Perdoceo Education NASDAQ: PRDO reported higher second-quarter revenue, operating income and earnings as its academic institutions posted enrollment gains excluding Trident University and continued investments in marketing, student support and program development.
Net income for the quarter was $48 million, or $0.75 per diluted share, compared with $41 million, or $0.62 per diluted share, a year earlier. Revenue increased 1.8% to $213.4 million, while operating income rose 6.8% to $54.9 million. Adjusted operating income increased 4.4% to $64.2 million, and adjusted earnings per diluted share rose 19.4% to $0.80.
President and Chief Executive Officer Todd Nelson said the company’s academic institutions had performed ahead of its expectations in the first half of 2026. Year-to-date operating income increased 14.4%, supported by 3% revenue growth, he said.
Enrollment Trends and Program Investments
Total student enrollment increased 0.7% as of June 30 from the prior-year quarter. Nelson said all of Perdoceo’s academic institutions recorded enrollment growth when Trident University, part of the AIU System, was excluded.
Colorado Technical University, or CTU, posted a 0.6% increase in enrollment to 32,110 students, marking its 11th consecutive quarter of growth. CTU revenue increased 0.9% to $115.5 million. Chief Financial Officer Ashish Ghia said CTU is expected to face difficult enrollment comparisons in the second half as it laps strong prior-year periods and graduates a record number of students in 2026.
AIU System enrollment declined 1%, primarily because of lower enrollment at Trident University. Excluding Trident, AIU enrollment would have increased from the prior-year period, Ghia said. AIU System revenue declined 1.8% to $57.2 million, driven primarily by non-Title IV and professional-development offerings that the company is optimizing. Operating income at AIU System rose 9.7% to $12.6 million.
The University of St. Augustine for Health Sciences, acquired in 2024, reported enrollment growth of 6% to about 4,200 students. Revenue increased 10.2% to $40.5 million, while adjusted operating income rose to $10.7 million from $5.5 million in the prior-year quarter.
Ghia attributed St. Augustine’s enrollment growth primarily to nursing and speech-language pathology programs, as well as new occupational therapy program modalities. The school’s enrollment pipeline for its fall term, traditionally its largest term, “looks strong,” he said.
Nelson said the company is responding to shifts in how prospective students search for education programs as traditional internet searches increasingly give way to AI-powered search tools. Perdoceo is increasing investment in channels it believes are less affected by that change, while using generative AI selectively to identify and engage students it believes are more likely to succeed. The impact on enrollment has been modest so far, according to Nelson.
Capital Returns and Balance Sheet
Perdoceo ended the quarter with $334.8 million in cash equivalents, restricted cash and available-for-sale short-term investments, up about $91.3 million from year-end. Net cash provided by operating activities totaled $144 million during the first half, compared with $143.9 million in the year-earlier period.
The company used cash during the first half for dividends, stock repurchases, employee stock-vesting tax obligations and capital expenditures. It repurchased 0.2 million shares during the second quarter for $6.8 million at an average price of $34.19 per share. Year-to-date repurchases totaled approximately $15 million, leaving $85 million available under its authorization.
The board authorized a 13.3% increase in Perdoceo’s quarterly dividend to $0.17 per share from $0.15 per share. The dividend will be payable Sept. 10 to shareholders of record as of Sept. 1.
Nelson also said the company is evaluating acquisition opportunities, including in health sciences, and believes its acquisition and integration experience can support expansion into additional academic programs.
2026 Outlook Raised
Perdoceo now expects full-year adjusted operating income of $258 million to $263 million, compared with $237.6 million in 2025. The company expects adjusted earnings per diluted share of $3.10 to $3.16, compared with $2.61 last year.
The outlook assumes organic revenue growth across its academic institutions, partially offset by investments in marketing, academics and student-support processes, as well as incremental legal fees. The company said its outlook also assumes that changes involving the elimination of the Grad PLUS loan program and new graduate loan limits will not materially affect student enrollment or students’ ability to finance education through private lending.
For the third quarter, Perdoceo projected adjusted operating income of $64 million to $65 million, compared with $61 million in the prior-year quarter. Adjusted earnings per diluted share is expected to range from $0.73 to $0.74, compared with $0.65 a year earlier.
About Perdoceo Education (NASDAQ:PRDO)
Perdoceo Education Corporation NASDAQ: PRDO is a for-profit postsecondary education provider offering certificate, associate, bachelor's and master's degree programs. The company operates primarily through two brand platforms—Colorado Technical University and American InterContinental University—delivering career-focused education both on campus and online. These programs span fields such as business, information technology, healthcare and criminal justice, targeting working adults seeking to advance or pivot their careers.
With headquarters in Schaumburg, Illinois, Perdoceo serves students across the United States and internationally through its online offerings.
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