10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File Number: 0-23245

 

PERDOCEO EDUCATION CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	36-3932190
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1750 E. Golf Road Schaumburg, Illinois	60173
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (847) 781-3600

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report: N/A

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	PRDO	Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company, as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No ☒

Number of shares of registrant’s common stock, par value $0.01, outstanding as of July 26, 2024: 65,673,430

PERDOCEO EDUCATION CORPORATION

FORM 10-Q

TABLE OF CONTENTS

		Page
PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Income (Unaudited)	2
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	2
	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows (Unaudited)	4
	Notes to Unaudited Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	26
Item 4.	Controls and Procedures	26
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 5.	Other Information	28
Item 6.	Exhibits	29
SIGNATURES		30

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,			December 31,
(In Thousands, Except Share and Per Share Amounts)	2024			2023
ASSETS	(unaudited)
CURRENT ASSETS:
Cash and cash equivalents, unrestricted	$	127,852		$	118,009
Restricted cash		1,037			1,012
Total cash, cash equivalents and restricted cash		128,889			119,021
Short-term investments		546,273			485,135
Total cash and cash equivalents, restricted cash and short-term investments		675,162			604,156
Student receivables, gross		69,237			64,011
Allowance for credit losses		(34,382	)		(34,613	)
Student receivables, net		34,855			29,398
Receivables, other		4,982			4,539
Prepaid expenses		12,558			11,712
Inventories		4,467			5,004
Other current assets		457			155
Total current assets		732,481			654,964
NON-CURRENT ASSETS:
Property and equipment, net of accumulated depreciation of $62,654 and $58,785    as of June 30, 2024 and December 31, 2023, respectively		19,087			21,371
Right of use asset, net		16,455			19,096
Goodwill		241,162			241,162
Intangible assets, net of amortization of $25,828 and $23,612 as of June 30, 2024 and December 31, 2023, respectively		34,002			36,219
Student receivables, gross		8,156			7,028
Allowance for credit losses		(2,889	)		(3,169	)
Student receivables, net		5,267			3,859
Deferred income tax assets, net		23,242			23,804
Other assets		6,545			6,841
TOTAL ASSETS	$	1,078,241		$	1,007,316
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Lease liability-operating	$	5,397		$	5,701
Accounts payable		13,267			10,766
Accrued expenses:
Payroll and related benefits		25,295			32,684
Advertising and marketing costs		6,984			7,196
Income taxes		6,502			3,974
Other		22,023			13,503
Deferred revenue		55,390			37,215
Total current liabilities		134,858			111,039
NON-CURRENT LIABILITIES:
Lease liability-operating		18,443			21,346
Other liabilities		25,416			33,510
Total non-current liabilities		43,859			54,856
Commitments and Contingencies (Note 8)
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding		-			-
Common stock, $0.01 par value; 300,000,000 shares authorized; 90,977,866    and 90,270,306 shares issued, 65,673,430 and 65,544,539 shares    outstanding as of June 30, 2024 and December 31, 2023, respectively		910			903
Additional paid-in capital		701,153			694,798
Accumulated other comprehensive loss		(1,721	)		(666	)
Retained earnings		543,606			480,606
Treasury stock, at cost; 25,304,436 and 24,725,767 shares as of June 30, 2024    and December 31, 2023, respectively		(344,424	)		(334,220	)
Total stockholders' equity		899,524			841,421
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,078,241		$	1,007,316

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	For the Quarter Ended June 30,						For the Year to Date Ended June 30,
(In Thousands, Except Per Share Amounts)	2024			2023			2024			2023
REVENUE:
Tuition and fees, net	$	165,404		$	184,520		$	332,402		$	377,839
Other		1,336			2,044			2,602			4,323
Total revenue		166,740			186,564			335,004			382,162
OPERATING EXPENSES:
Educational services and facilities		27,516			32,748			57,374			66,599
General and administrative		89,311			100,588			176,793			213,274
Depreciation and amortization		3,069			4,369			6,085			9,524
Asset impairment		838			765			2,468			1,335
Total operating expenses		120,734			138,470			242,720			290,732
Operating income		46,006			48,094			92,284			91,430
OTHER INCOME:
Interest income		7,190			4,531			13,983			8,349
Interest expense		(112	)		(96	)		(447	)		(191	)
Miscellaneous (expense) income		(70	)		22,074			45			22,068
Total other income		7,008			26,509			13,581			30,226
PRETAX INCOME		53,014			74,603			105,865			121,656
Provision for income taxes		14,585			19,930			27,994			32,499
NET INCOME		38,429			54,673			77,871			89,157
NET INCOME PER SHARE - BASIC:	$	0.59		$	0.81		$	1.19		$	1.32
NET INCOME PER SHARE - DILUTED:	$	0.57		$	0.80		$	1.16		$	1.30
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		65,611			67,421			65,583			67,328
Diluted		67,077			68,533			66,956			68,512

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

	For the Quarter Ended June 30,						For the Year to Date Ended June 30,
(In Thousands)	2024			2023			2024			2023
NET INCOME	$	38,429		$	54,673		$	77,871		$	89,157
OTHER COMPREHENSIVE LOSS, net of tax:
Foreign currency translation adjustments		(8	)		(3	)		(39	)		23
Unrealized loss on investments		(93	)		(1,497	)		(1,016	)		(197	)
Total other comprehensive loss		(101	)		(1,500	)		(1,055	)		(174	)
COMPREHENSIVE INCOME	$	38,328		$	53,173		$	76,816		$	88,983

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

	Common Stock				Treasury Stock
(In Thousands)	Issued Shares		$0.01 Par Value		Purchased Shares			Cost			Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Retained Earnings			Total
BALANCE, April 1, 2024		90,907	$	909		(25,304	)	$	(344,424	)	$	698,619	$	(1,620	)	$	512,622		$	866,106
Net income		-		-		-			-			-		-			38,429			38,429
Foreign currency translation		-		-		-			-			-		(8	)		-			(8	)
Unrealized loss on investments, net of tax		-		-		-			-			-		(93	)		-			(93	)
Dividends to shareholders, per share $0.11		-		-		-			-			-		-			(7,445	)		(7,445	)
Share-based compensation expense		-		-		-			-			2,250		-			-			2,250
Common stock issued		71		1		-			-			284		-			-			285
BALANCE, June 30, 2024		90,978	$	910		(25,304	)	$	(344,424	)	$	701,153	$	(1,721	)	$	543,606		$	899,524
	Common Stock				Treasury Stock
(In Thousands)	Issued Shares		$0.01 Par Value		Purchased Shares			Cost			Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Retained Earnings			Total
BALANCE, April 1, 2023		89,924	$	899		(22,446	)	$	(304,648	)	$	686,719	$	(4,121	)	$	382,323		$	761,172
Net income		-		-		-			-			-		-			54,673			54,673
Foreign currency translation		-		-		-			-			-		(3	)		-			(3	)
Unrealized loss on investments, net of tax		-		-		-			-			-		(1,497	)		-			(1,497	)
Treasury stock purchased		-		-		(161	)		(1,914	)		-		-			-			(1,914	)
Treasury stock acquired upon sale of asset		-		-		(1,800	)		(22,086	)		-		-			-			(22,086	)
Share-based compensation expense		-		-		-			-			2,021		-			-			2,021
Common stock issued		92		1		-			-			65		-			-			66
BALANCE, June 30, 2023		90,016	$	900		(24,407	)	$	(328,648	)	$	688,805	$	(5,621	)	$	436,996		$	792,432
	Common Stock				Treasury Stock								Accumulated Other
(In Thousands)	Issued Shares		$0.01 Par Value		Purchased Shares			Cost			Additional Paid-in Capital		Comprehensive Loss			Retained Earnings			Total
BALANCE, January 1, 2024		90,270	$	903		(24,726	)	$	(334,220	)	$	694,798	$	(666	)	$	480,606		$	841,421
Net income		-		-		-			-			-		-			77,871			77,871
Foreign currency translation		-		-		-			-			-		(39	)		-			(39	)
Unrealized loss on investments, net of tax		-		-		-			-			-		(1,016	)		-			(1,016	)
Dividends to shareholders, per share $0.22		-		-		-			-			-		-			(14,871	)		(14,871	)
Treasury stock purchased		-		-		(385	)		(6,769	)		-		-			-			(6,769	)
Share-based compensation expense		-		-		-			-			4,557		-			-			4,557
Common stock issued		708		7		(193	)		(3,435	)		1,798		-			-			(1,630	)
BALANCE, June 30, 2024		90,978	$	910		(25,304	)	$	(344,424	)	$	701,153	$	(1,721	)	$	543,606		$	899,524
	Common Stock				Treasury Stock								Accumulated Other
(In Thousands)	Issued Shares		$0.01 Par Value		Purchased Shares			Cost			Additional Paid-in Capital		Comprehensive Loss			Retained Earnings			Total
BALANCE, January 1, 2023		89,396	$	894		(22,221	)	$	(301,624	)	$	684,183	$	(5,447	)	$	347,839		$	725,845
Net income		-		-		-			-			-		-			89,157			89,157
Foreign currency translation		-		-		-			-			-		23			-			23
Unrealized loss on investments, net of tax		-		-		-			-			-		(197	)		-			(197	)
Treasury stock purchased		-		-		(221	)		(2,729	)		-		-			-			(2,729	)
Treasury stock acquired upon sale of asset		-		-		(1,800	)		(22,086	)		-		-			-			(22,086	)
Share-based compensation expense		-		-		-			-			4,315		-			-			4,315
Common stock issued		620		6		(165	)		(2,209	)		307		-			-			(1,896	)
BALANCE, June 30, 2023		90,016	$	900		(24,407	)	$	(328,648	)	$	688,805	$	(5,621	)	$	436,996		$	792,432

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Year to Date Ended June 30,
(In Thousands)	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	77,871		$	89,157
Adjustments to reconcile net income to net
cash provided by operating activities:
Asset impairment		2,468			1,335
Gain on sale of asset		-			(22,086	)
Depreciation and amortization expense		6,085			9,524
Bad debt expense		12,631			18,927
Compensation expense related to share-based awards		4,557			4,315
Deferred income taxes		562			2,975
Changes in operating assets and liabilities		(11,157	)		(37,927	)
Net cash provided by operating activities		93,017			66,220
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments		(204,060	)		(159,183	)
Sales of available-for-sale investments		145,945			132,325
Purchases of property and equipment		(2,022	)		(3,612	)
Net cash used in investing activities		(60,137	)		(30,470	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock		1,805			313
Purchase of treasury stock		(6,769	)		(2,729	)
Payments of employee tax associated with stock compensation		(3,435	)		(2,209	)
Payments of cash dividends and dividend equivalents		(14,613	)		-
Net cash used in financing activities		(23,012	)		(4,625	)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		9,868			31,125
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period		119,021			118,884
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period	$	128,889		$	150,009

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. DESCRIPTION OF THE COMPANY

Perdoceo’s accredited academic institutions offer a quality postsecondary education primarily online to a diverse student population, along with campus-based and blended learning programs. The Company’s academic institutions – Colorado Technical University (“CTU”) and the American InterContinental University System (“AIUS” or “AIU System”) – provide degree programs from the associate through doctoral level as well as non-degree seeking and professional development programs. Our academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. Perdoceo's institutions are committed to providing quality education that closes the gap between learners who seek to advance their careers and employers needing a qualified workforce.

As used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “the Company,” “Perdoceo” and “PEC” refer to Perdoceo Education Corporation and our wholly-owned subsidiaries.

2. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the rules and regulations for reporting the Quarterly Report on Form 10-Q (Form 10-Q). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. This report should be read in conjunction with our 2023 Form 10-K. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation.

Operating results for the quarter and year to date ended June 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

The unaudited condensed consolidated financial statements presented herein include the accounts of Perdoceo Education Corporation and our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.

Our reporting segments are determined in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280 – Segment Reporting and are based upon how the Company analyzes performance and makes decisions. Each segment represents a postsecondary education provider that offers a variety of academic programs. We organize our business across two reporting segments: CTU and AIUS.

3. RECENT ACCOUNTING PRONOUNCEMENTS

Recent accounting guidance not yet adopted

In December 2023, the FASB issued Accounting Standard Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities on an annual basis 1) disclose specific categories in the rate reconciliation, and 2) provide additional information for reconciling items that meet a quantitative threshold. The amendments require disclosure about income taxes paid by federal, state and foreign taxes, and by individual jurisdictions in which income taxes paid is equal or greater than 5 percent of total income taxes paid. The amendments also require entities to disclose income or loss from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense or benefit from continuing operations disaggregated by federal, state and foreign. For all public business entities, ASU 2023-09 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. We are currently evaluating this guidance and believe the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update require that a public entity disclose on an annual and interim basis, 1) significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, 2) an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss, and 3) disclose the title and

5

position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. For all public business entities, ASU 2023-07 is effective for annual periods after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024; early adoption is permitted. We are currently evaluating this guidance and believe the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. For all public business entities, ASU 2022-03 is effective for annual periods and interim periods beginning after December 15, 2024; early adoption is permitted. We are currently evaluating this guidance and believe the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures.

4. FINANCIAL INSTRUMENTS

Investments consist of the following as of June 30, 2024 and December 31, 2023 (dollars in thousands):

	June 30, 2024
			Gross Unrealized
	Cost		Gain		(Loss)			Fair Value
Short-term investments (available for sale):
Non-governmental debt securities	$	244,985	$	80	$	(847	)	$	244,218
Treasury and federal agencies		302,912		19		(876	)		302,055
Total short-term investments (available for sale)	$	547,897	$	99	$	(1,723	)	$	546,273

	December 31, 2023
			Gross Unrealized
	Cost		Gain		(Loss)			Fair Value
Short-term investments (available for sale):
Non-governmental debt securities		245,886		719		(892	)		245,713
Treasury and federal agencies		239,859		393		(830	)		239,422
Total short-term investments (available for sale)	$	485,745	$	1,112	$	(1,722	)	$	485,135

In the table above, unrealized holding gains (losses) relate to short-term investments that have been in a continuous unrealized gain (loss) position for less than one year.

Our non-governmental debt securities primarily consist of corporate bonds, certificates of deposit and commercial paper. Our treasury and federal agencies primarily consist of U.S. Treasury bills and federal home loan debt securities.

Realized gains or loss resulting from sales of investments were zero during the quarters and years to date ended June 30, 2024 and June 30, 2023.

Fair Value Measurements

FASB ASC Topic 820 – Fair Value Measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of June 30, 2024, we held investments that are required to be measured at fair value on a recurring basis. These investments (available for sale) consist of non-governmental debt securities and treasury and federal agencies securities. Available for sale securities included in Level 2 are estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for identical or similar assets or liabilities in inactive markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

All of our available for sale investments were measured under Level 2 as of June 30, 2024 and December 31, 2023. Additionally, money market funds of $30.9 million and $30.3 million included within cash and cash equivalents on our condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively, were measured under Level 1. Federal agency debt securities of $44.9 million included within cash and cash equivalents on our unaudited condensed consolidated balance sheets as of December 31, 2023 were measured under Level 2.

6

Equity Method Investment

Our investment in an equity affiliate, which is recorded within other noncurrent assets on our condensed consolidated balance sheets, represents an international investment in a private company. As of June 30, 2024, our investment in an equity affiliate equated to 30.7%, or $1.2 million.

During the quarters ended June 30, 2024 and 2023, we recorded less than $0.1 million of loss for each respective period, and during the years to date ended June 30, 2024 and 2023, we recorded less than $0.1 million of gain and $0.1 million of loss, respectively, related to our equity affiliate within miscellaneous (expense) income on our unaudited condensed consolidated statements of income.

We make periodic operating maintenance payments to our equity affiliate. The total fees recorded during the quarters and years to date ended June 30, 2024 and 2023 were as follows (dollars in thousands):

	Maintenance Fee Payments
For the quarter ended June 30, 2024	$	423
For the quarter ended June 30, 2023	$	414
For the year to date ended June 30, 2024	$	867
For the year to date ended June 30, 2023	$	845

Credit Agreement

On January 23, 2024, the Company and the subsidiary guarantors thereunder entered into a Second Amendment (the “Second Amendment”) to their credit agreement, dated as of September 8, 2021 and as amended on April 1, 2022 (the “Existing Credit Agreement”), with the lenders from time to time parties thereto and Wintrust Bank N.A. (“Wintrust”), in its capacities as the sole lead arranger, sole bookrunner, administrative agent and letter of credit issuer thereunder (the Existing Credit Agreement, as further amended by the Second Amendment, the “Credit Agreement”).

The Second Amendment, among other things: (i) extends the maturity date of the revolving credit facility to January 31, 2027; (ii) lowers the “Prime Rate” floor from 4% to 3%; (iii) replaces BMO Bank N.A. (formerly known as BMO Harris Bank N.A.) with Valley National Bancorp as one of the lenders that is party to the revolving credit facility; and (iv) modifies the relative commitments of the lenders that are parties to the revolving credit facility.

The credit agreement provides the Company with the benefit of a $125.0 million senior secured revolving credit facility. The $125.0 million revolving credit facility under the credit agreement is scheduled to mature on January 31, 2027. So long as no default has occurred and other conditions have been met, the Company may request an increase in the aggregate commitment in an amount not to exceed $50.0 million. The loans and letter of credit obligations under the credit agreement are secured by substantially all assets of the Company and the subsidiary guarantors.

The credit agreement and the ancillary documents executed in connection therewith contain customary affirmative, negative and financial maintenance covenants, including a requirement for the borrowers to maintain cash and cash equivalents in domestic accounts of at least $156,250,000 at all times. Acquisitions to be undertaken by the Company must meet certain criteria, and the Company’s ability to make restricted payments, including payments in connection with a repurchase of shares of our common stock and quarterly dividend payments, is subject to an aggregate maximum of $100.0 million per fiscal year. Upon the occurrence of certain regulatory events or if the Company’s unrestricted cash, cash equivalents and short term investments are less than 125% of the aggregate amount of the loan commitments then in effect, the Company is required to maintain cash in a segregated, restricted account in an amount not less than the aggregate loan commitments then in effect. The credit agreement also contains customary representations and warranties, events of default, and rights and remedies upon the occurrence of any event of default thereunder, including rights to accelerate the loans, terminate the commitments and realize upon the collateral securing the obligations under the credit agreement.

Under the credit agreement, outstanding principal amounts bear annual interest at a fluctuating rate equal to 1.0% less than the administrative agent’s prime commercial rate, subject to a 3.0% minimum rate. A higher rate may apply to late payments or if any event of default exists.

As of June 30, 2024 and December 31, 2023, there were no outstanding borrowings under the revolving credit facility.

5. REVENUE RECOGNITION

Disaggregation of Revenue

7

The following tables disaggregate our revenue by major source for the quarters and years to date ended June 30, 2024 and 2023 (dollars in thousands):

	For the Quarter Ended June 30, 2024								For the Quarter Ended June 30, 2023
	CTU		AIUS		Corporate and Other		Total		CTU		AIUS		Corporate and Other		Total
Tuition, net (1)	$	106,978	$	50,966	$	-	$	157,944	$	112,864	$	63,136	$	-	$	176,000
Technology and other fees		4,998		2,462		-		7,460		5,420		3,100		-		8,520
Total tuition and fees, net		111,976		53,428		-		165,404		118,284		66,236		-		184,520
Other revenue (2)		852		294		190		1,336		1,008		826		210		2,044
Total revenue	$	112,828	$	53,722	$	190	$	166,740	$	119,292	$	67,062	$	210	$	186,564
	For the Year to Date Ended June 30, 2024								For the Year to Date Ended June 30, 2023
	CTU		AIUS		Corporate and Other		Total		CTU		AIUS		Corporate and Other		Total
Tuition, net (1)	$	214,418	$	102,795	$	-	$	317,213	$	230,862	$	129,781	$	-	$	360,643
Technology and other fees		10,338		4,851		-		15,189		10,843		6,353		-		17,196
Total tuition and fees, net		224,756		107,646		-		332,402		241,705		136,134		-		377,839
Other revenue (2)		1,641		581		380		2,602		2,079		1,768		476		4,323
Total revenue	$	226,397	$	108,227	$	380	$	335,004	$	243,784	$	137,902	$	476	$	382,162

__________________

(1)Tuition includes revenue earned for all degree-granting programs as well as revenue earned for non-degree and professional development programs.

