Phoenix Education Partners Q4 Profit Rises 32%, FY2027 Outlook Set

Phoenix Education Partners, Inc. (NYSE: PXED), the parent of University of Phoenix, reported higher fourth-quarter revenue and enrollment as improved student retention helped lift adjusted EBITDA by 8.6% and expand its adjusted margin. GAAP net income increased 32.0%, while the company issued fiscal 2027 guidance that includes the expected contribution from its recently acquired Fuel50 business.

For the fourth quarter of fiscal 2026, net revenue rose 1.3% year over year to $260.7 million. Average Total Degreed Enrollment increased 2.8% to 81,500, principally reflecting improved retention. Students enrolled through employer relationships accounted for 36.2% of the quarterly total, up 270 basis points from a year earlier.

Net income climbed to $23.2 million from $17.6 million, and diluted earnings per share increased to $0.60 from $0.46. The company attributed the profit growth to higher revenue, a lower provision for credit losses and reduced strategic-alternatives, restructuring and other expenses, partly offset by higher IPO-related share-based compensation.

Adjusted net income, a non-GAAP measure, increased 5.0% to $41.6 million, while adjusted diluted earnings per share rose to $1.07 from $1.03. Adjusted EBITDA advanced to $61.5 million from $56.6 million, with the adjusted EBITDA margin widening by 160 basis points to 23.6%.

Full-Year Revenue and Enrollment Increase

For fiscal 2026, net revenue increased 1.0% to $1.017 billion as Average Total Degreed Enrollment rose 2.2% to 83,700. Improved retention supported enrollment growth, though higher discounts associated with employer relationships partly offset the revenue benefit. Employer-relationship students represented 35.2% of full-year enrollment, an increase of 320 basis points.

Full-year GAAP net income fell 35.0% to $88.1 million, and diluted earnings per share declined to $2.29 from $3.51. Phoenix Education Partners said the decrease primarily reflected IPO-related share-based compensation and increased advertising expense, partially offset by higher revenue and a lower provision for credit losses.

Adjusted net income was nearly unchanged at $173.1 million. Adjusted diluted earnings per share slipped by $0.03 to $4.47 because of a higher diluted share count. Adjusted EBITDA increased 2.1% to $249.0 million, and the adjusted EBITDA margin expanded by 30 basis points to 24.5%.

Liquidity, Acquisition and Capital Returns

Phoenix Education Partners ended the fiscal year on August 31, 2026, with $331.7 million in cash, restricted cash and marketable securities, up $136.9 million from a year earlier. Net cash provided by operating activities more than doubled to $196.3 million. The company reported no outstanding debt under its $100 million revolving credit facility, although the facility supported a $28.4 million letter of credit.

Capital expenditures totaled $20.5 million as the company continued investing in technology and systems supporting the student experience. Phoenix Education Partners also completed its acquisition of Fuel50 in September 2026, expanding its workforce intelligence and career mobility capabilities.

The company paid $25.6 million in dividends and dividend equivalents during fiscal 2026. It declared a new regular quarterly cash dividend of $0.23 per share, approximately 10% above the fiscal 2026 quarterly rate of $0.21, payable November 27, 2026.

Under its $50 million share-repurchase authorization, the company used $7.1 million during fiscal 2026 to buy about 200,000 shares at an average price of $29.95, leaving $42.9 million available.

Fiscal 2027 Outlook

Management expects fiscal 2027 net revenue of $970 million to $1.00 billion and adjusted EBITDA of $225 million to $240 million. The outlook, issued as of November 3, 2026, includes expected results from Fuel50 following the acquisition’s completion on September 30.

The company did not provide a reconciliation of forecast adjusted EBITDA to the most comparable GAAP measure, saying it could not predict certain items—including special items and share-based compensation—without unreasonable effort.

Phoenix Education Partners identified regulatory compliance, higher-education policy changes, accreditation and Title IV eligibility among its principal uncertainties. Other disclosed risks include student enrollment and retention, changes to internet search arising from artificial intelligence, the ability to adapt to new technologies, the development of employer relationships, cybersecurity and data-privacy liabilities, acquisition integration and litigation or regulatory proceedings.