PERDOCEO EDUCATION Corp
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
PRDO$26.88+1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000950170-25-061803
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0000950170-25-100876
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 109 previous paragraphs and 128 current paragraphs.
64 unchanged; 36 reworded; 28 added; 8 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
2025 Second Quarter Overview
Current report
Recent Legislative Development
Current report
On July 4, 2025, President Trump signed into law Public Law No. 119-21 (2025) (the “Act”), nicknamed the “One Big Beautiful Bill,” a multi-faceted reconciliation package that includes changes impacting many areas of government spending. The Act includes a number of changes to federal student aid programs under the Higher Education Act of 1965, as amended (“HEA”), including eliminating and replacing Grad PLUS loans for new graduate and professional students, imposing new annual and lifetime borrowing limits across multiple loan programs, establishing an earnings-based eligibility requirement for federal loans that applies equally to all higher education institutions, and adopting new loan repayment options. The changes generally take effect beginning July 1, 2026, and apply prospectively to new borrowers, however some of the changes will require regulations to be promulgated by the Department. Also, existing students as of the effective date are grandfathered in existing loan programs for up to three years while they complete their existing program of study.
Current report
Loan Limits
Current report
Under existing law, federal loan limits for undergraduate students are tiered by academic year, with separate ceilings for subsidized and unsubsidized federal Stafford Loans. Graduate and professional students, in turn, may borrow under the Grad PLUS loan program up to the full cost of attendance without regard to any loan limits, subject only to basic credit criteria and the cost of attendance. Parent PLUS loans similarly allowed creditworthy parents to borrow without regard to specific loan limits, provided the amount did not exceed their child’s cost of attendance minus other aid.
Current report
For undergraduate students, the Act maintains annual and aggregate borrowing limits, with different limits for dependent and independent students. For graduate and professional students, the Act replaces the Grad PLUS loan program with new higher unsubsidized Direct Stafford loan annual and aggregate loan limits, with both annual and aggregate limits for professional students being higher than for graduate students. The Act also sets a lifetime aggregate loan limit that is inclusive of any undergraduate debt. Parent PLUS loans now include both annual and aggregate loan limits. The Act also provides a lifetime aggregate student loan limit, which applies to all federal student loan borrowers, regardless of academic program or degree level.
Current report
While we continue to evaluate the Act, the Company believes that the new federal loan levels are generally sufficient to meet the level of borrowing typical students make while enrolled in our institutions’ programs. Pursuant to the Act’s transition provisions, current graduate and professional students and parents of dependent undergraduate students, who received a federal loan prior to July 1, 2026, may continue borrowing under the prior Grad and Parent PLUS loan programs for up to three additional academic years, or the remainder of the borrower’s expected time to credential, whichever is less, provided the student remains continuously enrolled in the same program. See Item 1, “Business - Student Financial Aid and Related Federal Regulation,” in our Annual Report on Form 10-K for the year ended December 31, 2024 for more information.
Current report
New Earnings Premium Requirement
Current report
The Act introduces a new earnings-based eligibility requirement for federal loan access that applies to all institutions, public, private nonprofit, and for-profit. Under the eligibility requirement, graduates from an institution’s programs other than undergraduate certificate programs must meet or exceed specified earnings thresholds. Programs that do not meet these benchmarks risk losing access to federal student loans only, not grants.
Current report
Under the new earnings metric, by program, the Department evaluates the median earnings of graduates who received Title IV federal student aid four years after completion. The calculation includes only those graduates who are actively employed in two of three years and not enrolled in additional postsecondary education. For undergraduate programs, a program fails the test if median earnings for those graduates fall below those of working adults aged 25 to 34 with only a high school diploma or equivalent. For graduate and professional programs, the comparison group is working adults in the same age range whose highest credential is a bachelor’s degree. If a program fails this test in two of the three most recent years for which data is available, it becomes ineligible to participate in federal student loan programs.
Current report
The Act includes institutional obligations and several procedural safeguards. The Department is required by the Act to establish a formal appeals process. During the pendency of an appeal, the Secretary may permit the institution to maintain participation in federal financial aid programs. Institutions are required to provide timely warnings to students enrolled in any program that fails to meet the earnings threshold in a given year. For programs that lose eligibility under this framework, institutions may seek to regain access to federal student loans after a period of at least two years. It is anticipated the Department will publish regulations, after completion of a negotiated rulemaking, notice and comment, to fully implement the earnings measure under the Act.
