PERDOCEO EDUCATION Corp Q1 FY2025 earnings call

• Academic institutions focused on changing lives through education and preparing learners for job market skills.
• First quarter results ahead of expectations with net income $43.7 million and adjusted EPS $0.70.
• Increased marketing and admission spending due to prospective student interest; institutions adjust marketing strategies to target likely successful students.
• CTU and AIUS corporate student programs growing; strategic investments in tech and personnel.
• St. Augustine spring term new enrollments up, expecting growth in summer/fall terms; expanding programs and offerings.
• Returned $34.4 million to shareholders via dividends and stock repurchases; bought back 985,000 shares.
• Strong student retention and engagement near multi-year highs.

For the first quarter, CTU had revenue of $119.6 million, 5.3% higher than the prior year quarter, with operating income of $46.1 million compared to $42.2 million in the prior year quarter. AIU System had revenue of $54.1 million, relatively flat vs prior year, and operating income of $11.9 million vs $9.3 million (a 28% increase). St. Augustine recorded revenue of $39.2 million, with adjusted operating income (excluding depreciation and amortization) of $8.5 million. Corporate and Other had operating losses of $5.9 million vs $5.2 million in the prior year quarter.

• Full year 2025 adjusted operating income expected to range $220 million to $235 million vs $188.9 million in 2024.
• Adjusted EPS expected $2.40 to $2.56 vs $2.26 in 2024.
• Second quarter 2025 adjusted operating income expected $59 million to $61 million; adjusted EPS $0.64 to $0.66.
• Expect organic revenue and total enrollments increase in remaining quarters of 2025; CTU expected revenue and enrollment growth each quarter; AIU System may have quarterly enrollment variability but full year revenue growth expected.

• Risks associated with forward-looking statements as defined in SEC rules; risks include those in Perdoceo's most recent annual report on Form 10-K and subsequent filings.
• Regulatory changes related to prospective student outreach could impact operations.