PERDOCEO EDUCATION Corp
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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, 2026 · Filed Aug 6, 2026
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 2026-03-31; filed 2026-05-07.
0001193125-26-211837
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001193125-26-337926
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 106 previous paragraphs and 113 current paragraphs.
59 unchanged; 29 reworded; 25 added; 17 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 (25)
Current report
our ability to successfully defend litigation and other claims brought against us; and
Current report
2026 Second Quarter Overview
Current report
Regulatory Update
Current report
Recent Regulatory Development - Federal Loan Limits
Current report
As part of the 2025 reconciliation bill noted above, federal student aid programs were modified to eliminate Grad PLUS loans, subject to some limited grandfathering for existing student borrowers as of July 1, 2026, for students enrolling in graduate and professional programs and to impose new annual and lifetime borrowing limits across the remaining loan programs. A negotiated rulemaking committee reached consensus on November 6, 2025 on an entire package of loan-related changes, including federal student loan limits and the elimination of Grad PLUS loans. Final regulations were published on May 1, 2026, and became effective on July 1, 2026, as directed by the reconciliation bill.
Current report
As part of the changes, classification as a “professional program” allows post-baccalaureate students enrolled in these programs to borrow up to $50,000 per year (instead of $20,500 per year) and up to a $200,000 aggregate loan limit (instead of a $100,000 aggregate loan limit). The Department’s final regulations included a defined list of qualified “professional programs” and modified the regulatory definition of “professional degree” to include new conditions that programs must satisfy to qualify as professional degree programs eligible for the higher annual and lifetime loan limits. These new conditions are more restrictive than the terms of the reconciliation bill. As a result, a number of legal actions were filed by various groups in multiple jurisdictions that challenge the regulations as arbitrary and capricious and contrary to the text of the bill.
Current report
In American Association of Nurse Practitioners, et al. v. McMahon, No. 1:26-cv-01780 (D.D.C.), the judge issued a stay against the part of the final regulation that adopted additional non-statutory conditions and factors that exclude programs that met the bill’s definition from qualifying as “professional programs.” The rationale was that the statutory text was the clear expression of congressional intent in defining what programs qualified as “professional programs” and the additional factors adopted in the final regulation were not authorized by the bill. While continuing to contest the court’s decision, the Department has published revised guidance implementing the court’s interpretation of an expanded listing of programs that temporarily qualify as professional programs by satisfying the statutory definition, pending the outcome of the litigation.
Current report
A number of the programs at USAHS fall into this category of temporarily added “professional programs,” including its Physical Therapy, Occupational Therapy, Nursing and Speech Language Pathology programs. Historically, Title IV borrowing by graduate students at AIUS and CTU has generally fallen within the new graduate-level limits, and borrowing by USAHS students enrolled in its programs has generally fallen within the new professional program-level limits. In planning for the loan limit changes under the Department’s revised definition of professional degree programs, we have worked with private-lending partners to ensure supplemental funding is available for students on an as needed basis in the event the litigation results in these programs being required to revert to the lower “graduate degree” program loan limits. We are closely monitoring each of the ongoing legal challenges to these regulations and their associated impacts on the availability of federal student aid for our students.
Current report
For more information, see“Legislative Action and Recent Department Regulatory Initiatives” within Item 1. “Business” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current report
The current quarter and year to date revenue increased by 1.8% or $3.8 million and 3.0% or $12.5 million, respectively, as compared to the prior year periods. The improvement in revenue was primarily driven by the increase in total student enrollments at both USAHS and CTU, partially offset with a decline in revenue at AIUS as compared to the prior year quarter primarily due to non-Title IV and professional development offerings.
Current report
Current quarter educational services and facilities expense increased by 1.3% or $0.7 million as compared to the prior year quarter. The increase was primarily driven by higher academics and student related expenses of 1.6% or $0.7 million as a result of increases in total student enrollments at USAHS and CTU. Occupancy expense remained relatively flat as compared to the prior year quarter.
Current report
The general and administrative expense for the current quarter and year to date increased by 0.5% or $0.4 million and 0.9% or $1.7 million, respectively, as compared to the prior year periods, primarily driven by increased advertising and marketing expense for both comparative periods as well as increased administrative expense for the current year to date as compared to the prior year period. Partially offsetting these increases were decreases in bad debt expense as compared to the prior year periods.