Current report
The Company believes that this new universally applied earnings requirement will be less restrictive than the existing gainful employment rules. Although the gainful employment rules remain in place following the passage of the Act, existing legal challenges and the passage of this new universal requirement present potential opportunities for the Department to eliminate it as a redundant program assessment measure. We are continuing to evaluate this new requirement, but as with gainful employment, given the complexity of the rule, lack of availability of the earnings data used to calculate the metrics and lack of formal regulations, we are unable to determine the ultimate impact of this requirement on our business at this time. See Item 1, “Business - Student Financial Aid and Related Federal Regulation – GE and FVT Negotiated Rulemaking,” in our Annual Report on Form 10-K for the year ended December 31, 2024 for more information.
Current report
Borrower Defense and Closed School Loan Discharge Relief
Current report
The Act delays implementation of the Biden administration regulations on borrower defense to repayment and closed school loan discharges for 10 years, to July 1, 2035, which reinstates the rules promulgated under the first Trump administration. These regulations remain the subject of a legal challenge currently pending with the Supreme Court of the United States. See Item 1, “Business - Student Financial Aid and Related Federal Regulation – Compliance with Federal Regulatory Standards and Effect of Federal Regulatory Violations – ‘Borrower Defense to Repayment’” in our Annual Report on Form 10-K for the year ended December 31, 2024 for more information.
Current report
Streamlined Loan Repayment Programs
Current report
The Act consolidates federal student loan repayment options, reducing them to two primary plans starting July 1, 2026: a standard repayment plan where borrowers make fixed payments with terms ranging from 10 to 25 years based on amount borrowed, and a new income-driven Repayment Assistance Plan (“RAP”) that offers loan forgiveness after 30 years. Existing income-driven repayment plans will be phased out by July 2026, requiring both new and existing borrowers to transition to the new repayment structure. These changes may affect students’ ability to manage loan repayment and could influence enrollment decisions, particularly among non-traditional and graduate students.
Current report
The ultimate impact of the Act on our business, financial condition, and results of operations will depend on the final implementing regulations and the responses of our current and prospective students and other stakeholders.
Current report
Regulatory Update
Current report
On July 24, 2025, the Department announced its intent to establish two negotiated rulemaking committees scheduled to meet this fall. One committee will consider changes to the Federal student loan programs and the other committee will consider changes to institutional and programmatic accountability, including the Pell Grant Program and other changes. This rulemaking is necessary to implement the statutory changes to the Title IV, HEA programs included in the Act, as well as to implement other Administration priorities. We believe the negotiated rulemaking will also include discussion of the current gainful employment and financial value transparency regulations that overlap with requirements under the Act's earnings premium provisions. While the Secretary has authority to early implement aspects of new regulations that do not adversely affect regulated entities, under the Administrative Procedure Act's master calendar provisions, any new regulations would generally not become effective until July 1, 2027 if final regulations are published in the federal register on or before November 1, 2026.
Current report
The administrative expense for the current quarter and year to date increased by 7.0% or $2.8 million and 13.1% or $10.0 million, respectively, as compared to the prior year periods. Excluding USAHS expenses, administrative expenses would have decreased 7.1% or $2.9 million for the current quarter as compared to the prior year period, and remained relatively flat for the year to date as compared to the prior year period.
Current report
Bad debt expense for the current quarter decreased by 10.2% or $0.6 million and increased by 3.0% or $0.4 million for the current year to date, as compared to the prior year periods. The improvement in the current quarter was primarily driven by CTU, fully offsetting an increase at AIUS and expense associated with the USAHS acquisition. The year to date increase was primarily due to a full quarter of USAHS expense, compared to none in the prior year period.
Current report
AIUS. Current quarter and year to date revenue increased slightly by 1.9% or $1.0 million and 0.5% or $0.6 million, respectively, as compared to the prior year periods. The increase was driven by total student enrollment growth of 7.1% at June 30, 2025 as compared to the prior year quarter end. The increase in total student enrollments was driven by the academic calendar at AIUS that resulted in a higher number of enrollment days in the quarter as compared to prior year quarter and underlying organic enrollment growth.
Current report
Current quarter operating income for AIUS decreased by 6.5% or $0.8 million as compared to the prior year quarter, primarily driven by a non-recurring expense benefit recorded in the prior year quarter. The year to date operating income for AIUS increased by 7.9% or $1.8 million as compared to the prior year period, primarily driven by lower operating expenses as compared to the prior year period.
