Perdoceo Education Corporation Reports Third Quarter and Year to Date 2026 Results

Earnings per diluted share increased 23.5% for the year to date ended September 30, 2026

SCHAUMBURG, Ill.--(BUSINESS WIRE)--Perdoceo Education Corporation (Nasdaq: PRDO), a provider of postsecondary education programs through its academic institutions, today reported operating and financial results for the third quarter and year to date ended September 30, 2026.

"Third quarter operating performance was ahead of our expectations, as our portfolio of academic institutions experienced strong prospective student interest and student retention trended near historical highs,” said Todd Nelson, President and Chief Executive Officer. “Importantly, we remain committed to investing in student support and technology that we believe will further enhance both student experiences and academic outcomes. Looking ahead, we are on track to complete our acquisition of South University as early as April 2027, and expect to continue generating long-term, sustainable and responsible growth."

Third Quarter 2026 Results as Compared to Prior Year Quarter

• Earnings per diluted share increased 16.7% to $0.70 as compared to $0.60, while adjusted earnings per diluted share grew by 18.5% to $0.77 as compared to $0.65*.
• Operating income increased 8.1% to $55.1 million, while adjusted operating income increased 8.4% to $66.1 million*.
• Revenue increased 1.9% to $215.9 million as compared to $211.9 million.
• Total student enrollments at September 30, 2026 increased by 1.6% to 47,260.

Year to Date 2026 Results as Compared to Prior Year to Date

• Earnings per diluted share was $2.31 as compared to $1.87, while adjusted earnings per diluted share was $2.48 as compared to $2.02*.
• Operating income increased 12.3% to $173.1 million, while adjusted operating income increased 9.0% to $203.1 million*.
• Revenue increased 2.6% to $651.0 million as compared to $634.5 million.

*See GAAP (U.S. generally accepted accounting principles) to non-GAAP reconciliations attached to this press release.

TOTAL STUDENT ENROLLMENTS

• As of September 30, 2026, total student enrollments were 47,260, an increase of 1.6% as compared to 46,520 total student enrollments as of September 30, 2025.

REVENUE

• For the quarter ended September 30, 2026, revenue increased 1.9% to $215.9 million as compared to revenue of $211.9 million for the prior year quarter.
• For the year to date ended September 30, 2026, revenue increased 2.6% to $651.0 million as compared to revenue of $634.5 million for the prior year to date.

OPERATING INCOME

• For the quarter ended September 30, 2026, operating income of $55.1 million increased 8.1% from $51.0 million for the prior year quarter.
• For the year to date ended September 30, 2026, operating income of $173.1 million increased 12.3% from $154.1 million for the prior year to date.
• Operating income at CTU for both the quarter and year to date ended September 30, 2026 includes increased legal fees related to previously disclosed legal matters as compared to the prior year periods. Excluding these increased legal fees, operating income would have increased as compared to the respective prior year periods.

ADJUSTED OPERATING INCOME

The Company believes it is useful to present non-GAAP financial measures, such as adjusted operating income and adjusted earnings per diluted share, which exclude certain cash and non-cash items, as a means to better understand its operating performance. (See the table below and the GAAP to non-GAAP reconciliations attached to this press release for further details.)

• For the quarter ended September 30, 2026, adjusted operating income of $66.1 million increased 8.4% compared to adjusted operating income of $61.0 million for the prior year quarter.
• For the year to date ended September 30, 2026, adjusted operating income of $203.1 million increased 9.0% compared to adjusted operating income of $186.3 million for the prior year to date.

NET INCOME, EARNINGS PER DILUTED SHARE AND ADJUSTED EARNINGS PER DILUTED SHARE

For the quarter ended September 30, 2026, the Company recorded:

• Net income of $44.4 million compared to $39.9 million for the prior year quarter.
• Earnings per diluted share of $0.70 compared to $0.60 for the prior year quarter.
• Adjusted earnings per diluted share of $0.77 compared to $0.65 for the prior year quarter. (See the GAAP to non-GAAP reconciliations attached to this press release for further details.)

For the year to date ended September 30, 2026, the Company recorded:

• Net income of $146.3 million compared to $124.6 million for the prior year to date.
• Earnings per diluted share of $2.31 compared to $1.87 for the prior year to date.
• Adjusted earnings per diluted share of $2.48 compared to $2.02 for the prior year to date. (See the GAAP to non-GAAP reconciliations attached to this press release for further details.)

