PRDO · Perdoceo Education Corporation

Perdoceo’s Q1 2026 results reflect broad-based operational strength across its three academic institutions—CTU, AIUS, and USAHS—with revenue growth anchored by double-digit gains at USAHS (+9.8%) and steady expansion at CTU (+4.0%), while AIUS remained flat (+0.4%). Operating income surged 22.0% year-over-year to $63.1 million, outpacing revenue growth and signaling margin improvement, particularly at AIUS (operating income up 12.0%) and USAHS (which swung from a $330K loss to $6.3M profit). Management attributes this to sustained prospective student interest, near multi-year highs in retention and engagement, and continued investment in personalized learning platforms like intellipath®. The 30.8% increase in GAAP diluted EPS to $0.85—and 28.6% growth in adjusted EPS to $0.90—was underpinned by both top-line expansion and disciplined cost management, despite $9.3M in depreciation and amortization. Enrollment growth of 1.1% to 48,740 students reflects strategic stabilization: CTU and USAHS gained ground while AIUS declined as expected, consistent with the Company’s prior disclosures about program rationalization. The updated full-year 2026 guidance—adjusted operating income of $254.0M–$263.0M and adjusted EPS of $3.05–$3.16—carries explicit assumptions around federal student aid continuity, regulatory stability, and no material impact from AI-driven search behavior or FTC settlement outcomes. The declaration of a $0.15 quarterly dividend reinforces capital return discipline amid ongoing investments in student support, technology, and potential M&A, aligning with management’s stated balanced capital allocation strategy.