Current report
USAHS. Revenue for the current quarter and year to date was approximately $36.7 million and $75.9 million, respectively. USAHS reported operating losses of approximately $1.7 million for the current quarter and $2.0 million for the current year to date. These losses were primarily driven by $7.2 million and $16.1 million, for the current quarter and year to date, respectively, in depreciation and amortization expenses related to acquired tangible and intangible assets, as well as finance leases.
Current report
On July 31, 2025 the Board of Directors declared a quarterly dividend of $0.15 per share, which will be paid on September 12, 2025 for holders of record of common stock as of September 2, 2025. This marks a 15.4% increase in the quarterly dividend, the second such increase since dividends commenced in 2023. Any decision to pay future cash dividends, however, will be made by the board of directors and depend on the Company’s available retained earnings, financial condition and other relevant factors. The Company expects quarterly dividend payments to be an integral and growing part of its balanced capital allocation strategy that also prioritizes investments in student support and technology projects, while also evaluating acquisitions and share repurchases.
Current report
During the years to date ended June 30, 2025 and 2024, net cash flows used in investing activities totaled $7.3 million and $60.1 million, respectively.
Current report
Business Acquisition. The Company received a working capital true up of $0.8 million in relation to the USAHS acquisition during the year to date ended June 30, 2025.
Current report
Accrued expenses - other: The decrease primarily relates to cash and stock earnout payments for a previous acquisition.
Removed paragraphs (8)
Previous report
2025 First Quarter Overview
Previous report
The administrative expense for the current quarter increased by 20.0% or $7.2 million as compared to the prior year quarter. Excluding USAHS expenses, administrative expenses would have increased by 5.6% or $2.0 million as compared to the prior year quarter, driven by increased corporate overhead expenses.
Previous report
Bad debt expense for the current quarter increased by 15.3% or $1.0 million as compared to the prior year quarter. The increase was primarily driven by CTU, which was only partially offset with a decrease at AIUS, due to timing impacts related to student billings versus cash collections.
Previous report
AIUS. Current quarter revenue decreased slightly by 0.8% or $0.4 million as compared to the prior year quarter. The decrease was primarily driven by a decrease in total student enrollments of 4.5% at March 31, 2025 as compared to the prior year quarter end.
Previous report
Current quarter operating income for AIUS increased by 28.0% or $2.6 million as compared to the prior year quarter, primarily driven by decreased bad debt expense, which more than offset the decrease in revenue.
Previous report
USAHS. Revenue for the current quarter was approximately $39.2 million. USAHS reported an operating loss of approximately $0.3 million for the current quarter driven by $8.9 million of depreciation and amortization expense associated with acquired tangible and intangible assets as well as finance leases.
Previous report
During the quarter ended March 31, 2025, net cash flows provided by investing activities totaled $1.2 million compared to net cash flows used in investing activities of $30.8 million for the prior year quarter.
Previous report
Income taxes: The increase primarily relates to amounts owed with respect to estimated payments of federal and state income tax for 2025.
Reworded paragraphs (36)
Previous wording
Perdoceo’s accredited academic institutions offer a quality postsecondary education to a diverse student population, with fully online, campus-based and hybrid learning programs. The Company’s academic institutions – Colorado Technical University (“CTU”), the American InterContinental University System (“AIUS” or “AIU System”) and University of St. Augustine for Health Sciences ("USAHS") – provide degree programs from the associate through doctoral level as well as non-degree seeking and professional development programs. Our academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. USAHS is among the nation's reputable universities offering graduate health sciences degrees, primarily in physical therapy, occupational therapy, speech language therapy and nursing, as well as continuing education programs. Perdoceo's academic institutions are committed to providing quality education that closes the gap between learners who seek to advance their careers and employers needing a qualified workforce.
Current wording
Perdoceo’s accredited academic institutions offer a quality postsecondary education to a diverse student population, with fully online, campus-based and hybrid learning programs. The Company’s academic institutions – Colorado Technical University (“CTU”), the American InterContinental University System (“AIUS” or “AIU System”) and University of St. Augustine for Health Sciences ("USAHS") – provide degree programs from the associate through doctoral level as well as non-degree seeking and professional development programs. Our academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. USAHS prepares medical professionals to provide quality medical care to communities across the country primarily through its graduate health sciences degrees offerings in physical therapy, occupational therapy, speech language therapy and nursing, as well as continuing education programs. Perdoceo's academic institutions are committed to providing quality education that closes the gap between learners who seek to advance their careers and employers and communities needing a qualified workforce.