(2)Other revenue primarily includes contract training revenue and miscellaneous non-student related revenue.

Performance Obligations

Our revenue, which is derived primarily from academic programs taught to students who attend our universities, is generally segregated into two categories: (1) tuition and fees, and (2) other. Tuition and fees represent costs to our students for educational services provided by our universities and are reflected net of scholarships and tuition discounts. Our universities charge tuition and fees at varying amounts, depending on the university, the type of program and specific curriculum. Our universities bill students a single charge that covers tuition, certain fees and required program materials, such as textbooks and supplies, which we treat as a single performance obligation. Generally, we bill student tuition at the beginning of each academic term for our degree programs and recognize the tuition as revenue on a straight-line basis over the academic term. As part of a student’s course of instruction, certain fees, such as technology fees and graduation fees, are billed separately to students. These fees are generally earned over the applicable term and are not considered separate performance obligations. We generally bill student tuition upon enrollment for our non-degree professional development programs and recognize the tuition as revenue on a straight-line basis over the length of the offering.

Other revenue, which primarily consists of contract training revenue and miscellaneous non-student related revenue, is billed and recognized as goods are delivered or services are performed.

Contract Assets

For each term, the portion of tuition and fee payments received from students but not yet earned is recorded as deferred revenue and reported as a current liability on our condensed consolidated balance sheets, as we expect to earn these revenues within the next year. A contract asset is recorded for each student for the current term for which they are enrolled for the amount charged for the current term that has not yet been received as payment and to which we do not have the unconditional right to receive payment because the student has not reached the point in the student’s current academic term at which the amount billed is no longer refundable to the student. On a student by student basis, the contract asset is offset against the deferred revenue balance for the current term and the net deferred revenue balance is reflected within current liabilities on our condensed consolidated balance sheets. For certain of our institutions, students are billed as they enroll in courses, including courses related to future periods. Any billings for future periods would meet the definition of a contract asset as we do not have the unconditional right to receive payment as the course has not yet started. Contract assets related to future periods are offset against the respective deferred revenue associated with the future period.

Due to the short-term nature of our academic terms, the contract asset balance which exists at the beginning of each quarter will no longer be a contract asset at the end of that quarter, with the exception of the contract assets associated with future periods. The decrease in contract asset balances are a result of one of the following: it becomes a student receivable balance once a student reaches the point in a student’s academic term where the amount billed is no longer refundable to the student; a refund is made to withdrawn

8

students for the portion entitled to be refunded under each institutions’ refund policy; we receive funds to apply against the contract asset balance; or a student makes a change to the number of classes they are enrolled in which may cause an adjustment to their previously billed amount. As of the end of each quarter, a new contract asset is determined on a student by student basis based on the most recently started term and a student’s progress within that term as compared to the date at which the student is no longer entitled to a refund under each institution’s refund policy. Contract assets associated with future periods remain as contract assets until the course begins and the student reaches the point in that course that they are no longer entitled to a refund.

The amount of deferred revenue balances which are being offset with contract assets balances as of June 30, 2024 and December 31, 2023 were as follows (dollars in thousands):

	As of
	June 30, 2024			December 31, 2023
Gross deferred revenue	$	90,785		$	63,970
Gross contract assets	$	(35,395	)		(26,755	)
Deferred revenue, net	$	55,390		$	37,215

Deferred Revenue

Changes in our deferred revenue balances for the quarters and years to date ended June 30, 2024 and 2023 were as follows (dollars in thousands):

	For the Quarter Ended June 30, 2024									For the Quarter Ended June 30, 2023
	CTU			AIUS			Total			CTU			AIUS			Total
Gross deferred revenue, April 1	$	82,320		$	36,619		$	118,939		$	42,372		$	23,460		$	65,832
Revenue earned from prior balances		(69,946	)		(29,510	)		(99,456	)		(32,859	)		(19,609	)		(52,468	)
Billings during period(1)		97,465			39,022			136,487			148,118			74,318			222,436
Revenue earned for new billings during the period		(42,030	)		(23,918	)		(65,948	)		(85,425	)		(46,627	)		(132,052	)
Other adjustments		71			692			763			496			459			955
Gross deferred revenue, June 30	$	67,880		$	22,905		$	90,785		$	72,702		$	32,001		$	104,703
	For the Year to Date Ended June 30, 2024									For the Year to Date Ended June 30, 2023
	CTU			AIUS			Total			CTU			AIUS			Total
Gross deferred revenue, January 1	$	42,531		$	21,439		$	63,970		$	67,245		$	39,955		$	107,200
Revenue earned from prior balances		(37,248	)		(19,653	)		(56,901	)		(58,404	)		(32,495	)		(90,899	)
Billings during period(1)		250,342			108,799			359,141			248,130			127,450			375,580
Revenue earned for new billings during the period		(187,508	)		(87,993	)		(275,501	)		(183,301	)		(103,639	)		(286,940	)
Other adjustments		(237	)		313			76			(968	)		730			(238	)
Gross deferred revenue, June 30	$	67,880		$	22,905		$	90,785		$	72,702		$	32,001		$	104,703

______________

(1)Billings during period includes adjustments for prior billings.

Tuition Refunds

If a student withdraws from one of our academic institutions prior to the completion of the academic term, we refund the portion of tuition and fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded to a student is calculated based upon the percent of the term attended and the amount of tuition and fees paid by the student as of their withdrawal date. In certain circumstances, we have recognized revenue for students who have withdrawn that we are not entitled to retain. We have estimated a reserve for these limited circumstances based on historical evidence in the amount of $2.0 million for each period as of June 30, 2024 and December 31, 2023, respectively. Students are typically entitled to a partial refund until approximately halfway through their term. Pursuant to each university’s policy, once a student reaches the point in the term where no refund is given, the student would not have a refund due if withdrawing from the university subsequent to that date.

9

6. STUDENT RECEIVABLES

Student receivables represent funds owed to us in exchange for the educational services provided to a student. Student receivables are reflected net of an allowance for credit losses at the end of the reporting period. Student receivables, net, are reflected on our condensed consolidated balance sheets as components of both current and non-current assets.

Our students pay for their costs through a variety of funding sources, including federal loan and grant programs, institutional payment plans, employer tuition assistance, Veterans’ Administration and other military funding and grants, private and institutional scholarships and cash payments, as well as private loans. Cash receipts from government related sources are typically received during the current academic term. We typically receive funds after the end of an academic term for students who receive employer tuition assistance. Students who have not applied for any type of financial aid or students whose financial aid may not fully cover the cost of their tuition and fees generally set up a payment plan with the institution and make payments on a monthly basis per the terms of the payment plan. For those balances that are not received during the academic term, the balance is typically due within the current academic year which is approximately 30 weeks in length. Generally, a student receivable balance is written off once a student is out of school and it reaches greater than 90 days past due.

Our standard student receivable allowance is based on an estimate of lifetime expected credit losses for student receivables. Our estimation methodology considers a number of quantitative and qualitative factors that, based on our collection experience, we believe have an impact on our repayment risk and ability to collect student receivables. Changes in the trends in any of these factors may impact our estimate of the allowance for credit losses. These factors include, but are not limited to: internal repayment history, changes in the current economic, legislative or regulatory environments, internal cash collection forecasts and the ability to complete the federal financial aid process with the student. These factors are monitored and assessed on a regular basis. Overall, our allowance estimation process for student receivables is validated by trend analysis and comparing estimated and actual performance.

We have an immaterial amount of student receivables that are due greater than 12 months from the date of our condensed consolidated balance sheets. As of June 30, 2024 and December 31, 2023, the amount of non-current student receivables under payment plans that are longer than 12 months in duration, net of allowance for credit losses, was $5.3 million and $3.9 million, respectively.

Allowance for Credit Losses

We define student receivables as a portfolio segment under ASC Topic 326 – Financial Instruments – Credit Losses. Changes in our current and non-current allowance for credit losses related to our student receivable portfolio in accordance with the guidance under ASU 2016-13 for the quarters and years to date ended June 30, 2024 and 2023 were as follows (dollars in thousands):

	For the Quarter Ended June 30,						For the Year to Date Ended June 30,
	2024			2023			2024			2023
Balance, beginning of period	$	38,554		$	43,944		$	37,782		$	43,141
Provision for credit losses		6,075			8,170			12,631			18,927
Amounts written-off		(7,821	)		(9,608	)		(14,053	)		(20,136	)
Recoveries		463			549			911			1,123
Balance, end of period	$	37,271		$	43,055		$	37,271		$	43,055

Fair Value Measurements

The carrying amount reported in our condensed consolidated balance sheets for the current portion of student receivables approximates fair value because of the nature of these financial instruments as they generally have short maturity periods. It is not practicable to estimate the fair value of the non-current portion of student receivables, since observable market data is not readily available, and no reasonable estimation methodology exists.

7. LEASES

We lease most of our administrative and educational facilities under non-cancelable operating leases expiring at various dates through 2033. Lease terms generally range from five to ten years with one to four renewal options for extended terms. In most cases, we are required to make additional payments under facility operating leases for taxes, insurance and other operating expenses incurred during the operating lease period, which are typically variable in nature.

We determine if a contract contains a lease when the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Upon identification and commencement of a lease, we establish a right of use (“ROU”) asset and a lease liability.

Quantitative information related to leases is presented in the following table (dollars in thousands):

10

	For the Quarter Ended June 30, 2024			For the Year to Date Ended June 30, 2024
Lease expenses (1)
Fixed lease expenses - operating	$	1,122		$	2,566
Variable lease expenses - operating		279			337
Total lease expenses	$	1,401		$	2,903
Other information
Gross operating cash flows for operating leases (3)	$	(2,016	)	$	(4,482	)
	For the Quarter Ended June 30, 2023			For the Year to Date Ended June 30, 2023
Lease expenses (1)
Fixed lease expenses - operating	$	1,638		$	3,334
Variable lease expenses - operating		380			961
Sublease income (2)		(189	)		(500	)
Total lease expenses	$	1,829		$	3,795
Other information
Gross operating cash flows for operating leases (3)	$	(2,717	)	$	(5,583	)
Operating cash flows from subleases (3)	$	196		$	488
	As of June 30, 2024			As of June 30, 2023
Weighted average remaining lease term (in months) – operating leases		69			60
Weighted average discount rate – operating leases		5.1	%		4.8	%

__________________

(1)Lease expense and sublease income represent the amount recorded within our consolidated statements of income. Variable lease amounts represent expenses recognized as incurred which are not included in the lease liability. Fixed lease expenses and sublease income are recorded on a straight-line basis over the lease term and therefore are not necessarily representative of cash payments during the same period.

(2)Historically, for certain of our leased locations we had vacated the facility and had fully or partially subleased the space. As of June 30, 2024, we no longer have any subleased locations.

(3)Cash flows are presented on a consolidated basis and represent cash payments for fixed and variable lease costs.

8. CONTINGENCIES

An accrual for estimated legal fees of $3.0 million and $2.4 million at June 30, 2024 and December 31, 2023, respectively, is presented within other current liabilities on our condensed consolidated balance sheets.

We record a liability when we believe that it is both probable that a loss will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least quarterly, developments in our legal matters that could affect the amount of liability that was previously accrued and make adjustments as further information develops, circumstances change or contingencies are resolved. Significant judgment is required to determine both probability and the estimated amount. We may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (1) if the damages sought are indeterminate; (2) if the proceedings are in early stages; (3) if there is uncertainty as to the outcome of pending appeals, motions or settlements; (4) if there are significant factual issues to be determined or resolved; and (5) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any.

United States of America, ex rel. Fiorisce LLC v. Perdoceo Education Corporation, Colorado Technical University, Inc. and American InterContinental University, Inc. On July 19, 2023, we became aware of an amended complaint filed in the U.S. District Court for the District of Colorado on May 19, 2023. The original complaint was filed under seal on February 25, 2021 by a former employee of Colorado Technical University through a limited liability company, on behalf of herself, any other interested parties affiliated with the LLC and the federal government. On July 18, 2023, the district court ordered the complaint unsealed and we were notified that the U.S. Department of Justice ("DOJ") had declined to intervene in the action on February 3, 2023. The company had previously received a Civil Investigative Demand on April 8, 2022 from the DOJ and had been cooperating with the DOJ in its review. After the federal government declined to intervene in this case, the relator elected to pursue the litigation on behalf of the federal government. If she is successful, she would receive a portion of the federal government’s recovery. The amended complaint alleges

11

violations of the False Claims Act related to the company’s compliance with federal financial aid credit hour requirements in connection with its use of its learning management system. Relator claims that defendants’ conduct caused the government to make payments of federal funds to defendants which the government would not have made if not for defendants’ alleged violation of the law. Relator seeks treble damages plus civil penalties and attorneys’ fees. On January 4, 2024, the Court granted a motion to dismiss with respect to Perdoceo Education Corporation and American InterContinental University, Inc. which removes them as defendants in the case. The Court’s dismissal was “without prejudice”, which allows the relator in the case the opportunity to amend and refile a further amended complaint with respect to those two parties. The Relator has filed a motion, which is pending before the Court, that seeks permission to file a further amended complaint with respect to only Perdoceo Education Corporation.

Because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action. Accordingly, we have not recognized any liability associated with this action.

We receive from time-to-time requests from state attorneys general, federal and state government agencies and accreditors relating to our institutions, to specific complaints they have received from students or former students or to student loan forgiveness claims which seek information about students, our programs, and other matters relating to our activities. These requests can be broad and time consuming to respond to, and there is a risk that they could expand and/or lead to a formal action or claims of non-compliance. We are subject to a variety of other claims, lawsuits, arbitrations and investigations that arise from time to time out of the conduct of our business, including, but not limited to, matters involving prospective students, students or former students, alleged violations of the Telephone Consumer Protection Act, both individually and on behalf of a putative class, and employment matters. Periodically matters arise that we consider outside the scope of ordinary routine litigation incidental to our business. While we currently believe that these matters, individually or in aggregate, will not have a material adverse impact on our financial position, cash flows or results of operations, these matters are subject to inherent uncertainties, and management’s view of these matters may change in the future. Were an unfavorable outcome to occur in any one or more of these matters, there exists the possibility of a material adverse impact on our business, reputation, financial position and cash flows.

9. INCOME TAXES

The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which we operate and the ongoing development of tax planning strategies during the year. In addition, our provision for income taxes can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.

The following is a summary of our provision for income taxes and effective tax rate:

	For the Quarter Ended June 30,						For the Year to Date Ended June 30,
(Dollars in Thousands)	2024			2023			2024			2023
Pretax income	$	53,014		$	74,603		$	105,865		$	121,656
Provision for income taxes	$	14,585		$	19,930		$	27,994		$	32,499
Effective rate		27.5	%		26.7	%		26.4	%		26.7	%

The effective tax rate for the quarter and year to date ended June 30, 2024 was impacted by the tax effect of stock-based compensation and the release of previously recorded tax reserves, which decreased the effective tax rate for the quarter and year to date by 1.4% and 2.0%, respectively. The effective tax rate for the quarter and year to date ended June 30, 2023 was impacted by a $5.3 million unfavorable discrete adjustment related to the $22.1 million gain on the sale of the Le Cordon Bleu trademark, which was taxed at 24.1%. The effective tax rate for the quarter and year to date ended June 30, 2023 also includes the tax effect of stock-based compensation and the release of previously recorded tax reserves, which decreased the effective tax rate for the quarter and year to date by 0.6% and 0.7%, respectively. Additionally, as of June 30, 2024, a valuation allowance of $14.3 million was maintained with respect to our equity investment, available for sale short-term investments and state net operating losses.

We estimate that it is reasonably possible that the gross liability for unrecognized tax benefits for a variety of uncertain tax positions will decrease by up to $2.1 million in the next twelve months as a result of the expiration of the statute of limitations in several jurisdictions. The income tax rate for the quarter and year to date ended June 30, 2024 does not take into account the possible reduction of the liability for unrecognized tax benefits. The impact of a reduction to the liability will be treated as a discrete item in the period the reduction occurs. We recognize interest and penalties related to unrecognized tax benefits in tax expense. As of June 30, 2024, we had accrued $3.7 million as an estimate for reasonably possible interest and accrued penalties.

12

Our tax returns are routinely examined by federal, state and local tax authorities and these audits are at various stages of completion at any given time. The Internal Revenue Service has completed its examination of our U.S. income tax returns through our tax year ended December 31, 2014.

10. SHARE-BASED COMPENSATION

Overview

The Perdoceo Education Corporation Amended and Restated 2016 Incentive Compensation Plan (the “2016 Plan”) became effective (as the Career Education Corporation 2016 Incentive Compensation Plan) on May 24, 2016, and the amendment and restatement of the 2016 Plan became effective on June 3, 2021, upon its approval by the Company’s stockholders. Under the 2016 Plan, Perdoceo may grant to eligible participants awards of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, performance units, annual incentive awards, and substitute awards, which generally may be settled in cash or shares of our common stock. The vesting of all types of awards is subject to possible acceleration in certain circumstances. If a plan participant terminates employment for any reason other than by death or disability during the vesting period, the right to unvested awards is generally forfeited.

Restricted Stock Units

For the quarters ended June 30, 2024 and 2023, the Company granted less than 0.1 million restricted stock units in each period which are not “performance-based” and which have a grant-date fair value of approximately $1.0 million and $0.7 million, respectively. For the years to date ended June 30, 2024 and 2023, the Company granted approximately 0.3 million and 0.4 million restricted stock units, respectively, which are not "performance-based" and which have a grant-date fair value of approximately $5.3 million and $5.9 million, respectively.

For the years to date ended June 30, 2024 and 2023, the Company granted approximately 0.2 million and 0.3 million restricted stock units, respectively, which are “performance-based” and which have a grant-date fair value of approximately $3.5 million and $4.1 million, respectively. The performance-based restricted stock units are subject to performance conditions which are determined at the time of grant and typically cover a three-year performance period. These performance conditions may result in all units being forfeited even if the requisite service period is met.

All restricted stock units granted in 2024 and 2023 are to be settled in shares of our common stock.

Stock Options

There were no stock options granted during each of the quarters or years to date ended June 30, 2024 and 2023.

Share-Based Compensation Expense

For the quarters ended June 30, 2024 and 2023, the total share-based compensation expense was approximately $2.3 million and $2.0 million, respectively. For the years to date ended June 30, 2024 and 2023, the total share-based compensation expense was approximately $4.6 million and $4.3 million, respectively.

As of June 30, 2024, we estimate that total compensation expense of approximately $19.5 million will be recognized over the next four years for all unvested share-based awards that have been granted to participants. This amount excludes any estimates of forfeitures.

11. STOCK REPURCHASE PROGRAM

On February 20, 2024, the Board of Directors of the Company approved a new stock repurchase program for up to $50.0 million which commenced March 1, 2024 and expires September 30, 2025. The new stock repurchase program replaced the previous stock repurchase program. The other terms of the new stock repurchase program are consistent with the Company’s previous stock repurchase program.