Current report
Advertising and marketing expense for the current quarter and year to date increased by 4.7% or $1.3 million and 2.9% or $1.6 million, respectively, as compared to the prior year periods. The current quarter increase was primarily due to higher advertising and marketing spend across all three institutions, while the year to date increase was primarily due to higher spend at CTU and AIUS, compared to the respective prior year periods.
Current report
The increase in administrative expense for the year to date was primarily driven by increased legal fees for previously disclosed legal matters within CTU as compared to the prior year period.
Current report
Bad debt expense for the current quarter and year to date decreased by 11.5% or $0.6 million and 18.7% or $2.4 million, respectively, as compared to the prior year periods. The decrease for the current quarter was primarily due to lower bad debt expense at AIUS and USAHS, which more than offset higher bad debt expense at CTU. The year to date decrease was primarily driven by lower bad debt expense across all three academic institutions as compared to the prior year period.
Current report
Depreciation and Amortization
Current report
Depreciation and amortization expense for the current quarter and year to date decreased by $0.8 million and $3.3 million, respectively, as compared to the prior year periods, primarily driven by decreases across all three academic institutions, with the year to date decrease primarily driven by leased assets within USAHS.
Current report
Operating income for the current quarter and year to date increased by 6.8% or $3.5 million and 14.4% or $14.9 million, respectively, as compared to the prior year periods. This improvement was primarily driven by increased revenue, as well as disciplined management of operating expenses, particularly in the current year to date, as compared to the prior year periods.
Current report
Current quarter operating income for CTU decreased by 5.1% or $2.4 million as compared to the prior year period. The decrease was primarily driven by increased legal fees related to previously disclosed legal matters, partially offset by the increase in revenue as discussed above, as compared to the prior year period. Current year to date operating income increased by 1.5% or $1.4 million as compared to the prior year period. The increase was primarily driven by higher revenue as discussed above and lower bad debt expense, which more than offset increased legal fees during the current year to date.
Current report
Current quarter and year to date operating income for AIUS increased by 9.7% or $1.1 million and 10.8% or $2.5 million, respectively, as compared to the prior year period, driven by lower operating expenses across most expense categories as compared to the prior year periods, which more than offset the decrease in revenue.
Current report
Current quarter and year to date operating income increased by $5.3 million and $12.0 million, respectively, as compared to the prior year periods, primarily driven by the increase in revenue as discussed above.
Current report
On August 6, 2026 the Board of Directors declared a quarterly dividend of $0.17 per share, an increase of 13.3% as compared to the prior quarter, which will be paid on September 10, 2026 for holders of record of common stock as of September 1, 2026. 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, 2026 and 2025, net cash flows provided by operating activities totaled $144.0 million and $143.9 million, respectively.
Current report
During the years to date ended June 30, 2026 and 2025, net cash flows used in investing activities totaled $65.8 million and $7.3 million, respectively.
Current report
Accrued expenses - income taxes: The decrease primarily relates to payments made during the current quarter of estimated income taxes and prior year extension payments.
Removed paragraphs (17)
Previous report
2026 First Quarter Overview
Previous report
Revenue for the first quarter of 2026 ("current quarter") increased by 4.1% or $8.7 million as compared to the prior year quarter. The increase was supported by underlying student enrollment growth at our academic institutions.
Previous report
The general and administrative expense for the current quarter increased by 1.3% or $1.3 million as compared to the prior year quarter primarily due to higher advertising and marketing and administrative costs, which was only partially offset with reduced bad debt.
Previous report
Advertising and marketing expense for the current quarter increased by 1.3% or $0.4 million as compared to the prior year quarter. Increased advertising and marketing spending at CTU and AIUS was partially offset by reduced spending at USAHS as compared to the prior year quarter.
Previous report
Admissions expense for the current quarter remained relatively flat as compared to the prior year quarter. Higher admissions expenses at CTU were fully offset by lower spending at USAHS as compared to the prior year quarter, while expenses at AIUS remained largely unchanged.
Previous report
The administrative expense for the current quarter increased by 6.3% or $2.7 million as compared to the prior year quarter, driven by increased legal fees.
Previous report
Bad debt expense for the current quarter decreased by 24.0% or $1.8 million as compared to the prior year quarter. The decrease in bad debt expense was primarily driven by reductions at both CTU and AIUS.
