A for-profit educator running three accredited universities—Colorado Technical University, American InterContinental University System, and the University of St. Augustine for Health Sciences—that grant degrees from associate to doctoral level, mostly online to working adults studying business, technology, and health. It grew out of Career Education Corporation, founded in 1994 by John M. Larson, which rebranded as Perdoceo in 2020. The new name is Latin for "to teach thoroughly," a nod to its founding spirit.
AIUS enrollment declined for the fourth time in five quarters, but operating margin widened to 25.7% as bad debt and depreciation costs fell.
AIUS enrollment fell again, but costs dropped faster. rose 1.8% to $213.4 million and rose 6.8% to $54.9 million, as a 20.8% decline in and an 11.5% drop in widened the by 1.2 points to 25.7%. The company is more profitable than a year ago, but its smallest keeps shrinking.
Key takeaways
widened 1.2 points to 25.7% as operating expenses fell 2.1% while grew, driven by a 20.8% decline in and from fully amortized intangibles and an 11.5% drop in .
USAHS swung to a $3.6 million from a loss a year ago, and its rose 10.2%, making it the primary growth engine this quarter.
AIUS fell 1.8% and its total student enrollments declined 1.0%, which management attributed to lower enrollments at Trident University within the — the fourth enrollment decline in five quarters.
Section summaries
Management's Discussion and Analysis
Revenue rose 1.8% to $213.4M on USAHS and CTU enrollment growth; operating income up 6.8% to $54.9M on disciplined expense management.
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Total increased 1.8% to $213.4M, driven by 10.2% growth at USAHS and 0.9% growth at CTU, partially offset by a 1.8% decline at AIUS.
rose 6.8% to $54.9M, with USAHS swinging to a $3.6M profit and AIUS operating income up 9.7%, while CTU operating income fell 5.1% on higher legal fees.
CTU fell 5.1% on higher legal fees, even as rose 0.9% and enrollments edged up 0.6%.
The dropped to 20.3% from 27.0% due to tax benefits and reserve releases, boosting by 16.9% to $48.0 million.
The Board declared a 13.3% higher quarterly of $0.17 per share, and the company repurchased $15.0 million in stock during the quarter under its $100 million authorization.
What changed
AIUS enrollment declined 1.0%, extending the pattern flagged in Q1 2026 when management cited weakness at Trident University as the driver; the has now posted enrollment declines in four of the last five quarters, confirming the post-overhaul recovery has stalled.
The 25.7% retreated from Q1 2026's 28.5% — the highest in the series — as the from fully amortized intangibles began to annualize and CTU's legal fees rose, but it remains above the 24.5% reported in Q2 2025.
Total growth slowed to 1.8% from 4.1% in Q1 2026, as the USAHS acquisition has now fully annualized in the comparison and AIUS returned to a revenue decline.
fell 11.5% to $4.8 million, continuing the improvement noted in Q1 2026 and suggesting the CTU billing-timing issue that spiked in early 2025 has normalized.
What to watch
Whether AIUS enrollment stabilizes or declines further in Q3 2026, now that the has posted declines in four of the last five quarters and management continues to cite Trident University as the source of weakness.
The impact of the Grad PLUS loan elimination effective July 2026 on USAHS enrollment and — whether prospective students accelerate enrollment ahead of the cutoff or begin to pull back as the date arrives.
Whether the consolidated can hold above 25% as the from fully amortized intangibles annualizes fully and CTU's legal fees remain elevated.
The pace of capital returns under the $100 million authorization, given $734.8 million in total cash and investments and no debt, and whether the company prioritizes buybacks over acquisition opportunities.
Total student enrollments grew 0.7% to 46,830, with USAHS up 6.0% and CTU up 0.6%, while AIUS declined 1.0% due to a decrease at Trident University.
fell 11.5% to $4.8M, with declines at AIUS and USAHS more than offsetting an increase at CTU; the dropped to 20.3% from 27.0% due to tax benefits and reserve releases.
Cash balances totaled $734.8M; the company repurchased $15.0M in stock, paid $19.7M in dividends, and declared a 13.3% higher quarterly of $0.17 per share.
Full-year 2026 adjusted is expected to be higher than 2025, supported by growth and lower operating expenses.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to financial market risks, primarily changes in interest rates. We use various techniques to manage our interest rate risk. We have no derivative financial instruments or derivative commodity instruments, and believe the risk related to cash equivalents and availa…
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We are exposed to financial market risks, primarily changes in interest rates. We use various techniques to manage our interest rate risk. We have no derivative financial instruments or derivative commodity instruments, and believe the risk related to cash equivalents and available-for-sale investments is limited due to the adherence to our investment policy, which focuses on capital preservation and liquidity. In addition, we use asset managers who conduct initial and ongoing credit analyses on our investment portfolio and monitor that investments are in compliance with our investment policy. Despite the investment risk mitigation strategies we employ, we may incur investment losses as a result of unusual and unpredictable market developments and may experience reduced investment earnings if the yields on investments deemed to be low risk remain low or decline.
Interest Rate Exposure
Our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if we are forced to sell investments that have declined in market value due to changes in interest rates. At June 30, 2026, a 100 basis point increase or decrease in average interest rates applicable to our investments would not have had a material impact on our future earnings, fair values or cash flows.
Our financial instruments are recorded at their fair values as of June 30, 2026 and December 31, 2025. We believe that the exposure of our consolidated financial position and results of operations and cash flows to adverse changes in interest rates applicable to our investments is not significant.
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In addition to the information set forth in this Quarterly Report on Form 10-Q, the reader should carefully consider the factors discussed in Part I, Item 1A “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with th…
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In addition to the information set forth in this Quarterly Report on Form 10-Q, the reader should carefully consider the factors discussed in Part I, Item 1A “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission on February 19, 2026.