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Phoenix Education Partners, Inc.
(NYSE:PXED)
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Rating:72Outperform
Price Target:
$30.00
▲(0.00% Upside)
Action:Reiterated
Date:09/18/26
PXED scores well on financial performance and reasonable valuation (strong growth, solid margins, and strong free cash flow) and is supported by constructive guidance and ongoing capital returns. The primary drag is technical weakness, with the stock in a clear downtrend despite oversold readings that may only provide short-term support.
Positive Factors
Strong profitability and growth
The combination of substantial revenue expansion and double-digit net profitability indicates a scalable operating model with meaningful earnings capacity. Healthy gross, EBIT, and EBITDA margins provide room to fund strategic initiatives while retaining financial resilience over the next several quarters.
Negative Factors
Profit and margin pressure
The decline in quarterly earnings and adjusted EBITDA margin shows that operating profitability is currently absorbing higher advertising costs and other expenses. If these pressures persist, they could reduce the cash available for reinvestment and weaken the conversion of revenue growth into shareholder earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and growth
The combination of substantial revenue expansion and double-digit net profitability indicates a scalable operating model with meaningful earnings capacity. Healthy gross, EBIT, and EBITDA margins provide room to fund strategic initiatives while retaining financial resilience over the next several quarters.
Read all positive factors
Phoenix Education Partners, Inc. (PXED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$894.70M
Dividend Yield2.54%
Average Volume (3M)91.18K
Price to Earnings (P/E)10.7
Beta (1Y)0.47
Revenue Growth2.39%
EPS Growth-34.68%
CountryUS
Employees3,400
SectorGeneral
Sector StrengthN/A
IndustryEducation & Training Services
Share Statistics
EPS (TTM)2.31
Shares Outstanding36,047,375
10 Day Avg. Volume102,251
30 Day Avg. Volume91,183
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)5.51
Price to Sales (P/S)1.35
P/FCF Ratio20.95
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue1.00
Enterprise Value/Gross Profit1.80
Enterprise Value/Ebitda6.43
Forecast
1Y Price Target
$35.50Price Target Upside18.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.61
Revenue Forecast (FY)$1.06B
Phoenix Education Partners, Inc. Business Overview & Revenue Model
Company Description
Phoenix Education Partners, Inc. owns and manages the University of Phoenix, which functions as an online higher education institution. This provider specifically tailors its educational programs to cater to the requirements of adults who are curr...
Phoenix Education Partners, Inc. Earnings Call Summary
Earnings Call Date:Jul 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented a mixture of stable operational fundamentals and strategic progress alongside short-term cost and conversion headwinds. Key positives include flat-to-growing revenue, modest enrollment growth, strong retention, expanding employer-supported enrollment (36% of total), robust liquidity ($269M+), an upgraded adjusted EBITDA outlook, accelerated AI integration (including an OpenAI collaboration), and active capital return programs (dividend and $50M buyback authorization). Offsetting these strengths are near-term profitability pressures driven by higher share‑based compensation and elevated advertising to accelerate a new campaign, a quarter-over-quarter decline in adjusted EBITDA and margins, a sizable year-to-date net income reduction largely tied to IPO-related SBC and one-time items, and transitional enrollment friction from changing AI-driven search behavior and newly deployed federal verification controls. Management characterized many headwinds as transitional or validated investments, and reaffirmed confidence in long-term strategy and demand.Positive Updates
Stable Revenue and Modest Enrollment Growth
Net revenue for Q3 was $271.8M (essentially flat vs $271.7M prior year). Average total degreed enrollment increased 0.6% year-over-year to ~85,300 students in Q3 and was up 2.2% year-to-date (~84,500 students).
Negative Updates
Q3 Net Income and EPS Declines
Net income attributable to Phoenix Education Partners was $39.2M in Q3 vs $53.8M prior year, a decline of roughly 27% year-over-year. Reported diluted EPS was $1.01 vs $1.42 prior year; adjusted diluted EPS fell to $1.43 from $1.57 (~-8.9% YoY).