Previous report
Depreciation and Amortization Expense
Previous report
Depreciation and amortization expense decreased by 20.8% or $2.5 million as compared to the prior year quarter, primarily driven by decreases within USAHS for leased assets.
Previous report
Operating income for the current quarter increased by 22.0% or $11.4 million as compared to the prior year quarter. The improvement was primarily driven by higher revenue at CTU and USAHS as well as decreased depreciation and amortization expense at USAHS and decreased bad debt expense at CTU and AIUS as compared to the prior year quarter.
Previous report
Current quarter operating income for CTU increased by 8.1% or $3.8 million as compared to the prior year quarter driven by the increase in revenue discussed above as well as decreased bad debt expense, which partially offset increases within other operating expenses.
Previous report
Current quarter operating income for AIUS increased by 12.0% or $1.3 million as compared to the prior year quarter, primarily driven by decreased bad debt expense as well as reduced academics and student related costs.
Previous report
Current quarter operating income for USAHS increased by $6.6 million as compared to the prior year quarter driven by the increase in revenue discussed above, as well as reduced depreciation and amortization on leased assets as compared to the prior-year quarter.
Previous report
During the quarters ended March 31, 2026 and 2025, net cash flows provided by operating activities totaled $69.4 million and $65.1 million, respectively. The increase in net cash flows from operating activities for the current quarter was driven by increased operating income.
Previous report
During the quarter ended March 31, 2026, net cash flows used in investing activities totaled $7.1 million compared to net cash flows provided by investing activities of $1.2 million for the prior year quarter.
Previous report
Accrued expenses - payroll and related benefits: The decrease is driven by the payment of annual incentive compensation and other benefits during the first quarter.
Previous report
Accrued expenses - income taxes: The increase primarily relates to amounts owed with respect to estimated payments of federal and state income taxes for 2026.
Reworded paragraphs (29)
Previous wording
our continued compliance with and eligibility to participate in Title IV Programs under the Higher Education Act of 1965, as amended, and the regulations thereunder (including the new 90-10, earnings premium, financial responsibility and administrative capability standards prescribed by the U.S. Department of Education (the “Department”)), as well as applicable accreditation standards and state regulatory requirements;
Current wording
our continued compliance with and eligibility to participate in Title IV Programs under the Higher Education Act of 1965, as amended, and the regulations thereunder (including the new 90/10 regulations, and earnings premium, financial responsibility and administrative capability standards prescribed by the U.S. Department of Education (the “Department”)), as well as applicable accreditation standards and state regulatory requirements;
Previous wording
the impact of management changes; and
Current wording
the impact of management changes;
Previous wording
We encourage you to review Item 1, “Business,” and Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025 to learn more about our highly regulated industry and related risks and uncertainties.
Current wording
We encourage you to review "Regulatory Updates" below, and Item 1, “Business,” and Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025 to learn more about our highly regulated industry and related risks and uncertainties, in addition to the MD&A in our 2026 Quarterly Reports on Form 10-Q.
Previous wording
Total student enrollments increased 1.9% at CTU as compared to the prior year quarter end, supported by strong levels of student retention and engagement, growth within the corporate student program and consistent levels of prospective student interest. Total student enrollments increased 3.1% at USAHS for the current quarter end as compared to the prior year quarter end, driven by growth in the nursing and speech language pathology programs and the introduction of new modalities for the occupational therapy program, as well as underlying student retention and engagement trends. Lastly, for AIUS, total student enrollments decreased 2.2% for the current quarter end as compared to the prior year quarter end, driven by a decrease in total student enrollments at Trident University.
Current wording
Total student enrollments increased 0.6% at CTU as compared to the prior year quarter end, supported by strong levels of student retention and engagement, growth within the corporate student program and consistent levels of prospective student interest. Offsetting some of these enrollment trends at CTU is an increase in the number of students graduating during 2026 as compared to 2025 as well as record prior year comparisons. Total student enrollments increased 6.0% at USAHS for the current quarter end as compared to the prior year quarter end, driven by growth in the nursing and speech language pathology programs and the introduction of new modalities for the occupational therapy program, as well as underlying student retention and engagement trends. Lastly, for AIUS, total student enrollments decreased 1.0% for the current quarter end as compared to the prior year quarter end, driven by a decrease at Trident University.
