2025 |
|
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
|
47,106,022 |
|
February 1, 2025—February 28, 2025 |
|
|
350,000 |
|
|
|
25.81 |
|
|
|
350,000 |
|
|
|
38,065,303 |
|
March 1, 2025—March 31, 2025 |
|
|
941,657 |
|
|
|
25.17 |
|
|
|
635,000 |
|
|
|
21,894,476 |
|
April 1, 2025—April 30, 2025 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
21,894,476 |
|
May 1, 2025—May 31, 2025 |
|
|
240,000 |
|
|
|
31.11 |
|
|
|
240,000 |
|
|
|
14,422,532 |
|
June 1, 2025—June 30, 2025 |
|
|
410,000 |
|
|
|
32.74 |
|
|
|
410,000 |
|
|
|
990,720 |
|
Total |
|
|
1,941,657 |
|
|
|
|
|
|
1,635,000 |
|
|
|
|
||
Item 5. Other Information
Rule 10b5-1 Plan Elections
During the quarter ended June 30, 2025, the following executive officers of the Company adopted a "Rule 10b5-1 trading arrangement," as defined in Item 408 of Regulation S-K.
31
Each of the trading plans was entered into during an open insider trading window and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended, and the Company's policies regarding transactions in Company securities.
Item 6. Exhibits
The exhibits required to be filed by Item 601 of Regulation S-K are listed in the “Exhibit Index,” which is attached hereto and incorporated by reference herein.
32
|
|
INDEX TO EXHIBITS |
|
|
Exhibit Number |
|
Exhibit |
|
Incorporated by Reference to: |
|
|
|
|
|
+31.1 |
|
Certification of CEO Pursuant to Section 302 of Sarbanes-Oxley Act of 2002 |
|
|
|
|
|
|
|
+31.2 |
|
Certification of CFO Pursuant to Section 302 of Sarbanes-Oxley Act of 2002 |
|
|
|
|
|
|
|
+32.1 |
|
Certification of CEO Pursuant to Section 906 of Sarbanes-Oxley Act of 2002 |
|
|
|
|
|
|
|
+32.2 |
|
Certification of CFO Pursuant to Section 906 of Sarbanes-Oxley Act of 2002 |
|
|
|
|
|
|
|
+101.INS |
|
Inline XBRL Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
|
|
|
|
|
|
|
+101.SCH |
|
Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document |
|
|
|
|
|
|
|
+104 |
|
The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in Inline XBRL (included in Exhibit 101) |
|
|
|
|
____ |
|
|
|
|
* Management contract or compensatory plan or arrangement required to be filed as an Exhibit to this Form 10-Q |
|
|
|
|
+Filed herewith. |
|
|
33
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
PERDOCEO EDUCATION CORPORATION |
||
|
|
|
|
Date: July 31, 2025 |
By: |
|
/s/ TODD S. NELSON |
|
|
|
Todd S. Nelson President and Chief Executive Officer (Principal Executive Officer) |
|
|
|
|
Date: July 31, 2025 |
By: |
|
/s/ ASHISH R. GHIA |
|
|
|
Ashish R. Ghia Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
34
Source:
FAQ
How did PRDO's revenue perform in Q2 2025?
What was Perdoceo's diluted EPS for the quarter?
How much cash and short-term investments does PRDO have?
What is the status of share repurchases?
Are there any significant legal or regulatory issues disclosed?
