Perdoceo Education (PRDO) Q3 2025: Enrollment Jumps 15% on St. Augustine Acquisition, Corporate Channel Momentum

November 4, 2025 | By EarningsIQ Research

Perdoceo Education’s third quarter marked a pivotal inflection as total student enrollments surged 15.1 percent, fueled by the St. Augustine acquisition and robust corporate channel growth at CTU. Operating leverage from higher enrollments and disciplined capital deployment drove adjusted operating income up sharply, while the company doubled down on technology and student support investments to sustain academic outcomes. Management’s tone was optimistic, with guidance raised and signals for continued expansion into 2026, though execution on integration and regulatory stability remain watchpoints.

Summary

• St. Augustine Integration Drives Enrollment Scale: Acquisition added significant new students and revenue, anchoring growth for 2025 and beyond.
• Corporate Channel Fuels Organic Gains: CTU’s corporate programs delivered their eighth consecutive quarter of enrollment growth, reinforcing business-to-business momentum.
• Guidance Lift Reflects Confidence in Retention and Pipeline: Management raised full-year outlook, citing persistent student engagement and technology-driven admissions efficiency.

Performance Analysis

Perdoceo’s business model spans three academic institutions—Colorado Technical University (CTU), American InterContinental University System (AIUS), and University of St. Augustine for Health Sciences—each targeting career-focused degree programs. Third quarter revenue grew nearly 25 percent year-over-year, reaching $211.9 million, with St. Augustine contributing $38 million and CTU posting 4.3 percent organic revenue growth. Operating income and adjusted operating income rose 13.8 percent and 27.4 percent, respectively, reflecting both scale from higher enrollments and margin expansion as cost discipline offset integration spend.

CTU, Perdoceo’s largest segment, accounted for $117.1 million in revenue, sustaining its growth streak through strong corporate partnerships and high student retention. AIUS was flat on revenue but improved operating income by managing expenses, with leadership expecting a return to double-digit enrollment growth in Q4 due to calendar effects. St. Augustine, now fully consolidated, recorded $38 million in revenue and is expected to be accretive in 2025, with further adjusted operating income growth forecast for 2026. Cash flow from operations reached $185.1 million year-to-date, funding $94.1 million in shareholder returns and ongoing technology upgrades.

• St. Augustine Acquisition Impact: Added 4,400 students and $38 million revenue, immediately accretive to adjusted operating income.
• Corporate Program Expansion: CTU and AIUS corporate enrollments continued to rise, supporting multi-year organic growth.
• Expense Discipline and Margin Leverage: Flat AIUS revenue masked improved profitability through lower bad debt and operating costs.

Perdoceo’s capital allocation remained balanced, with $20.6 million of share repurchases in Q3 and a quarterly dividend increase, while maintaining ample liquidity for future M&A or investments.

Executive Commentary

Strategic Positioning

1. St. Augustine Acquisition as Growth Engine

The University of St. Augustine acquisition, completed in December 2024, immediately expanded Perdoceo’s healthcare education footprint and diversified revenue streams. With 4,400 enrolled students and new program modalities (including hybrid and online options), St. Augustine is positioned to drive both top-line growth and operating leverage. Management expects adjusted operating income from this unit to grow further in 2026, signaling that integration is on track and initial synergies are materializing.

2. Corporate Channel Momentum at CTU and AIUS

Corporate student programs, which partner with employers to provide tuition benefits and workforce development, remained a key organic growth lever. CTU delivered its eighth straight quarter of total enrollment growth, with robust demand from corporate partners. AIUS is expected to rebound in Q4, as enrollment day timing normalizes and additional academic sessions come online.

3. Technology and Student Experience Investments

Investments in admissions technology, student support, and AI-enabled marketing are now core to Perdoceo’s operating model. These initiatives are designed to boost student retention, improve outcomes, and optimize marketing spend. Management cited ongoing enhancements to admissions and support processes as a driver of multi-year high engagement and retention, which underpin the raised guidance for 2025 and the growth outlook for 2026.

4. Disciplined Capital Deployment

Capital allocation remains balanced between shareholder returns and reinvestment. The company repurchased 2.3 million shares year-to-date and raised its quarterly dividend, while keeping capital expenditures modest at 1.5 percent of revenue. Liquidity remains robust, supporting both organic investments and potential future M&A.

Key Considerations

Perdoceo’s third quarter underscores a business in transition, leveraging both acquisition and organic channels to build scale while investing in the student experience. The company’s ability to integrate St. Augustine, sustain corporate channel momentum, and deploy technology for admissions and retention are central to its forward trajectory.

Key Considerations:

• Healthcare Program Diversification: St. Augustine’s focus on nursing and allied health professions broadens Perdoceo’s addressable market and may reduce regulatory risk concentration.
• Admissions Technology as Differentiator: AI-driven student identification and targeted engagement could raise conversion and retention, but execution risk remains if technology fails to deliver measurable lift.
• Calendar and Enrollment Day Volatility: AIUS and CTU enrollment trends are subject to academic calendar effects, making quarter-to-quarter comparisons less predictive of underlying demand.
• Shareholder Returns Balanced with Growth Investment: Continued buybacks and dividends signal confidence, but must not crowd out reinvestment in student experience and program innovation.

Risks

Regulatory and policy risk remains a material factor, as changes in Title IV funding, gainful employment rules, or state licensing could impact enrollment or profitability. Integration of St. Augustine presents execution risk, particularly in harmonizing technology platforms and academic standards. Management’s outlook assumes no disruptive regulatory changes, but sector volatility warrants caution.

Forward Outlook

For Q4 2025, Perdoceo guided to:

• Adjusted operating income of $47.9 million to $49.9 million
• Adjusted EPS between 53 and 55 cents per diluted share

For full-year 2025, management raised guidance:

• Adjusted operating income of $234 million to $236 million
• Adjusted EPS of $2.54 to $2.56

Management highlighted several factors that support the outlook:

• Persistent high student retention and engagement, expected to carry into Q4
• Continued enrollment momentum, especially from corporate programs and St. Augustine’s expanded offerings

Takeaways

Perdoceo’s Q3 performance demonstrates that strategic acquisition and disciplined organic expansion can drive scale and margin even in a regulated sector.

• Enrollment Surge as Growth Catalyst: The 15.1 percent enrollment increase, anchored by St. Augustine, provides a foundation for both revenue growth and operating leverage heading into 2026.
• Technology and Corporate Channel Execution: Investments in admissions and support technology, combined with corporate channel expansion, are translating into improved student outcomes and stickier revenue streams.
• Watch for Integration and Policy Volatility: Investors should monitor St. Augustine integration progress and the regulatory environment for potential headwinds to the growth narrative.

Conclusion

Perdoceo’s third quarter confirms the company’s ability to scale through acquisition while maintaining organic momentum in its core channels. With raised guidance and a clear focus on technology and student experience, the company is positioned for continued growth, but must execute on integration and navigate sector volatility to sustain its trajectory.

Industry Read-Through

Perdoceo’s results highlight a broader trend in post-secondary education: scale and diversification—both by program and modality—are increasingly necessary to offset regulatory risk and demographic headwinds. The company’s success in corporate channels and healthcare program expansion signals that career-aligned, employer-partnered education remains resilient even as traditional higher ed faces enrollment pressure. Competitors in the for-profit and hybrid education space will likely need to pursue similar acquisition and technology-driven engagement strategies to remain competitive. Investors should watch for further consolidation and innovation in admissions technology across the sector.

PRDO Consumer Discretionary Education Acquisition Enrollment Healthcare Programs Corporate Channel Technology Investment