BALANCE SHEET AND CASH FLOW

• For the quarter ended September 30, 2026, net cash provided by operating activities was $79.7 million compared to net cash provided by operating activities of $41.2 million for the prior year quarter. The increase for the current quarter was driven by timing of working capital as well as growth in operating income.
• For the year to date ended September 30, 2026, net cash provided by operating activities was $223.8 million compared to net cash provided by operating activities of $185.1 million for the prior year to date. The increase for the current year to date was driven by timing of working capital as well as growth in operating income.
• As of September 30, 2026 and December 31, 2025, cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled $776.9 million and $643.5 million, respectively.

CAPITAL ALLOCATION

On November 5, 2026, the board of directors declared a quarterly dividend of $0.17 per share, which will be paid on December 11, 2026 to holders of record of common stock as of November 27, 2026. Any decision to pay future cash dividends will be made by the board of directors and depend on the Company’s available retained earnings, financial condition and other relevant factors. During the quarter ended September 30, 2026, the Company also repurchased 0.6 million shares for $19.9 million, with $65.1 million remaining under its current share repurchase program.

The Company expects both quarterly dividend payments and share repurchases to be an integral and growing part of its balanced capital allocation strategy that also prioritizes investments in student enrollment, student support and technology projects, as well as evaluating acquisition opportunities.

AGREEMENT TO ACQUIRE SOUTH UNIVERSITY

On September 14, 2026, the Company announced that it has entered into a definitive agreement to acquire 100% of the membership interests of South University Savannah, LLC (“South University” or “South”) from South University – Member, Inc. (the “Seller”). South, together with its subsidiaries, is a leading health sciences-focused institution serving students through eleven (11) campus locations across Georgia, Florida, Alabama, South Carolina, Virginia, Texas and North Carolina, and through South University Online. South is institutionally accredited by The Southern Association of Colleges and Schools Commission on Colleges (“SACSCOC”) through 2034.

To acquire 100% ownership of South, Perdoceo expects to pay cash consideration as follows:

a) Approximately $130 million - $150 million at closing. The actual cash paid at closing will be adjusted for cash, net working capital, and certain agreed upon debt-like items, in each case based on South’s balance sheet as of the beginning of April 2027, as well as indebtedness and Seller transaction expenses outstanding at closing;

b) $18 million of deferred consideration paid out in installments over 24 months following closing; and

c) Up to $56 million of earn-out payments tied to specified EBITDA thresholds for fiscal years 2027, 2028 and 2029.

The purchase price and the deferred consideration and earn-out payments, if any, are expected to be funded fully using the Company’s available cash balances.

The Company expects to complete the acquisition as early as April 2027. Once completed, the acquisition will firmly establish Perdoceo’s graduate health sciences offerings and further extend the breadth and depth of its academic program offerings. Perdoceo expects the transaction to be immediately accretive to the Company’s adjusted operating income beginning in 2027 and to provide further growth in adjusted operating income in 2028.

The foregoing description of the Purchase Agreement and the transactions contemplated thereby does not purport to be complete, and is qualified in its entirety by, the full text of the Purchase Agreement, a copy of which was filed as an exhibit to the Company’s Form 8-K, filed on September 14, 2026. Please refer to that Form 8-K for additional information, including, material terms and conditions related to the pending acquisition.

OUTLOOK

The Company is providing the following fourth quarter and full year 2026 outlook, subject to the key assumptions identified below. Please see the GAAP to non-GAAP reconciliations for adjusted operating income and adjusted earnings per diluted share attached to this press release for further details.