Read all updates
Q3-2026 Updates
Positive
Negative
Stable Revenue and Modest Enrollment Growth
Net revenue for Q3 was $271.8M (essentially flat vs $271.7M prior year). Average total degreed enrollment increased 0.6% year-over-year to ~85,300 students in Q3 and was up 2.2% year-to-date (~84,500 students).
Read all positive updates
Company Guidance
Management updated fiscal 2026 guidance to net revenue of $1.02–$1.025 billion and raised/tightened adjusted EBITDA to $246–$250 million, while reaffirming a $0.21 quarterly dividend (=$0.84 annual) and a $50 million repurchase authorization (≈135,000 shares repurchased in Q3 for $4.0M at $29.29 avg, ~$46M remaining). In Q3 they reported net revenue $271.8M, adjusted EBITDA $78.1M (margin 28.7%), net income $39.2M ($1.01 diluted), average total degreed enrollment ≈85,300 (+0.6% YoY) and employer‑supported enrollment ≈36% (vs ~33% a year ago); year‑to‑date net revenue was $756.3M, adjusted EBITDA $188.1M (margin 24.9%), average enrollment ≈84,500 (+2.2% YTD), cash and marketable securities $269.4M (vs $194.8M prior year), operating cash flow $116.7M, dividends paid $17.4M, and capex $15M.Phoenix Education Partners, Inc. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 1.01B | 1.01B | 950.01M | 835.25M |
| Gross Profit | 560.76M | 571.20M | 546.09M | 455.99M |
| EBITDA | 157.45M | 204.60M | 189.26M | 113.31M |
| Net Income | 82.90M | 133.88M | 113.13M | 64.93M |
Balance Sheet | ||||
| Total Assets | 608.65M | 493.56M | 695.25M | 682.26M |
| Cash, Cash Equivalents and Short-Term Investments | 233.04M | 145.51M | 313.68M | 251.22M |
| Total Debt | 65.70M | 73.30M | 84.22M | 98.31M |
| Total Liabilities | 282.21M | 253.51M | 346.32M | 378.89M |
| Stockholders Equity | 324.25M | 246.77M | 327.30M | 283.85M |
Cash Flow | ||||
| Free Cash Flow | 131.22M | 64.93M | 140.65M | 89.97M |
| Operating Cash Flow | 152.28M | 87.39M | 163.24M | 105.68M |
| Investing Cash Flow | -108.86M | -20.00M | -27.50M | -16.93M |
| Financing Cash Flow | -128.85M | -250.56M | -75.19M | -6.52M |
Phoenix Education Partners, Inc. Technical Analysis
Positive
30.00
Price Trends
26.49
Negative
28.54
Negative
28.85
Negative
Market Momentum
-0.69
Negative
46.26
Neutral
53.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PXED, the sentiment is Positive. The current price of 30 is above the 20-day moving average (MA) of 24.74, above the 50-day MA of 26.49, and above the 200-day MA of 28.85, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 53.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PXED.
Phoenix Education Partners, Inc. Risk Analysis
Phoenix Education Partners, Inc. disclosed 57 risk factors in its most recent earnings report. Phoenix Education Partners, Inc. reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Phoenix Education Partners, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
PXED
Phoenix Education Partners, Inc.
24.82
-11.28
-31.26%
WAFU
Wah Fu Education Group
1.48
-0.19
-11.38%
LXEH
Lixiang Education Holding Co
1.50
-3.69
-71.18%
EEIQ
Elite Education Group International
4.51
-3.33
-42.47%
GSUN
Golden Sun Education Group Limited Class A
0.19
-2.18
-92.16%
Phoenix Education Partners, Inc. Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Phoenix Education Partners to Acquire AI Platform Fuel50
Positive
Sep 17, 2026
On September 16–17, 2026, Phoenix Education Partners agreed to acquire Fuel50, an AI-driven workforce transformation platform, in a cash deal valued at about $31.5 million plus up to $8.5 million in earnouts through 2027, funded from cash on...
Executive/Board Changes
Phoenix Education Partners Adds Veteran Director to Board
Positive
Jul 13, 2026
On July 9, 2026, Phoenix Education Partners, Inc. appointed Robert Brackenbury as a Class I director and member of its audit committee, adding a seasoned investment and governance professional to its board. Brackenbury brings extensive experience ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.