Perdoceo Education Corporation Reports Fourth Quarter and Full Year 2024 Results

About this update from Perdoceo Education Corporation

SCHAUMBURG, Ill. --(BUSINESS WIRE)-- Perdoceo Education Corporation (NASDAQ: PRDO) today reported operating and financial results for the quarter and year ended December 31, 2024 . Full Year 2024 Results as Compared to Prior Year Total student enrollments increased by 8.1% at CTU and 11.8% at AIUS. Operating income increased 15.8% to $174.3 million , while adjusted operating income increased 9.9% to $192.2 million .* As expected, revenue for the full year was lower by 4.0% due to the lag impact from the 2023 operational changes at AIUS and simplification of our professional development offerings at CTU. Excluding the latter, CTU’s revenue increased as compared to the prior year. Earnings per diluted share were $2.19 as compared to $2.18 , while adjusted earnings per diluted share were $2.29 as compared to $2.10 .* Completed the previously announced acquisition of the University of St. Augustine for Health Sciences “USAHS” in December. Ended the quarter with $591.5 million in cash, cash equivalents, restricted cash and available-for-sale-short-term investments, after making all payments associated with the USAHS acquisition. Fourth Quarter 2024 Results as Compared to Prior Year Quarter Operating income increased 133.2% to $37.2 million , while adjusted operating income increased 122.9% to $43.2 million .* Revenue increased 19.3% to $176.4 million , supported by organic growth at CTU and AIUS, as well as the USAHS acquisition that was completed in December 2024 . Earnings per diluted share were $0.47 as compared to $0.26 , while adjusted earnings per diluted share were $0.50 as compared to $0.27 .* * See GAAP ( U.S. generally accepted accounting principles) to non-GAAP reconciliation attached to this press release "Quarterly operating performance at CTU and AIUS was ahead of our expectations, and we ended the year on a strong note as it relates to prospective student interest, student retention and student engagement. This broad momentum sets us up well for 2025 while our faculty and student support teams continue to prioritize enhancing student experiences, retention and academic outcomes for current and prospective learners,” said Todd Nelson , President and Chief Executive Officer. “During the quarter, we also closed the acquisition of the University of St. Augustine for Health Sciences , which has meaningfully expanded our academic offerings in the graduate health sciences field and the number of students we serve and educate. Our balance sheet is strong, and we remain committed to making investments in student technology and student support processes, while maintaining strong liquidity.” REVENUE For the quarter ended December 31, 2024 , revenue of $176.4 million increased 19.3% compared to revenue of $147.9 million for the prior year quarter. For the year ended December 31, 2024 , revenue of $681.3 million decreased 4.0% compared to revenue of $710.0 million for the prior year. For the Quarter Ended December 31 , For the Year Ended December 31 , Revenue ($ in thousands) 2024 2023 % Change 2024 2023 % Change CTU $ 114,760 $ 104,590 9.7 % $ 456,899 $ 468,926 -2.6 % AIUS 51,433 43,172 19.1 % 213,547 240,300 -11.1 % USAHS (1) 10,041 - NM 10,041 - NM Corporate and Other 197 157 NM 776 778 NM Total $ 176,431 $ 147,919 19.3 % $ 681,263 $ 710,004 -4.0 % (1) Perdoceo completed the acquisition of USAHS on December 2, 2024 . TOTAL STUDENT ENROLLMENTS As of December 31, 2024 , total student enrollments increased 20.0% compared to December 31, 2023 . At December 31 , Total Student Enrollments (1) 2024 2023 % Change CTU 28,100 26,000 8.1 % AIUS 9,500 8,500 11.8 % USAHS (2) 3,800 - NM Total 41,400 34,500 20.0 % (1) Total student enrollments do not include learners participating in: a) non-degree seeking and professional development programs, and b) degree seeking, non-Title IV, self-paced programs at the Company's universities. (2) Perdoceo completed the acquisition of USAHS on December 2, 2024 and total student enrollments represents students who are considered active at the end of the fall term in December. OPERATING INCOME For the quarter ended December 31, 2024 , operating income increased by 133.2% to $37.2 million as compared to the prior year quarter. For the year ended December 31, 2024 , operating income increased by 15.8% to $174.3 million as compared to