• Perdoceo Education: The parent company of for-profit online universities, similar to a modern University of Phoenix.
• Perdoceo Education: An online-only higher education provider, akin to a Netflix for college degrees.
• Perdoceo Education: Similar to Coursera or edX, but directly operating its own accredited online universities to grant degrees.

• Colorado Technical University (CTU) Educational Programs: Provides a variety of associate, bachelor's, master's, and doctoral degree programs with a focus on career-oriented education, primarily delivered online.
• American InterContinental University (AIU) Educational Programs: Offers associate, bachelor's, and master's degree programs, largely online, across disciplines like business, technology, and criminal justice.

• **Adult Learners and Working Professionals:** These individuals are typically seeking to advance their careers, change professions, or complete degrees they may have started earlier. They often require flexible learning options, such as online programs, to accommodate their existing work and life commitments.
• **Military Service Members and Veterans:** Perdoceo's institutions, like many for-profit educational providers, attract a significant population of military personnel and veterans who utilize educational benefits. They often value the flexibility, career-focused programs, and support services tailored to their unique needs.
• **Career-Focused Students:** This category includes individuals (who may also be adult learners or military-affiliated) specifically pursuing degrees and certificates designed to provide practical, job-ready skills for particular industries and professions, such as technology, business, healthcare administration, and criminal justice.

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Todd S. Nelson President and Chief Executive Officer

Todd S. Nelson was reappointed as President and Chief Executive Officer of Perdoceo Education in November 2023, having previously served as CEO from 2015 to January 2022, and then as Executive Chairman of the Board. His extensive career in the for-profit education sector includes leadership roles as CEO of Apollo Group (parent company of University of Phoenix), Education Management Corporation (EDMC), and Career Education Corporation (now Perdoceo Education). Under his leadership, both Apollo Group and Education Management Corporation experienced significant enrollment and financial growth. He resigned from Apollo Group in 2006 amid allegations of illegal business practices, and EDMC faced a landmark settlement regarding alleged violations of the False Claims Act in 2015, after his departure. Nelson earned his B.S. from Brigham Young University and an M.B.A. from the University of Nevada, Reno.

Ashish Ghia Senior Vice President and Chief Financial Officer

Ashish Ghia serves as the Senior Vice President and Chief Financial Officer of Perdoceo Education.

Sunitha Araamudhu Senior Vice President – American InterContinental University System and President of the American InterContinental University System

Sunitha Araamudhu was appointed Senior Vice President of the American InterContinental University System in September 2024 and currently holds the position of President of the American InterContinental University System. She has been with the institution since August 2011, holding various marketing and operations roles, and most recently served as Chief Operating Officer of AIUS. Prior to Perdoceo Education, Ms. Araamudhu was Vice President of Marketing at HSBC Bank and also worked at Sears Holding Corp.

Elise Baskel Senior Vice President – Colorado Technical University and President of Colorado Technical University

Elise Baskel was appointed Perdoceo's Senior Vice President – Colorado Technical University and President of Colorado Technical University (CTU) in January 2022. She has 12 years of leadership experience with the company, previously serving as Chief Operating Officer of CTU from 2019.

Dave Czeszewski Senior Vice President and Chief Information Officer

Dave Czeszewski holds the position of Senior Vice President and Chief Information Officer at Perdoceo Education.

The key risks to Perdoceo Education (PRDO) are primarily centered around regulatory challenges, allegations of fraud, and declining enrollment.