The timing of purchases and the number of shares repurchased under the program will be determined by the Company’s management and will depend on a variety of factors including stock price, trading volume and other general market and economic conditions, its assessment of alternative uses of capital, regulatory requirements and other factors. Repurchases will be made in open market transactions, including block purchases, conducted in accordance with Rule 10b-18 under the Exchange Act as well as may be made pursuant to trading plans established under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The stock repurchase program does not

13

obligate the Company to purchase shares and the Company may, in its discretion, begin, suspend or terminate repurchases at any time, without any prior notice.

During the years to date ended June 30, 2024 and 2023, we repurchased approximately 0.4 million shares and 0.2 million shares of our common stock, respectively, for approximately $6.8 million at an average price of $17.60 per share during the year to date ended June 30, 2024 and for approximately $2.7 million at an average price of $12.35 per share during the year to date ended June 30, 2023. During the quarter ended June 30, 2024 we did not repurchase any shares of our common stock and during the quarter ended June 30, 2023, we repurchased approximately 0.2 million shares of our common stock for approximately $1.9 million at an average price of $11.88 per share.

As of June 30, 2024, approximately $47.1 million was available under our new authorized stock repurchase program to repurchase outstanding shares of our common stock. Shares of stock repurchased under the program are held as treasury shares. These repurchased shares have reduced the weighted average number of shares of common stock outstanding for basic and diluted earnings per share calculations.

12. WEIGHTED AVERAGE COMMON SHARES

Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock units were settled for common shares during the period.

The weighted average number of common shares used to compute basic and diluted net income per share for the quarters and years to date ended June 30, 2024 and 2023 were as follows (shares in thousands):

	For the Quarter Ended June 30,				For the Year to Date Ended June 30,
	2024		2023		2024		2023
Basic common shares outstanding		65,611		67,421		65,583		67,328
Common stock equivalents		1,466		1,112		1,373		1,184
Diluted common shares outstanding		67,077		68,533		66,956		68,512

For the quarters and years to date ended June 30, 2024 and 2023, certain unexercised stock option awards are excluded from our computations of diluted earnings per share, as these shares were out-of-the-money and their effect would have been anti-dilutive. The anti-dilutive options that were excluded from our computations of diluted earnings per share were less than 0.1 million shares and approximately 0.3 million shares, respectively, for the quarters ended June 30, 2024 and 2023, and less than 0.1 million shares and approximately 0.3 million shares, respectively, for the years to date ended June 30, 2024 and 2023.

13. SEGMENT REPORTING

Our segments are determined in accordance with FASB ASC Topic 280—Segment Reporting and are based upon how the Company analyzes performance and makes decisions. Each segment is comprised of an accredited postsecondary education institution that offers a variety of academic programs. As of June 30, 2024, our two segments are:

♦ Colorado Technical University (CTU) is committed to providing quality and industry-relevant higher education to a diverse student population, including serving non-traditional adult learners seeking career advancement and the military community. CTU utilizes innovative technology and experienced faculty, enabling the pursuit of personal and professional goals for learners. CTU offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity and criminal justice. Students pursue their degrees through fully-online programs, local campuses and blended formats, which combine campus-based and online education. As of June 30, 2024, students enrolled at CTU represented approximately 75% of our total enrollments. Approximately 97% of CTU’s students are enrolled in programs offered fully online. Students at CTU's ground-based campuses take both in-person and virtual classes.

♦ The American InterContinental University System (AIUS or AIU System) is committed to providing quality and accessible higher education opportunities for a diverse student population, including non-traditional adult learners and the military community. AIUS places emphasis on the educational, professional and personal growth of each student. AIUS offers academic programs in the career-oriented disciplines of business studies, information technologies, education, health sciences and criminal justice. Students pursue their degrees through fully-online programs, local campuses and blended

14

formats, which combine campus-based and online education. As of June 30, 2024, students enrolled at AIUS represented approximately 25% of our total enrollments. Approximately 97% of AIUS’ students are enrolled in programs offered fully online. Students at AIUS' ground-based campus take both in-person and virtual classes.

Summary financial information by reporting segment is as follows (dollars in thousands):

	For the Quarter Ended June 30,
	Revenue										Operating Income (Loss)
	2024		% of Total			2023		% of Total			2024			2023
CTU	$	112,828		67.7	%	$	119,292		64.0	%	$	42,890		$	40,451
AIUS		53,722		32.2	%		67,062		35.9	%		12,926			17,078
Corporate and Other		190		0.1	%		210		0.1	%		(9,810	)		(9,435	)
Total	$	166,740		100.0	%	$	186,564		100.0	%	$	46,006		$	48,094

	For the Year to Date Ended June 30,
	Revenue										Operating Income (Loss)
	2024		% of Total			2023		% of Total			2024			2023
CTU	$	226,397		67.6	%	$	243,784		63.8	%	$	85,046		$	84,141
AIUS		108,227		32.3	%		137,902		36.1	%		22,212			29,081
Corporate and Other		380		0.1	%		476		0.1	%		(14,974	)		(21,792	)
Total	$	335,004		100.0	%	$	382,162		100.0	%	$	92,284		$	91,430

	Total Assets as of  (1)
	June 30, 2024		December 31, 2023
CTU	$	210,845	$	202,728
AIUS		168,836		161,336
Corporate and Other		698,560		643,252
Total	$	1,078,241	$	1,007,316

(1)Total assets are presented on a condensed consolidated basis and do not include intercompany receivable or payable activity between institutions and corporate and investments in subsidiaries.

14. SUBSEQUENT EVENTS

Agreement to acquire the University of St. Augustine for Health Sciences, LLC

Perdoceo Education Corporation signed a definitive agreement to acquire 100% ownership of the University of St. Augustine for Health Sciences, LLC ("USAHS"). The material terms of the transaction have been described in the Company’s Form 8-K filed with the Securities and Exchange Commission on July 16, 2024. Completion of the acquisition is subject to customary closing conditions and satisfactory regulatory approvals from the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges ("WASC"), as well as other key regulatory bodies, and receipt of a preacquisition review response from the US Department of Education. The Company expects to complete the acquisition in December 2024.

Perdoceo expects to pay approximately $142.0 million to $144.0 million in cash at closing to acquire 100% ownership of USAHS. The actual cash paid will depend on adjustments for cash, debt and working capital based on the final closing balance sheet. The acquisition is not subject to a financing condition. Perdoceo plans to use cash on hand for the purchase.

Termination of credit agreement

On July 29, 2024, the Company gave notice of the termination of its credit agreement, dated as of September 8, 2021, as amended (the “Credit Agreement”), by and among the Company, as borrower, certain of its subsidiary guarantors thereunder, the lenders from time-to-time parties thereto and Wintrust Bank N.A. (the “Termination”). A description of the Credit Agreement is included in Note 4 “Financial Instruments” to our unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

At the time of the Termination of the Credit Agreement, the Company was not in default under the Credit Agreement, nor did it have any amounts outstanding thereunder. The Credit Agreement was due to mature on January 31, 2027. The Company made the decision to terminate the Credit Agreement due to the Company’s strong cash position and to avoid uncertainty under the Credit Agreement associated with newly effective Title IV financial responsibility requirements.

15

The Termination was effective on July 30, 2024. Upon effectiveness of the Termination, all security interests and pledges granted to the secured parties under the Credit Agreement were terminated and released. The Company did not incur any material early termination penalties in connection with the Termination.

16

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 0OPERATIONS

The discussion below and other items in this Quarterly Report on Form 10-Q contain “forward-looking statements,” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, that reflect our current expectations regarding our future growth, results of operations, cash flows, performance and business prospects and opportunities, as well as assumptions made by, and information currently available to, our management. We have tried to identify forward-looking statements by using words such as “anticipate,” “believe,” “expect,” “plan,” “may,” “should,” ”will,” “continue to,” “focused on” and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. These statements are based on information currently available to us and are subject to various risks, uncertainties, and other factors, including, but not limited to, those matters discussed in Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2023 that could cause our actual growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Except as expressly required by the federal securities laws, we undertake no obligation to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future events, developments, or changed circumstances or for any other reason. Among the factors that could cause actual results to differ materially from those expressed in, or implied by, our forward-looking statements are the following:

•declines in enrollment or interest in our programs or our ability to market to and contact prospective students;

•our continued compliance with and eligibility to participate in Title IV Programs under the Higher Education Act of 1965, as amended, and the regulations thereunder (including the terms of any potential changes to or conditions imposed on our continued participation in the Title IV programs under new program participation agreements, the new 90-10, financial responsibility and administrative capability standards prescribed by the U.S. Department of Education (the “Department”)), as well as applicable accreditation standards and state regulatory requirements;

•the impact of various versions of “borrower defense to repayment” regulations;

•the final outcome of various legal challenges to the Department's loan discharge and forgiveness efforts;

•rulemaking or changing interpretations of existing regulations, guidance or historical practices by the Department or any state or accreditor and increased focus by Congress and governmental agencies on, or increased negative publicity about, for-profit education institutions;

•the success of our initiatives to improve student experiences, retention and academic outcomes;

•our continued eligibility to participate in educational assistance programs for key employers, veterans and other military personnel;

•increased competition;

•our ability to pay dividends on our common stock and execute our stock repurchase program;

•the impact of management changes; and

•changes in the overall U.S. economy.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the Company’s unaudited condensed consolidated financial statements and the notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q. The MD&A is intended to help investors understand the results of operations, financial condition and present business environment. The MD&A is organized as follows:

•Overview

•Consolidated Results of Operations

•Segment Results of Operations

•Summary of Critical Accounting Policies and Estimates

•Liquidity, Financial Position and Capital Resources

OVERVIEW

Our accredited academic institutions offer a quality postsecondary education primarily online to a diverse student population, along with campus-based and blended learning programs. The Company’s academic institutions – Colorado Technical University (“CTU”) and the American InterContinental University System (“AIUS” or “AIU System”) – provide degree programs from the

17

associate through doctoral level as well as non-degree seeking and professional development programs. Our academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. Perdoceo's institutions are committed to providing quality education that closes the gap between learners who seek to advance their careers and employers needing a qualified workforce.

Our reporting segments are determined in accordance with Financial Accounting Standards Board (“FASB”)Accounting Standards Codification (“ASC”)Topic 280 – Segment Reporting and are based upon how the Company analyzes performance and makes decisions. Each segment represents a postsecondary education provider that offers a variety of academic programs. We organize our business across two reporting segments: CTU and AIUS.

Regulatory Environment and Political Uncertainty

We operate in a highly regulated industry, which has significant impacts on our business and creates risks and uncertainties. In recent years, Congress, the Department, states, accrediting agencies, the Consumer Financial Protection Bureau, the Federal Trade Commission, state attorneys general, consumer advocacy groups and the media have all scrutinized the for-profit postsecondary education sector. Congressional hearings and roundtable discussions were held regarding various aspects of the education industry, including issues surrounding student debt as well as publicly reported student outcomes that may be used as part of an institution’s recruiting and admissions practices, and reports were issued that are highly critical of for-profit colleges and universities. A group of influential U.S. senators, consumer advocacy groups and some media outlets have strongly and repeatedly encouraged the Department, the Department of Defense and the Department of Veterans Affairs and its state approving agencies to take action to limit or terminate the participation of institutions such as ours in existing tuition assistance programs. In several cases, these groups have received significant financial support from third parties critical of our sector and have aligned on messaging that negatively impacts our sector during policy and rulemaking discussions. In addition, the current administration has made student loan forgiveness one of its top domestic policy objectives, and it has been aggressively pursued by the Department in cooperation with special interest groups, other federal agencies, state attorneys general and others. These groups collectively have focused efforts relating to student debt forgiveness on for-profit colleges and universities, encouraging loan discharge applications and complaints by former students.

We continue to see one of the most challenging operating environments in recent memory as the Department has undertaken a complete overhaul of almost all of the major regulatory requirements associated with our participation in Title IV Programs and which disproportionally negatively impact the for-profit postsecondary education sector. Additionally, a number of the Department’s regulatory initiatives are explicitly targeted at negatively impacting the proprietary sector of education. In many cases the new regulatory requirements are unclear, require further clarification as to their interpretation or applicability or are subject or will be subject to legal challenges. We expect to continue to need to operate nimbly in this uncertain environment, making necessary changes to the extent possible to comply with the myriad of new vague or unclear rules or interpretations as well as new interpretations of existing rules. For example, in 2023, we materially reduced prospective student enrollment, marketing and outreach processes at AIUS during the year to limit the volume of new federal funding that the institution would receive and to preserve available funding for existing students under the Department’s new 90-10 Rule. Any actions that limit our participation in Title IV Programs or the amount of student financial aid for which our students are eligible would materially impact our student enrollments and profitability and could impact the continued viability of our business as currently conducted.

We encourage you to review Item 1, “Business,” and Item 1A, “Risk Factors,” in our Annual Report on Form 10-K to learn more about our highly regulated industry and related risks and uncertainties, in addition to the MD&A in our 2024 Quarterly Reports on Form 10-Q.

Note Regarding Non-GAAP measures

We believe it is useful to present non-GAAP financial measures which exclude certain significant and non-cash items as a means to understand the performance of our core business. As a general matter, we use non-GAAP financial measures in conjunction with results presented in accordance with GAAP to help analyze the performance of our core business, assist with preparing the annual operating plan, and measure performance for some forms of compensation. In addition, we believe that non-GAAP financial information is used by analysts and others in the investment community to analyze our historical results and to provide estimates of future performance.

We believe certain non-GAAP measures allow us to compare our current operating results with respective historical periods and with the operational performance of other companies in our industry because it does not give effect to potential differences caused by items we do not consider reflective of underlying operating performance. We believe the items we are adjusting for are not normal operating expenses reflective of our underlying business. In evaluating the use of non-GAAP measures, investors should be aware that in the future we may incur expenses similar to the adjustments presented below. Our presentation of non-GAAP measures should not be construed as an inference that our future results will be unaffected by expenses that are unusual, non-routine or non-recurring. A non-GAAP measure has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for net income,

18

operating income, earnings per diluted share, or any other performance measure derived in accordance with and reported under GAAP or as an alternative to cash flow from operating activities or as a measure of our liquidity.

Non-GAAP financial measures, when viewed in a reconciliation to respective GAAP financial measures, provide an additional way of viewing the Company's results of operations and the factors and trends affecting the Company's business. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the respective financial results presented in accordance with GAAP.

2024 Second Quarter Overview

During the second quarter ended June 30, 2024 ("current quarter"), we continued to experience high levels of student retention and engagement at both CTU and AIUS, with student retention at multi-year highs. Our faculty and student support teams remain dedicated to educating and serving our students, and we anticipate that student retention should continue to trend at these levels through the remainder of 2024.

Total student enrollments increased 4.2% at June 30, 2024 as compared to June 30, 2023, with CTU’s increase of 14.7% being partially offset with AIUS’ decrease of 18.2%. CTU's increase in total student enrollments was driven by a positive timing impact from the academic calendar comparability resulting in more enrollment days for the current year to date as compared to the prior year to date as well as organic student enrollment growth within our corporate engagement programs. The total student enrollment decrease at AIUS was expected and due to the operational changes made within prospective student enrollment, marketing and outreach processes by AIUS in the prior year to address regulatory changes which went into effect in July of 2023.

We view technology as a catalyst and differentiator for us and remain committed to making selective investments that deliver a more meaningful and relevant educational experience for our learners while continuing to improve the efficiency and effectiveness of our academic institutions’ student support functions. Additionally, we remained focused on investing in and improving processes that support our corporate engagement programs. These programs remain a focus and a priority for both academic institutions and we will continue to make necessary investments in staff and technology to further grow their programs in an efficient and effective manner. Lastly, marketing and admissions spend, and commensurately prospective student inquiry generation, was lower during the current quarter as compared to the prior year quarter. Aided by data analytics, we continue to adjust our marketing strategies to further improve our focus on identifying prospective students who are more likely to succeed at one of our universities, as well as comply with updated expectations from various federal agencies around prospective student outreach.

We expect the strong levels of student retention and engagement experienced through the current year to date, to continue through the remainder of 2024. Additionally, as AIUS had mostly reverted to normalized levels of operations in the fourth quarter of 2023, we expect AIUS to experience total student enrollment growth at December 31, 2024 as compared to the prior year end. Full year revenue is expected to be lower for 2024 primarily due to the lag impact on revenue of lower beginning total student enrollments at AIUS as well as lower revenue due to simplification of our professional development offerings at CTU.

Financial Highlights

Revenue for the current quarter decreased by 10.6% or $19.8 million as compared to the prior year quarter, resulting from a decrease in revenue for CTU of 5.4% or $6.5 million and a decrease for AIUS of 19.9% or $13.3 million. The decrease in revenue at CTU was driven by changes within our professional development program offerings and the decrease within AIUS was driven by a lag impact on revenue of the operational changes undertaken during 2023.

Operating income for the current quarter decreased to $46.0 million as compared to operating income of $48.1 million in the prior year quarter. The decrease in operating income for the current quarter was a result of lower revenue which was only partially offset with lower operating expenses across most functional categories in the current quarter as compared to the prior year quarter.

The Company believes it is useful to present non-GAAP financial measures, which exclude certain significant and non-cash items, as a means to understand the performance of its operations. (See tables below for a GAAP to non-GAAP reconciliation.) Adjusted operating income was $50.9 million for the current quarter as compared to $55.2 million for the prior year quarter.

Adjusted operating income and adjusted earnings per diluted share for the quarters and years to date ended June 30, 2024 and 2023 is presented below (dollars in thousands, unless otherwise noted):

19

	For the Quarter Ended June 30,						For the Year to Date Ended June 30,
Adjusted Operating Income	2024			2023			2024			2023
Operating income	$	46,006		$	48,094		$	92,284		$	91,430
Depreciation and amortization		3,069			4,369			6,085			9,524
Legal fee expense related to certain matters (1)		1,815			2,709			2,045			7,328
Adjusted Operating Income	$	50,890		$	55,172		$	100,414		$	108,282
	For the Quarter Ended June 30,						For the Year to Date Ended June 30,
Adjusted Earnings Per Diluted Share	2024			2023			2024			2023
Reported Earnings Per Diluted Share	$	0.57		$	0.80		$	1.16		$	1.30
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets		0.02			0.03			0.04			0.07
Legal fee expense related to certain matters (1)		0.03			0.04			0.03			0.11
Gain on sale of intangible asset (2)		-			(0.32	)		-			(0.32	)
Total pre-tax adjustments	$	0.05		$	(0.25	)	$	0.07		$	(0.14	)
Tax effect of adjustments (3)		(0.02	)		0.06			(0.02	)		0.03
Total adjustments after tax		0.03			(0.19	)		0.05			(0.11	)
Adjusted Earnings Per Diluted Share	$	0.60		$	0.61		$	1.21		$	1.19

(1)Legal fee expense associated with (i) responses to the Department of Education (the "Department") relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.

(2)Non-cash gain associated with the sale of the LCB tradename in exchange for outstanding shares of Perdoceo's stock.

(3)The tax effect of adjustments was calculated by multiplying the pre-tax adjustments with a tax rate of 25%. This tax rate is intended to reflect federal and state taxable jurisdictions as well as the nature of the adjustments.

Regulatory Updates

Institutional Accreditation

On July 19, 2024, the Higher Learning Commission informed AIUS that it had acted at its meeting on July 16, 2024 to continue AIUS' accreditation, with its next reaffirmation of accreditation scheduled for 2033-2034.