the prior year. For the Quarter Ended December 31 , For the Year Ended December 31 , Operating Income ($ in thousands) 2024 2023 % Change 2024 2023 % Change CTU $ 42,015 $ 25,376 65.6 % $ 171,260 $ 144,008 18.9 % AIUS 4,907 600 717.8 % 36,182 45,283 -20.1 % USAHS (1) (2,640 ) - NM (2,640 ) - NM Corporate and Other (7,107 ) (10,033 ) NM (30,549 ) (38,845 ) NM Total $ 37,175 $ 15,943 133.2 % $ 174,253 $ 150,446 15.8 % (1) Perdoceo completed the acquisition of USAHS on December 2, 2024 . ADJUSTED OPERATING INCOME The Company believes it is useful to present non-GAAP financial measures, which exclude certain significant and non-cash items, as a means to understand the performance of its operations. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.) For the quarter ended December 31, 2024 , adjusted operating income of $43.2 million increased 122.9% compared to adjusted operating income of $19.4 million for the prior year quarter. For the year ended December 31, 2024 , adjusted operating income of $192.2 million increased 9.9% compared to adjusted operating income of $174.9 million for the prior year. For the Quarter Ended December 31 , For the Year Ended December 31 , Adjusted Operating Income ($ in thousands) 2024 2023 2024 2023 Operating income $ 37,175 $ 15,943 $ 174,253 $ 150,446 Depreciation and amortization 5,507 3,449 14,645 16,887 Legal fee expense related to certain matters (1) 545 5 3,309 7,579 Adjusted Operating Income $ 43,227 $ 19,397 $ 192,207 $ 174,912 Increase (Decrease) 122.9 % 9.9 % (1) Legal fee expense associated with (i) responses to the Department of Education (the “Department”) relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts. NET INCOME AND EARNINGS PER DILUTED SHARE For the quarter ended December 31, 2024 , the Company recorded: Net income of $31.5 million compared to $17.2 million for the prior year quarter. Earnings per diluted share of $0.47 compared to $0.26 for the prior year quarter. Adjusted earnings per diluted share of $0.50 compared to $0.27 for the prior year quarter. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.) For the year ended December 31, 2024 , the Company recorded: Net income of $147.6 million compared to $147.7 million for the prior year. Earnings per diluted share of $2.19 compared to $2.18 for the prior year. Adjusted earnings per diluted share of $2.29 compared to $2.10 for the prior year. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.) For the Quarter Ended December 31 , For the Year Ended December 31 , 2024 2023 2024 2023 Reported Earnings Per Diluted Share $ 0.47 $ 0.26 $ 2.19 $ 2.18 Pre-tax adjustments included in operating expenses: Amortization for acquired intangible assets 0.03 0.02 0.09 0.11 Legal fee expense related to certain matters (1) 0.01 - 0.05 0.11 Gain on sale of intangible asset (2) - - - (0.32 ) Tax effect of adjustments (3) (0.01 ) (0.01 ) (0.04 ) 0.02 Adjusted Earnings Per Diluted Share $ 0.50 $ 0.27 $ 2.29 $ 2.10 (1) Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts. (2) Non-cash gain associated with the sale of the LCB tradename in exchange for outstanding shares of Perdoceo's stock. (3) The tax effect of adjustments was calculated by multiplying the pre-tax adjustments with a tax rate of 25.0%. This tax rate is intended to reflect federal and state taxable jurisdictions as well as the nature of the adjustments. QUARTERLY DIVIDEND PAYMENT The board of directors declared a quarterly dividend of $0.13 per share, which will be paid on March 13, 2025 for holders of record of common stock as of March 1, 2025 . Any decision to pay future cash dividends, however, will be made by the board of directors and depend on the Company’s available retained earnings, financial condition and other relevant factors. The Company expects quarterly dividend payments to be an integral and growing part of its balanced capital allocation strategy that also prioritizes investments in student support and technology projects, while also evaluating acquisitions and share repurchases. BALANCE SHEET AND CASH FLOW For the quarter ended December 31, 2024 net cash provided by operating activities was $17.6 million , compared to net cash provided by operating activities of $13.2 million for the prior year quarter. For the year ended December 31, 2024 , net cash provided by operating activities was $161.6 million , compared to net cash provided by operating activities of $112.0 million in the prior year. As of December 