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Phoenix Education Revenue Flat, Profit Dips on IPO Costs
15 Jul
Summary
- Third-quarter revenue was essentially flat year-over-year.
- Profit declined due to higher share-based compensation and advertising.
- Enrollment saw a slight increase of 0.6% to 85,300 students.
Phoenix Education Partners announced its third-quarter fiscal 2026 financial results, revealing essentially flat revenue compared to the previous year. Net revenue stood at $271.8 million, a marginal increase from $271.7 million. The company noted a rise in average total degreed enrollment by 0.6% to about 85,300 students.
Despite steady revenue and enrollment figures, Phoenix Education Partners saw a decline in net income. Net income attributable to the company fell to $39.2 million, or $1.01 per diluted share, down from $53.8 million, or $1.42 per diluted share, in the same period last year. This reduction was primarily driven by increased share-based compensation expenses related to its initial public offering (IPO), alongside higher advertising and strategic expense costs.
Adjusted EBITDA also decreased by 6.4% to $78.1 million. Management cited increased advertising spending as a key factor impacting profitability, although this was partially offset by reduced bad debt expenses due to stronger student retention. Adjusted diluted earnings per share were $1.43, compared to $1.57 in the prior year.
