Perdoceo Education Corporation

What they do

Perdoceo delivers associate through doctoral degree programs, plus non-degree and professional development offerings, through fully online, campus-based and hybrid formats. Its institutions target non-traditional adult learners, the military community, and graduate health sciences students. Reporting segments correspond to the three institutions: CTU, AIUS and USAHS.

Revenue drivers

• CTU — Largest segment; second quarter 2026 revenue was $115.5 million (about 54% of total), up 0.9% year over year, with enrollments of 32,110 at June 30, 2026. Offers career-oriented programs in business and management, nursing, computer science, engineering, cybersecurity and criminal justice.
• AIUS — Second-largest segment; second quarter 2026 revenue was $57.2 million, down 1.8% year over year, with 10,510 enrollments. Comprises AIU, Trident and California Southern University; revenue decline was primarily due to non-Title IV and professional development programs.
• USAHS — Smallest but fastest-growing segment; second quarter 2026 revenue was $40.5 million, up 10.2% year over year, with 4,210 enrollments. Graduate health sciences degrees in physical therapy, occupational therapy, speech-language therapy and nursing.

Recent performance

Second quarter 2026 revenue rose 1.8% to $213.4 million from $209.6 million a year earlier, and year-to-date revenue rose 3.0% to $435.1 million. Diluted EPS increased 21.0% to $0.75 and adjusted EPS grew 19.4% to $0.80; year-to-date diluted EPS was $1.60. Operating income rose 6.8% to $54.9 million in the quarter and 14.4% to $118.0 million year to date. Total student enrollments at June 30, 2026 were 46,830, up 0.7%, with USAHS up 6.0%, CTU up 0.6% and AIUS down 1.0% on a modest decrease at Trident.

Strategy

Management describes its objective as sustainable and responsible growth, supported by the breadth of program offerings across the three institutions. The company invests organically and is also evaluating incremental investment strategies. It continues to return capital to shareholders, increasing the quarterly dividend by 13.3% to $0.17 per share and maintaining a stock repurchase program. CTU and AIUS continue to advance personalized learning technologies such as the intellipath platform and use data analytics to improve student experience and outcomes.

Risks

• Title IV and regulatory compliance — The company must maintain continued compliance and eligibility under Title IV programs, including new 90/10 regulations and earnings premium, financial responsibility and administrative capability standards, as well as accreditation and state requirements.
• Enrollment decline risk — Declines in enrollment or interest in programs, or weakened ability to attract prospective students, are flagged as factors that could materially affect results; AIUS enrollment was already down 1.0% year over year.
• Legislative and political uncertainty — The post-November 2024 election Administration and Congress may delay, block, modify or eliminate certain Title IV and other higher education regulations, and may interpret and enforce existing rules differently.
• Borrower defense and loan discharge litigation — The company cites the impact of various versions of borrower defense to repayment regulations and the final outcome of legal challenges to Department of Education loan discharge and forgiveness efforts.

Outlook

The company reported second quarter 2026 as another quarter of strong operating performance, building on two years of sustainable growth, with total enrollments of 46,830 and a strong balance sheet. No numeric guidance for future periods is provided in the excerpted release. Management said the balance sheet provides flexibility to invest organically, evaluate incremental investment strategies, and return capital to shareholders.