PRDO Q2 Deep Dive: Enrollment Growth and St. Augustine Acquisition Drive Guidance Raise

August 12, 2025 at 23:17 PM EDT

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Higher education company Perdoceo Education (NASDAQ: PRDO) announced better-than-expected revenue in Q2 CY2025, with sales up 25.7% year on year to $209.6 million. Its non-GAAP profit of $0.67 per share was 3.1% above analysts’ consensus estimates.

Is now the time to buy PRDO? Find out in our full research report (it’s free).

Perdoceo Education (PRDO) Q2 CY2025 Highlights:

Revenue: $209.6 million vs analyst estimates of $206.9 million (25.7% year-on-year growth, 1.3% beat)
Adjusted EPS: $0.67 vs analyst estimates of $0.65 (3.1% beat)
Adjusted EBITDA: $64.15 million vs analyst estimates of $60.01 million (30.6% margin, 6.9% beat)
Management raised its full-year Adjusted EPS guidance to $2.51 at the midpoint, a 1.4% increase
Operating Margin: 24.5%, down from 28.1% in the same quarter last year
Market Capitalization: $2.08 billion

StockStory’s Take

Perdoceo Education’s second quarter was met with a positive market response, underpinned by strong enrollment growth and the recent addition of St. Augustine for Health Sciences. Management credited the quarter’s performance to continued momentum in student retention and engagement across its core institutions, as well as increased demand from prospective students. CEO Todd Nelson highlighted that total enrollment growth reached 17% compared to the prior year, with seven consecutive quarters of growth at CTU and the highest level in over a year at AIUS. The integration of St. Augustine contributed meaningfully to revenue and operating income, with Nelson emphasizing the impact of expanding program offerings and new learning modalities.

Looking ahead, management’s raised full-year guidance reflects confidence in sustained enrollment gains and ongoing benefits from the St. Augustine acquisition. CFO Ashish Ghia noted that continued investment in technology, data analytics, and student support processes are expected to improve academic outcomes and provide a stable foundation for growth. The company anticipates that higher levels of prospective student interest and strong student retention will persist throughout the year, with Ghia stating, “We expect total company revenue and total enrollments to increase each remaining quarter versus 2024.” Management also pointed to further expansion of corporate student programs and additional academic sessions as drivers for future growth.

Key Insights from Management’s Remarks

Management attributed the quarter’s outperformance to robust organic growth at CTU and AIUS, as well as the successful integration of St. Augustine, which expanded the company’s program portfolio and geographic reach.

Enrollment momentum: Total enrollment growth was driven by high student retention and engagement, alongside increased marketing focus and technology upgrades to admissions and student support. Management highlighted seven consecutive quarters of enrollment growth at CTU and a return to peak levels at AIUS.
St. Augustine integration: The acquisition of St. Augustine for Health Sciences contributed nearly $37 million in revenue for the quarter, with new enrollments up in core programs like nursing and speech-language therapy. Management noted ongoing expansion in program modalities and campus locations to maximize reach and flexibility.
Corporate student programs: Enrollment growth from corporate partnerships remains a strategic priority, with CTU and AIUS making targeted investments in technology and personnel to support this pipeline. Management believes these efforts will drive sustainable growth in student numbers and revenue.
Technology investment: Upgrades to enrollment processes, data analytics, and student support systems are intended to enhance the student experience and improve retention. Management also referenced selective use of generative artificial intelligence to better identify and engage prospective students.
Capital allocation: The company increased its quarterly dividend and authorized a new $75 million share repurchase program, reflecting management’s emphasis on balanced capital deployment and shareholder returns alongside continued investment in growth initiatives.

Drivers of Future Performance

Perdoceo Education’s outlook centers on sustaining enrollment growth, leveraging the St. Augustine acquisition, and investing in student support and technology to drive profitability.

Enrollment and retention trends: Management expects high levels of student retention and ongoing growth in prospective student interest to continue supporting revenue gains, particularly at CTU and through expanded corporate student programs.
Impact of St. Augustine acquisition: The full-year benefit of St. Augustine’s integration, including new program offerings and campus expansion, is anticipated to drive both revenue and adjusted operating income growth, with further upside projected for 2026.
Ongoing investments and risks: Continued investment in technology, data analytics, and student support is seen as vital for maintaining academic outcomes and competitive positioning. However, management acknowledged that academic calendar variability at AIUS and potential regulatory changes represent ongoing risks to near-term performance.

Catalysts in Upcoming Quarters

Looking ahead, our analyst team will monitor (1) the pace of enrollment and revenue growth at St. Augustine, (2) sustained improvements in student retention and engagement across core institutions, and (3) the effectiveness of ongoing technology investments in driving operational efficiency and student outcomes. Progress in expanding corporate student programs and navigating regulatory developments will also be important factors in assessing execution.

Perdoceo Education currently trades at $31.97, up from $28.82 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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