31, 2024 and December 31, 2023 , cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled $591.5 million and $604.2 million , respectively. The decrease is driven by the cash paid of $137.8 million in December 2024 for the acquisition of USAHS, which was mostly offset with cash generated by operating activities. For the Quarter Ended December 31 , For the Year Ended December 31 , Selected Cash Flow Items ($ in thousands) 2024 2023 % Change 2024 2023 % Change Net cash provided by operating activities $ 17,599 $ 13,192 33.4 % $ 161,594 $ 112,025 44.2 % Capital expenditures $ 1,628 $ 1,610 1.1 % $ 4,625 $ 6,411 -27.9 % OUTLOOK The Company is providing its first quarter and full year 2025 outlook, subject to the key assumptions identified below. Please see the GAAP to non-GAAP reconciliation for adjusted operating income and adjusted earnings per diluted share attached to this press release for further details. Total Company Outlook For Quarter Ending March 31 , For the Year Ending December 31 , OUTLOOK ACTUAL OUTLOOK ACTUAL 2025 2024 2025 2024 Operating Income $50.0M - $52.0M $46.3M $172.0M - $192.0M $174.3M Depreciation and amortization $10.7M $3.0M $42.0M $14.6M Legal fee expense related to certain matters (1) $0.3M $0.2M $1.0M $3.3M Adjusted Operating Income $61.0M - $63.0M $49.5M $215.0M - $235.0M $192.2M Earnings Per Diluted Share $0.59 - $0.62 $0.59 $2.11 - $2.31 $2.19 Amortization of acquired intangible assets $0.06 $0.02 $0.25 $0.09 Legal fee expense related to certain matters (1) - - $0.02 $0.05 Tax effect of adjustments ( $0.01 ) ( $0.01 ) ( $0.07 ) ( $0.04 ) Adjusted Earnings Per Diluted Share $0.64 - $0.67 $0.60 $2.31 - $2.51 $2.29 (1) Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts. Operating income, which is the most directly comparable GAAP measure to adjusted operating income, and earnings per diluted share, which is the most directly comparable GAAP measure to adjusted earnings per diluted share, may not follow the same trends stated in the outlook above because of adjustments made for certain significant and non-cash items. The operating income, adjusted operating income, earnings per share and adjusted earnings per share outlook provided above for 2025 are based on the following key assumptions and factors, among others: (i) prospective student interest in the Company’s programs and trends in student retention and engagement remain consistent with management’s recent experiences and future expectations, (ii) no significant impact from new or proposed regulations, or from updated interpretations of current regulation, or other adverse changes in the legal or regulatory environment, which may require operational changes in the way the Company’s academic institutions attract, connect with, enroll, support and educate current and prospective students, among other impacts, (iii) no significant operating impacts from the settlement with the U.S. Federal Trade Commission or other legal or regulatory matters, (iv) the positive impact on total enrollments from various student loan initiatives implemented by the prior administration remains consistent with management's estimates, (v) earnings per diluted share outlook assumes an effective income tax rate of approximately 25.5% for the first quarter and approximately 26.0% for the full year, and (vi) excludes any future impact from the Company’s stock repurchase program. Although these estimates and assumptions are based upon management’s good faith beliefs regarding current and future circumstances and actions that may be undertaken, actual results could differ materially from these estimates. In addition, decisions the Company makes in the future as it continues to evaluate diverse strategies to enhance stockholder value may impact the outlook provided above. CONFERENCE CALL INFORMATION Perdoceo Education Corporation will host a conference call on Tuesday, February 18, 2025 at 5:00 p.m. Eastern time to discuss fourth quarter and full year 2024 results and 2025 outlook. Interested parties can access the live webcast of the conference call at www.perdoceoed.com in the Investor Relations section of the website. Participants can also listen to the conference call by dialing 1-800-715-9871 (domestic) or 1-646-307-1963 (international). Both dial-in numbers will use the access code 4671240. Viewers can also access the conference call by following this link https://events.q4inc.com/attendee/748718635 . Please log-in or dial-in at