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Phoenix Education Partners (PXED) FY2026 results: revenue $1.0 billion, up 1.0% on the year

Phoenix Education Partners, Inc. (PXED) reported revenue of $1.0 billion for fiscal 2026, the year ended 31 August 2026, up 1.0% on the year before. Net income was $89 million, down 33.6%, and diluted earnings per share $2.29. The figures are the company's own, from the 10-K it filed with the SEC on 3 November 2026.

Revenue
$1.0 billion
+1.0% on the year
FY2025FY2026
Operating margin
12.1%
17.1% a year earlier
FY2025FY2026
Net income
$89 million
-33.6% on the year
FY2025FY2026
Diluted EPS
$2.29
-34.8% on the year
FY2025FY2026

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 1 raised, 2 new.

  • Fourth quarter revenue up year over year: Net revenue was $260.7 million, compared with $257.4 million a year earlier. Net income attributable to the company was $23.5 million, or $0.60 diluted EPS, against $17.5 million, or $0.46.
  • Fiscal net income declined year over year: Net income attributable to the company was $88.9 million, or $2.29 diluted EPS, against $133.9 million, or $3.51 a year earlier. Management attributed the decline mainly to share-based compensation from the IPO, with advertising expense also cited.
  • Fiscal revenue below earlier guidance range: Fiscal 2026 net revenue was $1,017.0 million, against $1,007.2 million. The result compares with the $1,020.0 million to $1,025.0 million range given in the third quarter release.
  • Adjusted EBITDA up, adjusted EPS down: Fiscal adjusted EBITDA was $249.0 million, a 24.5% margin. Fourth quarter adjusted EBITDA was $61.5 million, a 23.6% margin, and adjusted diluted EPS was $1.07 against $1.03. These are non-GAAP measures.
  • Retention and student experience focus: Management pointed to student retention and continued investment in the student experience as part of its focus on working adults.
Read the Q4 FY2026 earnings call summary

From this 10-K

Phoenix Education Partners, Inc. owns The University of Phoenix, Inc., an online university for working adults in the United States. The University was founded in 1976 and has been accredited by The Higher Learning Commission ("HLC") since 1978. In fiscal year 2026 its Average Total Degreed Enrollment was 83,700, made up of 67,400 undergraduate and 16,300 graduate students. As of 31 August 2026 it had served nearly 1.2 million alumni, including those who completed non-degree certificates, and had conferred more than 1.3 million degrees. The company was a Delaware limited partnership until 7 October 2025, when it converted into a corporation, and it completed an initial public offering in October 2025.

Phoenix Education Partners, Inc., the 10-K for 2026

Phoenix Education Partners, Inc. owns The University of Phoenix, Inc., an online university for working adults in the United States. The University was founded in 1976 and has been accredited by The Higher Learning Commission ("HLC") since 1978. In fiscal year 2026 its Average Total Degreed Enrollment was 83,700, made up of 67,400 undergraduate and 16,300 graduate students. As of 31 August 2026 it had served nearly 1.2 million alumni, including those who completed non-degree certificates, and had conferred more than 1.3 million degrees. The company was a Delaware limited partnership until 7 October 2025, when it converted into a corporation, and it completed an initial public offering in October 2025.

What it teaches

The University offers degree and non-degree certificate programs in business and information technology, health professions, social and behavioral sciences, education, nursing, doctoral studies and general studies. Degree-granting programs made up approximately 98% of net revenue in fiscal year 2026.

Courses are taken one after another over the length of a program, most often as five-week courses, under what the company calls a non-term academic model. Net revenue is recognized evenly over each course, and none is recognized during the University's holiday breaks, so the second fiscal quarter (December through February) is lower.

The rest of net revenue comes from non-degree offerings, such as shorter credit-bearing certificates and non-credit professional development courses. The company is also developing a talent-sourcing platform that connects employers with students and alumni, and skills intelligence tools. On 30 September 2026 it acquired Fuel50 Inc., which it describes as an AI-powered workforce intelligence platform.

Who its students are

The student body is mainly working adults. Of new students, 94% were over the age of 22, with an average age of 37.