20

CONSOLIDATED RESULTS OF OPERATIONS

The summary of selected financial data table below should be referenced in connection with a review of the following discussion of our results of operations for the quarters and years to date ended June 30, 2024 and 2023 (dollars in thousands):

	For the Quarter Ended June 30,															For the Year to Date Ended June 30,
	2024			% of Total Revenue			2023			% of Total Revenue			2024 vs 2023 % Change			2024			% of Total Revenue			2023			% of Total Revenue			2024 vs 2023 % Change
TOTAL REVENUE	$	166,740					$	186,564						-10.6	%	$	335,004					$	382,162						-12.3	%
OPERATING EXPENSES
Educational services and facilities (1)		27,516			16.5	%		32,748			17.6	%		-16.0	%		57,374			17.1	%		66,599			17.4	%		-13.9	%
General and administrative: (2)
Advertising and marketing		23,132			13.9	%		25,836			13.8	%		-10.5	%		47,371			14.1	%		57,131			14.9	%		-17.1	%
Admissions		19,964			12.0	%		23,325			12.5	%		-14.4	%		40,854			12.2	%		49,313			12.9	%		-17.2	%
Administrative		40,140			24.1	%		43,257			23.2	%		-7.2	%		75,937			22.7	%		87,903			23.0	%		-13.6	%
Bad debt		6,075			3.6	%		8,170			4.4	%		-25.6	%		12,631			3.8	%		18,927			5.0	%		-33.3	%
Total general and administrative expense		89,311			53.6	%		100,588			53.9	%		-11.2	%		176,793			52.8	%		213,274			55.8	%		-17.1	%
Depreciation and amortization		3,069			1.8	%		4,369			2.3	%		-29.8	%		6,085			1.8	%		9,524			2.5	%		-36.1	%
Asset impairment		838			0.5	%		765			0.4	%	NM				2,468			0.7	%		1,335			0.3	%	NM
OPERATING INCOME		46,006			27.6	%		48,094			25.8	%		-4.3	%		92,284			27.5	%		91,430			23.9	%		0.9	%
PRETAX INCOME		53,014			31.8	%		74,603			40.0	%		-28.9	%		105,865			31.6	%		121,656			31.8	%		-13.0	%
PROVISION FOR INCOME TAXES		14,585			8.7	%		19,930			10.7	%		-26.8	%		27,994			8.4	%		32,499			8.5	%		-13.9	%
Effective tax rate		27.5	%					26.7	%								26.4	%					26.7	%
NET INCOME	$	38,429			23.0	%	$	54,673			29.3	%		-29.7	%	$	77,871			23.2	%	$	89,157			23.3	%		-12.7	%

(1)Educational services and facilities expense includes costs attributable to the educational activities of our campuses, including: salaries and benefits of faculty, academic administrators and student support personnel, and costs of educational supplies and facilities, such as rents on leased facilities. Also included in educational services and facilities expense are rents on leased administrative facilities, such as our corporate headquarters, and costs of other goods and services provided by our campuses, including costs of textbooks and laptop computers.

(2)General and administrative expense includes operating expenses associated with, including salaries and benefits of personnel in, corporate and campus administration, marketing, admissions, information technology, financial aid, accounting, human resources, legal and compliance. Other expenses within this expense category include costs of advertising and production of marketing materials and bad debt expense.

Revenue

The current quarter and year to date revenue decreased by 10.6% or $19.8 million and 12.3% or $47.2 million, respectively, as compared to the prior year periods, driven by decreases in revenue within both CTU and AIUS. The decline for the current quarter and year to date was driven by the lag impact on revenue due to the operational changes made at AIUS in the prior year as well as changes within our professional development program offerings at CTU. Typically, total student enrollment balances at the end of any given quarter have a lag impact on revenue in the subsequent quarter.

Educational Services and Facilities Expense (dollars in thousands)

	For the Quarter Ended June 30,					For the Year to Date Ended June 30,
	2024		2023		2024 vs 2023 % Change	2024		2023		2024 vs 2023 % Change
Educational services and facilities:
Academics & student related	$	26,055	$	30,233	-13.8%	$	53,666	$	61,356	-12.5%
Occupancy		1,461		2,515	-41.9%		3,708		5,243	-29.3%
Total educational services and facilities	$	27,516	$	32,748	-16.0%	$	57,374	$	66,599	-13.9%

The educational services and facilities expense for the current quarter and year to date decreased by 16.0% or $5.2 million and 13.9% or $9.2 million, respectively, as compared to the prior year periods. Academics and student related costs decreased by 13.8% or $4.2 million and 12.5% or $7.7 million for the current quarter and year to date, respectively, as compared to the prior year periods, primarily driven by operational changes made to align with recent student enrollments trends. Occupancy expenses for the current quarter and year to date improved by 41.9% or $1.1 million and 29.3% or $1.5 million, respectively, as compared to the prior year periods, driven by the optimization of leased space.

21

General and Administrative Expense (dollars in thousands)

	For the Quarter Ended June 30,					For the Year to Date Ended June 30,
	2024		2023		2024 vs 2023 % Change	2024		2023		2024 vs 2023 % Change
General and administrative:
Advertising and marketing	$	23,132	$	25,836	-10.5%	$	47,371	$	57,131	-17.1%
Admissions		19,964		23,325	-14.4%		40,854		49,313	-17.2%
Administrative		40,140		43,257	-7.2%		75,937		87,903	-13.6%
Bad debt		6,075		8,170	-25.6%		12,631		18,927	-33.3%
Total general and administrative expense	$	89,311	$	100,588	-11.2%	$	176,793	$	213,274	-17.1%

The general and administrative expense for the current quarter and year to date decreased by 11.2% or $11.3 million and 17.1% or $36.5 million, respectively, as compared to the prior year periods, driven by decreases within all expense categories for the current comparative period.

Advertising and marketing expense for the current quarter and year to date decreased by 10.5% or $2.7 million and 17.1% or $9.8 million, respectively, as compared to the prior year periods, as a result of adjustments made to our marketing processes related to identifying prospective student interest within both CTU and AIUS.

Admissions expense for the current quarter and year to date decreased by 14.4% or $3.4 million and 17.2% or $8.5 million, respectively, as compared to the prior year periods, primarily driven by decreased expenses within both CTU and AIUS as a result of the operational changes made during the prior year.

The administrative expense for the current quarter and year to date decreased by 7.2% or $3.1 million and 13.6% or $12.0 million, respectively, as compared to the prior year periods, primarily driven by operational efficiencies within our academic institutions and decreased legal fees within Corporate and Other.

Bad debt expense incurred by each of our segments during the quarters and years to date ended June 30, 2024 and 2023 was as follows (dollars in thousands):

	For the Quarter Ended June 30,														For the Year to Date Ended June 30,
	2024		% of Segment Revenue			2023			% of Segment Revenue			2024 vs 2023 % Change			2024		% of Segment Revenue			2023			% of Segment Revenue			2024 vs 2023 % Change
Bad debt expense:
CTU	$	5,000		4.4	%	$	4,571			3.8	%		9.4	%	$	8,028		3.5	%	$	11,696			4.8	%		-31.4	%
AIUS		1,073		2.0	%		3,604			5.4	%		-70.2	%		4,601		4.3	%		7,239			5.2	%		-36.4	%
Corporate and Other		2	NM				(5	)	NM			NM				2	NM				(8	)	NM			NM
Total bad debt expense	$	6,075		3.6	%	$	8,170			4.4	%		-25.6	%	$	12,631		3.8	%	$	18,927			5.0	%		-33.3	%

Bad debt expense improved by 25.6% or $2.1 million and 33.3% or $6.3 million for the current quarter and current year to date, respectively, as compared to the prior year periods. Bad debt as a percentage of revenue declined for both current quarter and year to date as compared to the prior year periods.

We regularly evaluate our reserve rates, which includes a quarterly update of our analysis of historical student receivable collectability based on the most recent data available and a review of current known factors which we believe could affect future collectability of our student receivables, such as the number of students that do not complete the financial aid process. We continue to expect quarterly fluctuations in bad debt expense.

Operating Income

Current quarter operating income decreased by 4.3% or $2.1 million as compared to the prior year quarter and increased by 0.9% or $0.9 million for the current year to date as compared to the prior year period. The current quarter decrease was driven by lower revenue which was only partially offset with decreases in operating expenses across all categories. The year to date improvement was benefitted by reduced operating expenses across most categories which more than offset the decrease in revenue during the current year period as compared to the prior year period.

Provision for Income Taxes

For the quarter and year to date ended June 30, 2024, we recorded a provision for income taxes of $14.6 million reflecting an effective tax rate of 27.5% and $28.0 million reflecting an effective tax rate of 26.4%, respectively, as compared to a provision for

22

income taxes of $19.9 million reflecting an effective tax rate of 26.7% and $32.5 million reflecting an effective tax rate of 26.7% for the respective prior year periods.

The effective tax rate for the quarter and year to date ended June 30, 2024 was impacted by the tax effect of stock-based compensation and the release of previously recorded tax reserves, which decreased the effective tax rate for the quarter and year to date by 1.4% and 2.0%, respectively. The effective tax rate for the quarter and year to date ended June 30, 2023 was impacted by a $5.3 million unfavorable discrete adjustment related to the $22.1 million gain on the sale of the Le Cordon Bleu trademark, which was taxed at 24.1%. The effective tax rate for the quarter and year to date ended June 30, 2023 also included the tax effect of stock-based compensation and the release of previously recorded tax reserves, which decreased the effective tax rate for the quarter and year to date by 0.6% and 0.7%, respectively. For the full year 2024, we expect our effective tax rate to be between 26.5% and 27.5%.

SEGMENT RESULTS OF OPERATIONS

The following tables present unaudited segment results for the reported periods (dollars in thousands):

	For the Quarter Ended June 30,
	REVENUE							OPERATING INCOME (LOSS)									OPERATING MARGIN
	2024		2023		% Change			2024			2023			% Change			2024			2023
REVENUE:
CTU	$	112,828	$	119,292		-5.4	%	$	42,890		$	40,451			6.0	%		38.0	%		33.9	%
AIUS		53,722		67,062		-19.9	%		12,926			17,078			-24.3	%		24.1	%		25.5	%
Corporate and other		190		210		-9.5	%		(9,810	)		(9,435	)		-4.0	%	NM			NM
Total	$	166,740	$	186,564		-10.6	%	$	46,006		$	48,094			-4.3	%		27.6	%		25.8	%

	For the Year to Date Ended June 30,
	REVENUE							OPERATING INCOME (LOSS)									OPERATING MARGIN
	2024		2023		% Change			2024			2023			% Change			2024			2023
REVENUE:
CTU	$	226,397	$	243,784		-7.1	%	$	85,046		$	84,141			1.1	%		37.6	%		34.5	%
AIUS		108,227		137,902		-21.5	%		22,212			29,081			-23.6	%		20.5	%		21.1	%
Corporate and other		380		476		-20.2	%		(14,974	)		(21,792	)		31.3	%	NM			NM
Total	$	335,004	$	382,162		-12.3	%	$	92,284		$	91,430			0.9	%		27.5	%		23.9	%

	TOTAL STUDENT ENROLLMENTS
	As of June 30,
	2024		2023		% Change
CTU		29,700		25,900		14.7	%
AIUS		9,900		12,100		-18.2	%
Total		39,600		38,000		4.2	%

Total student enrollments represent all students who are active as of the last day of the reporting period. Active students are defined as those students who are considered in attendance by participating in class related activities during the previous two weeks. Total student enrollments do not include learners pursuing: a) non-degree seeking and professional development programs, and b) degree seeking, non-Title IV, self-paced programs at our universities.

CTU. Current quarter and year to date revenue decreased by 5.4% or $6.5 million and 7.1% or $17.4 million, respectively, as compared to the prior year periods. The decrease was primarily driven by changes within the professional development program offerings at CTU. CTU's total student enrollments increase of 14.7% as compared to the prior year quarter end was primarily driven by a positive timing impact of the academic calendar through the current year to date as well as growth in student enrollments from corporate engagement programs.

Current quarter and year to date operating income for CTU increased by 6.0% or $2.4 million and 1.1% or $0.9 million, respectively, as compared to the prior year periods, driven by decreases in operating expenses, including decreases related to right-sizing of the cost structure to align with more simplified professional development offerings, which more than offset the declines in revenue.

23

AIUS. Current quarter and year to date revenue decreased by 19.9% or $13.3 million and 21.5% or $29.7 million, respectively, as compared to the prior year periods. The decreases were driven by a decrease in total student enrollments of 18.2% at June 30, 2024 as compared to the prior year period due to the lag impact from the operational changes made during the latter half of 2023.

Current quarter and year to date operating income for AIUS decreased by 24.3% or $4.2 million and 23.6% or $6.9 million, respectively, as compared to the prior year periods, driven by the decrease in revenue discussed above, which was only partially offset with decreased operating expenses.

Corporate and Other. This category includes unallocated costs that are incurred on behalf of the entire company. Total Corporate and Other operating loss for the current quarter increased by 4.0% or $0.4 million as compared to the prior year quarter primarily driven by acquisition costs, partially offset with reduced legal fees associated with borrower defense to repayment applications. The year to date operating loss improved by 31.3% or $6.8 million as compared to the prior year period as a result of lower legal expenses.

SUMMARY OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES

A detailed discussion of the accounting policies and estimates that we believe are most critical to our financial condition and results of operations that require management’s most subjective and complex judgments in estimating the effect of inherent uncertainties is included under the caption “Summary of Critical Accounting Policies and Estimates” included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2023. Note 2 “Summary of Significant Accounting Policies” of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2023 also includes a discussion of these and other significant accounting policies.

LIQUIDITY, FINANCIAL POSITION AND CAPITAL RESOURCES

As of June 30, 2024, cash, cash equivalents, restricted cash and available-for-sale short-term investments (“cash balances”) totaled $675.2 million. Our cash flows from operating activities have historically been adequate to fulfill our liquidity requirements. We have historically financed our operating activities, organic growth and acquisitions primarily through cash generated from operations and existing cash balances. We expect to continue to generate cash during the remainder of 2024. We anticipate that we will be able to satisfy the cash requirements associated with, among other things, our working capital needs, capital expenditures, lease commitments, quarterly dividends payments and pending acquisition through at least the next 12 months primarily with cash generated by operations and existing cash balances.

We maintain a balanced capital allocation strategy that focuses on maintaining a strong balance sheet and adequate liquidity, while (i) investing in organic projects at our universities, in particular technology-related initiatives which are designed to benefit our students, and (ii) evaluating diverse strategies to enhance stockholder value, including acquisitions, quarterly dividend payments and share repurchases. Ultimately, our goal is to deploy resources in a way that drives long term stockholder value while supporting and enhancing the academic value of our institutions.

On February 20, 2024, the Board of Directors of the Company approved a new stock repurchase program for up to $50.0 million which commenced March 1, 2024 and expires September 30, 2025. The new stock repurchase program replaced the previous stock repurchase program. The timing of purchases and the number of shares repurchased under the program will be determined by the Company’s management and will depend on a variety of factors including stock price, trading volume and other general market and economic conditions, its assessment of alternative uses of capital, regulatory requirements and other factors.

The Board of Directors approved the aforementioned stock repurchase programs believing it advantageous to the Company and its stockholders to repurchase shares of the Company’s common stock from time to time at prices below what the Board of Directors believed to be the intrinsic value of the Company’s common stock.

The discussion above reflects management’s expectations regarding liquidity; however, as a result of the significance of the Title IV Program funds received by our students, we are highly dependent on these funds to operate our business. Any reduction in the level of Title IV funds that our students are eligible to receive or any impact on timing or our ability to receive Title IV Program funds, or any requirement to post a significant letter of credit to the Department, may have a significant impact on our operations and our financial condition. In addition, our financial performance is dependent on the level of student enrollments which could be impacted by external factors. See Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2023.

24

Sources and Uses of Cash

Operating Cash Flows

During the years to date ended June 30, 2024 and 2023, net cash flows provided by operating activities totaled $93.0 million and $66.2 million, respectively. The increase in net cash flows provided by operating activities for the current year to date as compared to the prior year to date was primarily driven by timing differences between the cash inflows related to academic session start dates as compared to revenue earned from those sessions.

Our primary source of cash flows from operating activities is tuition collected from our students. Our students derive the ability to pay tuition costs through the use of a variety of funding sources, including, among others, federal loan and grant programs, state grant programs, private loans and grants, institutional payment plans, private and institutional scholarships and cash payments.

For further discussion of Title IV Program funding and other funding sources for our students, see Item 1, “Business - Student Financial Aid and Related Federal Regulation,” in our Annual Report on Form 10-K for the year ended December 31, 2023.

Our primary uses of cash to support our operating activities include, among other things, cash paid and benefits provided to our employees for services, to vendors for products and services, to lessors for rents and operating costs related to leased facilities, to suppliers for textbooks and other institution supplies, and to federal, state and local governments for income and other taxes.

Investing Cash Flows

During the years to date ended June 30, 2024 and 2023, net cash flows used in investing activities totaled $60.1 million and $30.5 million, respectively.

Purchases and Sales of Available-for-Sale Investments. Purchases and sales of available-for-sale investments resulted in a net cash outflow of $58.1 million and $26.9 million for the years to date ended June 30, 2024 and 2023, respectively.

Capital Expenditures. Capital expenditures decreased to $2.0 million for the year to date ended June 30, 2024 as compared to $3.6 million for the year to date ended June 30, 2023. For the full year 2024, we expect capital expenditures to be approximately 1.5% of revenue.

Financing Cash Flows

During the years to date ended June 30, 2024 and 2023, net cash flows used in financing activities totaled $23.0 million and $4.6 million, respectively. Payments to repurchase shares of our common stock were $6.8 million for the year to date ended June 30, 2024 and $2.7 million for the year to date ended June 30, 2023.

Payments of employee tax associated with stock compensation. Payments of employee tax associated with stock compensation were $3.4 million and $2.2 million for the years to date ended June 30, 2024 and 2023, respectively.

Payments of cash dividends and dividend equivalents. During the year to date ended June 30, 2024, the Company made dividend payments of $14.6 million.

Changes in Financial Position

Selected condensed consolidated balance sheet account changes from December 31, 2023 to June 30, 2024 were as follows (dollars in thousands):

	June 30,		December 31,
	2024		2023		% Change
ASSETS
CURRENT ASSETS:
Student receivables, net		34,855		29,398		19	%
NON-CURRENT ASSETS:
Right of use asset, net		16,455		19,096		-14	%
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Payroll and related benefits		25,295		32,684		-23	%
Income taxes		6,502		3,974		64	%
Deferred revenue		55,390		37,215		49	%

Student receivables, net: The increase is driven by timing of academic terms within CTU and AIUS, along with an increase in total student enrollments at CTU.

25

Right of use asset, net: The decrease is driven by recurring amortization of remaining ROU assets as well as impairment of certain leased assets which the Company made the decision to vacate during the current year to date.

Payroll and related benefits: The decrease is driven by annual incentive compensation payments made during the current year which were accrued as of the prior year end.

Income taxes: The increase primarily relates to amounts owed with respect to estimated payments of federal and state income tax for 2024.

Deferred revenue: The increase is primarily related to the timing impact of the academic terms within CTU and AIUS along with an increase in total student enrollments at CTU.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to financial market risks, primarily changes in interest rates. We use various techniques to manage our interest rate risk. We have no derivative financial instruments or derivative commodity instruments, and believe the risk related to cash equivalents and available for sale investments is limited due to the adherence to our investment policy, which focuses on capital preservation and liquidity. In addition, we use asset managers who conduct initial and ongoing credit analyses on our investment portfolio and monitor that investments are in compliance with our investment policy. Despite the investment risk mitigation strategies we employ, we may incur investment losses as a result of unusual and unpredictable market developments and may experience reduced investment earnings if the yields on investments deemed to be low risk remain low or decline.

Interest Rate Exposure

Our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if we are forced to sell investments that have declined in market value due to changes in interest rates. At June 30, 2024, a 10% increase or decrease in interest rates applicable to our investments or borrowings would not have a material impact on our future earnings, fair values or cash flows.

