PXED · Phoenix Education Partners, Inc

Phoenix Education Partners' Q2 FY2026 results showed stable revenue at $222.5 million, nearly flat from $223.4 million a year ago, amid a slight increase in Average Total Degreed Enrollment to 82,600 from 81,100, reflecting steady demand at The University of Phoenix. GAAP net income declined to $10.8 million from $16.1 million, driven primarily by elevated share-based compensation tied to the October 2025 IPO, where existing shareholders sold 4.9 million shares at $32.00 without company proceeds. Non-GAAP metrics improved, with Adjusted EBITDA up 7.7% to $34.8 million and adjusted diluted EPS at $0.58 versus $0.56, indicating underlying operational strength. For the first half, revenue grew modestly to $484.5 million, Adjusted EBITDA rose to $110.0 million, and enrollment expanded to 84,100. CEO Chris Lynne highlighted over one million digital badges issued, enhanced student experience, employer partnerships, and superior performance in the PSOL survey across all 26 attributes, including satisfaction. Balance sheet remains solid with $252.1 million in cash and securities as of February 28, 2026, bolstered by $80.0 million operating cash flow, no debt under the $100 million credit facility entered November 2025, and a paid Q2 dividend of $0.21 per share. Investor confidence is signaled by the new $50 million repurchase authorization and reaffirmed $0.21 dividend for May 2026. FY2026 guidance of $1.025-$1.035 billion revenue and $244-$249 million Adjusted EBITDA suggests low-single-digit growth and margin expansion, positioning the company for sustained profitability post-IPO.