Previous wording
During the first quarter ended March 31, 2025 ("current quarter"), our academic institutions remained focused on furthering their goal of changing lives through education and preparing learners for essential skills needed in today’s job market. CTU and AIUS provide learners with relevant knowledge and equip them with essential skills needed to thrive in today’s evolving job market, while USAHS prepares professionals to serve and provide quality medical care to communities across the country. The enrollment trends that we have been experiencing across these academic institutions have reinforced and validated our strategy of prioritizing student experiences and academic outcomes that, we believe, should ultimately support sustainable and responsible growth.
Current wording
During the second quarter ended June 30, 2025 ("current quarter"), our academic institutions remained focused on furthering their goal of changing lives through education and preparing learners for essential skills needed in today’s job market. CTU and AIUS offer a wide array of career-focused degree programs which help learners thrive in today’s evolving job market, while USAHS prepares professionals to serve communities across the country with quality medical care. The total enrollment growth at our academic institutions during the current quarter reinforced and validated our strategy of prioritizing student experiences and academic outcomes that, we believe, should ultimately support sustainable and responsible growth.
Previous wording
Total student enrollments increased 16.7% at March 31, 2025 as compared to March 31, 2024. CTU's total student enrollments increased 10.6% as compared to the prior year quarter end, primarily supported by high levels of student retention and engagement, growth within the corporate student program and higher levels of prospective student interest. Total student enrollments decreased 4.5% at AIUS for the current quarter end as compared to the prior year quarter end. Lastly, for USAHS, the spring term which began in January of 2025 has total student enrollments of 4,200 as of the current quarter end. USAHS has a traditional university calendar with three academic terms and multiple campuses for in-person classes in California, Texas and Florida. USAHS continues to expand its program offerings in terms of new modalities and current campus locations, with the goal of maximizing the geographical area they serve while providing students with a wider choice in taking their courses between online instruction and in person instruction at a campus location as well as hybrid options in between.
Current wording
Total student enrollments increased 17.4% at June 30, 2025 as compared to June 30, 2024. CTU's total student enrollments increased 7.4% as compared to the prior year quarter end, primarily supported by high levels of student retention and engagement, growth within the corporate student program and higher levels of prospective student interest. Total student enrollments increased 7.1% at AIUS for the current quarter end as compared to the prior year quarter end, driven by the academic calendar at AIUS that resulted in a higher number of enrollment days in the current quarter as compared to the prior year quarter and underlying organic enrollment growth. Lastly, for USAHS, the summer term which began in May of 2025 had total student enrollments of 4,000 as of the current quarter end. New enrollments for the summer term included growth in programs such as nursing and speech language therapy as well as the introduction of new modalities for the Doctorate of Physical Therapy program. USAHS has a traditional university calendar with three academic terms and multiple campuses for in-person classes in California, Texas and Florida. USAHS continues to expand its program offerings in terms of new modalities and current campus locations, with the goal of maximizing the geographical area they serve while providing students with a wider choice in taking their courses between online instruction and in person instruction at a campus location as well as hybrid options in between.
Previous wording
For the current quarter, our academic institutions experienced increased levels of prospective student interest and commensurately increased their marketing and admissions spending to effectively and efficiently identify and engage with prospective students looking to pursue a degree at one of our academic institutions. Our academic institutions continuously adjust their marketing strategies to identify prospective students who, we believe, are more likely to succeed in one of their academic programs. Additionally, we maintained our commitment to training and developing our admissions, enrollment, and student support teams, ensuring they are fully prepared to assist the increasing number of students throughout their educational journey at our academic institutions.
Current wording
For the current quarter, our academic institutions experienced increased levels of prospective student interest and we continued to refine our marketing and admissions spending strategies, including selectively leveraging generative artificial intelligence to identify and engage with prospective students who, we believe, are more likely to succeed at one of our academic institutions. We also continued to upgrade and enhance our technology within admissions, enrollment and student support processes to ensure that our teams are well-equipped to guide and support the growing number of students enrolled at one of our academic institutions throughout their education journey. Additionally, we maintained our commitment to training and developing our admissions, enrollment, and student support teams, ensuring they are fully prepared to assist the increasing number of students throughout their educational journey at our academic institutions.
Previous wording
We expect the high levels of student retention and student engagement we experienced through the first quarter of 2025, as well as the prospective student interest experienced, to continue through the remainder of 2025. As a result, full year revenue is expected to be higher for 2025 due to the USAHS acquisition as well as growth in revenue and student enrollments within CTU and AIUS.