least 10 minutes prior to the start time to ensure a connection. An archived version of the webcast will be accessible for 90 days at www.perdoceoed.com in the Investor Relations section of the website. ABOUT PERDOCEO EDUCATION CORPORATION Perdoceo’s accredited academic institutions offer a quality postsecondary education to a diverse student population, with fully online, campus-based and hybrid learning programs. The Company’s academic institutions – Colorado Technical University (“CTU”), the American InterContinental University System (“AIUS” or “AIU System”) and University of St. Augustine for Health Sciences ("USAHS") – provide degree programs from the associate through doctoral level as well as non-degree seeking and professional development programs. Our academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. USAHS is among the nation's reputable universities offering graduate health sciences degrees, primarily in physical therapy, occupational therapy, speech language therapy and nursing, as well as continuing education programs. Perdoceo's academic institutions are committed to providing quality education that closes the gap between learners who seek to advance their careers and employers needing a qualified workforce. For more information, please visit www.perdoceoed.com . Except for the historical and present factual information contained herein, the matters set forth in this release, including statements identified by words such as “believe,” “will,” “expect,” “continue,” “outlook,” “remain,” “focused on,” “should” and similar expressions, are forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on information currently available to us and are subject to various assumptions, risks, uncertainties and other factors that could cause our results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Except as expressly required by the federal securities laws, we undertake no obligation to update or revise such factors or any of the forward-looking statements contained herein to reflect future events, developments or changed circumstances, or for any other reason. These risks and uncertainties, the outcomes of which could materially and adversely affect our financial condition and operations, include, but are not limited to, the following: declines in enrollment or interest in our programs or our ability to attract and connect with prospective students; our continued compliance with and eligibility to participate in Title IV Programs under the Higher Education Act of 1965, as amended, and the regulations thereunder (including the new 90-10, gainful employment, financial responsibility and administrative capability standards prescribed by the U.S. Department of Education ), as well as applicable accreditation standards and state regulatory requirements; the impact of various versions of “borrower defense to repayment” regulations; the final outcome of various legal challenges to the Department's loan discharge and forgiveness efforts; rulemaking or changing interpretations of existing regulations, guidance or historical practices by the U.S. Department of Education or any state or accreditor and increased focus by Congress and governmental agencies on, or increased negative publicity about, for-profit education institutions; the success of our initiatives to improve student experiences, retention and academic outcomes; our continued ability to participate in educational assistance programs for key employers, veterans or other military personnel; our ability to pay dividends on our common stock and execute our stock repurchase program; increased competition; the impact of management changes; and changes in the overall U.S. economy. Further information about these and other relevant risks and uncertainties may be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and its subsequent filings with the Securities and Exchange Commission . PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) December 31 , December 31 , 2024 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents, unrestricted $ 109,130 $ 118,009 Restricted cash 22,623 1,012 Short-term investments 459,795 485,135 Total cash and cash equivalents, restricted cash and short-term investments 591,548 604,156 Student receivables, net 22,807 29,398 Receivables, other 5,330 4,539 Prepaid expenses 16,910 11,712 Inventories 3,388 5,004 Other current assets 171 155 Total current assets 640,154 654,964 NON-CURRENT ASSETS: Property and equipment, net 95,508 21,371 Right of use assets, net - operating 50,099 19,096 Right of use assets, net - finance 15,375 - Goodwill 258,012 241,162 Intangible assets, net 95,006 36,219 Student receivables, net 6,195 3,859 Deferred income tax assets, net 68,774 23,804 Other assets 7,911 6,841 TOTAL ASSETS $ 1,237,034 $ 1,007,316 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Lease liabilities - operating $ 7,792 $ 5,701 Lease liabilities - finance 5,466 - Accounts payable 12,805 10,766 Accrued expenses: Payroll and related benefits 35,059 32,684 Advertising and marketing costs 8,135 7,196 Income taxes 4,926 3,974 Other 21,239 13,503 Deferred revenue 36,740 37,215 Total current liabilities 132,162 111,039 NON-CURRENT LIABILITIES: Lease liabilities - operating 50,224 21,346 Lease liabilities - finance 11,555 - Construction financing 56,500 - Other liabilities 27,057 33,510 Total non-current liabilities 145,336 54,856 STOCKHOLDERS' EQUITY: Preferred stock - - Common stock 910 903 Additional paid-in capital 707,212 694,798 Accumulated other comprehensive income (loss) 166 (666 ) Retained earnings 595,672 480,606 Treasury stock (344,424 ) (334,220 ) Total stockholders' equity 959,536 841,421 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,237,034 $ 1,007,316 PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts and percentages) For the Quarter Ended December 31 , 2024 % of Total Revenue 2023 % of Total Revenue REVENUE: Tuition and fees, net $ 175,227 99.3 % $ 146,822 99.3 % Other 1,204 0.7 % 1,097 0.7 % Total revenue 176,431 147,919 OPERATING EXPENSES: Educational services and facilities 35,199 20.0 % 30,223 20.4 % General and administrative 96,565 54.7 % 92,756 62.7 % Depreciation and amortization 5,507 3.1 % 3,449 2.3 % Asset impairment 1,985 1.1 % 5,548 3.8 % Total operating expenses 139,256 78.9 % 131,976 89.2 % Operating income 37,175 21.1 % 15,943 10.8 % OTHER INCOME: Interest income 7,308 4.1 % 6,421 4.3 % Interest expense (84 ) 0.0 % (116 ) -0.1 % Miscellaneous (expense) income (1,186 ) -0.7 % 129 0.1 % Total other income 6,038 3.4 % 6,434 4.3 % PRETAX INCOME 43,213 24.5 % 22,377 15.1 % Provision for income taxes 11,749 6.7 % 5,189 3.5 % NET INCOME 31,464 17.8 % 17,188 11.6 % NET INCOME PER SHARE - BASIC: $ 0.48 $ 0.26 NET INCOME PER SHARE -DILUTED: $ 0.47 $ 0.26 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 65,718 65,610 Diluted 67,456 67,185 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Quarter Ended December 31 , (In Thousands) 2024 2023 NET INCOME $ 31,464 $ 17,188 OTHER COMPREHENSIVE (LOSS) INCOME, net of tax: Foreign currency translation adjustments (35 ) 53 Unrealized (loss) gain on investments (1,367 ) 4,280 Total other comprehensive (loss) income (1,402 ) 4,333 COMPREHENSIVE INCOME $ 30,062 $ 21,521 PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts and percentages) For the Year Ended December 31 , 2024 % of Total Revenue 2023 % of Total Revenue REVENUE: Tuition and fees, net $ 676,071 99.2 % $ 702,920 99.0 % Other 5,192 0.8 % 7,084 1.0 % Total revenue 681,263 710,004 OPERATING EXPENSES: Educational services and facilities 120,860 17.7 % 130,324 18.4 % General and administrative 367,052 53.9 % 398,084 56.1 % Depreciation and amortization 14,645 2.1 % 16,887 2.4 % Asset impairment 4,453 0.7 % 14,263 2.0 % Total operating expenses 507,010 74.4 % 559,558 78.8 % Operating income 174,253 25.6 % 150,446 21.2 % OTHER INCOME: Interest income 28,993 4.3 % 19,980 2.8 % Interest expense (613 ) -0.1 % (404 ) -0.1 % Miscellaneous (expense) income (1,193 ) -0.2 % 22,099 3.1 % Total other income 27,187 4.0 % 41,675 5.9 % PRETAX INCOME 201,440 29.6 % 192,121 27.1 % Provision for income taxes 53,850 7.9 % 44,469 6.3 % NET INCOME 147,590 21.7 % 147,652 20.8 % NET INCOME PER SHARE - BASIC: $ 2.25 $ 2.22 NET INCOME PER SHARE -DILUTED: $ 2.19 $ 2.18 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 65,646 66,468 Diluted 67,242 67,826 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year Ended December 31 , (In Thousands) 2024 2023 NET INCOME $ 147,590 $ 147,652 OTHER COMPREHENSIVE INCOME, net of tax: Foreign currency translation adjustments (28 ) 45 Unrealized gain on investments 860 4,736 Total other comprehensive income 832 4,781 COMPREHENSIVE INCOME $ 148,422 $ 152,433 PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) For the Year Ended December 31 , 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 147,590 $ 147,652 Adjustments