AP VIII Queso 2026 Q1 Earnings Net Income Plummets 67.2% Amid Revenue Growth

AP VIII Queso (PXED), a market capitalization leader, reported fiscal 2026 Q1 earnings on Jan 13, 2026. The results showed a 2.9% revenue increase to $262.03 million compared to $254.69 million in 2025 Q1, but net income fell sharply to $15.48 million, a 67.2% decline from $47.12 million a year ago. Despite revenue outperforming forecasts by $4.46 million, the stock price dropped 3.76% in the latest trading day, reflecting market disappointment over the earnings miss.

Revenue

AP VIII Queso’s total revenue rose 2.9% year-over-year to $262.03 million in 2026 Q1, driven by sustained demand in its core markets. The company outperformed revenue forecasts by $4.46 million, signaling operational resilience despite challenges in its earnings performance.

Earnings/Net Income

The company’s EPS plummeted 67.2% to $0.43 in 2026 Q1, compared to $1.31 in the prior year. Net income also declined to $15.48 million, down 67.2% from $47.12 million. The sharp drop, attributed to IPO-related share-based compensation expenses, underscores the need for investors to monitor cost structures and strategic initiatives. The EPS decline indicates a significant negative performance relative to expectations.

Post-Earnings Price Action Review

The strategy of buying Phoenix Education Partners (PXED) when revenues miss and holding for 30 days shows promising potential based on backtested data. Recent performance revealed that while PXED’s revenue beat forecasts, the stock price declined due to an EPS miss, highlighting market sensitivity to earnings outcomes. Historical patterns suggest a rebound after initial declines, driven by market adjustments and anticipation of future growth. The company’s FY2026 guidance of $1.025B–$1.035B revenue and $244M–$249M adjusted EBITDA signals continued growth, supported by AI-driven initiatives and enrollment strategies. Risks include enrollment controls and regulatory changes, but a 30-day holding period aligns with the release of FY2026 projections, offering time for market reactions to stabilize. If the EPS miss is viewed as temporary, the stock could rebound, driven by strategic initiatives and revenue growth.

CEO Commentary

Chris Lynne, CEO of Phoenix Education Partners, emphasized strong retention and enrollment growth fueled by career-focused programs for working adults. He highlighted strategic priorities such as employer alliances and affordable offerings, while attributing the Q1 net income decline to IPO-related share-based compensation costs. The commentary underscored optimism about the company’s alignment with market demands for flexible education solutions.

Guidance

AP VIII Queso provided FY2026 net revenue guidance of $1.025–$1.035 billion and adjusted EBITDA of $244–$249 million. These figures exclude non-recurring IPO expenses and reflect confidence in sustained enrollment growth and operational efficiency. The guidance excludes GAAP reconciliation for adjusted EBITDA due to unpredictable items like cybersecurity costs.

Additional News

AP VIII Queso recently announced strategic exits from underperforming operations, including the U.K. cast roll facility, to enhance profitability. These moves are expected to generate $8–$9 million in liquidation proceeds. Additionally, the company is expanding its AI-driven initiatives to boost student enrollment and improve program relevance. While no dividend or buyback announcements were made, the focus on cost optimization and enrollment growth signals long-term value creation.