Slides
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First Quarter 2026 Earnings January 13, 2026
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Forward-Looking Statements. This presentation contains forward-looking statements within the meaning of theU.S. Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Additionally, we may make forward-looking statements in our other documents filed or furnished with the Securities and Exchange Commission, and our management may make forward-looking statements orally to analysts, investors, representatives of the media and others. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth are forward-looking statements. The forward-looking statements could relate to the following, among other things: our strategy, outlook and growth prospects; our operational and financial targets and dividend policy; general economic trends and trends in the industry and markets; and the competitive environment in which we operate. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Important factors that could cause our results to vary from expectations include, but are not limited to:our ability to comply with the extensive regulatory requirements for our business, and the impact of a failure to comply with applicable regulations or regulatory requirements, standards or policies, which could subject us to significant monetary liabilities, fines and penalties, including loss of or limitations upon access to U.S. federal student loans, grants and military program benefits for our students, and otherwise have a material adverse impact on our business;shifts in higher education policy at the federal and state levels our ability to maintain our institutional accreditation and our eligibility to participate in Title IV programs; our ability to enroll and retain students; our ability to adapt to changing market needs or new technologies; our ability to maintain existing, and develop additional, business-to-business relationships with employers; our ability to attract or retain a qualified senior management team and qualified faculty members; the impact of compliance reviews, claims, or litigation that government agencies, regulatory agencies, and third parties may conduct, bring or initiate against us based on alleged violations of the extensive regulatory requirements applicable to us; our ability to establish, maintain, protect and enforce our intellectual property and proprietary rights and prevent third parties from making unauthorized use of such rights; liability associated with any failure to comply with data privacy and data security laws and the unauthorized access, duplication, distribution or other use of confidential or personal information; additional tax liabilities; our ability to pay dividends on our common stock or the timing or amount of any such dividends; and other risk factors identified in our periodic reports with the Securities and Exchange Commission.These forward-looking statements are based on assumptions and subject to risks and uncertainties.Given these uncertainties, undue reliance should not be placed on these forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this presentation and, except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this presentation. We anticipate that subsequent events and developments will cause our views to change. This presentation should be read completely and with the understanding that our actual future results may be materially different from what we expect. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may undertake. We qualify all of our forward-looking statements by these cautionary statements. 2
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We Are a Mission-Driven Organization. University of Phoenix provides access to higher education opportunities that enable students to develop the knowledge and skills necessary to achieve their professional goals, improve the performance of their organizations and provide leadership and service to their communities 3 Phoenix Education Partners, Inc., NYSE: PXED, through its subsidiary, The University of Phoenix, Inc., is a pioneer in online education for working adults
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Q1 FY 2026 Performance. Average Total Degreed Enrollment (1)% Change YoY Net Revenue% Change YoY Adj. Net Income Attributable to PXED Adj. Diluted EPS(2)% Change YoY 85,600+4.1% $262.0 million+2.9% $53.6 million | $1.38+5.3% | +$0.03 per shareCash, Restricted Cash & Marketable Securities(3)$ Change$218.1 million+$23.3 million Enrollment growth resulted from new student growth and improved student retention. Enrollment through employer relationships represented approximately 34% of Q1 2026 Average Total Degreed Enrollment, +300 bps over prior year period Net revenue growth was primarily driven by an increase in enrollment compared to the prior year period, which resulted from new student growth and improved student retention Adjusted net income attributable to Phoenix Education Partners and adjusted diluted EPS growth was primarily due to such factors as described above for adjusted EBITDA The increase was primarily attributable to approximately $31 million of cash generated by operating activities during Q1 20261 We define “Total Degreed Enrollment” as the number of confirmed students (both new and continuing) enrolled in credit-bearing courses who post attendance at least one time during a calendar month (even if they withdraw later in the same month), excluding students who graduated as of the end of such month. We calculate “Average Total Degreed Enrollment” over a period of time by aggregating the monthly Total Degreed Enrollment during such period and dividing that amount by the number of months in the period2 Adjusted net income attributable to Phoenix Education Partners, adjusted diluted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. For more information on non-GAAP measures used in this presentation and a reconciliation of our GAAP information to our non-GAAP information, refer to slides 8-103 Includes cash and cash equivalents, restricted cash and cash equivalents, and marketable securities (current and noncurrent marketable securities) Growth Across Average TDE, Net Revenue, Adjusted EBITDA, Adjusted Net Income Attributable to PXED, and Adjusted Diluted EPS 4 Net Income Attributable to PXED Diluted EPS% Change YoY$15.5 million | $0.40-66.7% | -$0.83 per shareThe decrease in net income attributable to Phoenix Education Partners and diluted EPS was primarily due to non-cash share-based compensation and other expenses that resulted from the initial public offering Adjusted EBITDA(2)% Change YoY$75.2 million+7.2%Adjusted EBITDA grew 7.2% primarily due to the increase in net revenue, improved student-facing team productivity, and lower financial aid processing costs and bad debt expense compared to the prior year period. Adjusted EBITDA margin increased to 28.7%, +120 bps over the prior year period
