Perdoceo Education's Q2 2025: Unraveling Contradictions in Revenue Growth, Earnings, and Regulatory Challenges

Revenue growth and enrollment, adjusted earnings per diluted share, revenue growth drivers, outlook for 2025, and regulatory and legislative environment are the key contradictions discussed in Perdoceo Education Corporation's latest 2025Q2 earnings call.



Revenue and Enrollment Growth:
- Perdoceo Education Corporation reported revenue of $209.6 million for Q2 2025, up 26% year-on-year.
- The growth was driven by total enrollment growth across academic institutions, supported by high student retention and engagement, increased interest from prospective students, and the acquisition of St. Augustine.

Total Enrollment Increase:
- Total student enrollment grew by 17.4%, with CTU and AIU System both experiencing enrollment growth of around 7%.
- This trend was supported by ongoing investments in student enrollment processes, technology enhancements, and strategic marketing strategies.

Capital Allocation and Shareholder Returns:
- The company purchased 1.6 million shares for $46 million in the first half of 2025 and received Board approval for a new $75 million share repurchase authorization.
- Additionally, the quarterly dividend was increased from $0.13 to $0.15 per share, reflecting a commitment to returning capital to shareholders.

St. Augustine Acquisition Impact:
- The acquisition of St. Augustine contributed $36.7 million to revenue growth and positively impacted adjusted operating income and EPS.
- The integration of St. Augustine into the company's academic offerings is expected to provide further growth in 2025 and future years.