Perdoceo Education Corporation Reports 26.6% Revenue Growth to $213M in Q1 2025

Perdoceo Education Corporation reported significant financial growth in its latest quarterly results, with total revenue for the first quarter of 2025 reaching $213.0 million, a 26.6% increase from $168.3 million in the same period last year. This growth was primarily driven by the acquisition of the University of St. Augustine for Health Sciences (USAHS), which contributed approximately $39.2 million in revenue since its acquisition on December 2, 2024. The company also noted a 10.6% increase in student enrollments at Colorado Technical University (CTU), which accounted for 56.1% of total revenue, while enrollments at the American InterContinental University System (AIUS) decreased by 4.5%.

Operating income for the quarter increased to $51.7 million, up from $46.3 million in the prior year, reflecting a growth of 11.8%. The increase in operating income was attributed to revenue growth at CTU and a reduction in bad debt expenses at AIUS. The company’s net income also rose to $43.7 million, or $0.65 per diluted share, compared to $39.4 million, or $0.59 per diluted share, in the previous year. The effective tax rate for the quarter was 22.7%, down from 25.4% in the prior year, benefiting from the tax effects of stock-based compensation and the release of previously recorded tax reserves.

In terms of operational metrics, total student enrollments across Perdoceo's institutions increased by 16.7% year-over-year, reaching 48,200 students. CTU's enrollment growth was supported by high retention rates and increased interest from prospective students, while USAHS reported 4,200 enrollments for the spring term. The company has also been actively investing in marketing and admissions to enhance student engagement and retention, which it expects to continue throughout 2025.

Perdoceo's balance sheet showed total assets of $1.27 billion as of March 31, 2025, an increase from $1.24 billion at the end of 2024. Cash and cash equivalents, along with short-term investments, totaled $612.2 million, providing a solid liquidity position. The company has also initiated a stock repurchase program, authorizing up to $50 million, and repurchased approximately 1.0 million shares for $25.2 million during the quarter. Looking ahead, Perdoceo anticipates continued revenue growth driven by the USAHS acquisition and strong performance at CTU and AIUS, with expectations for higher full-year revenue in 2025.