Under the Second Amended Credit Agreement, outstanding principal amounts bear annual interest at a fluctuating rate equal to 1.0% less than the administrative agent’s prime commercial rate, subject to a 3.0% minimum rate. A higher rate may apply to late payments or if any event of default exists. As of June 30, 2024, we had no outstanding borrowings under this facility.

Our financial instruments are recorded at their fair values as of June 30, 2024 and December 31, 2023. We believe that the exposure of our consolidated financial position and results of operations and cash flows to adverse changes in interest rates applicable to our investments or borrowings is not significant.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We completed an evaluation as of the end of the period covered by this Quarterly Report on Form 10-Q (“Report”) under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2024, our disclosure controls and procedures were effective to provide reasonable assurance that (i) the information required to be disclosed by us in this Report was recorded, processed, summarized and reported within the time periods specified in the rules and forms provided by the U.S. Securities and Exchange Commission (“SEC”), and (ii) information required to be disclosed by us in our reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on the Effectiveness of Controls

Our management does not expect that our disclosure controls and procedures or our internal controls will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are

26

resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in a cost-effective control system, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within our Company have been detected.

These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

27

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Note 8 “Contingencies” to our unaudited condensed consolidated financial statements is incorporated herein by reference.

Item 1A. Risk Factors

In addition to the information set forth in this Quarterly Report on Form 10-Q, the reader should carefully consider the factors discussed in Part I, Item 1A “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission on February 21, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On February 20, 2024, the Board of Directors of the Company approved a new stock repurchase program which authorizes the Company to repurchase up to $50.0 million of the Company’s outstanding common stock. See Note 11 “Stock Repurchase Program” to our unaudited condensed consolidated financial statements for further information.

The following table sets forth information regarding purchases made by us of shares of our common stock on a monthly basis during the year to date ended June 30, 2024:

Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased (1)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
December 31, 2023							$	18,528,794
January 1, 2024—January 31, 2024		-	$	-		-		18,528,794
February 1, 2024—February 29, 2024		220,000		17.63		220,000		14,646,422
March 1, 2024—March 31, 2024		358,669		17.64		164,571		47,106,022
April 1, 2024—April 30, 2024		-		-		-		47,106,022
May 1, 2024—May 31, 2024		-		-		-		47,106,022
June 1, 2024—June 30, 2024		-		-		-		47,106,022
Total		578,669				384,571

(1)Includes 194,098 shares delivered back to the Company for payment of withholding taxes from employees for vesting restricted stock units pursuant to the terms of the Perdoceo Education Corporation Amended and Restated 2016 Incentive Compensation Plan.

(2)On February 20, 2024, the Board of Directors of the Company approved a new stock repurchase program of up to $50.0 million which commenced on March 1, 2024 and expires on September 30, 2025.

Item 5. Other Information

On July 29, 2024, the Company gave notice of the termination of its credit agreement, dated as of September 8, 2021, as amended (the “Credit Agreement”), by and among the Company, as borrower, certain of its subsidiary guarantors thereunder, the lenders from time-to-time parties thereto and Wintrust Bank N.A. (the “Termination”). A description of the Credit Agreement is included in Note 4 “Financial Instruments” to our unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

At the time of the Termination of the Credit Agreement, the Company was not in default under the Credit Agreement, nor did it have any amounts outstanding thereunder. The Credit Agreement was due to mature on January 31, 2027. The Company made the decision to terminate the Credit Agreement due to the Company’s strong cash position and to avoid uncertainty under the Credit Agreement associated with newly effective Title IV financial responsibility requirements.

The Termination was effective on July 30, 2024. Upon effectiveness of the Termination, all security interests and pledges granted to the secured parties under the Credit Agreement were terminated and released. The Company did not incur any material early termination penalties in connection with the Termination.

28

Item 6. Exhibits

The exhibits required to be filed by Item 601 of Regulation S-K are listed in the “Exhibit Index,” which is attached hereto and incorporated by reference herein.

	INDEX TO EXHIBITS
Exhibit Number	Exhibit	Incorporated by Reference to:
+31.1	Certification of CEO Pursuant to Section 302 of Sarbanes-Oxley Act of 2002
+31.2	Certification of CFO Pursuant to Section 302 of Sarbanes-Oxley Act of 2002
+32.1	Certification of CEO Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
+32.2	Certification of CFO Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
+101.INS	Inline XBRL Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
+101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document
+104	The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, formatted in Inline XBRL (included in Exhibit 101)
	____
	* Management contract or compensatory plan or arrangement required to be filed as an Exhibit to this Form 10-Q
	+Filed herewith.

29

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PERDOCEO EDUCATION CORPORATION
Date: July 31, 2024	By:	/s/ TODD S. NELSON
		Todd S. Nelson President and Chief Executive Officer (Principal Executive Officer)
Date: July 31, 2024	By:	/s/ ASHISH R. GHIA
		Ashish R. Ghia Senior Vice President and Chief Financial Officer (Principal Financial Officer)

30

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Todd S. Nelson, President and Chief Executive Officer of Perdoceo Education Corporation, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Perdoceo Education Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 31, 2024

/s/ TODD S. NELSON

Todd S. Nelson

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Ashish R. Ghia, Senior Vice President and Chief Financial Officer of Perdoceo Education Corporation, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Perdoceo Education Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 31, 2024

/s/ ASHISH R. GHIA

Ashish R. Ghia

Senior Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Perdoceo Education Corporation (the “Company”) for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Todd S. Nelson, President and Chief Executive Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ TODD S. NELSON

Todd S. Nelson

President and Chief Executive Officer

July 31, 2024

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Perdoceo Education Corporation (the “Company”) for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ashish R. Ghia, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ ASHISH R. GHIA

Ashish R. Ghia

Senior Vice President and Chief Financial Officer

July 31, 2024

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Jul. 26, 2024
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Trading Symbol	PRDO
Title of 12(b) Security	Common Stock, $0.01 par value
Security Exchange Name	NASDAQ
Entity Registrant Name	PERDOCEO EDUCATION CORP
Entity Central Index Key	0001046568
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		65,673,430
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-23245
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-3932190
Entity Address, Address Line One	1750 E. Golf Road
Entity Address, City or Town	Schaumburg
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60173
City Area Code	847
Local Phone Number	781-3600

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash and cash equivalents, unrestricted		$ 127,852	$ 118,009
Restricted cash		1,037	1,012
Total cash, cash equivalents and restricted cash		128,889	119,021
Short-term investments		546,273	485,135
Total cash and cash equivalents, restricted cash and short-term investments		675,162	604,156
Student receivables, gross		69,237	64,011
Allowance for credit losses		(34,382)	(34,613)
Student receivables, net		34,855	29,398
Receivables, other		4,982	4,539
Prepaid expenses		12,558	11,712
Inventories		4,467	5,004
Other current assets		457	155
Total current assets		732,481	654,964
NON-CURRENT ASSETS:
Property and equipment, net of accumulated depreciation of $62,654 and $58,785 as of June 30, 2024 and December 31, 2023, respectively		19,087	21,371
Right of use asset, net		16,455	19,096
Goodwill		241,162	241,162
Intangible assets, net of amortization of $25,828 and $23,612 as of June 30, 2024 and December 31, 2023, respectively		34,002	36,219
Student receivables, gross		8,156	7,028
Allowance for credit losses		(2,889)	(3,169)
Student receivables, net		5,267	3,859
Deferred income tax assets, net		23,242	23,804
Other assets		6,545	6,841
TOTAL ASSETS	[1]	1,078,241	1,007,316
CURRENT LIABILITIES:
Lease liability-operating		5,397	5,701
Accounts payable		13,267	10,766
Accrued expenses:
Payroll and related benefits		25,295	32,684
Advertising and marketing costs		6,984	7,196
Income taxes		6,502	3,974
Other		22,023	13,503
Deferred revenue		55,390	37,215
Total current liabilities		134,858	111,039
NON-CURRENT LIABILITIES:
Lease liability-operating		18,443	21,346
Other liabilities		25,416	33,510
Total non-current liabilities		43,859	54,856
Commitments and Contingencies (Note 8)
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding
Common stock, $0.01 par value; 300,000,000 shares authorized; 90,977,866 and 90,270,306 shares issued, 65,673,430 and 65,544,539 shares outstanding as of June 30, 2024 and December 31, 2023, respectively		910	903
Additional paid-in capital		701,153	694,798
Accumulated other comprehensive loss		(1,721)	(666)
Retained earnings		543,606	480,606
Treasury stock, at cost; 25,304,436 and 24,725,767 shares as of June 30, 2024 and December 31, 2023, respectively		(344,424)	(334,220)
Total stockholders' equity		899,524	841,421
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ 1,078,241	$ 1,007,316

[1] Total assets are presented on a condensed consolidated basis and do not include intercompany receivable or payable activity between institutions and corporate and investments in subsidiaries.

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement Of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 62,654	$ 58,785
Intangible assets, amortization	$ 25,828	$ 23,612
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	90,977,866	90,270,306
Common stock, shares outstanding	65,673,430	65,544,539
Treasury stock, shares	25,304,436	24,725,767

XML

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
REVENUE:
Total revenue		$ 166,740	$ 186,564	$ 335,004	$ 382,162
OPERATING EXPENSES:
Educational services and facilities		27,516	32,748	57,374	66,599
General and administrative		89,311	100,588	176,793	213,274
Depreciation and amortization		3,069	4,369	6,085	9,524
Asset impairment		838	765	2,468	1,335
Total operating expenses		120,734	138,470	242,720	290,732
Operating income		46,006	48,094	92,284	91,430
OTHER INCOME:
Interest income		7,190	4,531	13,983	8,349
Interest expense		(112)	(96)	(447)	(191)
Miscellaneous (expense) income		(70)	22,074	45	22,068
Total other income		7,008	26,509	13,581	30,226
PRETAX INCOME		53,014	74,603	105,865	121,656
Provision for income taxes		14,585	19,930	27,994	32,499
NET INCOME		$ 38,429	$ 54,673	$ 77,871	$ 89,157
NET INCOME PER SHARE - BASIC:		$ 0.59	$ 0.81	$ 1.19	$ 1.32
NET INCOME PER SHARE - DILUTED:		$ 0.57	$ 0.8	$ 1.16	$ 1.3
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		65,611	67,421	65,583	67,328
Diluted		67,077	68,533	66,956	68,512
Tuition and Fees, Net [Member]
REVENUE:
Total revenue		$ 165,404	$ 184,520	$ 332,402	$ 377,839
Other [Member]
REVENUE:
Total revenue	[1]	$ 1,336	$ 2,044	$ 2,602	$ 4,323

[1] Other revenue primarily includes contract training revenue and miscellaneous non-student related revenue.

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
NET INCOME	$ 38,429	$ 54,673	$ 77,871	$ 89,157
OTHER COMPREHENSIVE (LOSS) INCOME, net of tax:
Foreign currency translation adjustments	(8)	(3)	(39)	23
Unrealized loss on investments	(93)	(1,497)	(1,016)	(197)
Total other comprehensive loss	(101)	(1,500)	(1,055)	(174)
COMPREHENSIVE INCOME	$ 38,328	$ 53,173	$ 76,816	$ 88,983

XML

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]
BALANCE at Dec. 31, 2022	$ 725,845	$ 894	$ (301,624)	$ 684,183	$ (5,447)	$ 347,839
BALANCE, shares at Dec. 31, 2022		89,396,000
BALANCE, shares at Dec. 31, 2022			(22,221,000)
Net income	89,157					89,157
Foreign currency translation	23				23
Unrealized loss on investments, net of tax	(197)				(197)
Treasury stock purchased	(2,729)		$ (2,729)
Treasury stock purchased, shares			(221,000)
Treasury stock acquired upon sale of asset	(22,086)		$ (22,086)
Treasury stock acquired upon sale of asset, shares			(1,800,000)
Share-based compensation expense	4,315			4,315
Common stock issued	(1,896)	$ 6	$ (2,209)	307
Common stock issued, shares		620,000	(165,000)
BALANCE at Jun. 30, 2023	792,432	$ 900	$ (328,648)	688,805	(5,621)	436,996
BALANCE, shares at Jun. 30, 2023		90,016,000
BALANCE, shares at Jun. 30, 2023			(24,407,000)
BALANCE at Mar. 31, 2023	761,172	$ 899	$ (304,648)	686,719	(4,121)	382,323
BALANCE, shares at Mar. 31, 2023		89,924,000
BALANCE, shares at Mar. 31, 2023			(22,446,000)
Net income	54,673					54,673
Foreign currency translation	(3)				(3)
Unrealized loss on investments, net of tax	(1,497)				(1,497)
Treasury stock purchased	(1,914)		$ (1,914)
Treasury stock purchased, shares			(161,000)
Treasury stock acquired upon sale of asset	(22,086)		$ (22,086)
Treasury stock acquired upon sale of asset, shares			(1,800,000)
Share-based compensation expense	2,021			2,021
Common stock issued	66	$ 1		65
Common stock issued, shares		92,000
BALANCE at Jun. 30, 2023	792,432	$ 900	$ (328,648)	688,805	(5,621)	436,996
BALANCE, shares at Jun. 30, 2023		90,016,000
BALANCE, shares at Jun. 30, 2023			(24,407,000)
BALANCE at Dec. 31, 2023	$ 841,421	$ 903	$ (334,220)	694,798	(666)	480,606
BALANCE, shares at Dec. 31, 2023	90,270,306	90,270,000
BALANCE, shares at Dec. 31, 2023	(24,725,767)		(24,726,000)
Net income	$ 77,871					77,871
Foreign currency translation	(39)				(39)
Unrealized loss on investments, net of tax	(1,016)				(1,016)
Dividends to shareholders	(14,871)					(14,871)
Treasury stock purchased	(6,769)		$ (6,769)
Treasury stock purchased, shares			(385,000)
Share-based compensation expense	4,557			4,557
Common stock issued	(1,630)	$ 7	$ (3,435)	1,798
Common stock issued, shares		708,000	(193,000)
BALANCE at Jun. 30, 2024	$ 899,524	$ 910	$ (344,424)	701,153	(1,721)	543,606
BALANCE, shares at Jun. 30, 2024	90,977,866	90,978,000
BALANCE, shares at Jun. 30, 2024	(25,304,436)		(25,304,000)
BALANCE at Mar. 31, 2024	$ 866,106	$ 909	$ (344,424)	698,619	(1,620)	512,622
BALANCE, shares at Mar. 31, 2024		90,907,000
BALANCE, shares at Mar. 31, 2024			(25,304,000)
Net income	38,429					38,429
Foreign currency translation	(8)				(8)
Unrealized loss on investments, net of tax	(93)				(93)
Dividends to shareholders	(7,445)					(7,445)
Share-based compensation expense	2,250			2,250
Common stock issued	285	$ 1		284
Common stock issued, shares		71,000
BALANCE at Jun. 30, 2024	$ 899,524	$ 910	$ (344,424)	$ 701,153	$ (1,721)	$ 543,606
BALANCE, shares at Jun. 30, 2024	90,977,866	90,978,000
BALANCE, shares at Jun. 30, 2024	(25,304,436)		(25,304,000)

XML

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Statement Of Stockholders Equity [Abstract]
Dividends to shareholders, per share	$ 0.11	$ 0.22

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 77,871	$ 89,157
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairment	2,468	1,335
Gain on sale of asset		(22,086)
Depreciation and amortization expense	6,085	9,524
Bad debt expense	12,631	18,927
Compensation expense related to share-based awards	4,557	4,315
Deferred income taxes	562	2,975
Changes in operating assets and liabilities	(11,157)	(37,927)
Net cash provided by operating activities	93,017	66,220
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments	(204,060)	(159,183)
Sales of available-for-sale investments	145,945	132,325
Purchases of property and equipment	(2,022)	(3,612)
Net cash used in investing activities	(60,137)	(30,470)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock	1,805	313
Purchase of treasury stock	(6,769)	(2,729)
Payments of employee tax associated with stock compensation	(3,435)	(2,209)
Payments of cash dividends and dividend equivalents	(14,613)
Net cash used in financing activities	(23,012)	(4,625)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	9,868	31,125
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period	119,021	118,884
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period	$ 128,889	$ 150,009

XML

Description of the Company

6 Months Ended

Jun. 30, 2024

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of the Company

1. DESCRIPTION OF THE COMPANY

Perdoceo’s accredited academic institutions offer a quality postsecondary education primarily online to a diverse student population, along with campus-based and blended learning programs. The Company’s academic institutions – Colorado Technical University (“CTU”) and the American InterContinental University System (“AIUS” or “AIU System”) – provide degree programs from the associate through doctoral level as well as non-degree seeking and professional development programs. Our academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. Perdoceo's institutions are committed to providing quality education that closes the gap between learners who seek to advance their careers and employers needing a qualified workforce.

As used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “the Company,” “Perdoceo” and “PEC” refer to Perdoceo Education Corporation and our wholly-owned subsidiaries.

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2024

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

2. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the rules and regulations for reporting the Quarterly Report on Form 10-Q (Form 10-Q). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. This report should be read in conjunction with our 2023 Form 10-K. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation.

Operating results for the quarter and year to date ended June 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

The unaudited condensed consolidated financial statements presented herein include the accounts of Perdoceo Education Corporation and our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.

Our reporting segments are determined in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280 – Segment Reporting and are based upon how the Company analyzes performance and makes decisions. Each segment represents a postsecondary education provider that offers a variety of academic programs. We organize our business across two reporting segments: CTU and AIUS.

XML

Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2024

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements

3. RECENT ACCOUNTING PRONOUNCEMENTS

Recent accounting guidance not yet adopted

In December 2023, the FASB issued Accounting Standard Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities on an annual basis 1) disclose specific categories in the rate reconciliation, and 2) provide additional information for reconciling items that meet a quantitative threshold. The amendments require disclosure about income taxes paid by federal, state and foreign taxes, and by individual jurisdictions in which income taxes paid is equal or greater than 5 percent of total income taxes paid. The amendments also require entities to disclose income or loss from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense or benefit from continuing operations disaggregated by federal, state and foreign. For all public business entities, ASU 2023-09 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. We are currently evaluating this guidance and believe the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update require that a public entity disclose on an annual and interim basis, 1) significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, 2) an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss, and 3) disclose the title and

position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. For all public business entities, ASU 2023-07 is effective for annual periods after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024; early adoption is permitted. We are currently evaluating this guidance and believe the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. For all public business entities, ASU 2022-03 is effective for annual periods and interim periods beginning after December 15, 2024; early adoption is permitted. We are currently evaluating this guidance and believe the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures.

XML

Financial Instruments

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Financial Instruments

4. FINANCIAL INSTRUMENTS

Investments consist of the following as of June 30, 2024 and December 31, 2023 (dollars in thousands):

	June 30, 2024
			Gross Unrealized
	Cost		Gain		(Loss)			Fair Value
Short-term investments (available for sale):
Non-governmental debt securities	$	244,985	$	80	$	(847	)	$	244,218
Treasury and federal agencies		302,912		19		(876	)		302,055
Total short-term investments (available for sale)	$	547,897	$	99	$	(1,723	)	$	546,273

	December 31, 2023
			Gross Unrealized
	Cost		Gain		(Loss)			Fair Value
Short-term investments (available for sale):
Non-governmental debt securities		245,886		719		(892	)		245,713
Treasury and federal agencies		239,859		393		(830	)		239,422
Total short-term investments (available for sale)	$	485,745	$	1,112	$	(1,722	)	$	485,135

In the table above, unrealized holding gains (losses) relate to short-term investments that have been in a continuous unrealized gain (loss) position for less than one year.

Our non-governmental debt securities primarily consist of corporate bonds, certificates of deposit and commercial paper. Our treasury and federal agencies primarily consist of U.S. Treasury bills and federal home loan debt securities.

