Phoenix Education Partners, Inc. (PXED) Q2 2026 Financial Results Summary

Phoenix Education Partners, Inc. (NYSE: PXED) released its financial results for the second quarter of the fiscal year 2026 on April 7, 2026. Here’s a summary of those results:

Summary of Financial Results for Q2 2026

• Net Revenue: $222.5 million
  • Decrease of 0.4% compared to Q2 2025 ($223.4 million).
• Average Total Degreed Enrollment: 82,600
  • Increase of 1.8% from Q2 2025 (81,100).
• Net Income: $10.8 million
  • Decrease of 33.0% compared to Q2 2025 ($16.1 million).
  • Diluted Earnings Per Share (EPS): $0.28, down 34.9% from Q2 2025 ($0.43).
• Adjusted EBITDA: $34.8 million
  • Increase of 7.7% from Q2 2025 ($32.3 million).
• Adjusted Diluted Earnings Per Share: $0.58
  • Increase of 3.6% from Q2 2025 ($0.56).

First Six Months of 2026 Overview

• Net Revenue: $484.5 million
  • Increase of 1.0% compared to the first six months of 2025 ($478.1 million).
• Average Total Degreed Enrollment: 84,100
  • Increase of 4.3% from the first six months of 2025 (81,700).
• Net Income: $26.2 million
  • Decrease of 58.2% from the first six months of 2025 ($62.5 million).
  • Diluted EPS: $0.68, down 59.0% from the first half of 2025 ($1.66).
• Adjusted EBITDA: $110.0 million
  • Increase of 7.1% compared to the first six months of 2025 ($102.4 million).
• Adjusted Diluted Earnings Per Share: $1.97
  • Increase of 2.6% from the first half of 2025 ($1.92).

Dividends and Share Repurchase

• Cash Dividend: A regular common stock cash dividend of $0.21 per share was paid in Q2 2026, with another $0.21 per share dividend declared to be paid on May 22, 2026.
• Share Repurchase Program: The Board of Directors approved a share repurchase program of up to $50 million for the Company’s common stock to be executed through various methods.

Balance Sheet Summary

• Cash and Cash Equivalents: $252.1 million as of February 28, 2026, an increase from $194.8 million as of August 31, 2025.
• Operating Activities: Generated $80.0 million from operations, partially offset by $10.1 million in capital expenditures and cash paid for dividends.
• Debt: The Company had no outstanding debt under its $100 million senior secured revolving credit facility as of February 28, 2026.

Business Outlook

• For the fiscal year 2026, Phoenix Education Partners anticipates net revenue between $1,025.0 million and $1,035.0 million.
• Adjusted EBITDA is expected to fall between $244.0 million and $249.0 million.

Conclusion

Phoenix Education Partners continues to focus on expanding its enrollment and enhancing student experiences while navigating financial decreases in net income and earnings per share, largely attributed to share-based compensation linked to the Company's IPO. The recent dividend payout and share repurchase program demonstrate a commitment to returning value to shareholders amidst changing financial dynamics.

PHOENIX EDUCATION PARTNERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except per share data)

Note: All amounts in the following tables are in thousands.

	Three Months Ended	Six Months Ended
	February 28, 2026	February 28, 2025	February 28, 2026	February 28, 2025
Net revenue	222,461	223,406	484,488	478,098
Costs and expenses:
Instructional and support	105,242	107,210	220,490	215,333
General and administrative	98,105	90,428	204,662	172,383
Strategic alternatives, restructuring and other	5,108	6,103	19,736	11,049
Total costs and expenses	208,455	203,741	444,888	398,765
Operating income	14,006	19,665	39,600	79,333
Interest income	1,776	2,198	3,537	6,056
Interest expense	(550)	(111)	(765)	(225)
Income before income taxes	15,232	21,752	42,372	85,164
Provision for income taxes	4,763	5,648	16,425	21,942
Net income	10,469	16,104	25,947	63,222
Net loss (income) attributable to
noncontrolling interests	311	21	287	(681)
Net income attributable to Phoenix	10,780	16,125	26,234	62,541
Education Partners, Inc.
Earnings per share:(1)
Basic	0.30	0.45	0.73	1.76
Diluted	0.28	0.43	0.68	1.66
Shares used in computing earnings per share:
Basic	35,778	35,560	35,714	35,532
Diluted	38,888	37,898	38,744	37,764

PHOENIX EDUCATION PARTNERS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited)

($ in thousands)

	As of
	February 28, 2026	August 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	194,597	136,504
Restricted cash and cash equivalents	36,752	36,497
Marketable securities	6,770	9,005
Accounts receivable, net	35,015	58,957
Prepaid income taxes	14,956	3,160
Other current assets	29,362	21,827
Total current assets	317,452	265,950
Marketable securities	13,951	12,803
Property and equipment, net	38,510	38,846
Goodwill	3,732	3,732
Intangible assets, net	86,019	87,294
Operating lease right-of-use assets, net	38,335	41,920
Deferred income taxes, net	23,413	20,566
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