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Year-Over-Year Average Total Degreed Enrollment, Net Revenue, and Adjusted EBITDA Growth. 5 Average Total Degreed Enrollment Increased 4.1% YoY to 85,600, Driven by New Student Growth and Improved RetentionNet RevenueAdjusted EBITDA (2) $254.7 $262.0 Q1/2025Q1/2026 $70.1 $75.2 Q1/2025Q1/202627.5%28.7%Adj. EBITDA Margin (2) (%): +2.9%YoY +7.2%YoY $MM $MM 1 Represents Average Total Degreed Enrollment, as defined on Slide 42 Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. For more information on non-GAAP measures used in this presentation and a reconciliation of our GAAP information to our non-GAAP information, refer to Slides 8-10 Q1/2025Q1/2026 +4.1%YoY Avg. Total Degreed Enrollment (1) 82.2 85.6 Enrollments, thousands
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FY 2026 Guidance. Note: Outlook reflects management expectations as of January 13, 2026. For more information on Adjusted EBITDA and other non-GAAP measures used in this presentation, refer to slides 8-10. Net Revenue$1,025 million - $1,035 million $244 million - $249 million Fiscal 2026 Net Revenue and Adjusted EBITDA Outlook Reiterated Adjusted EBITDA 6
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AppendixNon-GAAP Financial Measures Disclosure
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Use of Non-GAAP Financial Information. The Company’s non-GAAP financial measures are intended to supplement, but not be a substitute for, financial measures prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses, and chooses to disclose to investors, these non-GAAP financial measures because: (i) such measures provide an additional analytical tool to clarify the Company’s results from operations and help to identify underlying trends in its results of operations; (ii) as to the non-GAAP earnings measures, such measures help compare the Company’s performance on a consistent basis across time periods; and (iii) these non-GAAP measures are employed by the Company’s management in its own evaluation of performance and are utilized in financial and operational decision-making processes, such as budgeting and forecasting. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Other companies, including other companies in the education industry, may calculate non-GAAP financial measures differently, limiting their usefulness as a comparative measure across companies.•Adjusted net income attributable to Phoenix Education Partners. We define adjusted net income attributable to Phoenix Education Partners as net income attributable to the Company, adjusted to eliminate the impact of restructuring lease expense, strategic alternatives expense, cybersecurity incident expense, impairment charges and asset disposal losses, litigation charges and regulatory expense, non-cash share-based compensation expense, certain tax effects and other items.1•Adjusted EBITDA. We define adjusted EBITDA as net income attributable to the Company, adjusted to eliminate the impact of restructuring lease expense, strategic alternatives expense, cybersecurity incident expense, impairment charges and asset disposal losses, litigation charges and regulatory expense, non-cash share-based compensation expense, depreciation and amortization, interest income, net of interest expense, provision for income taxes and certain other items.1•Adjusted earnings per share. We define adjusted earnings per share as adjusted net income attributable to Phoenix Education Partners divided by basic or diluted shares, as applicable, used in computing earnings per share.•Adjusted EBITDA margin. We define adjusted EBITDA margin as adjusted EBITDA divided by net revenue, expressed as a percentage.Included in the sections that follow are reconciliations between the non-GAAP financial measures and the most directly comparable GAAP measures.With respect to Adjusted EBITDA for 2026, we are not able to reconcile this forward-looking non-GAAP financial measure to the most directly comparable GAAP measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain items, including but not limited to potential expenses associated with our cybersecurity incident and our provision for income taxes, which could have a significant impact on our future GAAP results. 81 For our first quarter of 2026, we changed our definition of this measure to start with “Net income attributable to Phoenix Education Partners” instead of “Net income” and began excluding expenses incurred related to our cybersecurity incident, which we do not believe are representative of our ongoing operations. We have retrospectively changed this measure for all periods presented to conform with our new definition.
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Reconciliation of GAAP Financial Information to Non-GAAP Financial Information* (1/2). 9 * For a more detailed description of our Reconciliation of GAAP Financial Information to Non-GAAP Financial Information please refer to our most recent quarterly report filed on Form 10-Q.
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Reconciliation of GAAP Financial Information to Non-GAAP Financial Information* (2/2). 10 * For a more detailed description of our Reconciliation of GAAP Financial Information to Non-GAAP Financial Information please refer to our most recent quarterly report filed on Form 10-Q.