Q2 2026 Perdoceo Education Corp Earnings Call Transcript
Key Points
- Perdoceo Education Corp (PRDO) reported strong second-quarter 2026 results with net income of $48 million, or $0.75 per diluted share, up from $41 million, or $0.62 per share, in the prior year quarter.
- Year-to-date operating income grew 14.4% and revenue increased 3%, driven by disciplined expense management and purposeful investments in academics, technology, and student support.
- Total student enrollments grew 0.7% year-over-year, with CTU achieving its 11th consecutive quarter of enrollment growth and the University of St. Augustine for Health Sciences seeing a 6% increase in enrollments.
- The University of St. Augustine for Health Sciences delivered strong performance, with revenue up 10.2% and adjusted operating income nearly doubling to $10.7 million, supported by new program modalities and strong enrollment pipelines.
- The Board approved a 13.3% increase in the quarterly dividend to $0.17 per share, reflecting confidence in the long-term outlook and a commitment to returning capital to shareholders.
- The company maintains a strong balance sheet with $734.8 million in cash and investments, and is actively evaluating accretive acquisition opportunities, particularly in health sciences.
- Total student enrollments at AIU System decreased 1% year-over-year, primarily due to lower enrollments at Trident University, which is part of the system.
- CTU faces headwinds from lapping strong record enrollment quarters and a record number of expected graduations in 2026, which may lead to lower reported enrollments in the second half of the year.
- Legal fees at CTU related to previously disclosed legal matters have trended higher year-over-year, negatively impacting operating income growth.
- The shift from traditional internet search engines to AI-powered search is changing prospective student behavior, and while the impact has been modest so far, it poses a risk to future enrollment growth.
- Revenue at AIU System decreased 1.8% in the quarter, primarily due to optimization of non-Title IV and professional development offerings, which may limit near-term growth.
- The company's outlook assumes no material impact from regulatory changes, including the elimination of the Grad PLUS loan program, which could pose a risk if student financing options become more constrained.
Ladies and gentlemen, thank you for standing by. Hello, and welcome to Perdoceo Education Corporation's second-quarter 2026 earnings conference call. (Operator Instructions)
I would now like to turn the conference over to Nick Nelson. Please go ahead.
Thank you, operator. Good afternoon, everyone, and thank you for joining us for our second-quarter 2026 earnings call. With me on the call today is Todd Nelson, President and Chief Executive Officer; and Ashish Ghia, Chief Financial Officer.
This conference call is being webcast live within the Investor Relations section of the company's website at perdoceoed.com. A webcast replay will also be available on our site for 90 days following the call, and you can always contact the Alpha IR Group for Investor Relations support.
Let me remind you that this afternoon's earnings release and remarks made today include forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934 as amended. These statements are based
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