Perdoceo Education Corporation (NASDAQ:PRDO) reported financial results for the fourth quarter and full year of 2025, delivering earnings that surpassed analyst expectations and providing a forward outlook that signals confidence in continued growth. The market reaction in after-hours trading was notably positive, with shares rising over 6%.
Earnings and Revenue Versus Estimates
The company’s performance for the quarter ended December 31, 2025, showed strength on the bottom line, though top-line revenue came in slightly below consensus.
- Earnings Per Share (Adjusted): The company reported adjusted earnings per diluted share of $0.59. This exceeded the analyst consensus estimate of $0.55.
- Revenue: Quarterly revenue reached $211.6 million, marking a 20.0% increase from the prior year. However, this figure was just shy of the analyst estimate of $214.2 million.
The earnings beat, coupled with robust full-year growth, appears to be the primary driver behind the positive investor sentiment in the extended session. For the full year 2025, revenue grew 24.2% to $846.1 million, while adjusted EPS increased to $2.61 from $2.26 in 2024.
Market Reaction and Forward Guidance
The immediate after-market gain of more than 6% suggests investors are focusing on the earnings outperformance and the company's future projections. Perdoceo provided specific guidance for the first quarter and full year 2026, which generally aligns with or exceeds current growth trajectories.
The company's outlook for the first quarter of 2026 calls for:
- Adjusted EPS in a range of $0.83 to $0.85, compared to $0.70 in Q1 2025.
- Adjusted operating income between $68.0 million and $70.0 million.
For the full year 2026, management expects:
- Adjusted EPS between $2.97 and $3.12.
- Adjusted operating income in the range of $250.0 million to $263.0 million.
This guidance, which anticipates another year of earnings growth, likely reinforced the positive market reaction by demonstrating management's confidence in its operational momentum.
Key Highlights from the Earnings Report
Beyond the headline numbers, the press release outlined several fundamental strengths:
- Enrollment Growth: Total student enrollments increased by 7.3% year-over-year to 44,400 as of December 31, 2025. Growth was led by the American InterContinental University System (AIUS), which saw an 11.2% increase.
- Strong Cash Generation: The company generated $225.2 million in net cash from operating activities for the full year, a significant increase from $161.6 million in 2024. It ended the year with a substantial cash and investments balance of $643.5 million.
- Capital Return to Shareholders: Perdoceo remains active in returning capital. During 2025, it repurchased 4.1 million shares for $120.8 million and declared a quarterly dividend of $0.15 per share in February 2026. A new $100 million share repurchase program was also authorized.
- Acquisition Integration: The December 2024 acquisition of the University of St. Augustine for Health Sciences (USAHS) contributed meaningfully to annual revenue and turned to a positive operating income in the fourth quarter, indicating successful early integration.
President and CEO Todd Nelson attributed the strong results to "sustained levels of prospective student interest" and high retention, emphasizing a "balanced approach to capital allocation" and expecting "positive operating momentum to continue into 2026."
For a detailed look at historical performance and future analyst estimates for Perdoceo Education Corp, you can review the earnings and estimates data here.
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