PERDOCEO EDUCATION Corp (PRDO) FY2025 10-K Annual Report
PERDOCEO EDUCATION Corp (PRDO) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 19, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
PERDOCEO EDUCATION Corp FY2025 10-K Analysis
Business Overview
- • Core business: For-profit postsecondary education provider relying heavily on federal Title IV student aid programs
- • New regulatory environment post-2024 U.S. election with broad changes from July 2025 Reconciliation Act impacting federal student aid eligibility and loan limits
- • Strategic focus on compliance with evolving federal rules including new earnings-based loan accountability and 90-10 Rule revenue diversification efforts
- • Fiscal year 2026 cohort default rates for all institutions at 0%, marking notable improvement amid recent regulatory scrutiny
- • Ongoing risks from potential loss of Title IV eligibility, accreditation challenges, and borrower defense liabilities specific to this filing year
Management Discussion & Analysis
- • Revenue $846.1M, up 24.2% YoY (+$164.8M), driven by USAHS acquisition (+$147.5M) and CTU enrollment growth (+4.1%)
- • Operating income $196.0M, up 12.5% YoY ($174.3M prior); operating margin 23.2% vs 25.6%; adjusted operating income $237.6M vs $188.9M
- • Best segment: CTU operating income $180.6M (+3.4%), margin 39.1%; worst segment: Corporate & Other loss improved to -$23.8M (-22.2%)
- • Total student enrollments +7.3% YoY to 44,400; CTU +6.6%, AIUS +11.2%, USAHS +2.6%
- • Cash flow details not explicitly disclosed; no specific buybacks/dividends mentioned; capex implied in strategic investments but no amounts given
- • 2026 outlook: adjusted operating income expected higher due to enrollment and revenue growth; tax rate guidance 23.5%-24.5%; risks include regulatory uncertainty from new Administration and Congress
Risk Factors
- • Regulatory risk: Compliance with revised 90-10 Rule including American Rescue Plan Act amendments, effective July 1, 2023, complicates calculation of federal revenue percentages, increasing risk of Title IV funding loss
- • Geopolitical/macroeconomic risk: Enrollment mix and unexpected changes in student funding sources directly affect 90-10 compliance, creating revenue eligibility uncertainty
- • Operational risk: Dependence on the Department’s student loan servicers amid repayment transition struggles and litigation impacting SAVE plan disrupts cohort default rate management
- • Legal risk: Ongoing litigation and regulatory uncertainty around Borrower Defense to Repayment (BDR) rules, including Supreme Court review and injunctions, threaten potential loan forgiveness liabilities
- • Financial risk: Institutions must maintain a Department “Composite Score” of at least 1.0 to avoid posting letters of credit or cash monitoring, reflecting liquidity and profitability pressures
PERDOCEO EDUCATION Corp FY2025 Key Financial MetricsXBRL
Revenue
$846M
▲ +24.2% YoY
Net Income
$160M
▲ +8.4% YoY
Operating Margin
23.2%
▼ -241bp YoY
Net Margin
18.9%
▼ -276bp YoY
ROE
16.4%
▲ +106bp YoY
Total Assets
$1.2B
▲ +0.9% YoY
EPS (Diluted)
$2.42
▲ +10.5% YoY
Operating Cash Flow
$225M
▲ +39.4% YoY
Source: XBRL data from PERDOCEO EDUCATION Corp FY2025 10-K filing on SEC EDGAR. All figures in USD.
Get deeper insights on PERDOCEO EDUCATION Corp
Access full AI analysis, insider trading data, fund holdings, and cross-signal detection on SignalX.