Perdoceo Lifts Adjusted Operating Income Growth After a Slower Second Quarter

The Tip Desk · November 7, 2026 · 3 min read

Adjusted operating income was $66.1 million in the third quarter, up 8.4% from a year earlier, as USAHS revenue reached $41.7 million.

Perdoceo Education Corporation (PRDO), a provider of postsecondary education programs, reported adjusted operating income of $66.1 million for the quarter ended September 30, 2026, up 8.4% from a year earlier, after 4.4% growth in the second quarter.

Revenue rose 1.9% to $215.9 million, a modest sequential uptick from 1.8% growth in the prior quarter. Operating income increased 8.1% to $55.1 million. Diluted earnings were $0.70 a share, up 16.7%, and adjusted diluted earnings were $0.77 a share, up 18.5%.

President and Chief Executive Officer Todd Nelson said third-quarter operating performance was ahead of the company’s expectations, citing strong prospective student interest and student retention near historical highs.

Total student enrollments were 47,260 at September 30, 2026, up 1.6% from a year earlier, after 0.7% growth at June 30. The mix shifted. American InterContinental University System enrollments rose 7.5% to 10,830, after a 1.0% decline at June 30. University of St. Augustine for Health Sciences enrollments increased 3.2% to 4,560. Colorado Technical University enrollments fell 0.5% to 31,870, reversing 0.6% growth at June 30.

USAHS revenue was $41.7 million, up 9.8% from a year earlier, after 10.2% growth in the second quarter. AIUS revenue was $56.6 million, down 0.1%. CTU revenue was $117.4 million, up 0.3%.

Operating income at CTU fell 6.1% to $44.9 million. The company said CTU operating income for the quarter included increased legal fees related to previously disclosed legal matters and that, excluding those fees, operating income would have increased versus the year-ago quarter. AIUS operating income rose 24.9% to $11.6 million. USAHS operating income was $4.6 million, compared with $66 thousand a year earlier. Corporate and other operating income was a $6.0 million loss.

Net cash provided by operating activities was $79.7 million, up 93.4% from a year earlier. The company attributed the increase to timing of working capital and growth in operating income. Cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled $776.9 million at September 30, 2026, versus $643.5 million at December 31, 2025.

The company repurchased 0.6 million shares for $19.9 million in the quarter, with $65.1 million remaining under its current share repurchase program. On November 5, 2026, the board declared a quarterly dividend of $0.17 a share, unchanged from the rate announced with second-quarter results.

On September 14, 2026, Perdoceo announced a definitive agreement to acquire 100% of South University Savannah, LLC. Expected cash consideration is about $130 million to $150 million at closing, $18 million of deferred consideration over 24 months, and up to $56 million of earn-outs tied to EBITDA thresholds for fiscal 2027 through 2029. The company said it expects to complete the acquisition as early as April 2027, to fund the purchase with available cash, and that the deal is expected to be immediately accretive to adjusted operating income beginning in 2027.

For the quarter ending December 31, 2026, Perdoceo outlooks operating income of $47.9 million to $50.9 million and adjusted operating income of $56.9 million to $59.9 million, versus $41.9 million and $51.6 million in the year-ago quarter. For the year ending December 31, 2026, it outlooks operating income of $221.0 million to $224.0 million and adjusted operating income of $260.0 million to $263.0 million, versus $196.0 million and $237.9 million in 2025.