Phoenix Education Partners, Inc. (PXED)
NYSE:PXED
Want to see PXED full AI Analyst Report?
Top Page
Phoenix Education Partners, Inc.
(NYSE:PXED)
Select Model
Select Model
Rating:78Outperform
Price Target:
$30.00
▲(4.82% Upside)
Action:ReiteratedDate:04/08/26
The score is driven primarily by strong financial performance (growth, profitability, and cash generation) and a generally positive earnings update with improving retention and EBITDA outlook. Technicals are supportive with positive momentum, while valuation is moderate with a low dividend yield and guidance includes near-term revenue/marketing headwinds that cap the upside.
Positive Factors
Revenue and Margin Strength
The company reported very large revenue expansion alongside healthy gross and net margins, indicating a scalable education model that converts growth into profitability. Durable margins and expanding EBITDA suggest sustained operating leverage and resilience to moderate top-line shocks over months.
Negative Factors
Marketing Funnel Disruption
Structural changes in search/AI distribution can raise acquisition costs and delay enrollments, weakening revenue visibility. Recovery requires sustained content rework and channel investment, meaning revenue timing and growth could remain constrained for several quarters absent permanent channel fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Strength
The company reported very large revenue expansion alongside healthy gross and net margins, indicating a scalable education model that converts growth into profitability. Durable margins and expanding EBITDA suggest sustained operating leverage and resilience to moderate top-line shocks over months.
Read all positive factors
Phoenix Education Partners, Inc. (PXED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$994.47M
Dividend YieldN/A
Average Volume (3M)626.04K
Price to Earnings (P/E)24.6
Beta (1Y)0.28
Revenue Growth6.02%
EPS Growth18.32%
CountryUS
Employees5,800
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.58
Shares Outstanding35,810,978
10 Day Avg. Volume626,044
30 Day Avg. Volume626,044
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)5.51
Price to Sales (P/S)1.35
P/FCF Ratio20.95
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit1.58
Enterprise Value/Ebitda7.25
Forecast
1Y Price Target
$42.64Price Target Upside49.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)4.41
Revenue Forecast (FY)$1.03B
Phoenix Education Partners, Inc. Business Overview & Revenue Model
Company Description
Owner/operator of the University of Phoenix, a post-secondary online education provider targeting working adults....
Phoenix Education Partners, Inc. Earnings Call Summary
Earnings Call Date:Apr 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational momentum: stronger retention, modest enrollment growth, expanding adjusted EBITDA and margins, a healthier balance sheet, B2B channel expansion, and tangible AI-driven efficiency gains. However, near-term headwinds remain — a slight decline in Q2 net revenue, marketing funnel disruption from search/AI algorithm changes that pressure revenue timing, and materially higher share-based compensation that reduced GAAP net income. Management reiterated full-year guidance while signaling revenue may trend toward the lower end but expects adjusted EBITDA to trend toward the upper end. On balance, the positives around retention, margin expansion, liquidity and strategic investments outweigh the near-term revenue and expense challenges.Positive Updates
Enrollment Growth and Strong Retention
Average total degreed enrollment rose 1.8% in Q2 to ~82,600 (from 81,100) and was up 2.9% for the first 6 months to ~84,100 (from 81,700). Retention from the most recent annual cohort improved to 76.6%, up ~500 basis points year-over-year, driving enrollment quality and lower bad debt.
Negative Updates
Net Revenue Slight Decline in Q2
Net revenue for Q2 decreased 0.4% year-over-year to $222.5 million (from $223.4M), driven in part by discounts and near-term marketing dynamics.
Read all updates
Q2-2026 Updates
Positive
Negative
Enrollment Growth and Strong Retention
Average total degreed enrollment rose 1.8% in Q2 to ~82,600 (from 81,100) and was up 2.9% for the first 6 months to ~84,100 (from 81,700). Retention from the most recent annual cohort improved to 76.6%, up ~500 basis points year-over-year, driving enrollment quality and lower bad debt.