Operating income, which is the most directly comparable GAAP measure to adjusted operating income, and earnings per diluted share, which is the most directly comparable GAAP measure to adjusted earnings per diluted share, may not follow the same trends stated in the outlook above because of future adjustments made for certain significant and non-cash items. The operating income, adjusted operating income, earnings per share and adjusted earnings per share outlook provided above for the fourth quarter and year ending December 31, 2026 are based on the following key assumptions and factors, among others: (i) prospective student interest in our academic institutions' programs and trends in student retention and engagement remain consistent with management’s recent experiences, (ii) no material impact from current or future federal budget reconciliations or other legislative activity on the availability of current levels of federal student aid or the conditions associated with participating in such aid programs, (iii) no significant impact from new or proposed regulations, or from updated interpretations of current regulations, administrative actions by or changes in the structure of federal agencies or other adverse changes in the legal or regulatory environment, including government shutdowns, which may require operational changes in the way the Company’s academic institutions attract, connect with, enroll, support and educate current and prospective students, among other impacts, (iv) any impact on total student enrollments due to elimination of the Grad PLUS loan program will not be material as prospective students are assumed to have access to private lending sources, (v) no significant operating impacts from the settlement with the U.S. Federal Trade Commission or other legal or regulatory matters, (vi) no material disruptions to the availability of the current levels of federal student aid whether due to the restructuring of federal agencies, government shutdowns, staffing related changes or layoffs or changes to congressional funding priorities, (vii) any impact on inquiry volume due to increased use of Artificial Intelligence by prospective students in lieu of traditional Internet search engines will be offset by inquiry growth from other channels, (viii) legal fees relating to current litigation matters and the proposed acquisition remain generally in line with the Company's current expectations, (ix) earnings per diluted share outlook assumes an effective income tax rate of approximately 25.5% for the fourth quarter and approximately 23.3% for the full year, and (x) excludes any future impact from the Company’s stock repurchase program. Although these estimates and assumptions are based upon management’s good faith beliefs regarding current and future circumstances and actions that may be undertaken, actual results could differ materially from these estimates. In addition, decisions the Company makes in the future as it continues to evaluate diverse strategies to enhance stockholder value may impact the outlook provided above.

CONFERENCE CALL INFORMATION

Perdoceo Education Corporation will host a conference call on Thursday, November 5, 2026 at 5:00 p.m. Eastern time to discuss the third quarter results and 2026 outlook. Interested parties can access the live webcast of the conference call at www.perdoceoed.com in the Investor Relations section of the website. Participants can also listen to the conference call by dialing 1-833-461-5787 (domestic) or 1-585-542-9983 (international). Both dial-in numbers will use the access code 341148805. Viewers can also access the conference call by following this link https://events.q4inc.com/attendee/341148805. Please log-in or dial-in at least 10 minutes prior to the start time to ensure a connection. An archived version of the webcast will be accessible for 90 days at www.perdoceoed.com in the Investor Relations section of the website.

ABOUT PERDOCEO EDUCATION CORPORATION

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. For more information, please visit www.perdoceoed.com.

Except for the historical and current factual information contained herein, the matters set forth in this release, including statements identified by words such as “believe,” “will,” “expect,” “continue,” “outlook,” “remain,” “focused on,” “should” and similar expressions, are forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on information currently available to us and are subject to various assumptions, risks, uncertainties and other factors that could cause our 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 or revise such factors or any of the forward-looking statements contained herein to reflect future events, developments or changed circumstances, or for any other reason. These risks and uncertainties, the outcomes of which could materially and adversely affect our financial condition and results of operations, include, but are not limited to, the following: declines in enrollment or interest in our programs or our ability to attract and connect with prospective students; our continued compliance with and eligibility to participate in Title IV Programs under the Higher Education Act of 1965, as amended, and the regulations thereunder (including the new 90/10 regulations, and earnings premium, financial responsibility and administrative capability standards prescribed by the U.S. Department of Education, the "Department"), as well as applicable accreditation standards and state regulatory requirements; the impact of various versions of “borrower defense to repayment” regulations; the final outcome of various legal challenges to the Department's loan discharge and forgiveness efforts; rulemaking or changing interpretations of existing regulations, guidance or historical practices by the Department, or any state or accreditor and increased focus by Congress and governmental agencies on, or increased negative publicity about, for-profit education institutions; the impact of any federal budget reconciliations or other legislative activities on the availability of adequate levels of federal student aid or the conditions associated with participating in such aid programs; the success of our initiatives to improve student experiences, retention and academic outcomes; our continued ability to participate in educational assistance programs for key employers, veterans or other military personnel; our ability to pay dividends on our common stock and execute our stock repurchase program; increased competition; the impact of management changes; our ability to successfully defend litigation and other claims brought against us; our ability to complete the proposed acquisition of South University; and changes in the overall U.S. economy. Further information about these and other relevant risks and uncertainties may be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and its subsequent filings with the Securities and Exchange Commission.

Investors:
Alpha IR Group
Nick Nelson
(312) 445-2870
PRDO@alpha-ir.com
or
Media:
Perdoceo Education Corporation
(847) 585-2600
media@perdoceoed.com