Earnings

Phoenix Education Partners Lifts Dividend After Year-End Cash Build

The Tip Desk · November 12, 2026 · 3 min read

The University of Phoenix parent posted fourth-quarter net revenue of $260.7 million and raised its quarterly dividend to $0.23 a share.

Phoenix Education Partners, Inc. (PXED), the parent of The University of Phoenix, reported fourth-quarter net revenue of $260.7 million for the three months ended August 31, 2026, compared with $257.4 million a year earlier.

Average Total Degreed Enrollment was 81,500 in the fourth quarter, versus 79,300 a year earlier. Net income attributable to the company was $23.5 million, or $0.60 diluted earnings a share, compared with $17.5 million, or $0.46 a share. The company said the increase was primarily due to higher net revenue, a lower provision for credit losses and lower strategic alternatives, restructuring and other expense, partially offset by higher share-based compensation after its October 2025 initial public offering.

Adjusted EBITDA was $61.5 million, versus $56.6 million a year earlier, and adjusted diluted earnings were $1.07 a share. Adjusted EBITDA margin expanded to 23.6% from 22.0%. Operating income was $31.2 million.

Strategic alternatives, restructuring and other expense fell to $14.0 million from $28.5 million a year earlier. General and administrative expense rose to $106.2 million from $96.9 million. Instructional and support expense declined to $109.3 million from $110.2 million. Cybersecurity incident expense of $7.1 million appeared after a November 2025 incident. Non-cash share-based compensation was $9.6 million versus $0.7 million a year earlier.

For the fiscal year ended August 31, 2026, net revenue was $1,017.0 million, compared with $1,007.2 million in fiscal 2025. Average Total Degreed Enrollment was 83,700, versus 81,900. Net income attributable to Phoenix Education Partners was $88.9 million, or $2.29 a share, compared with $133.9 million, or $3.51 a share. The company attributed the decline primarily to higher IPO-related share-based compensation and increased advertising expense, partially offset by higher net revenue and a lower provision for credit losses.

Full-year adjusted EBITDA was $249.0 million, versus $243.9 million, and adjusted diluted earnings were $4.47 a share versus $4.50. Adjusted EBITDA margin was 24.5%. Operating income was $122.7 million. Non-cash share-based compensation was $57.2 million versus $2.6 million, which the company said resulted from the IPO. Cybersecurity incident expense was $12.2 million for the year versus none a year earlier.

Cash and cash equivalents, including restricted cash, and marketable securities totaled $331.7 million as of August 31, 2026, versus $194.8 million a year earlier. The company said the increase was primarily attributable to $196.3 million of cash generated by operating activities, partially offset by dividends, capital expenditures, payroll taxes on share-based awards and common stock repurchases.

The board raised the regular quarterly common stock cash dividend to $0.23 a share from $0.21, an increase of approximately 10%, payable November 27, 2026. The company had paid $0.21 a share beginning in the second quarter of 2026. It adopted a $50.0 million share repurchase program in the third quarter of 2026 and repurchased 0.2 million shares for $7.1 million, or an average $29.95 a share, during fiscal 2026, leaving $42.9 million available as of August 31, 2026.

On September 30, 2026, the company completed the acquisition of Fuel50, Inc., an AI-powered workforce intelligence platform. Fuel50 results are included from the acquisition date and are not expected to be material to consolidated results in the near term.

For fiscal year 2027, the company expects net revenue of $970.0 million to $1,000.0 million and adjusted EBITDA of $225.0 million to $240.0 million, including expected Fuel50 results after the September 30, 2026 acquisition.