Previous wording
Strategic investments in technology continue to improve student experiences across our academic institutions, while enhancing operating effectiveness within our functional areas. Ongoing artificial intelligence efforts focus on our students and classroom learning, as well as enhancing various operating and functional processes. Faculty, where feasible, are utilizing AI in their classrooms with the goal of enabling students to leverage AI both personally and professionally. We are also 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.
Current wording
Strategic investments in technology continue to improve student experiences across our academic institutions, while enhancing operating effectiveness within our functional areas. Ongoing artificial intelligence efforts focus on our students and classroom learning, as well as enhancing various operating and functional processes. We are also 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 remain focused on keeping our programs visible and accessible as search behavior evolves to LLM-based, AI powered searches and are actively updating our content so that it is readily accessible to, and optimized for, AI-powered search, while also investing in our brands to strengthen the visibility of our academic institutions as these AI-engines shape discovery.
Previous wording
We expect full year adjusted operating income to be higher for 2026 as compared to 2025, supported by revenue growth across all our academic institutions, combined with lower operating expenses due to our disciplined investment philosophy.
Current wording
We expect full year adjusted operating income to be higher for 2026 as compared to 2025, supported by revenue growth combined with lower operating expenses due to our disciplined expense management and investment philosophy.
Previous wording
Revenue for the current quarter increased by 4.1% or $8.7 million as compared to the prior year quarter, driven by increased revenue at all three of our academic institutions. CTU’s revenue increased 4.0% or $4.7 million, and USAHS' revenue increased 9.8% or $3.8 million, for the current quarter as compared to the prior year quarter, driven by the increase in total student enrollments at both academic institutions.
Current wording
Revenue for the current quarter increased by 1.8% or $3.8 million to $213.4 million as compared to the prior year quarter, driven by increased revenue at USAHS and CTU. USAHS' revenue increased 10.2% or $3.8 million and CTU’s revenue increased 0.9% or $1.1 million, for the current quarter as compared to the prior year quarter, driven by the increase in total student enrollments at both academic institutions, partially offset with a decline of 1.8% or $1.0 million at AIUS as compared to the prior year quarter primarily due to non-Title IV and professional development offerings.
Previous wording
Operating income for the current quarter increased by 22.0% to $63.1 million as compared to operating income of $51.7 million in the prior year quarter, driven by increased operating income within all three of our academic institutions. The increase in operating income for the current quarter was a result of revenue growth and continued disciplined management of operating expenses.
Current wording
Operating income for the current quarter increased by 6.8% to $54.9 million as compared to operating income of $51.4 million in the prior year quarter, driven by increased operating income within USAHS and AIUS. The increase in operating income for the current quarter was a result of revenue growth and continued disciplined management of operating expenses.
Previous wording
The Company believes it is useful to present non-GAAP financial measures, such as adjusted operating income, which exclude certain non-cash items, as a means to better understand the core performance of its operations. (See tables below for a GAAP to non-GAAP reconciliation.) Adjusted operating income was $72.5 million for the current quarter as compared to $63.5 million for the prior year quarter.
Current wording
The Company believes it is useful to present non-GAAP financial measures, such as adjusted operating income and adjusted earnings per diluted share, which exclude certain non-cash items, as a means to better understand the core performance of its operations. (See tables below for a GAAP to non-GAAP reconciliation.) Adjusted operating income was $64.2 million for the current quarter as compared to $61.5 million for the prior year quarter.
Previous wording
Adjusted operating income and adjusted earnings per diluted share for the quarters ended March 31, 2026 and 2025 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, 2026 and 2025 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, 2026 and 2025 (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, 2026 and 2025 (dollars in thousands):
Previous wording
The educational services and facilities expense for the current quarter decreased by 3.0% or $1.5 million, compared to the prior year quarter driven by lower academics and student related costs at AIUS, along with reduced occupancy costs as compared to the prior year period.
Current wording
The educational services and facilities expense for the current year to date decreased by 0.8% or $0.8 million as compared to the prior year period. This decrease was primarily driven by lower academics and student related costs at AIUS, as a result of lower total student enrollments as compared to the prior year period.
Previous wording
Bad debt expense incurred by each of our segments during the quarters ended March 31, 2026 and 2025 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, 2026 and 2025 was as follows (dollars in thousands):
Previous wording
For the quarter ended March 31, 2026, we recorded a provision for income taxes of $14.2 million or 20.8% as compared to a provision for income taxes of $12.8 million or 22.7% 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 5.6% and 1.2%, 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 5.5% and 1.3%, respectively.
