Phoenix Education Partners (PXED) Q2 2026 Financial Results Summary
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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)
