Perdoceo Education Corp. (PRDO)
NASDAQConsumer DiscretionaryEducation & Training ServicesSnapshot 2026-09-09
$33.18+0.27%
Close 2026-09-09 · 1-day change
NASDAQConsumer DiscretionaryEducation & Training ServicesSnapshot 2026-09-09
Broken: Primary pillar broken — Operating income rises to at least $212.8M in FY26: FY26 operating income ~$63.2M vs $212.8M target.
Perdoceo Education grows revenue about 3-4% yearly. Profit margins improve with operating income rising from $51.7M to $63.1M. Cash from operations also increased to $69.4M. The company trades cheap with a PE of 12.5 versus peers at 17.3.
Growth could slow below 3% and margins may compress. Rising costs or weaker demand could hurt cash flow. The sector faces headwinds that may pressure earnings.
The price is about 8% below our fair value near $38. Analysts expect 2.8% revenue growth. Our model sees upside from margin and cash flow improvements.
Breaks if: Cash from operations falls below $65 million in any quarter
Maintain and grow cash flow from operating activities to support investments and capital allocation.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable, long-term thesis focused on a company with strong recent financial performance. However, it also carries elevated risks due to sector headwinds and potential guidance cuts.
The market currently prices PRDO as cheap compared to its peers, with a slight expectations gap. This suggests that the market does not fully account for the company's recent strong performance and stable management.
Management has consistently prioritized increasing revenue and net income, and recent results show progress in these areas. However, cash from operations has remained stable, indicating mixed results in that aspect.
The thesis hinges on whether PRDO can maintain its financial momentum amid potential sector challenges and inflation risks. Key factors include guidance updates and performance from sector bellwethers that could influence overall sentiment.
The most important moves since the prior daily snapshot.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 4 of last 4 quarters. Net cash provided by operating activities was $144.0 million year to date 2026, nearly unchanged from $143.9 million in prior year. Management has maintained focus on cash flow generation, with a stable trajectory consistent with stated priorities.
“Net cash provided by operating activities was $144.0 million year to date 2026, compared to $143.9 million prior year.”
“Net cash provided by operating activities was $69.4 million for the quarter ended March 31, 2026.”
“Net cash provided by operating activities was $40.1 million for the quarter ended December 31, 2025.”
“Net cash provided by operating activities increased significantly year over year.”
Breaks if: Operating income falls below $190 million in FY26
Continue to improve operating income and adjusted operating income through operational efficiencies and enrollment growth.
Management stated this priority in 4 of last 4 quarters. Operating income increased from $103.1 million in 2025-Q2 to $118.0 million in 2026-Q2, a 14.4% increase. The trajectory matches management's emphasis on improving operating income through operational efficiencies and enrollment growth, indicating delivering progress.
“Operating income increased 14.4% to $118.0 million year to date 2026 from $103.1 million prior year.”
“Operating income increased 22.0% to $63.1 million for the quarter ended March 31, 2026.”
“Operating income increased 12.8% to $41.9 million for the quarter ended December 31, 2025.”
“Operating income increased through operational improvements and enrollment growth.”
Breaks if: Revenue falls below $230 million in FY26
Focus on sustainable growth in revenue and net income through student enrollment and program expansion.
Stated as a priority in 4 of last 4 quarters. Revenue grew from $422.6 million in 2025-Q2 to $435.1 million in 2026-Q2 (3.0% increase), and net income rose from $84.7 million to $101.9 million over the same period. Management's statements and financial results show delivering on sustainable growth in revenue and net income.
“We delivered another quarter of strong operating performance while building on the sustainable growth we have achieved over the past two years.”
“Our academic institutions continued to generate strong levels of prospective student interest, while student retention and engagement trended near multi-year highs.”
“Successfully executing against our strategy of responsible and sustainable growth has allowed us to continue investing across our academic institutions.”
“We remain focused on increasing revenue and net income through enrollment growth and program expansion.”
In the next 1 to 3 years, PRDO's performance will depend on its ability to navigate sector headwinds while continuing to deliver on its management priorities. Not investment advice.