Current wording
For the quarter and year to date ended June 30, 2026, we recorded a provision for income taxes of $12.2 million reflecting an effective tax rate of 20.3% and $26.4 million reflecting an effective tax rate of 20.6%, respectively, as compared to 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% for the respective prior year periods. The effective tax rate for the current quarter and year to date was benefited by the tax effect of stock-based compensation and the release of previously recorded tax reserves, which, when combined, reduced the effective tax rate by 7.3% and 7.0%, respectively. The effective tax rate for the prior year quarter and year to date was benefited by the tax effect of stock-based compensation and the release of previously recorded tax reserves, which, when combined, reduced the effective tax rate by 2.0% and 4.4%, respectively. For the full year 2026, we expect our effective tax rate to be between 23.0% and 24.0%.
Previous wording
CTU. Current quarter revenue increased by 4.0% or $4.7 million as compared to the prior year quarter. The increase was primarily driven by total student enrollment growth of 1.9% at March 31, 2026 as compared to the prior year quarter. CTU's total student enrollment growth was supported by strong levels of student retention and engagement, growth in the corporate student program and consistent levels of prospective student interest.
Current wording
CTU. Current quarter and year to date revenue increased by 0.9% or $1.1 million and 2.5% or $5.7 million, respectively, as compared to the prior year periods. The improvement in revenue was primarily driven by increase in total student enrollment of 0.6% at June 30, 2026 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. Offsetting some of these enrollment trends at CTU is an increase in the number of students graduating during 2026 as compared to 2025 as well as record prior year comparisons.
Previous wording
AIUS. Current quarter revenue increased slightly by 0.4% or $0.3 million as compared to the prior year quarter. Total student enrollments decreased by 2.2% at March 31, 2026 as compared to March 31, 2025, driven by a decrease in total student enrollments at Trident University.
Current wording
AIUS. Current quarter and year to date revenue decreased by 1.8% or $1.0 million and 0.7% or $0.8 million, respectively, as compared to the prior year periods, primarily due to non-Title IV and professional development offerings. Total student enrollments decreased 1.0% at June 30, 2026 as compared to the prior year quarter end, driven by a decrease at Trident University.
Previous wording
USAHS. Current quarter revenue increased by 9.8% or $3.8 million as compared to the prior year quarter. The increase was primarily driven by total student enrollment growth of 3.1% at March 31, 2026 as compared to the prior year quarter.
Current wording
USAHS. Current quarter and year to date revenue increased by 10.2% or $3.8 million and 10.0% or $7.6 million, respectively, as compared to the prior year periods, primarily driven by total student enrollment growth of 6.0% at June 30, 2026, as compared to the prior year quarter end.
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 6.2% or $0.4 million as compared to the prior year quarter primarily driven by increased administrative 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 increased by 11.4% or $0.6 million and 8.7% or $1.0 million, respectively, as compared to the prior year periods, primarily driven by increased administrative costs for both comparative periods.
Previous wording
A detailed discussion of the accounting policies and estimates that we believe are most critical to our financial condition and results of operations that require management’s most subjective and complex judgments in estimating the effect of inherent uncertainties is included under the caption “Summary of Critical Accounting Policies and Estimates” included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025. Note 2 “Summary of Significant Accounting Policies” of our audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025 also includes a discussion of these and other significant accounting policies.
Current wording
A detailed discussion of the accounting policies and estimates that we believe are most critical to our financial condition and results of operations that require management’s most subjective and complex judgments in estimating the effect of inherent uncertainties is included under the caption “Summary of Critical Accounting Policies and Estimates” included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025. Note 2 “Summary of Significant Accounting Policies” of the notes to our audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025 also includes a discussion of these and other significant accounting policies.
Previous wording
As of March 31, 2026, cash, cash equivalents, restricted cash and available-for-sale short-term investments(“cash balances”) totaled $680.0 million. Restricted cash as of March 31, 2026 was $0.8 million and primarily related to escrow balances for Hippo Education and required letters of credit for USAHS. 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 2026. 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, share repurchases and quarterly dividends payments through at least the next 12 months primarily with cash generated by operations and existing cash balances.