Current wording
We expect the high levels of student retention and student engagement we experienced through the second quarter of 2025, as well as the prospective student interest experienced, to continue through the remainder of 2025. As a result, full year revenue is expected to be higher for 2025 due to the USAHS acquisition as well as growth in revenue and student enrollments within CTU and AIUS.
Previous wording
Revenue for the current quarter increased by 26.6% or $44.7 million as compared to the prior year quarter, primarily due to $39.2 million of revenue from the USAHS acquisition which was completed in December 2024 and therefore did not have comparable results in the prior year quarter. CTU also contributed to the increase of revenue due to growth in total student enrollments driven by strong student retention and engagement trends along with increased prospective student interest, while AIUS remained relatively flat as compared to the prior year quarter.
Current wording
Revenue for the current quarter increased by 25.7% or $42.8 million as compared to the prior year quarter, primarily due to $36.7 million of revenue from the USAHS acquisition which was completed in December 2024 and therefore did not have comparable results in the prior year quarter. CTU and AIUS also contributed to the increase in revenue due to growth in total student enrollments driven by strong student retention and engagement trends along with increased prospective student interest.
Previous wording
Operating income for the current quarter increased to $51.7 million as compared to operating income of $46.3 million in the prior year quarter, driven by both CTU and AIUS. The increase in operating income for the current quarter was a result of revenue growth at CTU and lower bad debt expense at AIUS.
Current wording
Operating income for the current quarter increased to $51.4 million as compared to operating income of $46.0 million in the prior year quarter, driven by increased operating income within CTU and reduced operating losses within Corporate and Other. The increase in operating income for the current quarter was a result of revenue growth at CTU and lower acquisition-related expenses in Corporate and Other as compared to the prior year quarter.
Previous wording
The Company believes it is useful to present non-GAAP financial measures, which exclude certain non-cash items, as a means to understand the core performance of its operations. (See tables below for a GAAP to non-GAAP reconciliation.) Adjusted operating income was $63.5 million for the current quarter as compared to $49.3 million for the prior year quarter.
Current wording
The Company believes it is useful to present non-GAAP financial measures, which exclude certain non-cash items, as a means to understand the core performance of its operations. (See tables below for a GAAP to non-GAAP reconciliation.) Adjusted operating income was $61.5 million for the current quarter as compared to $49.1 million for the prior year quarter.
Previous wording
Adjusted operating income and adjusted earnings per diluted share for the quarters ended March 31, 2025 and 2024 is presented below (dollars in thousands, unless otherwise noted):
Current wording
Adjusted operating income and adjusted earnings per diluted share for the quarters and years to date ended June 30, 2025 and 2024 is presented below (dollars in thousands, unless otherwise noted):
Previous wording
The summary of selected financial data table below should be referenced in connection with a review of the following discussion of our results of operations for the quarters ended March 31, 2025 and 2024 (dollars in thousands):
Current wording
The summary of selected financial data table below should be referenced in connection with a review of the following discussion of our results of operations for the quarters and years to date ended June 30, 2025 and 2024 (dollars in thousands):
Previous wording
Revenue for the first quarter of 2025 ("current quarter") increased by 26.6% or $44.7 million as compared to the prior year quarter. The increase was primarily driven by the acquisition of USAHS completed in December 2024 that was not part of the comparative prior year quarter as well as an increase in revenue at CTU.
Current wording
The current quarter and year to date revenue increased by 25.7% or $42.8 million and 26.1% or $87.6 million, respectively, as compared to the prior year periods. The increase was primarily driven by the acquisition of USAHS completed in December 2024 that was not part of the comparative prior year periods as well as increases in revenue for both the current quarter and year to date at both CTU and AIUS.
Previous wording
The educational services and facilities expense for the current quarter increased by 62.6% or $18.7 million, compared to the prior year quarter. The increase was due to a full quarter of expenses related to the USAHS acquisition as compared to no expenses in the prior year quarter for USAHS.
Current wording
The educational services and facilities expense for the current quarter and year to date increased by 82.6% or $22.7 million and 72.2% or $41.4 million, respectively, as compared to the prior year periods. The increase was primarily due to a full quarter of expenses related to the USAHS acquisition as compared to no expenses in the prior year periods for USAHS.
Previous wording
The general and administrative expense for the current quarter increased by 15.4% or $13.4 million as compared to the prior year quarter driven by increases within all expense categories. The increase was primarily due to a full quarter of expenses related to the USAHS acquisition as compared to no expenses in the prior year quarter.
