Loading...
01/11 11:05
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance, with significant revenue growth and increased net income. The company is expanding its corporate student programs and investing in technology, which supports future growth. The announcement of a quarterly dividend and substantial share repurchases further boosts investor sentiment. However, potential risks such as economic uncertainty and regulatory changes are noted. Given the company's market cap of $1.375 billion, the stock price is likely to experience a moderate positive movement, estimated between 2% to 8%, over the next two weeks.
Net Income $39.9 million or $0.60 per diluted share, adjusted earnings per diluted share was $0.65 compared to $0.59 in the prior year. The increase was supported by continued momentum in student retention and engagement, as well as increased interest from prospective students.
Total Student Enrollments Grew 15.1% versus the prior year quarter, driven by 6.7% growth at CTU and the acquisition of St. Augustine. AIUS reported a decline of 2.9%, but excluding the impact from the academic calendar, AIUS would have reported growth.
Operating Income Grew by 13.8% to $51 million, while adjusted operating income increased 27.4% to $61 million compared to $47.8 million in the prior year. Growth was driven by all three academic institutions.
Revenue $211.9 million, representing a 24.8% increase from $169.8 million in the prior year. Revenue was favorably impacted by $38 million attributed to St. Augustine and total enrollment growth at CTU.
Cash Flows from Operations $185.1 million year-to-date, compared to $144 million in the prior year. Growth was supported by year-over-year improvements in adjusted operating income.
Cash, Cash Equivalents, and Investments $668.6 million, an increase of $77.1 million from the year-end position. Key uses of cash included $66.7 million in stock repurchases, $27.4 million in dividends, and $38.4 million in tax payments.
Student Technology and Support: Investments in student technology and support processes to enhance academic outcomes and student experiences.
Program Expansion at St. Augustine: Introduction of new modalities for programs like doctorate in physical therapy to provide flexible learning options.
Enrollment Growth: Total student enrollments grew 15.1% year-over-year, driven by 6.7% growth at CTU and the acquisition of St. Augustine.
Corporate Student Programs: Continued increase in enrollments from corporate student programs at CTU and AIUS.
Revenue Growth: Revenue increased by 24.8% year-over-year to $211.9 million, supported by enrollment growth and the St. Augustine acquisition.
Operating Income: Adjusted operating income grew 27.4% year-over-year to $61 million.
Capital Allocation: Repurchased $20.6 million worth of shares and returned $94.1 million to shareholders in the first three quarters of 2025.
AI Integration: Integration of artificial intelligence to identify and engage prospective students more effectively.
Regulatory or Legislative Changes: Potential changes to the regulatory or legislative environment could impact prospective student interest levels or necessitate operational changes.
Enrollment Variability: Quarterly variability in total enrollment trends at AIU System due to enrollment day comparability could affect financial performance.
Dependence on Acquisitions: The company's growth is partly driven by acquisitions like St. Augustine, which introduces risks related to integration and performance.
Technology Investments: Ongoing investments in technology, data analytics, and student support processes are necessary but could strain financial resources if not managed effectively.
Economic Uncertainty: Economic conditions could impact prospective student interest and enrollment levels, affecting revenue and growth.
Corporate Student Program Expansion: Expansion of corporate student programs requires significant investment in personnel and technology, which could pose financial and operational risks.
Revenue and Enrollment Growth: The company expects revenue and total student enrollments to increase in the fourth quarter and for the full year 2025. This growth is anticipated to positively impact revenue and operating performance metrics going into 2026.
Adjusted Operating Income and EPS: Full year adjusted operating income is projected to range between $234 million and $236 million, compared to $188.9 million in 2024. Adjusted earnings per diluted share are expected to be between $2.54 and $2.56, versus $2.26 in 2024.
AIU System Enrollment Growth: AIU System is expected to achieve double-digit enrollment growth in the fourth quarter of 2025, supported by an additional academic session in December 2025, which will favorably impact operating performance in 2026.
St. Augustine Operating Income: Adjusted operating income at St. Augustine is expected to grow in 2026 compared to 2025, driven by new program modalities and enrollment growth in programs such as nursing and speech language pathology.
Capital Expenditures: Capital expenditures for the full year 2025 are expected to be approximately 1.5% of revenues.
Tax Rate and Cash Tax Payments: The effective tax rate for 2025 is expected to be between 26% and 26.5%. Tax provisions, including bonus depreciation and research expenditure expensing, are expected to reduce U.S. federal cash tax payments for 2025 and future years.
Corporate Student Programs: The company plans to continue expanding corporate student program teams at CTU and AIU System to support further growth and engagement.
Technology and Student Support Investments: Ongoing investments in technology, data analytics, real estate, academics, and student support processes are expected to enhance academic outcomes and student experiences.
Quarterly Dividend Payment: The Board of Directors declared a quarterly dividend payment of $0.15 per share, payable on December 12, 2025, to holders of record as of November 28, 2025.
Dividend Policy: Future quarterly dividend payments are expected to be paid out of free cash flows, subject to Board approval and the company's financial condition.
Total Dividends Paid: $27.4 million in quarterly dividend and dividend equivalent payments were made in the first three quarters of 2025.
Share Repurchase Authorization: The company repurchased $20.6 million worth of shares during the quarter under a $75 million share repurchase authorization.
Year-to-Date Share Repurchases: A total of 2.3 million shares were repurchased for $66.7 million at an average price of $29.07 per share in the first three quarters of 2025.
Remaining Authorization: As of September 30, 2025, approximately $54.3 million was available under the authorized stock repurchase program.
The earnings call highlights strong financial performance, with significant revenue growth and increased net income. The company is expanding its corporate student programs and investing in technology, which supports future growth. The announcement of a quarterly dividend and substantial share repurchases further boosts investor sentiment. However, potential risks such as economic uncertainty and regulatory changes are noted. Given the company's market cap of $1.375 billion, the stock price is likely to experience a moderate positive movement, estimated between 2% to 8%, over the next two weeks.
The earnings call highlighted strong financial performance with an EPS beat, positive enrollment trends, and a successful acquisition of St. Augustine, contributing to revenue growth. The company's focus on student experiences and skill development is promising for future growth. While there are regulatory risks and economic uncertainties, the overall sentiment is positive, supported by optimistic guidance and shareholder return plans. Given the market cap, the stock is likely to see a moderate positive movement.
The earnings call highlights strong financial performance with record revenue growth, positive EPS surprises, and optimistic guidance. The acquisition of St. Augustine is expected to further boost revenue and operating income. Shareholder returns through dividends and buybacks are substantial, enhancing investor confidence. Although there are regulatory and competitive pressures, the company's strategic initiatives in student engagement and technology investments are promising. Given the market cap, the stock is likely to see a positive movement in the range of 2% to 8% over the next two weeks.
The earnings call highlights positive enrollment trends, a successful acquisition, and EPS exceeding expectations. The announced share repurchase program further supports a positive outlook. While there are risks, such as regulatory challenges and economic factors, the company's strategic initiatives and optimistic guidance on growth and income from the acquisition provide a favorable sentiment. Given the market cap of approximately $1.37 billion, the stock is likely to experience a positive movement of 2% to 8% over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
