Short answer
PERDOCEO EDUCATION Corp (PRDO) filed its fiscal 2025 10-K annual report with the SEC on Feb 19, 2026. It reported revenue of $846M (+24.2% year over year) and net income of $160M.
- Top risk flagged: 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
FY2025 key financial metrics · XBRL
- Revenue
- $846M
- +24.2% YoY
- Net income
- $160M
- +8.4% YoY
- Operating margin
- 23.2%
- −2.4 pp YoY
- EPS (diluted)
- $2.42
- +10.5% YoY
- ROE
- 16.4%
- +1.1 pp YoY
- Operating cash flow
- $225M
- +39.4% YoY
Source: XBRL data from the PERDOCEO EDUCATION Corp (PRDO) FY2025 10-K on SEC EDGAR. USD.
PERDOCEO EDUCATION Corp FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
Generated from the filing text; verify against the original. How to read a 10-K
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