to reconcile net income to net cash provided by operating activities: Asset impairment 4,453 14,263 Gain on sale of asset - (22,086 ) Depreciation and amortization expense 14,645 16,887 Bad debt expense 33,719 33,215 Compensation expense related to share-based awards 10,188 8,078 Deferred income taxes 2,656 3,761 Changes in operating assets and liabilities: Student receivables, gross (4 ) 15,929 Allowance for credit losses (27,981 ) (38,573 ) Receivables, other (8,052 ) (3,922 ) Inventories, prepaid expenses, and other current assets 4,473 (2,994 ) Other non-current assets 692 478 Accounts payable (727 ) (4,878 ) Accrued expenses and other non-current liabilities (5,792 ) (19,235 ) Deferred revenue (10,612 ) (34,375 ) Right of use asset and lease liabilities -operating (3,654 ) (2,175 ) Net cash provided by operating activities 161,594 112,025 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of available-for-sale investments (412,894 ) (314,279 ) Sales of available-for-sale investments 447,502 238,184 Purchases of property and equipment (4,625 ) (6,411 ) Business acquisition, net of cash acquired (137,766 ) - Earnout payment related to business acquisition - (6,000 ) Net cash used in investing activities (107,783 ) (88,506 ) CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of treasury stock (6,769 ) (8,301 ) Issuance of common stock 2,234 2,545 Payments of employee tax associated with stock compensation (3,436 ) (2,209 ) Payments of cash dividends and dividend equivalents (31,699 ) (14,417 ) Release of cash held in escrow (276 ) (1,000 ) Principal payments for finance leases (398 ) - Principal payments for failed sale leaseback (735 ) - Net cash used in financing activities (41,079 ) (23,382 ) NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 12,732 137 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period 119,021 118,884 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period $ 131,753 $ 119,021 PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED SELECTED SEGMENT INFORMATION (In thousands, except percentages) For the Quarter Ended December 31 , 2024 2023 REVENUE: CTU $ 114,760 $ 104,590 AIUS 51,433 43,172 USAHS (1) 10,041 - Corporate and Other 197 157 Total $ 176,431 $ 147,919 OPERATING INCOME (LOSS): CTU $ 42,015 $ 25,376 AIUS 4,907 600 USAHS (1) (2,640 ) - Corporate and Other (7,107 ) (10,033 ) Total $ 37,175 $ 15,943 OPERATING MARGIN (LOSS): CTU 36.6 % 24.3 % AIUS 9.5 % 1.4 % USAHS (1) NM NM Corporate and Other NM NM Total 21.1 % 10.8 % (1) Perdoceo completed the acquisition of USAHS on December 2, 2024 . PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED SELECTED SEGMENT INFORMATION (In thousands, except percentages) For the Year Ended December 31 , 2024 2023 REVENUE: CTU $ 456,899 $ 468,926 AIUS 213,547 240,300 USAHS (1) 10,041 - Corporate and Other 776 778 Total $ 681,263 $ 710,004 OPERATING INCOME (LOSS): CTU $ 171,260 $ 144,008 AIUS 36,182 45,283 USAHS (1) (2,640 ) - Corporate and Other (30,549 ) (38,845 ) Total $ 174,253 $ 150,446 OPERATING MARGIN (LOSS): CTU 37.5 % 30.7 % AIUS 16.9 % 18.8 % USAHS (1) NM NM Corporate and Other NM NM Total 25.6 % 21.2 % (1) Perdoceo completed the acquisition of USAHS on December 2, 2024 . PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (In thousands, unless otherwise noted) For the Quarter Ended December 31 , For the Year Ended December 31 , ACTUAL ACTUAL Adjusted Operating Income 2024 2023 2024 2023 Operating income $ 37,175 $ 15,943 $ 174,253 $ 150,446 Depreciation and amortization (2) 5,507 3,449 14,645 16,887 Legal fee expense related to certain matters (3) 545 5 3,309 7,579 Adjusted Operating Income $ 43,227 $ 19,397 $ 192,207 $ 174,912 For the Quarter Ending March 31 , For the Year Ending December 31 , OUTLOOK ACTUAL OUTLOOK ACTUAL 2025 2024 2025 2024 Operating income $50.0M - $52.0M $ 46,278 $172.0M - $192.0M $ 174,253 Depreciation and amortization (2) 10.7M 3,016 42.0M 14,645 Legal fee expense related to certain matters (3) 0.3M 230 1.0M 3,309 Adjusted Operating Income $61.0M - $63.0M $ 49,524 $215.0M - $235.0M $ 192,207 PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (cont’d) For the Quarter Ended December 31 , For the Year Ended December 31 , ACTUAL ACTUAL 2024 2023 2024 2023 Reported Earnings Per Diluted Share $ 0.47 $ 0.26 $ 2.19 $ 2.18 Pre-tax adjustments included in operating expenses: Amortization for acquired intangible assets (2) 0.03 0.02 0.09 0.11 Legal fee expense related to