Perdoceo's Q3 Revenue Jumps 25% on USAHS Acquisition, Net Income Up

TL;DR

PRDO's Q3 numbers are solid, but watch those rising operating expenses – the USAHS acquisition is paying off, but it's not cheap.

AI Summary

PERDOCEO EDUCATION Corp (PRDO) reported a robust financial performance for the quarter ended September 30, 2025, with total revenue increasing by 24.75% to $211.872 million from $169.828 million in the prior year. Net income also saw a healthy rise of 4.17% to $39.850 million, up from $38.255 million in Q3 2024. The company's year-to-date revenue reached $634.457 million, a significant increase from $504.832 million in the same period last year, while year-to-date net income grew to $124.566 million from $116.126 million. Key business changes include the acquisition of the University of St. Augustine for Health Sciences (USAHS) on December 2, 2024, which contributed to the growth, and the transition of Hippo Education's programs from the CTU segment to the AIUS segment in Q3 2025. Operating expenses increased substantially by 28.70% to $160.913 million, primarily due to higher educational services and facilities costs, and a significant jump in depreciation and amortization to $10.015 million from $3.053 million. The company's strategic outlook appears focused on expanding its health sciences offerings through USAHS and enhancing personalized learning technologies across its institutions.

Why It Matters

Perdoceo's strong revenue and net income growth, largely driven by the USAHS acquisition, signals a strategic shift towards the high-demand health sciences education sector. This expansion could provide a competitive edge against other online education providers by diversifying its program offerings and tapping into a more resilient market. For investors, the increased operating expenses, particularly in educational services and depreciation, warrant close monitoring as they could impact future profitability if not managed effectively. Employees and customers of USAHS are now integrated into a larger, publicly traded entity, potentially benefiting from increased resources and stability, while the broader market sees a consolidation play in the postsecondary education space.

Risk Assessment

Risk Level: medium — The risk level is medium due to the substantial increase in operating expenses, particularly educational services and facilities, which rose from $28.287 million in Q3 2024 to $49.141 million in Q3 2025. Additionally, depreciation and amortization expenses surged from $3.053 million to $10.015 million in the same period, indicating higher capital expenditures or acquired asset amortization. While revenue growth is strong, these rising costs could pressure margins if not offset by continued top-line expansion.

Analyst Insight

Investors should hold PRDO, closely monitoring the integration of USAHS and the efficiency of its expanded operations. Evaluate future filings for trends in operating expense management and student enrollment growth in the health sciences segment to ensure sustained profitability.

Financial Highlights

debt To Equity

N/A

revenue

$211.872M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$39.850M

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

+24.75%

Revenue Breakdown

Key Numbers

• $211.872M — Total Revenue (Q3 2025) (Increased by 24.75% from $169.828 million in Q3 2024)
• $39.850M — Net Income (Q3 2025) (Increased by 4.17% from $38.255 million in Q3 2024)
• $634.457M — Total Revenue (YTD Q3 2025) (Increased from $504.832 million in YTD Q3 2024)
• $124.566M — Net Income (YTD Q3 2025) (Increased from $116.126 million in YTD Q3 2024)
• $160.913M — Total Operating Expenses (Q3 2025) (Increased by 28.70% from $125.034 million in Q3 2024)
• $49.141M — Educational Services and Facilities (Q3 2025) (Increased from $28.287 million in Q3 2024)
• $10.015M — Depreciation and Amortization (Q3 2025) (Increased from $3.053 million in Q3 2024)
• $137.0M — USAHS Acquisition Purchase Price (Allocated to assets and liabilities as of December 2, 2024)
• $17.029M — Goodwill from USAHS Acquisition (Reflects value of acquired workforce and revenue growth opportunities)
• 64,322,476 — Common Stock Outstanding (As of October 29, 2025)

Key Players & Entities

• PERDOCEO EDUCATION Corp (company) — registrant
• USAHS (company) — University of St. Augustine for Health Sciences, acquired by Perdoceo
• Colorado Technical University (company) — Perdoceo's academic institution
• American InterContinental University System (company) — Perdoceo's academic institution
• Hippo Education (company) — non-degree professional development and continuing education programs
• FASB (regulator) — Financial Accounting Standards Board
• SEC (regulator) — Securities and Exchange Commission
• Nasdaq Global Select Market (regulator) — exchange where PRDO common stock is registered
• December 2, 2024 (date) — acquisition date of USAHS
• September 30, 2025 (date) — end of the reporting period

FAQ

Risk Factors

• Integration of Acquired Institutions [medium — operational]: The acquisition of USAHS introduces operational complexities related to integrating its systems, faculty, and student body. Failure to effectively integrate could impact operational efficiency and the realization of expected synergies.
• Accreditation and Regulatory Compliance [high — regulatory]: As an educational institution, PRDO is subject to stringent accreditation and regulatory oversight. Changes in regulations or failure to maintain accreditation for any of its institutions, including the newly acquired USAHS, could materially impact enrollment and revenue.
• Competition in Higher Education [medium — market]: The higher education market is competitive, with increasing demand for online and specialized programs. PRDO faces competition from established universities and emerging online education providers, requiring continuous innovation and investment.
• Increased Operating Expenses [medium — financial]: Operating expenses rose by 28.70% to $160.913 million in Q3 2025, driven by higher educational services, facilities costs, and a significant increase in depreciation and amortization ($10.015 million from $3.053 million). This trend could pressure margins if not offset by revenue growth.
• Technology and Infrastructure Investment [low — operational]: The company's focus on enhancing personalized learning technologies requires ongoing investment in IT infrastructure and software. Disruptions or failures in these systems could affect student experience and operational continuity.
• Leverage from Acquisitions [medium — financial]: While the USAHS acquisition is expected to drive growth, it may also increase the company's financial leverage and debt obligations, impacting financial flexibility and increasing interest expense.

