Phoenix Education Q4 Profit Rises 34% but Fiscal 2027 Guide Points to Lower Revenue and EBITDA
Adjusted EBITDA for fiscal 2027 is guided to $225M-$240M versus $249.0M, and average degreed enrollment rose 2.8% to 81,500 in the quarter.
Phoenix Education Partners (PXED), the parent of the University of Phoenix, reported fiscal fourth-quarter 2026 revenue of $260.7 million, up 1.3% from a year earlier, and net income of $23.5 million, or $0.60 per share, up from $17.5 million. It guided fiscal 2027 revenue to $970 million to $1.0 billion and adjusted EBITDA to $225 million to $240 million, both below fiscal 2026. Shares were down about 10.2% in after-hours trading.
Fiscal fourth-quarter results
| Metric | Q4 FY2026 | Q4 FY2025 | Change |
|---|---|---|---|
| Net revenue | $260.7M | $257.4M | +1.3% |
| Net income | $23.5M | $17.5M | +34% |
| Diluted EPS | $0.60 | $0.46 | +$0.14 |
| Adjusted diluted EPS | $1.07 | $1.03 | +$0.04 |
| Adjusted EBITDA | $61.5M | $56.6M | +8.7% |
| Adjusted EBITDA margin | 23.6% | 22.0% | +1.6 pts |
| Average degreed enrollment | 81,500 | 79,300 | +2.8% |
Fiscal 2026 and the fiscal 2027 outlook
| Metric | FY2026 | FY2025 | FY2027 guide |
|---|---|---|---|
| Net revenue | $1,017.0M | $1,007.2M | $970.0M to $1,000.0M |
| Adjusted EBITDA | $249.0M | $243.9M | $225.0M to $240.0M |
| Net income | $88.9M | $133.9M | n/a |
| Diluted EPS | $2.29 | $3.51 | n/a |
| Average degreed enrollment | 83,700 | 81,900 | n/a |
By our calculation, the fiscal 2027 revenue midpoint of $985 million is about 3.1% below fiscal 2026 revenue, and the adjusted EBITDA midpoint of $232.5 million is about 6.6% below fiscal 2026. Chief Executive Chris Lynne pointed to strong student retention and continued investment in the student experience.
Buyback
Phoenix is authorized to repurchase up to $50.0 million of stock. In fiscal 2026 it bought 0.2 million shares for $7.1 million, at an average of $29.95, leaving $42.9 million available on Aug. 31, 2026.
What to watch
- Conference call. What is behind the lower fiscal 2027 revenue and EBITDA guidance despite higher enrollment in the fourth quarter.
- Enrollment. Whether average degreed enrollment, 83,700 for the year, keeps rising.
- Capital return. Use of the remaining $42.9 million buyback authorization.
- Related coverage. See our reports on Upwork, Ibotta and Starbucks.
Sources: Phoenix Education Partners' fiscal fourth-quarter and year-end 2026 results on SEC EDGAR. The after-hours move comes from market data and may differ by source. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.
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