Revenue contraction and operational headwinds are evident, with operating margins plummeting from 26.5% in 2024Q4 to 8.6% in 2026Q2 amid persistent SG&A pressure.
| Sales/Revenue | 965.28M | 1.01B | 950.01M | 835.25M |
| Revenue Growth % | - | 6.02% | 13.74% | - |
| Cost of Goods Sold | 437.91M | 435.99M | 403.92M | 379.26M |
| COGS % of Revenue | - | 43.29% | 42.52% | 45.41% |
| Gross Profit | 527.37M | 571.2M | 546.09M | 455.99M |
| Gross Margin % | 54.63% | 56.71% | 57.48% | 54.59% |
| Gross Profit Growth % | - | 4.6% | 19.76% | - |
| Operating Expenses | 420.57M | 352.63M | 343.99M | 328.78M |
| OpEx % of Revenue | - | 35.01% | 36.21% | 39.36% |
| Selling, General & Admin | 392.02M | 352.63M | 343.99M | 328.78M |
| SG&A % of Revenue | - | 35.01% | 36.21% | 39.36% |
| Research & Development | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 |
| Operating Income | 106.8M | 218.57M | 202.1M | 127.2M |
| Operating Margin % | 11.06% | 21.7% | 21.27% | 15.23% |
| Operating Income Growth % | - | 8.15% | 58.88% | - |
| EBITDA | 129.29M | 240.58M | 223.16M | 151.11M |
| EBITDA Margin % | 13.39% | 23.89% | 23.49% | 18.09% |
| EBITDA Growth % | - | 7.81% | 47.68% | - |
| D&A (Non-Cash Add-back) | 22.49M | 22.01M | 21.06M | 23.91M |
| EBIT | 88.82M | 182.59M | 168.2M | 89.41M |
| Net Interest Income | 7.11M | 9.98M | 15.73M | 6.76M |
| Interest Income | 8.09M | 10.46M | 16.69M | 8.53M |
| Interest Expense | 979K | 480K | 960K | 1.77M |
| Other Income/Expense | -19M | -36.46M | -34.86M | -39.56M |
| Pretax Income | 87.8M | 182.11M | 167.24M | 87.64M |
| Pretax Margin % | 9.1% | 18.08% | 17.6% | 10.49% |
| Income Tax | 28.18M | 46.67M | 52.09M | 21.71M |
| Effective Tax Rate % | 32.09% | 25.63% | 31.15% | 24.77% |
| Net Income | 59.85M | 133.88M | 113.13M | 64.93M |
| Net Margin % | 6.2% | 13.29% | 11.91% | 7.77% |
| Net Income Growth % | - | 18.34% | 74.23% | - |
| Net Income (Continuing) | 59.62M | 135.44M | 115.15M | 65.93M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 2.44M | -6.72M | 21.63M | 19.52M |
| EPS (Diluted) | 1.54 | 3.76 | 3.03 | 1.76 |
| EPS Growth % | - | 24.09% | 72.16% | - |
| EPS (Basic) | - | 3.76 | 3.18 | 1.82 |
| Diluted Shares Outstanding | 38.89M | 35.65M | 35.6M | 35.6M |
| Basic Shares Outstanding | 35.78M | 35.65M | 35.6M | 35.6M |
| Dividend Payout Ratio | - | 160.15% | 61.84% | - |
Regulatory Title IV dependency
As indicated by the most recent quarterly filings, PXED's revenue declined from $262.0 million in 2026Q1 to $222.5 million in 2026Q2, reflecting a significant contraction in enrollment volume that suggests the company is struggling to maintain its competitive position within the adult education market.
The sequential revenue drop highlights the sensitivity of the business to student start cycles and potential brand erosion. Investors should monitor whether this downward trend is a temporary seasonal fluctuation or a structural shift in the company's ability to attract and retain students in a crowded digital landscape.
Based on the reported income statement data, PXED's operating margin plummeted from 26.5% in 2024Q4 to a mere 8.6% by 2026Q2, signaling that the company is facing substantial difficulty in maintaining profitability as it navigates a more challenging regulatory and competitive environment.
The erosion of operating margins suggests that fixed costs are becoming increasingly burdensome relative to the shrinking revenue base. This trend warrants further investigation into whether the company is forced to increase marketing spend to acquire students, thereby compressing the profitability of each new enrollment.
According to the provided financial statements, PXED recorded a significant spike in stock-based compensation to $29.5 million in 2026Q1, which appears to have materially impacted the quality of reported net income and diluted EPS during that specific period of operational volatility.
The inconsistency in stock-based compensation levels suggests that earnings may be subject to non-operating accounting adjustments that mask underlying operational performance. Analysts should focus on normalized earnings figures to better understand the true cash-generating capacity of the business independent of these periodic equity-based charges.
As reported in the income statement, SG&A expenses have remained stubbornly high relative to gross profit, with 2026Q2 showing $98.1 million in overhead against $117.2 million in gross profit, indicating limited expense discipline during a period of declining top-line performance.
The inability to scale down administrative and marketing costs in proportion to revenue suggests a rigid cost structure that may be difficult to optimize in the short term. This lack of flexibility appears to be a primary driver of the recent compression in operating income.
While the company maintains a healthy cash position, the income statement data suggests that PXED's reliance on Title IV funding creates a binary risk profile, where any shift in federal regulatory policy could lead to a material and immediate impairment of the revenue base.
Short-term observers may focus on the company's ability to maintain margins, but the underlying risk remains the potential for regulatory changes to render current student acquisition models unsustainable. The lack of revenue growth suggests that the company may be reaching a point where its historical moat is no longer sufficient to offset external compliance pressures.
Quick answers to the most common questions about buying PXED stock.
For fiscal year 2025, Phoenix Education Partners, Inc (PXED) reported total revenue of $1.01B. This represents a 20.6% increase compared to $835.2M in 2023.
Phoenix Education Partners, Inc (PXED) is profitable, generating $133.9M in net income for the fiscal year ending 2025 with a net profit margin of 13.3%.
Phoenix Education Partners, Inc (PXED) reported an operating income of $218.6M, resulting in an operating profit margin of 21.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Phoenix Education Partners, Inc (PXED) generated $571.2M in gross profit for the year, representing a gross profit margin of 56.7%. This demonstrates the company's core pricing power and production efficiency.