Perdoceo Education (PRDO) investor relations material

Executive summary

• Q2 2026 delivered strong operating results, with revenue up 1.8% to $213.4 million and net income rising 16.9% to $48 million, driven by growth at USAHS and CTU, while AIUS saw a slight decline.

• Year-to-date operating income grew 14.4%, supported by disciplined expense management and stable enrollments.

• The University of St. Augustine for Health Sciences, acquired in 2024, expanded program offerings and contributed significantly to growth.

• Quarterly dividend increased by 13.3% to $0.17 per share, reflecting confidence in financial strength.

• Balance sheet remains robust, supporting organic investments and capital returns.

Financial highlights

• Q2 2026 net income was $48 million ($0.75 per diluted share), up from $41 million ($0.62 per share) year-over-year; adjusted EPS increased 19.4% to $0.80.

• Q2 revenue increased 1.8% to $213.4 million; year-to-date revenue up 3% to $435.1 million.

• Operating income grew 6.8% to $54.9 million; adjusted operating income rose 4.4% to $64.2 million.

• Cash, cash equivalents, and short-term investments totaled $734.8 million as of June 30, 2026.

• Dividend payments increased to $0.17 per share for Q3 2026; $19.7 million paid in dividends YTD.

Outlook and guidance

• Full-year 2026 adjusted operating income expected between $258 million and $263 million, up from $237.6 million in 2025.

• Adjusted EPS guidance for 2026 is $3.10–$3.16, a 19.9% increase at midpoint over 2025.

• Q3 2026 adjusted operating income expected at $64–$65 million; adjusted EPS $0.73–$0.74.

• Effective tax rate for 2026 projected at 23–24%.

• Capital expenditures for 2026 expected at 1% of revenues.