Current wording
The general and administrative expense for the current quarter and year to date increased by 9.5% or $8.5 million and 12.4% or $21.9 million, respectively, as compared to the prior year periods. The increase was primarily due to a full quarter of expenses related to the USAHS acquisition as compared to no expenses in the prior year quarter.
Previous wording
Advertising and marketing expense for the current quarter increased by 15.3% or $3.7 million as compared to the prior year quarter. Excluding USAHS expenses, advertising expenses would have remained relatively flat as compared to the prior year quarter.
Current wording
Advertising and marketing expense for the current quarter and year to date increased by 16.9% or $3.9 million and 16.1% or $7.6 million, respectively, as compared to the prior year periods. Excluding USAHS expenses, advertising expenses would have remained relatively flat as compared to the prior year periods.
Previous wording
Admissions expense for the current quarter increased by 7.5% or $1.6 million as compared to the prior year quarter. Excluding USAHS expenses, admissions expenses would have remained relatively flat as compared to the prior year quarter.
Current wording
Admissions expense for the current quarter and year to date increased by 12.0% or $2.4 million and 9.7% or $4.0 million, respectively, as compared to the prior year periods. Excluding USAHS expenses, admissions expenses would have increased 5.3% or $1.1 million and 3.0% or $1.2 million, respectively, as compared to the prior year periods.
Previous wording
Bad debt expense incurred by each of our segments during the quarters ended March 31, 2025 and 2024 was as follows (dollars in thousands):
Current wording
Bad debt expense incurred by each of our segments during the quarters and years to date ended June 30, 2025 and 2024 was as follows (dollars in thousands):
Previous wording
Depreciation and amortization expense for the current quarter increased by $8.8 million as compared to the prior year quarter, driven by the USAHS acquisition, which includes amortization for definite-lived intangible assets as well as amortization related to finance leases for ground-based campuses.
Current wording
Depreciation and amortization expense for the current quarter and year to date increased by $7.1 million and $15.9 million as compared to the prior year periods, driven by the USAHS acquisition, which includes amortization for definite-lived intangible assets as well as amortization related to finance leases for ground-based campuses.
Previous wording
Operating income for the current quarter increased by 11.8% or $5.4 million as compared to the prior year quarter. This improvement was primarily driven by higher revenue, which more than offset the increases in operating expenses, as compared to the prior year quarter.
Current wording
Operating income for the current quarter and year to date increased by 11.7% or $5.4 million and 11.7% or $10.8 million as compared to the prior year periods. This improvement was primarily driven by increased revenue, which more than offset the increases in operating expenses, as compared to the prior year periods.
Previous wording
For the quarter ended March 31, 2025, we recorded a provision for income taxes of $12.8 million or 22.7% as compared to a provision for income taxes of $13.4 million or 25.4% for the prior year quarter. The effective tax rate for the current quarter was benefitted by the tax effect of stock-based compensation and the release of previously recorded tax reserves, which reduced the effective tax rate by 5.5% and 1.3%, respectively. The effective tax rate for the prior year quarter was impacted by the tax effect of stock-based compensation and the release of previously recorded tax reserves, which reduced the effective tax rate by 1.2% and 1.3%, respectively.
Current wording
For the quarter and year to date ended June 30, 2025, we recorded a provision for income taxes of $15.2 million reflecting an effective tax rate of 27.0% and $28.0 million reflecting an effective tax rate of 24.9%, respectively, as compared to a provision for income taxes of $14.6 million reflecting an effective tax rate of 27.5% and $28.0 million reflecting an effective tax rate of 26.4% for the respective prior year periods. The effective tax rate for the current quarter and year to date was benefitted by the tax effect of stock-based compensation, which decreased the effective tax rate for the quarter and year to date by 0.3% and 2.9%, respectively. The effective tax rate for the current quarter and year to date also includes the release of previously recorded tax reserves, which decreased the effective tax rate by 1.7% and 1.5%, respectively. The effective tax rate for the prior year quarter and year to date includes release of previously recorded tax reserves, which reduced the effective tax rate by 1.2% and 1.3%, respectively.
Previous wording
For the full year 2025, we expect our effective tax rate to be between 25.5% and 26.5%.
Current wording
For the full year 2025, we expect our effective tax rate to be between 26.0% and 26.5%.
Previous wording
(1) USAHS includes results of operations beginning on the acquisition date of December 2, 2024. Operating loss for the current quarter includes $8.9 million of depreciation and amortization expense associated with acquired tangible and intangible assets as well as finance leases.