Read all positive updates
Company Guidance
Phoenix reiterated fiscal 2026 guidance, maintaining net revenue of $1.025 billion to $1.035 billion (though management now expects to trend toward the lower end of that range given near‑term marketing dynamics) and adjusted EBITDA of $244 million to $249 million (with confidence it will trend toward the upper end driven by disciplined cost management, lower bad debt and AI/technology efficiencies); Q2 results included net revenue of $222.5 million (‑0.4% y/y), adjusted EBITDA of $34.8 million (+7.8%) and a 15.7% adjusted EBITDA margin (up from 14.5%), six‑month net revenue of $484.5 million (+1.3%) and adjusted EBITDA of $110.0 million (+7.4%) with a 22.7% margin (up 130 bps); operational metrics highlighted average degreed enrollment of ~82,600 in Q2 (+1.8) and ~84,100 for the first six months (+2.9%), employer‑affiliated students at 35% of enrollment (up from 31%), a most‑recent cohort retention rate of 76.6% (≈+500 bps y/y), cash and marketable securities of ~$252.1 million (no outstanding debt), an authorized $50 million share repurchase program, and a continuing quarterly dividend of ~$0.21 per share (≈$0.84 annually, subject to Board approval).Phoenix Education Partners, Inc. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 965.28M | 1.01B | 950.01M | 835.25M |
| Gross Profit | 527.37M | 571.20M | 546.09M | 455.99M |
| EBITDA | 114.65M | 204.60M | 189.26M | 113.31M |
| Net Income | 59.85M | 133.88M | 113.13M | 64.93M |
Balance Sheet | ||||
| Total Assets | 546.39M | 493.56M | 695.25M | 682.26M |
| Cash, Cash Equivalents and Short-Term Investments | 238.12M | 145.51M | 313.68M | 251.22M |
| Total Debt | 68.34M | 73.30M | 84.22M | 98.31M |
| Total Liabilities | 252.83M | 253.51M | 346.32M | 378.89M |
| Stockholders Equity | 291.13M | 246.77M | 327.30M | 283.85M |
Cash Flow | ||||
| Free Cash Flow | 123.54M | 64.93M | 140.65M | 89.97M |
| Operating Cash Flow | 145.19M | 87.39M | 163.24M | 105.68M |
| Investing Cash Flow | -16.13M | -20.00M | -27.50M | -16.93M |
| Financing Cash Flow | -114.43M | -250.56M | -75.19M | -6.52M |
Phoenix Education Partners, Inc. Risk Analysis
Phoenix Education Partners, Inc. disclosed 57 risk factors in its most recent earnings report. Phoenix Education Partners, Inc. reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Phoenix Education Partners, Inc. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $994.47M | 24.56 | ― | ― | 6.02% | 18.32% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
47 Neutral | $6.01M | -2.84 | -48.49% | ― | 44.99% | 61.58% | |
45 Neutral | $7.23M | -11.97 | -4.26% | ― | -14.35% | -744.00% | |
| ― | $1.13M | -0.05 | ― | ― | ― | ― |
* Consumer Defensive Sector Average
PXED
Phoenix Education Partners, Inc.
27.77
-10.12
-26.70%
WAFU
Wah Fu Education Group
1.64
0.21
14.69%
LXEH
Lixiang Education Holding Co
1.28
-20.22
-94.05%
EEIQ
Elite Education Group International
4.06
-6.03
-59.76%
GV
Visionary Education Technology Holdings Group
0.20
-1.87
-90.34%
GSUN
Golden Sun Education Group Limited Class A
0.69
-2.73
-79.80%
Phoenix Education Partners, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Phoenix Education Shareholders Back Board Slate and Auditor
Positive
Feb 13, 2026
On February 12, 2026, Phoenix Education Partners, Inc. held its annual meeting of stockholders, at which investors elected three Class I directors—Peter Cohen, Itai Wallach and Johannes Worsoe—to terms running until the 2029 annual mee...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.