Perdoceo Education (PRDO) Stock Forecast & Price Target

Perdoceo Education Corp demonstrated significant growth, with total student enrollment at American InterContinental University increasing by 7.1% to 10,600 students, contributing to a solid academic performance bolstered by organic growth and an extended enrollment period. Additionally, the company saw its segment operating income rise by 7.9% to $46.3 million, reflecting improved revenue generation and healthy profit margins. Furthermore, free cash flow surged by 26.8% to $178.8 million, indicating strong liquidity and financial health that support a positive outlook for future performance.

Perdoceo Education Corp has experienced a 6.5% decrease in segment operating income, indicating a decline from $12.9 million to $12.1 million, driven by the absence of a non-recurring expense benefit recorded in the prior year. Furthermore, American InterContinental University System reported a 1.2% decrease in revenues and a 2.9% drop in total student enrollment, contributing to an operating loss of $1.7 million primarily due to significant depreciation and amortization expenses. Despite management's guidance for Q3/25 showing expected operating income above previous estimates, the overall trends in declining revenue and enrollment raise concerns about the sustainability of growth for Perdoceo Education's financial performance.