Phoenix Education Partners I (NYSE:PXED) Reports Mixed Q1 Results with Adjusted EPS Beat

Phoenix Education Partners Inc (NYSE:PXED), the parent company of the University of Phoenix, reported financial results for its fiscal first quarter ended November 30, 2025. The company's performance presented a mixed picture, with revenue slightly missing consensus estimates while adjusted earnings per share exceeded expectations. The market's initial reaction in after-hours trading was positive, with shares rising approximately 0.9%.

First Quarter Financial Performance

The for-profit education provider reported net revenue of $262.0 million for the quarter, a modest increase from $254.7 million in the same period last year. This figure came in just below analyst estimates, which had anticipated revenue of approximately $262.7 million. The company's top-line growth was supported by an increase in its core student body, with Average Total Degreed Enrollment rising to 85,600 from 82,200 a year ago.

On the profitability front, the company's GAAP earnings showed a significant year-over-year decline. Net income attributable to Phoenix Education Partners was $15.5 million, or $0.40 per diluted share, compared to $46.4 million, or $1.23 per share, in the prior year. Management attributed this drop primarily to expenses, including substantial share-based compensation, related to the company's initial public offering completed in October 2025.

However, the company emphasized its non-GAAP results, which exclude one-time IPO-related costs and other items. On this basis, the performance was stronger:

• Adjusted EBITDA increased to $75.2 million from $70.1 million.
• Adjusted Diluted Earnings Per Share rose to $1.38, up from $1.35 in the prior year.

This adjusted EPS of $1.38 notably surpassed the analyst consensus estimate of $1.29.

Market Reaction and Liquidity Position

The positive after-hours move suggests investors may be focusing on the earnings beat and the underlying operational growth indicated by the adjusted metrics, rather than the GAAP profit decline tied to the IPO. The company also bolstered its financial position during the quarter, ending with $218.1 million in combined cash, cash equivalents, and marketable securities, up from $194.8 million at the end of August. This increase was driven by $31.1 million in cash generated from operations. Furthermore, the company secured a new $100 million senior secured revolving credit facility, providing additional liquidity, and announced a quarterly cash dividend of $0.21 per share.

Forward Guidance and Analyst Expectations

Looking ahead, Phoenix Education Partners provided its outlook for the full 2026 fiscal year. The company expects:

• Net revenue between $1.025 billion and $1.035 billion.
• Adjusted EBITDA in the range of $244 million to $249 million.

This revenue guidance brackets the current analyst consensus estimate of approximately $1.049 billion for the full year, suggesting management's forecast is slightly more conservative than the street's expectations. For the upcoming second quarter, analysts are currently modeling revenue of about $221.6 million.

Conclusion

Phoenix Education Partners' first quarter as a public company demonstrated steady enrollment and revenue growth, coupled with stronger-than-expected profitability on an adjusted basis. While GAAP earnings were heavily impacted by one-time IPO costs, the core business appears stable. The company's initial guidance for the year sets a baseline that is roughly in line with, if slightly below, current analyst projections. The positive after-market price action indicates that investors are responding favorably to the earnings beat and the company's solid liquidity and cash generation.

For a detailed look at historical earnings, future estimates, and analyst projections for PXED, visit the earnings and estimates page.

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