certain matters (3) 0.01 - 0.05 0.11 Gain on sale of intangible asset (4) - - - (0.32 ) Total pre-tax adjustments $ 0.04 $ 0.02 $ 0.14 $ (0.10 ) Tax effect of adjustments (5) (0.01 ) (0.01 ) (0.04 ) 0.02 Total adjustments after tax 0.03 0.01 0.10 (0.08 ) Adjusted Earnings Per Diluted Share $ 0.50 $ 0.27 $ 2.29 $ 2.10 For the Quarter Ending March 31 , For the Year Ending December 31 , OUTLOOK ACTUAL OUTLOOK ACTUAL 2025 2024 2025 2024 Reported Earnings Per Diluted Share $0.59 - $0.62 $ 0.59 $2.11 - $2.31 $ 2.19 Pre-tax adjustments included in operating expenses: Amortization for acquired intangible assets (2) 0.06 0.02 0.25 0.09 Legal fee expense related to certain matters (3) - - 0.02 0.05 Total pre-tax adjustments $0.06 $ 0.02 $0.27 $ 0.14 Tax effect of adjustments (5) (0.01) (0.01 ) (0.07) (0.04 ) Total adjustments after tax 0.05 0.01 0.20 0.10 Adjusted Earnings Per Diluted Share $0.64 - $0.67 $ 0.60 $2.31 - $2.51 $ 2.29 PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (cont’d) (1) The Company believes it is useful to present non-GAAP financial measures which exclude certain significant and non-cash items as a means to understand the performance of its operations. As a general matter, the Company uses non-GAAP financial measures in conjunction with results presented in accordance with GAAP to help analyze the performance of its operations, assist with preparing the annual operating plan, and measure performance for some forms of compensation. In addition, the Company believes that non-GAAP financial information is used by analysts and others in the investment community to analyze the Company’s historical results and to provide estimates of future performance. The Company believes adjusted operating income and adjusted earnings per diluted share allow it to analyze and assess its operations and compare current operating results with the operational performance of other companies in its industry because it does not give effect to potential differences caused by items it does not consider reflective of underlying operating performance, such as amortization for acquired intangible assets, significant legal settlements and legal fee expense related to certain matters. The Company believes the items it is adjusting for are not normal operating expenses necessary to run its business. In evaluating adjusted operating income and adjusted earnings per diluted share, investors should be aware that in the future the Company may incur expenses similar to the adjustments presented above. The presentation of adjusted operating income and adjusted earnings per diluted share should not be construed as an inference that the Company's future results will be unaffected by expenses that are unusual, non-routine or non-recurring. Adjusted operating income and adjusted earnings per diluted share have limitations as an analytical tool, and should not be considered in isolation, or as a substitute for net income, operating income, earnings per diluted share, or any other performance measure derived in accordance and reported under GAAP or as an alternative to cash flow from operating activities or as a measure of liquidity. Non-GAAP financial measures, when viewed in a reconciliation to corresponding GAAP financial measures, provide an additional way of viewing the Company’s results of operations and the factors and trends affecting the Company’s business. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding financial results presented in accordance with GAAP. Results of operations include the USAHS acquisition as of December 2, 2024 (2) Amortization for acquired intangible assets relate to definite-lived intangible assets associated with acquisitions. (3) Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts. (4) Non-cash gain associated with the sale of the LCB tradename in exchange for outstanding shares of Perdoceo's stock. (5) The tax effect of adjustments was calculated by multiplying the pre-tax adjustments with a tax rate of 25.0%. This tax rate is intended to reflect federal and state taxable jurisdictions as well as the nature of the adjustments. View source version on businesswire.com : https://www.businesswire.com/news/home/20250218490458/en/ Investors: Alpha IR Group Stephen Poe or Nick Nelson (312) 445-2870 [email protected] Or Media: Perdoceo Education Corporation (847) 585-2600 [email protected] Source: Perdoceo Education Corporation

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