Some students enroll through employer relationships, which the company classifies as B2B enrollment. Many receive discounted tuition benefits under these programs. This group was 35.2% of Average Total Degreed Enrollment in fiscal year 2026.

How students pay

That rule makes a proprietary institution ineligible for Title IV programs for at least two fiscal years if it exceeds 90% for two consecutive fiscal years.

Student loans were approximately 67% of gross Title IV funds received, and federal grants were approximately 33%. The remainder of tuition and fees is paid mainly through military benefit programs, employer tuition assistance and personal funds.

How it is regulated

The University is overseen by the U.S. Department of Education, the HLC, state agencies and programmatic accreditors. The Department of Education renewed its Title IV certification through June 2031.

Its only physical campus is in Phoenix, Arizona. It is authorized by the Arizona State Board for Private Postsecondary Education and has taken part in the State Authorization Reciprocity Agreement ("SARA") since 2014. SARA covers 49 member states, all but California, so the University is registered separately with the California Bureau for Private Postsecondary Education. Substantially all students attend online.

It holds programmatic accreditations in nursing, education, counseling, social work, business and healthcare administration. Under new earnings-based rules, a program that fails an earnings test in two of three consecutive years loses Direct Loan eligibility. The University received approximately 48,000 borrower defense applications from the Department of Education between June 2020 and April 2024.

How it competes

The filing describes a market of thousands of colleges and universities that is highly fragmented. The company says it is one of the largest U.S. universities that predominantly focuses on distance education. Its competitors include online programs at traditional colleges, other proprietary institutions, and providers of bootcamps and other non-degree programs.

  • Its Tuition Price Guarantee, which generally fixes an eligible student's price per course at the rate in effect at enrollment.
  • A Locked-In Pricing Guarantee for new students, beginning 2 November 2026, with one combined price per course for tuition and the resource fee.
  • Scale and experience with online learning.
  • Career-relevant programs and digital badges for verified skills.
  • Active employer relationships.

Its people

As of 31 August 2026 the company employed approximately 3,300 staff employees and approximately 2,200 active adjunct faculty members. Average tenure is 12 years for staff and 17 years for faculty. Its stated core values are Brave, Honest and Focused. New student-facing employees go through a four-week onboarding program, and each new faculty member is paired with a mentor during their first course.

From Phoenix Education Partners's annual report on Form 10-K for the year ended 31 August 2026. The filing

Written from the 10-K filed 3 November 2026: read the full 10-K.

The four quarters: Q1 FY2026 · Q2 FY2026 · Q3 FY2026 · Q4 FY2026

Income statement (profit and loss)

$ millionFY2026FY2025On the yearLast 8 years
Revenue1,0171,007+1.0%
Operating income123172-28.7%
Operating margin12.1%17.1%
Interest expense2.00.5+325.6%
Pre-tax income129182-29.1%
Income tax41.046.7-12.1%
Effective tax rate31.8%25.6%
Net income88.9134-33.6%
Net margin8.7%13.3%
Diluted EPS$2.29$3.51-34.8%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2026FY2025On the yearLast 8 years
Operating cash flow19687.4+124.7%
Capital expenditure20.522.5-8.7%
Free cash flow17664.9+170.8%
Free cash flow margin17.3%6.4%
Cash from investing-166-20.0
Cash from financing-39.8-251
Depreciation and amortisation23.522.0+6.7%
Share-based compensation57.22.6+2,075.0%
Buybacks7.10.0
Dividends paid25.60.0
Dividend per share$0.63n/a
Diluted shares, weighted39m38m+2.0%
Shares outstanding at period end36mn/a

Balance sheet

$ millionFY2026FY2025On the yearLast 8 years
Shareholders' equity344247+39.6%
Non-controlling interest1.9-6.7
Debt0.064.4
Operating lease liabilities52.964.4-17.8%
Other liabilities220125+76.5%
Total liabilities and equity620494+25.5%
Fixed assets37.938.8-2.5%
Goodwill3.73.70.0%
Intangible assets84.887.3-2.8%
Investments16821.8+669.7%
Cash and equivalents159137+16.7%
Receivables54.459.0-7.8%
Other assets112146-23.8%
Total assets620494+25.5%

10-K for the year ended 31 August 2026, filed 3 November 2026: the filing.