Current wording
(1) USAHS includes results of operations beginning on the acquisition date of December 2, 2024. Operating loss for the current quarter and year to date includes $7.2 million and $16.1 million, respectively, of depreciation and amortization expense associated with acquired tangible and intangible assets as well as finance leases.
Previous wording
CTU. Current quarter revenue increased by 5.3% or $6.0 million as compared to the prior year quarter. The increase was primarily driven by total student enrollment growth of 10.6% at March 31, 2025 as compared to the prior year quarter. CTU's total student enrollment growth was supported by high levels of student retention and engagement, growth in the corporate student programs and higher levels of prospective student interest.
Current wording
CTU. Current quarter and year to date revenue increased by 4.6% or $5.1 million and 4.9% or $11.2 million, respectively, as compared to the prior year periods. The increase was driven by total student enrollment growth of 7.4% at June 30, 2025 as compared to the prior year quarter end. CTU's total student enrollment growth was supported by high levels of student retention and engagement, growth in the corporate student program and higher levels of prospective student interest.
Previous wording
Current quarter operating income for CTU increased by 9.3% or $3.9 million as compared to the prior year quarter driven by the increase in revenue discussed above, which more than offset increased operating expenses.
Current wording
Current quarter and year to date operating income for CTU increased by 7.9% or $3.4 million and 8.6% or $7.3 million, respectively, as compared to the prior year periods driven by the increase in revenue discussed above, which more than offset increased operating expenses.
Previous wording
Corporate and Other. This category includes unallocated costs that are incurred on behalf of the entire company. Total Corporate and Other operating loss for the current quarter increased by 14.7% or $0.8 million as compared to the prior year quarter primarily driven by increased administration costs for the current quarter.
Current wording
Corporate and Other. This category includes unallocated costs that are incurred on behalf of the entire company. Total Corporate and Other operating loss for the current quarter and year to date improved by 46.5% or $4.6 million and 25.4% or $3.8 million, respectively, as compared to the prior year periods, primarily due to lower acquisition-related costs in both the current quarter and year to date as compared to the prior year periods.
Previous wording
As of March 31, 2025, cash, cash equivalents, restricted cash and available-for-sale short-term investments(“cash balances”) totaled $612.2 million. Restricted cash as of March 31, 2025 was $21.6 million and primarily related to a letter of credit USAHS is required to maintain with the Department of Education. Our cash flows from operating activities have historically been adequate to fulfill our liquidity requirements. We have historically financed our operating activities, organic growth and acquisitions primarily through cash generated from operations and existing cash balances. We expect to continue to generate cash during the remainder of 2025. We anticipate that we will be able to satisfy the cash requirements associated with, among other things, our working capital needs, capital expenditures, lease commitments and quarterly dividend payments through at least the next 12 months primarily with cash generated by operations and existing cash balances.
Current wording
As of June 30, 2025, cash, cash equivalents, restricted cash and available-for-sale short-term investments(“cash balances”) totaled $659.6 million. Restricted cash as of June 30, 2025 was $21.6 million and primarily related to a letter of credit USAHS is required to maintain with the Department of Education. Our cash flows from operating activities have historically been adequate to fulfill our liquidity requirements. We have historically financed our operating activities, organic growth and acquisitions primarily through cash generated from operations and existing cash balances. We expect to continue to generate cash during the remainder of 2025. We anticipate that we will be able to satisfy the cash requirements associated with, among other things, our working capital needs, capital expenditures, lease commitments and quarterly dividend payments through at least the next 12 months primarily with cash generated by operations and existing cash balances.
Previous wording
On February 20, 2024, the Board of Directors of the Company approved a stock repurchase program for up to $50.0 million which commenced March 1, 2024 and expires September 30, 2025. The timing of purchases and the number of shares repurchased under the program is determined by the Company’s management and will depend on a variety of factors including stock price, trading volume and other general market and economic conditions, its assessment of alternative uses of capital, regulatory requirements and other factors.
Current wording
On July 31, 2025, the Board of Directors of the Company approved a new stock repurchase program for up to $75.0 million which will commence on July 31, 2025 and expires January 31, 2027. The new stock repurchase program replaced the previous stock repurchase program approved on February 20, 2024. The timing of purchases and the number of shares repurchased under the program is determined by the Company’s management and will depend on a variety of factors including stock price, trading volume and other general market and economic conditions, its assessment of alternative uses of capital, regulatory requirements and other factors. The Board of Directors approved the aforementioned stock repurchase program believing it advantageous to the Company and its stockholders to repurchase shares of the Company’s common stock from time to time at prices below what the Board of Directors believed to be the intrinsic value of the Company’s common stock.