Realized gains or loss resulting from sales of investments were zero during the quarters and years to date ended June 30, 2024 and June 30, 2023.

Fair Value Measurements

FASB ASC Topic 820 – Fair Value Measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of June 30, 2024, we held investments that are required to be measured at fair value on a recurring basis. These investments (available for sale) consist of non-governmental debt securities and treasury and federal agencies securities. Available for sale securities included in Level 2 are estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for identical or similar assets or liabilities in inactive markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

All of our available for sale investments were measured under Level 2 as of June 30, 2024 and December 31, 2023. Additionally, money market funds of $30.9 million and $30.3 million included within cash and cash equivalents on our condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively, were measured under Level 1. Federal agency debt securities of $44.9 million included within cash and cash equivalents on our unaudited condensed consolidated balance sheets as of December 31, 2023 were measured under Level 2.

Equity Method Investment

Our investment in an equity affiliate, which is recorded within other noncurrent assets on our condensed consolidated balance sheets, represents an international investment in a private company. As of June 30, 2024, our investment in an equity affiliate equated to 30.7%, or $1.2 million.

During the quarters ended June 30, 2024 and 2023, we recorded less than $0.1 million of loss for each respective period, and during the years to date ended June 30, 2024 and 2023, we recorded less than $0.1 million of gain and $0.1 million of loss, respectively, related to our equity affiliate within miscellaneous (expense) income on our unaudited condensed consolidated statements of income.

We make periodic operating maintenance payments to our equity affiliate. The total fees recorded during the quarters and years to date ended June 30, 2024 and 2023 were as follows (dollars in thousands):

	Maintenance Fee Payments
For the quarter ended June 30, 2024	$	423
For the quarter ended June 30, 2023	$	414
For the year to date ended June 30, 2024	$	867
For the year to date ended June 30, 2023	$	845

Credit Agreement

On January 23, 2024, the Company and the subsidiary guarantors thereunder entered into a Second Amendment (the “Second Amendment”) to their credit agreement, dated as of September 8, 2021 and as amended on April 1, 2022 (the “Existing Credit Agreement”), with the lenders from time to time parties thereto and Wintrust Bank N.A. (“Wintrust”), in its capacities as the sole lead arranger, sole bookrunner, administrative agent and letter of credit issuer thereunder (the Existing Credit Agreement, as further amended by the Second Amendment, the “Credit Agreement”).

The Second Amendment, among other things: (i) extends the maturity date of the revolving credit facility to January 31, 2027; (ii) lowers the “Prime Rate” floor from 4% to 3%; (iii) replaces BMO Bank N.A. (formerly known as BMO Harris Bank N.A.) with Valley National Bancorp as one of the lenders that is party to the revolving credit facility; and (iv) modifies the relative commitments of the lenders that are parties to the revolving credit facility.

The credit agreement provides the Company with the benefit of a $125.0 million senior secured revolving credit facility. The $125.0 million revolving credit facility under the credit agreement is scheduled to mature on January 31, 2027. So long as no default has occurred and other conditions have been met, the Company may request an increase in the aggregate commitment in an amount not to exceed $50.0 million. The loans and letter of credit obligations under the credit agreement are secured by substantially all assets of the Company and the subsidiary guarantors.

The credit agreement and the ancillary documents executed in connection therewith contain customary affirmative, negative and financial maintenance covenants, including a requirement for the borrowers to maintain cash and cash equivalents in domestic accounts of at least $156,250,000 at all times. Acquisitions to be undertaken by the Company must meet certain criteria, and the Company’s ability to make restricted payments, including payments in connection with a repurchase of shares of our common stock and quarterly dividend payments, is subject to an aggregate maximum of $100.0 million per fiscal year. Upon the occurrence of certain regulatory events or if the Company’s unrestricted cash, cash equivalents and short term investments are less than 125% of the aggregate amount of the loan commitments then in effect, the Company is required to maintain cash in a segregated, restricted account in an amount not less than the aggregate loan commitments then in effect. The credit agreement also contains customary representations and warranties, events of default, and rights and remedies upon the occurrence of any event of default thereunder, including rights to accelerate the loans, terminate the commitments and realize upon the collateral securing the obligations under the credit agreement.

Under the credit agreement, outstanding principal amounts bear annual interest at a fluctuating rate equal to 1.0% less than the administrative agent’s prime commercial rate, subject to a 3.0% minimum rate. A higher rate may apply to late payments or if any event of default exists.

As of June 30, 2024 and December 31, 2023, there were no outstanding borrowings under the revolving credit facility.

XML

Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue From Contract With Customer [Abstract]

Revenue Recognition

5. REVENUE RECOGNITION

Disaggregation of Revenue

The following tables disaggregate our revenue by major source for the quarters and years to date ended June 30, 2024 and 2023 (dollars in thousands):

	For the Quarter Ended June 30, 2024								For the Quarter Ended June 30, 2023
	CTU		AIUS		Corporate and Other		Total		CTU		AIUS		Corporate and Other		Total
Tuition, net (1)	$	106,978	$	50,966	$	-	$	157,944	$	112,864	$	63,136	$	-	$	176,000
Technology and other fees		4,998		2,462		-		7,460		5,420		3,100		-		8,520
Total tuition and fees, net		111,976		53,428		-		165,404		118,284		66,236		-		184,520
Other revenue (2)		852		294		190		1,336		1,008		826		210		2,044
Total revenue	$	112,828	$	53,722	$	190	$	166,740	$	119,292	$	67,062	$	210	$	186,564
	For the Year to Date Ended June 30, 2024								For the Year to Date Ended June 30, 2023
	CTU		AIUS		Corporate and Other		Total		CTU		AIUS		Corporate and Other		Total
Tuition, net (1)	$	214,418	$	102,795	$	-	$	317,213	$	230,862	$	129,781	$	-	$	360,643
Technology and other fees		10,338		4,851		-		15,189		10,843		6,353		-		17,196
Total tuition and fees, net		224,756		107,646		-		332,402		241,705		136,134		-		377,839
Other revenue (2)		1,641		581		380		2,602		2,079		1,768		476		4,323
Total revenue	$	226,397	$	108,227	$	380	$	335,004	$	243,784	$	137,902	$	476	$	382,162

__________________

(1)Tuition includes revenue earned for all degree-granting programs as well as revenue earned for non-degree and professional development programs.

(2)Other revenue primarily includes contract training revenue and miscellaneous non-student related revenue.

Performance Obligations

Our revenue, which is derived primarily from academic programs taught to students who attend our universities, is generally segregated into two categories: (1) tuition and fees, and (2) other. Tuition and fees represent costs to our students for educational services provided by our universities and are reflected net of scholarships and tuition discounts. Our universities charge tuition and fees at varying amounts, depending on the university, the type of program and specific curriculum. Our universities bill students a single charge that covers tuition, certain fees and required program materials, such as textbooks and supplies, which we treat as a single performance obligation. Generally, we bill student tuition at the beginning of each academic term for our degree programs and recognize the tuition as revenue on a straight-line basis over the academic term. As part of a student’s course of instruction, certain fees, such as technology fees and graduation fees, are billed separately to students. These fees are generally earned over the applicable term and are not considered separate performance obligations. We generally bill student tuition upon enrollment for our non-degree professional development programs and recognize the tuition as revenue on a straight-line basis over the length of the offering.

Other revenue, which primarily consists of contract training revenue and miscellaneous non-student related revenue, is billed and recognized as goods are delivered or services are performed.

Contract Assets

For each term, the portion of tuition and fee payments received from students but not yet earned is recorded as deferred revenue and reported as a current liability on our condensed consolidated balance sheets, as we expect to earn these revenues within the next year. A contract asset is recorded for each student for the current term for which they are enrolled for the amount charged for the current term that has not yet been received as payment and to which we do not have the unconditional right to receive payment because the student has not reached the point in the student’s current academic term at which the amount billed is no longer refundable to the student. On a student by student basis, the contract asset is offset against the deferred revenue balance for the current term and the net deferred revenue balance is reflected within current liabilities on our condensed consolidated balance sheets. For certain of our institutions, students are billed as they enroll in courses, including courses related to future periods. Any billings for future periods would meet the definition of a contract asset as we do not have the unconditional right to receive payment as the course has not yet started. Contract assets related to future periods are offset against the respective deferred revenue associated with the future period.

Due to the short-term nature of our academic terms, the contract asset balance which exists at the beginning of each quarter will no longer be a contract asset at the end of that quarter, with the exception of the contract assets associated with future periods. The decrease in contract asset balances are a result of one of the following: it becomes a student receivable balance once a student reaches the point in a student’s academic term where the amount billed is no longer refundable to the student; a refund is made to withdrawn

students for the portion entitled to be refunded under each institutions’ refund policy; we receive funds to apply against the contract asset balance; or a student makes a change to the number of classes they are enrolled in which may cause an adjustment to their previously billed amount. As of the end of each quarter, a new contract asset is determined on a student by student basis based on the most recently started term and a student’s progress within that term as compared to the date at which the student is no longer entitled to a refund under each institution’s refund policy. Contract assets associated with future periods remain as contract assets until the course begins and the student reaches the point in that course that they are no longer entitled to a refund.

The amount of deferred revenue balances which are being offset with contract assets balances as of June 30, 2024 and December 31, 2023 were as follows (dollars in thousands):

	As of
	June 30, 2024			December 31, 2023
Gross deferred revenue	$	90,785		$	63,970
Gross contract assets	$	(35,395	)		(26,755	)
Deferred revenue, net	$	55,390		$	37,215

Deferred Revenue

Changes in our deferred revenue balances for the quarters and years to date ended June 30, 2024 and 2023 were as follows (dollars in thousands):

	For the Quarter Ended June 30, 2024									For the Quarter Ended June 30, 2023
	CTU			AIUS			Total			CTU			AIUS			Total
Gross deferred revenue, April 1	$	82,320		$	36,619		$	118,939		$	42,372		$	23,460		$	65,832
Revenue earned from prior balances		(69,946	)		(29,510	)		(99,456	)		(32,859	)		(19,609	)		(52,468	)
Billings during period(1)		97,465			39,022			136,487			148,118			74,318			222,436
Revenue earned for new billings during the period		(42,030	)		(23,918	)		(65,948	)		(85,425	)		(46,627	)		(132,052	)
Other adjustments		71			692			763			496			459			955
Gross deferred revenue, June 30	$	67,880		$	22,905		$	90,785		$	72,702		$	32,001		$	104,703
	For the Year to Date Ended June 30, 2024									For the Year to Date Ended June 30, 2023
	CTU			AIUS			Total			CTU			AIUS			Total
Gross deferred revenue, January 1	$	42,531		$	21,439		$	63,970		$	67,245		$	39,955		$	107,200
Revenue earned from prior balances		(37,248	)		(19,653	)		(56,901	)		(58,404	)		(32,495	)		(90,899	)
Billings during period(1)		250,342			108,799			359,141			248,130			127,450			375,580
Revenue earned for new billings during the period		(187,508	)		(87,993	)		(275,501	)		(183,301	)		(103,639	)		(286,940	)
Other adjustments		(237	)		313			76			(968	)		730			(238	)
Gross deferred revenue, June 30	$	67,880		$	22,905		$	90,785		$	72,702		$	32,001		$	104,703

______________

(1)Billings during period includes adjustments for prior billings.

Tuition Refunds

If a student withdraws from one of our academic institutions prior to the completion of the academic term, we refund the portion of tuition and fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded to a student is calculated based upon the percent of the term attended and the amount of tuition and fees paid by the student as of their withdrawal date. In certain circumstances, we have recognized revenue for students who have withdrawn that we are not entitled to retain. We have estimated a reserve for these limited circumstances based on historical evidence in the amount of $2.0 million for each period as of June 30, 2024 and December 31, 2023, respectively. Students are typically entitled to a partial refund until approximately halfway through their term. Pursuant to each university’s policy, once a student reaches the point in the term where no refund is given, the student would not have a refund due if withdrawing from the university subsequent to that date.

XML

Student Receivables

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Student Receivables

6. STUDENT RECEIVABLES

Student receivables represent funds owed to us in exchange for the educational services provided to a student. Student receivables are reflected net of an allowance for credit losses at the end of the reporting period. Student receivables, net, are reflected on our condensed consolidated balance sheets as components of both current and non-current assets.

Our students pay for their costs through a variety of funding sources, including federal loan and grant programs, institutional payment plans, employer tuition assistance, Veterans’ Administration and other military funding and grants, private and institutional scholarships and cash payments, as well as private loans. Cash receipts from government related sources are typically received during the current academic term. We typically receive funds after the end of an academic term for students who receive employer tuition assistance. Students who have not applied for any type of financial aid or students whose financial aid may not fully cover the cost of their tuition and fees generally set up a payment plan with the institution and make payments on a monthly basis per the terms of the payment plan. For those balances that are not received during the academic term, the balance is typically due within the current academic year which is approximately 30 weeks in length. Generally, a student receivable balance is written off once a student is out of school and it reaches greater than 90 days past due.

Our standard student receivable allowance is based on an estimate of lifetime expected credit losses for student receivables. Our estimation methodology considers a number of quantitative and qualitative factors that, based on our collection experience, we believe have an impact on our repayment risk and ability to collect student receivables. Changes in the trends in any of these factors may impact our estimate of the allowance for credit losses. These factors include, but are not limited to: internal repayment history, changes in the current economic, legislative or regulatory environments, internal cash collection forecasts and the ability to complete the federal financial aid process with the student. These factors are monitored and assessed on a regular basis. Overall, our allowance estimation process for student receivables is validated by trend analysis and comparing estimated and actual performance.

We have an immaterial amount of student receivables that are due greater than 12 months from the date of our condensed consolidated balance sheets. As of June 30, 2024 and December 31, 2023, the amount of non-current student receivables under payment plans that are longer than 12 months in duration, net of allowance for credit losses, was $5.3 million and $3.9 million, respectively.

Allowance for Credit Losses

We define student receivables as a portfolio segment under ASC Topic 326 – Financial Instruments – Credit Losses. Changes in our current and non-current allowance for credit losses related to our student receivable portfolio in accordance with the guidance under ASU 2016-13 for the quarters and years to date ended June 30, 2024 and 2023 were as follows (dollars in thousands):

	For the Quarter Ended June 30,						For the Year to Date Ended June 30,
	2024			2023			2024			2023
Balance, beginning of period	$	38,554		$	43,944		$	37,782		$	43,141
Provision for credit losses		6,075			8,170			12,631			18,927
Amounts written-off		(7,821	)		(9,608	)		(14,053	)		(20,136	)
Recoveries		463			549			911			1,123
Balance, end of period	$	37,271		$	43,055		$	37,271		$	43,055

Fair Value Measurements

The carrying amount reported in our condensed consolidated balance sheets for the current portion of student receivables approximates fair value because of the nature of these financial instruments as they generally have short maturity periods. It is not practicable to estimate the fair value of the non-current portion of student receivables, since observable market data is not readily available, and no reasonable estimation methodology exists.

XML

Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

7. LEASES

We lease most of our administrative and educational facilities under non-cancelable operating leases expiring at various dates through 2033. Lease terms generally range from five to ten years with one to four renewal options for extended terms. In most cases, we are required to make additional payments under facility operating leases for taxes, insurance and other operating expenses incurred during the operating lease period, which are typically variable in nature.

We determine if a contract contains a lease when the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Upon identification and commencement of a lease, we establish a right of use (“ROU”) asset and a lease liability.

Quantitative information related to leases is presented in the following table (dollars in thousands):

	For the Quarter Ended June 30, 2024			For the Year to Date Ended June 30, 2024
Lease expenses (1)
Fixed lease expenses - operating	$	1,122		$	2,566
Variable lease expenses - operating		279			337
Total lease expenses	$	1,401		$	2,903
Other information
Gross operating cash flows for operating leases (3)	$	(2,016	)	$	(4,482	)
	For the Quarter Ended June 30, 2023			For the Year to Date Ended June 30, 2023
Lease expenses (1)
Fixed lease expenses - operating	$	1,638		$	3,334
Variable lease expenses - operating		380			961
Sublease income (2)		(189	)		(500	)
Total lease expenses	$	1,829		$	3,795
Other information
Gross operating cash flows for operating leases (3)	$	(2,717	)	$	(5,583	)
Operating cash flows from subleases (3)	$	196		$	488
	As of June 30, 2024			As of June 30, 2023
Weighted average remaining lease term (in months) – operating leases		69			60
Weighted average discount rate – operating leases		5.1	%		4.8	%

__________________

(1)Lease expense and sublease income represent the amount recorded within our consolidated statements of income. Variable lease amounts represent expenses recognized as incurred which are not included in the lease liability. Fixed lease expenses and sublease income are recorded on a straight-line basis over the lease term and therefore are not necessarily representative of cash payments during the same period.

(2)Historically, for certain of our leased locations we had vacated the facility and had fully or partially subleased the space. As of June 30, 2024, we no longer have any subleased locations.

(3)Cash flows are presented on a consolidated basis and represent cash payments for fixed and variable lease costs.

XML

Contingencies

6 Months Ended

Jun. 30, 2024

Loss Contingency [Abstract]

Contingencies

8. CONTINGENCIES

An accrual for estimated legal fees of $3.0 million and $2.4 million at June 30, 2024 and December 31, 2023, respectively, is presented within other current liabilities on our condensed consolidated balance sheets.

We record a liability when we believe that it is both probable that a loss will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least quarterly, developments in our legal matters that could affect the amount of liability that was previously accrued and make adjustments as further information develops, circumstances change or contingencies are resolved. Significant judgment is required to determine both probability and the estimated amount. We may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (1) if the damages sought are indeterminate; (2) if the proceedings are in early stages; (3) if there is uncertainty as to the outcome of pending appeals, motions or settlements; (4) if there are significant factual issues to be determined or resolved; and (5) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any.

United States of America, ex rel. Fiorisce LLC v. Perdoceo Education Corporation, Colorado Technical University, Inc. and American InterContinental University, Inc. On July 19, 2023, we became aware of an amended complaint filed in the U.S. District Court for the District of Colorado on May 19, 2023. The original complaint was filed under seal on February 25, 2021 by a former employee of Colorado Technical University through a limited liability company, on behalf of herself, any other interested parties affiliated with the LLC and the federal government. On July 18, 2023, the district court ordered the complaint unsealed and we were notified that the U.S. Department of Justice ("DOJ") had declined to intervene in the action on February 3, 2023. The company had previously received a Civil Investigative Demand on April 8, 2022 from the DOJ and had been cooperating with the DOJ in its review. After the federal government declined to intervene in this case, the relator elected to pursue the litigation on behalf of the federal government. If she is successful, she would receive a portion of the federal government’s recovery. The amended complaint alleges

violations of the False Claims Act related to the company’s compliance with federal financial aid credit hour requirements in connection with its use of its learning management system. Relator claims that defendants’ conduct caused the government to make payments of federal funds to defendants which the government would not have made if not for defendants’ alleged violation of the law. Relator seeks treble damages plus civil penalties and attorneys’ fees. On January 4, 2024, the Court granted a motion to dismiss with respect to Perdoceo Education Corporation and American InterContinental University, Inc. which removes them as defendants in the case. The Court’s dismissal was “without prejudice”, which allows the relator in the case the opportunity to amend and refile a further amended complaint with respect to those two parties. The Relator has filed a motion, which is pending before the Court, that seeks permission to file a further amended complaint with respect to only Perdoceo Education Corporation.

Because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action. Accordingly, we have not recognized any liability associated with this action.