Industry Context

The higher education sector is undergoing significant transformation, driven by technological advancements, demand for specialized skills, and evolving student preferences for flexible learning models. Companies like PERDOCEO are navigating this landscape by acquiring institutions and investing in online and personalized learning technologies. Competition remains intense from traditional universities and newer online education providers.

Regulatory Implications

PERDOCEO operates in a highly regulated environment. Maintaining accreditation for all its institutions, including the newly acquired USAHS, is critical. Changes in federal or state regulations regarding student aid, online education, or accreditation standards could materially impact the company's operations and financial performance.

What Investors Should Do

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Key Dates

• 2024-12-02: Acquisition of University of St. Augustine for Health Sciences (USAHS) — Significantly expands PRDO's health sciences offerings and is a key driver of recent revenue growth.
• 2025-09-30: Quarterly Report (Q3 2025) — Demonstrates strong revenue growth and provides insights into operational changes and expense increases.
• 2025-10-29: Common Stock Outstanding Record Date — Provides the latest figure for the company's outstanding shares (64,322,476), relevant for per-share calculations.

Glossary

Depreciation and Amortization

The systematic allocation of the cost of an intangible asset over its useful life (amortization) or a tangible asset over its useful life (depreciation). (A significant increase to $10.015 million from $3.053 million in Q3 2025 indicates substantial investment in long-term assets or the impact of recent acquisitions.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (The $17.029 million in goodwill from the USAHS acquisition reflects the premium paid, likely for workforce and future revenue growth potential.)

Educational Services and Facilities

Costs directly associated with delivering educational programs and maintaining the physical or virtual infrastructure required for learning. (This expense category increased substantially to $49.141 million, highlighting increased operational scale and investment, likely driven by the USAHS acquisition and student growth.)

CTU segment

A reporting segment within PERDOCEO EDUCATION Corp, likely referring to Colorado Technical University. (The transition of Hippo Education's programs from this segment to AIUS impacts its reported performance and revenue mix.)

AIUS segment

A reporting segment within PERDOCEO EDUCATION Corp, likely referring to American InterContinental University. (This segment now includes programs previously housed in the CTU segment, affecting its revenue and growth profile.)

Year-Over-Year Comparison

PERDOCEO EDUCATION Corp has demonstrated strong top-line growth, with Q3 2025 revenue increasing by 24.75% year-over-year, driven in part by the acquisition of USAHS. However, operating expenses have grown at a faster pace of 28.70%, leading to a more modest increase in net income of 4.17%. A significant factor in expense growth is the substantial rise in depreciation and amortization, more than tripling from the prior year, indicating increased investment in long-term assets or the impact of acquisitions.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value PRDO Nasdaq Global Select
• $0 — of registrant's common stock, par value $0.01, outstanding as of October 29, 2025:

Filing Documents

• prdo-20250930.htm (10-Q) — 3623KB
• prdo-ex31_1.htm (EX-31.1) — 14KB
• prdo-ex31_2.htm (EX-31.2) — 14KB
• prdo-ex32_1.htm (EX-32.1) — 8KB
• prdo-ex32_2.htm (EX-32.2) — 8KB
• img152935015_0.jpg (GRAPHIC) — 13KB
• 0001193125-25-264625.txt ( ) — 12675KB
• prdo-20250930.xsd (EX-101.SCH) — 1241KB
• prdo-20250930_htm.xml (XML) — 2887KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Income (Unaudited) 2 Condensed Consolidated Statements of Comprehensive Income (Unaudited) 2 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) 3 Condensed Consolidated Statements of Cash Flows (Unaudited) 4 Notes to Unaudited Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 30

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 5. Other Information 31 Item 6. Exhibits 31

SIGNATURES

SIGNATURES 33 PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDA TED BALANCE SHEETS September 30, December 31, (In Thousands, Except Share and Per Share Amounts) 2025 2024 ASSETS (unaudited) CURRENT ASSETS: Cash and cash equivalents, unrestricted $ 159,470 $ 109,130 Restricted cash 21,309 22,623 Total cash, cash equivalents and restricted cash 180,779 131,753 Short-term investments 487,843 459,795 Total cash and cash equivalents, restricted cash and short-term investments 668,622 591,548 Student receivables, gross 80,724 63,925 Allowance for credit losses ( 39,422 ) ( 41,118 ) Student receivables, net 41,302 22,807 Receivables, other 6,148 5,330 Prepaid expenses 15,877 16,910 Inventories 4,016 3,388 Other current assets 188 171 Total current assets 736,153 640,154 NON-CURRENT ASSETS: Property and equipment, net of accumulated depreciation of $ 82,711 and $ 67,492 as of September 30, 2025 and December 31, 2024, respectively 85,194 95,508 Right of use asset, net - operating 45,050 50,099 Right of use asset, net - finance 11,538 15,375 Goodwill 258,191 258,012 Intangible assets, net of amortization of $ 40,611 and $ 27,725 as of September 30, 2025 and December 31, 2024, respectively 82,120 95,006 Student receivables, gross 9,358 8,597 Allowance for credit losses ( 4,490 ) ( 2,402 ) Student receivables, net 4,868 6,195 Deferred income tax assets, net 68,774 68,774 Other assets 7,496 7,911 TOTAL ASSETS $ 1,299,384 $ 1,237,034 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Lease liability-operating $ 5,750 $ 7,792 Lease liability-finance 5,334 5,466 Accounts payable 20,218 12,805 Accrued expenses: Payroll and related benefits 38,989 35,059 Advertising and marketing costs 7,588 8,135 Income taxes 10,670 4,926 Other