Current wording
As of June 30, 2026, cash, cash equivalents, restricted cash and available-for-sale short-term investments(“cash balances”) totaled $734.8 million. Restricted cash as of June 30, 2026 was $0.8 million and primarily related to escrow balances for Hippo Education and required letters of credit for USAHS. 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 2026. 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, share repurchases and quarterly dividend payments through at least the next 12 months primarily with cash generated by operations and existing cash balances.
Previous wording
On January 2, 2026, the Board of Directors of the Company approved a common stock repurchase program, authorizing the Company to repurchase up to $100.0 million of its outstanding common stock on the open market and expires on June 30, 2027. The stock repurchase program may be modified, suspended or discontinued at any time in the Company's discretion without prior notice, and does not commit the Company to repurchase shares of its common stock. 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 January 2, 2026, the Board of Directors of the Company approved a common stock repurchase program, authorizing the Company to repurchase up to $100.0 million of its outstanding common stock on the open market, which expires on June 30, 2027. The stock repurchase program may be modified, suspended or discontinued at any time in the Company's discretion without prior notice, and does not commit the Company to repurchase shares of its common stock. 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. See Note 11 "Stock Repurchase Program" to our unaudited condensed consolidated financial statements for additional details.
Previous wording
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.
Current wording
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 believes to be the intrinsic value of the Company’s common stock.
Previous wording
Purchases and Sales of Available-for-Sale Investments. Purchases and sales of available-for-sale investments resulted in a net cash outflow of $5.3 million for the current quarter as compared to a net cash inflow of $2.9 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 $62.5 million and $3.6 million for the years to date ended June 30, 2026 and 2025, respectively.
Previous wording
Capital Expenditures. Capital expenditures were $1.7 million for each of the quarters ended March 31, 2026 and 2025. For the full year 2026, capital expenditures are expected to be approximately 1.5% of revenue.
Current wording
Capital Expenditures. Capital expenditures decreased to $3.3 million for the year to date ended June 30, 2026 as compared to $4.5 million for the year to date ended June 30, 2025. For the full year 2026, we expect capital expenditures to be approximately 1.0% of revenue.
Previous wording
During the quarters ended March 31, 2026 and 2025, net cash flows used in financing activities totaled $29.5 million and $44.4 million, respectively. Payments to repurchase shares of our common stock were $8.1 million for the quarter ended March 31, 2026 and $25.2 million for the quarter ended March 31, 2025.
Current wording
During the years to date ended June 30, 2026 and 2025, net cash flows used in financing activities totaled $46.8 million and $74.7 million, respectively. Payments to repurchase shares of our common stock were $15.0 million and $46.1 million for the years to date ended June 30, 2026 and 2025, respectively.
Previous wording
Payments of employee tax associated with stock compensation. Payments of employee tax associated with stock compensation were $10.3 million and $7.5 million for the quarters ended March 31, 2026 and 2025, respectively.
Current wording
Payments of employee tax associated with stock compensation. Payments of employee tax associated with stock compensation were $10.3 million and $7.5 million for the years to date ended June 30, 2026 and 2025, respectively.
Previous wording
Payments of cash dividends and dividend equivalents. During the quarters ended March 31, 2026 and 2025, the Company made dividend and dividend equivalent payments of $10.3 million and $9.2 million, respectively.
Current wording
Payments of cash dividends and dividend equivalents. During the years to date ended June 30, 2026 and 2025, the Company made dividend and dividend equivalent payments of $19.7 million and $17.7 million, respectively.
Previous wording
Principal payments for finance leases and failed sale leaseback. During the quarter ended March 31, 2026, the Company made principal payments of $1.3 million for finance leases, and during the quarter ended March 31, 2025, principal payments of $1.7 million were made for finance leases and failed sale-leaseback transactions, both related to USAHS.
Current wording
Principal payments for finance leases and failed sale-leaseback. During the year to date ended June 30, 2026, the Company made principal payments of $2.7 million for finance leases, and during the year to date June 30, 2025, principal payments of $2.9 million were made for finance leases and failed sale-leaseback transactions, both related to USAHS.
Previous wording
Student receivables, net: The increase is driven by timing of student billings for academic terms and respective cash receipts.
Current wording
Student receivables, net: The increase is driven by timing of student billings for academic terms and respective cash receipts at our universities.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
For the full year 2026, we expect our effective tax rate to be between 22.5% and 23.5%.