We receive from time-to-time requests from state attorneys general, federal and state government agencies and accreditors relating to our institutions, to specific complaints they have received from students or former students or to student loan forgiveness claims which seek information about students, our programs, and other matters relating to our activities. These requests can be broad and time consuming to respond to, and there is a risk that they could expand and/or lead to a formal action or claims of non-compliance. We are subject to a variety of other claims, lawsuits, arbitrations and investigations that arise from time to time out of the conduct of our business, including, but not limited to, matters involving prospective students, students or former students, alleged violations of the Telephone Consumer Protection Act, both individually and on behalf of a putative class, and employment matters. Periodically matters arise that we consider outside the scope of ordinary routine litigation incidental to our business. While we currently believe that these matters, individually or in aggregate, will not have a material adverse impact on our financial position, cash flows or results of operations, these matters are subject to inherent uncertainties, and management’s view of these matters may change in the future. Were an unfavorable outcome to occur in any one or more of these matters, there exists the possibility of a material adverse impact on our business, reputation, financial position and cash flows.

XML

Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

9. INCOME TAXES

The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which we operate and the ongoing development of tax planning strategies during the year. In addition, our provision for income taxes can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.

The following is a summary of our provision for income taxes and effective tax rate:

	For the Quarter Ended June 30,						For the Year to Date Ended June 30,
(Dollars in Thousands)	2024			2023			2024			2023
Pretax income	$	53,014		$	74,603		$	105,865		$	121,656
Provision for income taxes	$	14,585		$	19,930		$	27,994		$	32,499
Effective rate		27.5	%		26.7	%		26.4	%		26.7	%

The effective tax rate for the quarter and year to date ended June 30, 2024 was impacted by the tax effect of stock-based compensation and the release of previously recorded tax reserves, which decreased the effective tax rate for the quarter and year to date by 1.4% and 2.0%, respectively. The effective tax rate for the quarter and year to date ended June 30, 2023 was impacted by a $5.3 million unfavorable discrete adjustment related to the $22.1 million gain on the sale of the Le Cordon Bleu trademark, which was taxed at 24.1%. The effective tax rate for the quarter and year to date ended June 30, 2023 also includes the tax effect of stock-based compensation and the release of previously recorded tax reserves, which decreased the effective tax rate for the quarter and year to date by 0.6% and 0.7%, respectively. Additionally, as of June 30, 2024, a valuation allowance of $14.3 million was maintained with respect to our equity investment, available for sale short-term investments and state net operating losses.

We estimate that it is reasonably possible that the gross liability for unrecognized tax benefits for a variety of uncertain tax positions will decrease by up to $2.1 million in the next twelve months as a result of the expiration of the statute of limitations in several jurisdictions. The income tax rate for the quarter and year to date ended June 30, 2024 does not take into account the possible reduction of the liability for unrecognized tax benefits. The impact of a reduction to the liability will be treated as a discrete item in the period the reduction occurs. We recognize interest and penalties related to unrecognized tax benefits in tax expense. As of June 30, 2024, we had accrued $3.7 million as an estimate for reasonably possible interest and accrued penalties.

Our tax returns are routinely examined by federal, state and local tax authorities and these audits are at various stages of completion at any given time. The Internal Revenue Service has completed its examination of our U.S. income tax returns through our tax year ended December 31, 2014.

XML

Share-Based Compensation

6 Months Ended

Jun. 30, 2024

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

10. SHARE-BASED COMPENSATION

Overview

The Perdoceo Education Corporation Amended and Restated 2016 Incentive Compensation Plan (the “2016 Plan”) became effective (as the Career Education Corporation 2016 Incentive Compensation Plan) on May 24, 2016, and the amendment and restatement of the 2016 Plan became effective on June 3, 2021, upon its approval by the Company’s stockholders. Under the 2016 Plan, Perdoceo may grant to eligible participants awards of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, performance units, annual incentive awards, and substitute awards, which generally may be settled in cash or shares of our common stock. The vesting of all types of awards is subject to possible acceleration in certain circumstances. If a plan participant terminates employment for any reason other than by death or disability during the vesting period, the right to unvested awards is generally forfeited.

Restricted Stock Units

For the quarters ended June 30, 2024 and 2023, the Company granted less than 0.1 million restricted stock units in each period which are not “performance-based” and which have a grant-date fair value of approximately $1.0 million and $0.7 million, respectively. For the years to date ended June 30, 2024 and 2023, the Company granted approximately 0.3 million and 0.4 million restricted stock units, respectively, which are not "performance-based" and which have a grant-date fair value of approximately $5.3 million and $5.9 million, respectively.

For the years to date ended June 30, 2024 and 2023, the Company granted approximately 0.2 million and 0.3 million restricted stock units, respectively, which are “performance-based” and which have a grant-date fair value of approximately $3.5 million and $4.1 million, respectively. The performance-based restricted stock units are subject to performance conditions which are determined at the time of grant and typically cover a three-year performance period. These performance conditions may result in all units being forfeited even if the requisite service period is met.

All restricted stock units granted in 2024 and 2023 are to be settled in shares of our common stock.

Stock Options

There were no stock options granted during each of the quarters or years to date ended June 30, 2024 and 2023.

Share-Based Compensation Expense

For the quarters ended June 30, 2024 and 2023, the total share-based compensation expense was approximately $2.3 million and $2.0 million, respectively. For the years to date ended June 30, 2024 and 2023, the total share-based compensation expense was approximately $4.6 million and $4.3 million, respectively.

As of June 30, 2024, we estimate that total compensation expense of approximately $19.5 million will be recognized over the next four years for all unvested share-based awards that have been granted to participants. This amount excludes any estimates of forfeitures.

XML

Stock Repurchase Program

6 Months Ended

Jun. 30, 2024

Stockholders Equity Note [Abstract]

Stock Repurchase Program

11. STOCK REPURCHASE PROGRAM

On February 20, 2024, the Board of Directors of the Company approved a new stock repurchase program for up to $50.0 million which commenced March 1, 2024 and expires September 30, 2025. The new stock repurchase program replaced the previous stock repurchase program. The other terms of the new stock repurchase program are consistent with the Company’s previous stock repurchase program.

The timing of purchases and the number of shares repurchased under the program will be determined by the Company’s management and will depend on a variety of factors including stock price, trading volume and other general market and economic conditions, its assessment of alternative uses of capital, regulatory requirements and other factors. Repurchases will be made in open market transactions, including block purchases, conducted in accordance with Rule 10b-18 under the Exchange Act as well as may be made pursuant to trading plans established under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The stock repurchase program does not

obligate the Company to purchase shares and the Company may, in its discretion, begin, suspend or terminate repurchases at any time, without any prior notice.

During the years to date ended June 30, 2024 and 2023, we repurchased approximately 0.4 million shares and 0.2 million shares of our common stock, respectively, for approximately $6.8 million at an average price of $17.60 per share during the year to date ended June 30, 2024 and for approximately $2.7 million at an average price of $12.35 per share during the year to date ended June 30, 2023. During the quarter ended June 30, 2024 we did not repurchase any shares of our common stock and during the quarter ended June 30, 2023, we repurchased approximately 0.2 million shares of our common stock for approximately $1.9 million at an average price of $11.88 per share.

As of June 30, 2024, approximately $47.1 million was available under our new authorized stock repurchase program to repurchase outstanding shares of our common stock. Shares of stock repurchased under the program are held as treasury shares. These repurchased shares have reduced the weighted average number of shares of common stock outstanding for basic and diluted earnings per share calculations.

XML

Weighted Average Common Shares

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Weighted Average Common Shares

12. WEIGHTED AVERAGE COMMON SHARES

Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock units were settled for common shares during the period.

The weighted average number of common shares used to compute basic and diluted net income per share for the quarters and years to date ended June 30, 2024 and 2023 were as follows (shares in thousands):

	For the Quarter Ended June 30,				For the Year to Date Ended June 30,
	2024		2023		2024		2023
Basic common shares outstanding		65,611		67,421		65,583		67,328
Common stock equivalents		1,466		1,112		1,373		1,184
Diluted common shares outstanding		67,077		68,533		66,956		68,512

For the quarters and years to date ended June 30, 2024 and 2023, certain unexercised stock option awards are excluded from our computations of diluted earnings per share, as these shares were out-of-the-money and their effect would have been anti-dilutive. The anti-dilutive options that were excluded from our computations of diluted earnings per share were less than 0.1 million shares and approximately 0.3 million shares, respectively, for the quarters ended June 30, 2024 and 2023, and less than 0.1 million shares and approximately 0.3 million shares, respectively, for the years to date ended June 30, 2024 and 2023.

XML

Segment Reporting

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

13. SEGMENT REPORTING

Our segments are determined in accordance with FASB ASC Topic 280—Segment Reporting and are based upon how the Company analyzes performance and makes decisions. Each segment is comprised of an accredited postsecondary education institution that offers a variety of academic programs. As of June 30, 2024, our two segments are:

♦ Colorado Technical University (CTU) is committed to providing quality and industry-relevant higher education to a diverse student population, including serving non-traditional adult learners seeking career advancement and the military community. CTU utilizes innovative technology and experienced faculty, enabling the pursuit of personal and professional goals for learners. CTU offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity and criminal justice. Students pursue their degrees through fully-online programs, local campuses and blended formats, which combine campus-based and online education. As of June 30, 2024, students enrolled at CTU represented approximately 75% of our total enrollments. Approximately 97% of CTU’s students are enrolled in programs offered fully online. Students at CTU's ground-based campuses take both in-person and virtual classes.

♦ The American InterContinental University System (AIUS or AIU System) is committed to providing quality and accessible higher education opportunities for a diverse student population, including non-traditional adult learners and the military community. AIUS places emphasis on the educational, professional and personal growth of each student. AIUS offers academic programs in the career-oriented disciplines of business studies, information technologies, education, health sciences and criminal justice. Students pursue their degrees through fully-online programs, local campuses and blended

formats, which combine campus-based and online education. As of June 30, 2024, students enrolled at AIUS represented approximately 25% of our total enrollments. Approximately 97% of AIUS’ students are enrolled in programs offered fully online. Students at AIUS' ground-based campus take both in-person and virtual classes.

Summary financial information by reporting segment is as follows (dollars in thousands):

	For the Quarter Ended June 30,
	Revenue										Operating Income (Loss)
	2024		% of Total			2023		% of Total			2024			2023
CTU	$	112,828		67.7	%	$	119,292		64.0	%	$	42,890		$	40,451
AIUS		53,722		32.2	%		67,062		35.9	%		12,926			17,078
Corporate and Other		190		0.1	%		210		0.1	%		(9,810	)		(9,435	)
Total	$	166,740		100.0	%	$	186,564		100.0	%	$	46,006		$	48,094

	For the Year to Date Ended June 30,
	Revenue										Operating Income (Loss)
	2024		% of Total			2023		% of Total			2024			2023
CTU	$	226,397		67.6	%	$	243,784		63.8	%	$	85,046		$	84,141
AIUS		108,227		32.3	%		137,902		36.1	%		22,212			29,081
Corporate and Other		380		0.1	%		476		0.1	%		(14,974	)		(21,792	)
Total	$	335,004		100.0	%	$	382,162		100.0	%	$	92,284		$	91,430

	Total Assets as of  (1)
	June 30, 2024		December 31, 2023
CTU	$	210,845	$	202,728
AIUS		168,836		161,336
Corporate and Other		698,560		643,252
Total	$	1,078,241	$	1,007,316

(1)Total assets are presented on a condensed consolidated basis and do not include intercompany receivable or payable activity between institutions and corporate and investments in subsidiaries.

XML

Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

14. SUBSEQUENT EVENTS

Agreement to acquire the University of St. Augustine for Health Sciences, LLC

Perdoceo Education Corporation signed a definitive agreement to acquire 100% ownership of the University of St. Augustine for Health Sciences, LLC ("USAHS"). The material terms of the transaction have been described in the Company’s Form 8-K filed with the Securities and Exchange Commission on July 16, 2024. Completion of the acquisition is subject to customary closing conditions and satisfactory regulatory approvals from the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges ("WASC"), as well as other key regulatory bodies, and receipt of a preacquisition review response from the US Department of Education. The Company expects to complete the acquisition in December 2024.

Perdoceo expects to pay approximately $142.0 million to $144.0 million in cash at closing to acquire 100% ownership of USAHS. The actual cash paid will depend on adjustments for cash, debt and working capital based on the final closing balance sheet. The acquisition is not subject to a financing condition. Perdoceo plans to use cash on hand for the purchase.

Termination of credit agreement

On July 29, 2024, the Company gave notice of the termination of its credit agreement, dated as of September 8, 2021, as amended (the “Credit Agreement”), by and among the Company, as borrower, certain of its subsidiary guarantors thereunder, the lenders from time-to-time parties thereto and Wintrust Bank N.A. (the “Termination”). A description of the Credit Agreement is included in Note 4 “Financial Instruments” to our unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

At the time of the Termination of the Credit Agreement, the Company was not in default under the Credit Agreement, nor did it have any amounts outstanding thereunder. The Credit Agreement was due to mature on January 31, 2027. The Company made the decision to terminate the Credit Agreement due to the Company’s strong cash position and to avoid uncertainty under the Credit Agreement associated with newly effective Title IV financial responsibility requirements.

The Termination was effective on July 30, 2024. Upon effectiveness of the Termination, all security interests and pledges granted to the secured parties under the Credit Agreement were terminated and released. The Company did not incur any material early termination penalties in connection with the Termination.

XML

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Summary of Investments

Investments consist of the following as of June 30, 2024 and December 31, 2023 (dollars in thousands):

	June 30, 2024
			Gross Unrealized
	Cost		Gain		(Loss)			Fair Value
Short-term investments (available for sale):
Non-governmental debt securities	$	244,985	$	80	$	(847	)	$	244,218
Treasury and federal agencies		302,912		19		(876	)		302,055
Total short-term investments (available for sale)	$	547,897	$	99	$	(1,723	)	$	546,273

	December 31, 2023
			Gross Unrealized
	Cost		Gain		(Loss)			Fair Value
Short-term investments (available for sale):
Non-governmental debt securities		245,886		719		(892	)		245,713
Treasury and federal agencies		239,859		393		(830	)		239,422
Total short-term investments (available for sale)	$	485,745	$	1,112	$	(1,722	)	$	485,135

Schedule of Maintenance Fee Payment to our equity affiliate

We make periodic operating maintenance payments to our equity affiliate. The total fees recorded during the quarters and years to date ended June 30, 2024 and 2023 were as follows (dollars in thousands):

	Maintenance Fee Payments
For the quarter ended June 30, 2024	$	423
For the quarter ended June 30, 2023	$	414
For the year to date ended June 30, 2024	$	867
For the year to date ended June 30, 2023	$	845

XML

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2024

Revenue From Contract With Customer [Abstract]

Summary of Disaggregation of Revenue by Major Source

The following tables disaggregate our revenue by major source for the quarters and years to date ended June 30, 2024 and 2023 (dollars in thousands):

	For the Quarter Ended June 30, 2024								For the Quarter Ended June 30, 2023
	CTU		AIUS		Corporate and Other		Total		CTU		AIUS		Corporate and Other		Total
Tuition, net (1)	$	106,978	$	50,966	$	-	$	157,944	$	112,864	$	63,136	$	-	$	176,000
Technology and other fees		4,998		2,462		-		7,460		5,420		3,100		-		8,520
Total tuition and fees, net		111,976		53,428		-		165,404		118,284		66,236		-		184,520
Other revenue (2)		852		294		190		1,336		1,008		826		210		2,044
Total revenue	$	112,828	$	53,722	$	190	$	166,740	$	119,292	$	67,062	$	210	$	186,564
	For the Year to Date Ended June 30, 2024								For the Year to Date Ended June 30, 2023
	CTU		AIUS		Corporate and Other		Total		CTU		AIUS		Corporate and Other		Total
Tuition, net (1)	$	214,418	$	102,795	$	-	$	317,213	$	230,862	$	129,781	$	-	$	360,643
Technology and other fees		10,338		4,851		-		15,189		10,843		6,353		-		17,196
Total tuition and fees, net		224,756		107,646		-		332,402		241,705		136,134		-		377,839
Other revenue (2)		1,641		581		380		2,602		2,079		1,768		476		4,323
Total revenue	$	226,397	$	108,227	$	380	$	335,004	$	243,784	$	137,902	$	476	$	382,162

__________________

(1)Tuition includes revenue earned for all degree-granting programs as well as revenue earned for non-degree and professional development programs.

(2)Other revenue primarily includes contract training revenue and miscellaneous non-student related revenue.

Summary of Deferred Revenue Balances Offset with Contract Assets

The amount of deferred revenue balances which are being offset with contract assets balances as of June 30, 2024 and December 31, 2023 were as follows (dollars in thousands):

	As of
	June 30, 2024			December 31, 2023
Gross deferred revenue	$	90,785		$	63,970
Gross contract assets	$	(35,395	)		(26,755	)
Deferred revenue, net	$	55,390		$	37,215

Changes in Deferred Revenue Balances

Changes in our deferred revenue balances for the quarters and years to date ended June 30, 2024 and 2023 were as follows (dollars in thousands):

	For the Quarter Ended June 30, 2024									For the Quarter Ended June 30, 2023
	CTU			AIUS			Total			CTU			AIUS			Total
Gross deferred revenue, April 1	$	82,320		$	36,619		$	118,939		$	42,372		$	23,460		$	65,832
Revenue earned from prior balances		(69,946	)		(29,510	)		(99,456	)		(32,859	)		(19,609	)		(52,468	)
Billings during period(1)		97,465			39,022			136,487			148,118			74,318			222,436
Revenue earned for new billings during the period		(42,030	)		(23,918	)		(65,948	)		(85,425	)		(46,627	)		(132,052	)
Other adjustments		71			692			763			496			459			955
Gross deferred revenue, June 30	$	67,880		$	22,905		$	90,785		$	72,702		$	32,001		$	104,703
	For the Year to Date Ended June 30, 2024									For the Year to Date Ended June 30, 2023
	CTU			AIUS			Total			CTU			AIUS			Total
Gross deferred revenue, January 1	$	42,531		$	21,439		$	63,970		$	67,245		$	39,955		$	107,200
Revenue earned from prior balances		(37,248	)		(19,653	)		(56,901	)		(58,404	)		(32,495	)		(90,899	)
Billings during period(1)		250,342			108,799			359,141			248,130			127,450			375,580
Revenue earned for new billings during the period		(187,508	)		(87,993	)		(275,501	)		(183,301	)		(103,639	)		(286,940	)
Other adjustments		(237	)		313			76			(968	)		730			(238	)
Gross deferred revenue, June 30	$	67,880		$	22,905		$	90,785		$	72,702		$	32,001		$	104,703

______________

(1)Billings during period includes adjustments for prior billings.

XML

Student Receivables (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Changes in Current and Non-Current Receivables Allowance

We define student receivables as a portfolio segment under ASC Topic 326 – Financial Instruments – Credit Losses. Changes in our current and non-current allowance for credit losses related to our student receivable portfolio in accordance with the guidance under ASU 2016-13 for the quarters and years to date ended June 30, 2024 and 2023 were as follows (dollars in thousands):

	For the Quarter Ended June 30,						For the Year to Date Ended June 30,
	2024			2023			2024			2023
Balance, beginning of period	$	38,554		$	43,944		$	37,782		$	43,141
Provision for credit losses		6,075			8,170			12,631			18,927
Amounts written-off		(7,821	)		(9,608	)		(14,053	)		(20,136	)
Recoveries		463			549			911			1,123
Balance, end of period	$	37,271		$	43,055		$	37,271		$	43,055

XML

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Quantitative Information and Other Information Related to Leases

Quantitative information related to leases is presented in the following table (dollars in thousands):

	For the Quarter Ended June 30, 2024			For the Year to Date Ended June 30, 2024
Lease expenses (1)
Fixed lease expenses - operating	$	1,122		$	2,566
Variable lease expenses - operating		279			337
Total lease expenses	$	1,401		$	2,903
Other information
Gross operating cash flows for operating leases (3)	$	(2,016	)	$	(4,482	)
	For the Quarter Ended June 30, 2023			For the Year to Date Ended June 30, 2023
Lease expenses (1)
Fixed lease expenses - operating	$	1,638		$	3,334
Variable lease expenses - operating		380			961
Sublease income (2)		(189	)		(500	)
Total lease expenses	$	1,829		$	3,795
Other information
Gross operating cash flows for operating leases (3)	$	(2,717	)	$	(5,583	)
Operating cash flows from subleases (3)	$	196		$	488
	As of June 30, 2024			As of June 30, 2023
Weighted average remaining lease term (in months) – operating leases		69			60
Weighted average discount rate – operating leases		5.1	%		4.8	%

__________________

(1)Lease expense and sublease income represent the amount recorded within our consolidated statements of income. Variable lease amounts represent expenses recognized as incurred which are not included in the lease liability. Fixed lease expenses and sublease income are recorded on a straight-line basis over the lease term and therefore are not necessarily representative of cash payments during the same period.