Previous wording
During the quarters ended March 31, 2025 and 2024, net cash flows provided by operating activities totaled $65.1 million and $54.5 million, respectively. The increase in net cash flows from operating activities for the current quarter was driven by increased operating income.
Current wording
During the years to date ended June 30, 2025 and 2024, net cash flows provided by operating activities totaled $143.9 million and $93.0 million, respectively. The increase in net cash flows from operating activities for the current quarter was primarily driven by increased operating income.
Previous wording
Purchases and Sales of Available-for-Sale Investments. Purchases and sales of available-for-sale investments resulted in a net cash inflow of $2.9 million for the current quarter as compared to a net cash outflow of $29.6 million for the prior year quarter.
Current wording
Purchases and Sales of Available-for-Sale Investments. Purchases and sales of available-for-sale investments resulted in a net cash outflow of $3.6 million and $58.1 million for the years to date ended June 30, 2025 and 2024, respectively.
Previous wording
Capital Expenditures. Capital expenditures increased to $1.7 million for the quarter ended March 31, 2025 as compared to $1.2 million for the quarter ended March 31, 2024. For the full year 2025, we expect capital expenditures to be between 1.0% and 2.0% of revenue.
Current wording
Capital Expenditures. Capital expenditures increased to $4.5 million for the year to date ended June 30, 2025 as compared to $2.0 million for the year to date ended June 30, 2024. For the full year 2025, we expect capital expenditures to be approximately 1.5% of revenue.
Previous wording
During the quarters ended March 31, 2025 and 2024, net cash flows used in financing activities totaled $44.4 million and $15.9 million, respectively. Payments to repurchase shares of our common stock were $25.2 million for the quarter ended March 31, 2025 and $6.8 million for the quarter ended March 31, 2024.
Current wording
During the years to date ended June 30, 2025 and 2024, net cash flows used in financing activities totaled $74.7 million and $23.0 million, respectively. Payments to repurchase shares of our common stock were $46.1 million for the year to date ended June 30, 2025 and $6.8 million for the year to date ended June 30, 2024.
Previous wording
Payments of employee tax associated with stock compensation. Payments of employee tax associated with stock compensation were $7.5 million and $3.4 million for the quarters ended March 31, 2025 and 2024, respectively.
Current wording
Payments of employee tax associated with stock compensation. Payments of employee tax associated with stock compensation were $7.5 million and $3.4 million for the years to date ended June 30, 2025 and 2024, respectively.
Previous wording
Payments of cash dividends and dividend equivalents. During the quarters ended March 31, 2025 and 2024, the Company made dividend and dividend equivalent payments of $9.2 million and $7.2 million, respectively.
Current wording
Payments of cash dividends and dividend equivalents. During the years to date ended June 30, 2025 and 2024, the Company made dividend and dividend equivalent payments of $17.7 million and $14.6 million, respectively.
Previous wording
Principal payments for finance leases and failed sale leaseback. During the quarter ended March 31, 2025, the Company made payments of $1.7 million for finance leases and a failed sale leaseback, both related to USAHS.
Current wording
Principal payments for finance leases and failed sale leaseback. During the year to date ended June 30, 2025, the Company made payments of $2.9 million for finance leases and a failed sale leaseback, both related to USAHS.
Previous wording
Earnout payments related to business acquisition. During the quarter ended March 31, 2025, the Company made earnout payments of $1.8 million related to the Coding Dojo acquisition.
Current wording
Earnout payments related to business acquisition. During the year to date ended June 30, 2025, the Company made cash earnout payments of $1.8 million related to the Coding Dojo acquisition.
Previous wording
Student receivables, net: The increase is driven by timing of student billings for academic terms.
Current wording
Student receivables, net: The increase is driven by timing of student billings for academic terms at our universities.
Previous wording
Deferred revenue: The increase in deferred revenue is partially driven by the USAHS acquisition as well as timing of academic terms and related student billings.
Current wording
Deferred revenue: The increase in deferred revenue is driven by timing of academic terms and related student billings.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The Board of Directors approved the aforementioned stock repurchase programs believing it advantageous to the Company and its stockholders to repurchase shares of the Company’s common stock from time to time at prices below what the Board of Directors believed to be the intrinsic value of the Company’s common stock.