(2)Historically, for certain of our leased locations we had vacated the facility and had fully or partially subleased the space. As of June 30, 2024, we no longer have any subleased locations.

(3)Cash flows are presented on a consolidated basis and represent cash payments for fixed and variable lease costs.

XML

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Summary of Provision for Income Taxes and Effective Tax Rate

The following is a summary of our provision for income taxes and effective tax rate:

	For the Quarter Ended June 30,						For the Year to Date Ended June 30,
(Dollars in Thousands)	2024			2023			2024			2023
Pretax income	$	53,014		$	74,603		$	105,865		$	121,656
Provision for income taxes	$	14,585		$	19,930		$	27,994		$	32,499
Effective rate		27.5	%		26.7	%		26.4	%		26.7	%

XML

Weighted Average Common Shares (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net Income Per Share

The weighted average number of common shares used to compute basic and diluted net income per share for the quarters and years to date ended June 30, 2024 and 2023 were as follows (shares in thousands):

	For the Quarter Ended June 30,				For the Year to Date Ended June 30,
	2024		2023		2024		2023
Basic common shares outstanding		65,611		67,421		65,583		67,328
Common stock equivalents		1,466		1,112		1,373		1,184
Diluted common shares outstanding		67,077		68,533		66,956		68,512

XML

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Summary Financial Information by Reporting Segment

Summary financial information by reporting segment is as follows (dollars in thousands):

	For the Quarter Ended June 30,
	Revenue										Operating Income (Loss)
	2024		% of Total			2023		% of Total			2024			2023
CTU	$	112,828		67.7	%	$	119,292		64.0	%	$	42,890		$	40,451
AIUS		53,722		32.2	%		67,062		35.9	%		12,926			17,078
Corporate and Other		190		0.1	%		210		0.1	%		(9,810	)		(9,435	)
Total	$	166,740		100.0	%	$	186,564		100.0	%	$	46,006		$	48,094

	For the Year to Date Ended June 30,
	Revenue										Operating Income (Loss)
	2024		% of Total			2023		% of Total			2024			2023
CTU	$	226,397		67.6	%	$	243,784		63.8	%	$	85,046		$	84,141
AIUS		108,227		32.3	%		137,902		36.1	%		22,212			29,081
Corporate and Other		380		0.1	%		476		0.1	%		(14,974	)		(21,792	)
Total	$	335,004		100.0	%	$	382,162		100.0	%	$	92,284		$	91,430

	Total Assets as of  (1)
	June 30, 2024		December 31, 2023
CTU	$	210,845	$	202,728
AIUS		168,836		161,336
Corporate and Other		698,560		643,252
Total	$	1,078,241	$	1,007,316

(1)Total assets are presented on a condensed consolidated basis and do not include intercompany receivable or payable activity between institutions and corporate and investments in subsidiaries.

XML

Basis of Presentation - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2024 Segment
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of reporting segments	2

XML

Financial Instruments - Summary of Investments (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Short-term, Non-governmental Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total short-term investments (available for sale), Cost	$ 244,985	$ 245,886
Total short-term investments (available for sale), Gross Unrealized Gain	80	719
Total short-term investments (available for sale), Gross Unrealized (Loss)	(847)	(892)
Total short-term investments (available for sale), Fair value	244,218	245,713
Short-term, Treasury and Federal Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Total short-term investments (available for sale), Cost	302,912	239,859
Total short-term investments (available for sale), Gross Unrealized Gain	19	393
Total short-term investments (available for sale), Gross Unrealized (Loss)	(876)	(830)
Total short-term investments (available for sale), Fair value	302,055	239,422
Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Total short-term investments (available for sale), Cost	547,897	485,745
Total short-term investments (available for sale), Gross Unrealized Gain	99	1,112
Total short-term investments (available for sale), Gross Unrealized (Loss)	(1,723)	(1,722)
Total short-term investments (available for sale), Fair value	$ 546,273	$ 485,135

XML

Financial Instruments - Additional Information (Detail) - USD ($)			3 Months Ended		6 Months Ended
	Jan. 23, 2024	Apr. 01, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Financial Instruments [Line Items]
Period cash equivalents and short-term investments have been in continuous unrealized gain (loss) position, years, maximum					1 year
Realized gains (losses)			$ 0	$ 0	$ 0	$ 0
Non controlling interest			1,200,000		1,200,000
Gain (loss) from investment in affiliate						(100,000)
Aggregate maximum payments of repurchases of common stock					6,769,000	$ 2,729,000
Cash and cash equivalents, unrestricted			127,852,000		127,852,000		$ 118,009,000
Maximum [Member]
Financial Instruments [Line Items]
Gain (loss) from investment in affiliate			(100,000)	$ (100,000)	$ 100,000
Credit Agreement | Wintrust Bank [Member]
Financial Instruments [Line Items]
Discount interest rate to prime					1.00%
Credit Agreement | Wintrust Bank [Member] | Minimum [Member] | Prime [Member]
Financial Instruments [Line Items]
Line of credit facility, interest rate					3.00%
Credit Agreement | Revolving Credit Facility | Wintrust Bank [Member]
Financial Instruments [Line Items]
Credit facility borrowings			$ 0		$ 0		0
Credit Agreement | Revolving Credit Facility [Member] | Wintrust Bank [Member]
Financial Instruments [Line Items]
Revolving credit facility maturity date	Jan. 31, 2027				Jan. 31, 2027
Line of credit facility interest rate prime	3.00%	4.00%
Revolving credit facility	$ 125,000,000
Minimum required cash and cash equivalents in domestic accounts covenant.	$ 156,250,000
Credit Agreement | Revolving Credit Facility [Member] | Wintrust Bank [Member] | Maximum [Member]
Financial Instruments [Line Items]
Line of credit facility maximum increase to borrowing capacity					$ 50,000,000
Aggregate maximum payments of repurchases of common stock					$ 100,000,000.0
Percentage of aggregate amount of loan commitments					125.00%
Equity Affiliate [Member]
Financial Instruments [Line Items]
Percentage of investment in equity affiliate			30.70%		30.70%
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Instruments [Line Items]
Total short-term investments (available for sale), Fair value			$ 30,900,000		$ 30,900,000		30,300,000
Federal Agencies Debt Securities within Cash and Cash Equivalents [Member] | Level 2 [Member]
Financial Instruments [Line Items]
Total short-term investments (available for sale), Fair value							$ 44,900,000

XML

Financial Instruments - Schedule of Maintenance Fee Payment to Our Equity Affiliate (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Related Party Transactions [Abstract]
Maintenance Fee Payments	$ 423	$ 414	$ 867	$ 845

XML

Revenue Recognition - Summary of Disaggregation of Revenue by Major Source (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation Of Revenue [Line Items]
Total revenue		$ 166,740	$ 186,564	$ 335,004	$ 382,162
Tuition, Net [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	[1]	157,944	176,000	317,213	360,643
Technology and Other Fees [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		7,460	8,520	15,189	17,196
Tuition and Fees, Net [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		165,404	184,520	332,402	377,839
Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	[2]	1,336	2,044	2,602	4,323
University Group [Member] | CTU [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		112,828	119,292	226,397	243,784
University Group [Member] | AIUS [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		53,722	67,062	108,227	137,902
University Group [Member] | Tuition, Net [Member] | CTU [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	[1]	106,978	112,864	214,418	230,862
University Group [Member] | Tuition, Net [Member] | AIUS [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	[1]	50,966	63,136	102,795	129,781
University Group [Member] | Technology and Other Fees [Member] | CTU [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		4,998	5,420	10,338	10,843
University Group [Member] | Technology and Other Fees [Member] | AIUS [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		2,462	3,100	4,851	6,353
University Group [Member] | Tuition and Fees, Net [Member] | CTU [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		111,976	118,284	224,756	241,705
University Group [Member] | Tuition and Fees, Net [Member] | AIUS [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		53,428	66,236	107,646	136,134
University Group [Member] | Other [Member] | CTU [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	[2]	852	1,008	1,641	2,079
University Group [Member] | Other [Member] | AIUS [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	[2]	294	826	581	1,768
Corporate and Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		190	210	380	476
Corporate and Other [Member] | Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	[2]	$ 190	$ 210	$ 380	$ 476

[1] Tuition includes revenue earned for all degree-granting programs as well as revenue earned for non-degree and professional development programs.

[2] Other revenue primarily includes contract training revenue and miscellaneous non-student related revenue.

XML

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Revenue Recognition [Line Items]
Revenue recognized estimated reserve based on historical evidence	$ 2.0	$ 2.0

XML

Revenue Recognition - Summary of Deferred Revenue Balances Offset with Contract Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Revenue Recognition [Abstract]
Gross deferred revenue	$ 90,785	$ 118,939	$ 63,970	$ 104,703	$ 65,832	$ 107,200
Gross contract assets	(35,395)		(26,755)
Deferred revenue, net	$ 55,390		$ 37,215

XML

Revenue Recognition - Changes in Deferred Revenue Balances (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Deferred Revenue Arrangement [Line Items]
Gross deferred revenue, beginning balance		$ 118,939	$ 65,832	$ 63,970	$ 107,200
Revenue earned from prior balances		(99,456)	(52,468)	(56,901)	(90,899)
Billings during period	[1]	136,487	222,436	359,141	375,580
Revenue earned for new billings during the period		(65,948)	(132,052)	(275,501)	(286,940)
Other adjustments		763	955	76	(238)
Gross deferred revenue, ending balance		90,785	104,703	90,785	104,703
University Group [Member] | CTU [Member]
Deferred Revenue Arrangement [Line Items]
Gross deferred revenue, beginning balance		82,320	42,372	42,531	67,245
Revenue earned from prior balances		(69,946)	(32,859)	(37,248)	(58,404)
Billings during period	[1]	97,465	148,118	250,342	248,130
Revenue earned for new billings during the period		(42,030)	(85,425)	(187,508)	(183,301)
Other adjustments		71	496	(237)	(968)
Gross deferred revenue, ending balance		67,880	72,702	67,880	72,702
University Group [Member] | AIUS [Member]
Deferred Revenue Arrangement [Line Items]
Gross deferred revenue, beginning balance		36,619	23,460	21,439	39,955
Revenue earned from prior balances		(29,510)	(19,609)	(19,653)	(32,495)
Billings during period	[1]	39,022	74,318	108,799	127,450
Revenue earned for new billings during the period		(23,918)	(46,627)	(87,993)	(103,639)
Other adjustments		692	459	313	730
Gross deferred revenue, ending balance		$ 22,905	$ 32,001	$ 22,905	$ 32,001

[1] Billings during period includes adjustments for prior billings.

XML

Student Receivables - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Recorded Investment, Past Due [Line Items]
Approximate length of current academic year	210 days
Student receivables, net of allowance for doubtful accounts	$ 5,267	$ 3,859
Minimum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Student receivables write-off period, days past due	90 days

XML

Student Receivables - Changes in Current and Non-Current Allowance For Credit Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Receivables [Abstract]
Balance, Beginning of Period	$ 38,554	$ 43,944	$ 37,782	$ 43,141
Provision for credit losses	6,075	8,170	12,631	18,927
Amounts written-off	(7,821)	(9,608)	(14,053)	(20,136)
Recoveries	463	549	911	1,123
Balance, End of Period	$ 37,271	$ 43,055	$ 37,271	$ 43,055

XML

Leases - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
		Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lessee Lease Description [Line Items]
Operating leases expiration date			2033
Sublease income	[1]	$ 189		$ 500
Minimum [Member]
Lessee Lease Description [Line Items]
Lease term range, years			5 years
Number of renewal options for extended terms			1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Lease term range, years			10 years
Number of renewal options for extended terms			4 years

[1] Historically, for certain of our leased locations we had vacated the facility and had fully or partially subleased the space. As of June 30, 2024, we no longer have any subleased locations.

XML

Leases - Schedule of Quantitative Information Related to Leases (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lease expenses
Fixed lease expenses - operating		$ 1,122	$ 1,638	$ 2,566	$ 3,334
Variable lease expenses - operating		279	380	337	961
Sublease income	[1]		(189)		(500)
Total lease expenses		1,401	1,829	2,903	3,795
Other information
Gross operating cash flows for operating leases	[2]	$ (2,016)	(2,717)	$ (4,482)	(5,583)
Operating cash flows from subleases			$ 196		$ 488
Weighted average remaining lease term (in months) – operating leases		69 months	60 months	69 months	60 months
Weighted average discount rate – operating leases		5.10%	4.80%	5.10%	4.80%

[1] Historically, for certain of our leased locations we had vacated the facility and had fully or partially subleased the space. As of June 30, 2024, we no longer have any subleased locations.

[2] Cash flows are presented on a consolidated basis and represent cash payments for fixed and variable lease costs.

XML

Contingencies - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Other Accrued Expenses [Member]
Loss Contingencies [Line Items]
Accrual for legal fees	$ 3.0	$ 2.4

XML

Income Taxes - Summary of Provision for Income Taxes and Effective Tax Rate (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Pretax income	$ 53,014	$ 74,603	$ 105,865	$ 121,656
Provision for income taxes	$ 14,585	$ 19,930	$ 27,994	$ 32,499
Effective rate	27.50%	26.70%	26.40%	26.70%

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax [Line Items]
Deferred tax assets, valuation allowance	$ 14,300		$ 14,300
Decrease in unrecognized tax positions	$ 2,100		$ 2,100
Effective tax rate impact associated with stock-based compensation and previously recorded tax reserves	1.40%	0.60%	2.00%	0.70%
Unfavorable discrete adjustment		$ 5,300		$ 5,300
Gain on sale				22,086
Interest and penalties	$ 3,700		$ 3,700
LCB Trademark [Member]
Income Tax [Line Items]
Gain on sale		$ 22,100		$ 22,100
Percentage of effective tax on gain on sale of intangible asset		24.10%		24.10%

XML

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted ( in shares)	0	0	0	0
Total stock-based compensation expense	$ 2.3	$ 2.0	$ 4.6	$ 4.3
Estimated total compensation expense	$ 19.5		$ 19.5
Expiration period in years			4 years
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted ( in shares)	100,000	100,000	300,000	400,000
Granted, Units fair value	$ 1.0	$ 0.7	$ 5.3	$ 5.9
Performance-based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted ( in shares)			200,000	300,000
Granted, Units fair value			$ 3.5	$ 4.1
Service period in years			3 years

XML

Stock Repurchase Program - Additional Information (Detail) - USD ($)		3 Months Ended		6 Months Ended
	Feb. 20, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Equity, Class of Treasury Stock [Line Items]
Stock repurchase authorized amount	$ 50,000,000
Expiration Date	Sep. 30, 2025
Shares repurchased under stock repurchase program				400,000	200,000
Shares repurchased during period			$ 1,900,000	$ 6,800,000	$ 2,700,000
Average price of repurchased stock			$ 11.88	$ 17.6	$ 12.35
Available authorized repurchase amount		$ 47,100,000		$ 47,100,000
Maximum [Member]
Equity, Class of Treasury Stock [Line Items]
Shares repurchased under stock repurchase program		0	200,000

XML

Weighted Average Common Shares - Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net Income Per Share (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Basic common shares outstanding	65,611	67,421	65,583	67,328
Common stock equivalents	1,466	1,112	1,373	1,184
Diluted common shares outstanding	67,077	68,533	66,956	68,512

XML

Weighted Average Common Shares - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Employee Stock Option [Member] | Maximum [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive awards excluded from computations of diluted earnings per share	0.1	0.3	0.1	0.3

XML

Segment Reporting - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2024 Segment
Segment Reporting Information [Line Items]
Number of reporting segments	2
CTU [Member]
Segment Reporting Information [Line Items]
Students enrolled expressed as percentage of enrollment	75.00%
CTU [Member] | Fully Online [Member]
Segment Reporting Information [Line Items]
Percentage of enrollment	97.00%
AIUS [Member]
Segment Reporting Information [Line Items]
Students enrolled expressed as percentage of enrollment	25.00%
AIUS [Member] | Fully Online [Member]
Segment Reporting Information [Line Items]
Percentage of enrollment	97.00%

XML

Segment Reporting - Summary Financial Information by Reporting Segment (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Revenue		$ 166,740	$ 186,564	$ 335,004	$ 382,162
Percentage of total revenue		100.00%	100.00%	100.00%	100.00%
Operating Income (Loss)		$ 46,006	$ 48,094	$ 92,284	$ 91,430
Total Assets	[1]	1,078,241		1,078,241		$ 1,007,316
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenue		$ 190	$ 210	$ 380	$ 476
Percentage of total revenue		0.10%	0.10%	0.10%	0.10%
Operating Income (Loss)		$ (9,810)	$ (9,435)	$ (14,974)	$ (21,792)
Total Assets	[1]	698,560		698,560		643,252
CTU [Member] | University Group [Member]
Segment Reporting Information [Line Items]
Revenue		$ 112,828	$ 119,292	$ 226,397	$ 243,784
Percentage of total revenue		67.70%	64.00%	67.60%	63.80%
Operating Income (Loss)		$ 42,890	$ 40,451	$ 85,046	$ 84,141
Total Assets	[1]	210,845		210,845		202,728
AIUS [Member] | University Group [Member]
Segment Reporting Information [Line Items]
Revenue		$ 53,722	$ 67,062	$ 108,227	$ 137,902
Percentage of total revenue		32.20%	35.90%	32.30%	36.10%
Operating Income (Loss)		$ 12,926	$ 17,078	$ 22,212	$ 29,081
Total Assets	[1]	$ 168,836		$ 168,836		$ 161,336

[1] Total assets are presented on a condensed consolidated basis and do not include intercompany receivable or payable activity between institutions and corporate and investments in subsidiaries.

XML

Subsequent Events - Additional Information (Details) - USD ($)		6 Months Ended
	Jul. 29, 2024	Jun. 30, 2024	Dec. 31, 2023
University of St. Augustine for Health Sciences, LLC [Member]
Subsequent Event [Line Items]
Percentage of investment in equity affiliate		100.00%
Minimum [Member] | University of St. Augustine for Health Sciences, LLC [Member]
Subsequent Event [Line Items]
Expected payment for acquisition		$ 142,000,000
Maximum [Member] | University of St. Augustine for Health Sciences, LLC [Member]
Subsequent Event [Line Items]
Expected payment for acquisition		144,000,000
Credit Agreement [Member] | Revolving Credit Facility [Member] | Wintrust Bank [Member]
Subsequent Event [Line Items]
Credit facility borrowings		$ 0	$ 0
Credit Agreement [Member] | Revolving Credit Facility [Member] | Wintrust Bank [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Credit facility borrowings	$ 0
Maturity date	Jan. 31, 2027