1. Regulatory Scrutiny and Dependence on Federal Financial Aid: The for-profit education sector, including Perdoceo Education, operates under intense regulatory scrutiny. Perdoceo is heavily dependent on federal financial aid programs (Title IV), with a significant portion of its revenue derived from these sources. The company has a history of regulatory investigations, enforcement actions, and settlements related to allegations of deceptive marketing, student recruitment practices, and compliance with rules like the "90/10 rule," which limits the percentage of revenue from federal student aid. Stricter regulations, changes in federal funding policies, or further non-compliance could lead to severe penalties, loss of federal aid eligibility, and a significant negative impact on Perdoceo's financial performance and operational model.
2. Allegations of "Ghost Student Fraud" and Reputational Damage: Perdoceo Education is currently facing allegations of "ghost student fraud" by Bleecker Street Research. These claims suggest the company may be inflating its enrollment numbers by counting non-existent students. If proven true, these allegations could severely damage Perdoceo's reputation, lead to further extensive regulatory investigations by the Department of Education, Department of Justice, and Federal Trade Commission, and result in substantial financial penalties and a significant decline in legitimate student enrollment. The Department of Education has already initiated a crackdown on financial aid fraud, implementing enhanced identity verification for FAFSA applicants and requiring stricter compliance from schools.
3. Declining Enrollment and Market Competition: Perdoceo has experienced challenges with declining student enrollments in recent years. The domestic postsecondary education industry is highly competitive, with numerous institutions vying for students. Factors such as changes in economic conditions that offer more employment options (leading prospective students to work instead of pursuing education), a potentially declining interest in for-profit education, and uncertainty in sustaining corporate partnership programs (which have contributed to enrollment growth) pose ongoing threats to Perdoceo's ability to attract and retain students. A continued decline in enrollment directly impacts the company's revenue and overall financial health.

The clear emerging threat for Perdoceo Education (PRDO) is the rapid growth and increasing acceptance of **alternative, skills-based education models and certifications.**

This includes:

• **Employer-backed certifications and training programs:** Major tech companies (e.g., Google, IBM, Amazon, Microsoft) are increasingly offering their own branded professional certificates and skill-based learning pathways that are often shorter, cheaper, and directly tailored to in-demand job skills. These are gaining significant credibility with employers.
• **Specialized bootcamps and micro-credentialing platforms:** A growing number of online and in-person bootcamps and platforms (e.g., Coursera, edX, Udacity in partnership with universities and corporations) provide focused, intensive training in high-demand fields like coding, data science, cybersecurity, and digital marketing. These programs often lead to job placement without the need for a traditional degree.

These alternatives directly threaten PRDO's core business model, which relies on offering full degrees through institutions like Colorado Technical University and American InterContinental University. For many adult learners seeking career advancement or skill acquisition, these new models offer a more efficient, less costly, and often more directly relevant path to employment and higher earning potential, analogous to Netflix offering a new entertainment delivery model that undermined Blockbuster's physical rental business.

• U.S. Online Education Market: The U.S. online education market is valued at approximately USD 74.8 billion in 2024. This market is driven by increasing internet penetration, the growing adoption of technology in education, and demand for upskilling programs. The online higher education market in the U.S. is also expected to grow by USD 33.35 billion from 2021 to 2026, at a compound annual growth rate (CAGR) of 19.82%.
• U.S. For-Profit Universities Market: The For-Profit Universities industry in the United States had an estimated revenue of USD 13.6 billion over the five years through 2025. For-profit schools account for 12% of students in the overall U.S. higher education market.

Perdoceo Education (PRDO) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:

1. Sustained Student Enrollment Growth: A primary driver of revenue growth for Perdoceo is the continued increase in student enrollments. The company experienced a 15.1% year-over-year increase in total student enrollments in Q3 2025. This growth is supported by high levels of student retention, engagement, expansion within corporate student programs, and increased prospective student interest, particularly at Colorado Technical University (CTU).
2. Strategic Acquisitions: Acquisitions, such as that of the University of St. Augustine for Health Sciences, are anticipated to contribute significantly to revenue. This acquisition has positively impacted year-over-year comparability through 2025 and is expected to enhance operating results in 2026.
3. Expansion of Program Offerings and Investment in Technology/Student Support: Perdoceo's commitment to expanding its academic program offerings and investing in technology and student support systems has played a role in the increase in total student enrollments. This focus on program development and student resources is a key factor in attracting and retaining students.
4. Strong Demand for Career-Focused Degree Programs: The company benefits from a robust demand for career-focused degree programs, especially within the healthcare and professional education markets. By aligning its offerings with these market needs, Perdoceo is poised to capture a growing student base.
5. Organic Growth within Existing Institutions: Beyond acquisitions, organic revenue growth from its core institutions, Colorado Technical University (CTU) and American InterContinental University (AIU) System, continues to be a fundamental support for the company's overall revenue expansion.

Share Repurchases

• In February 2024, the Board of Directors approved a new stock repurchase program of up to $50.0 million, which commenced on March 1, 2024, and is set to expire on September 30, 2025.
• For the year-to-date ended September 30, 2025, the company repurchased 2.3 million shares of its common stock for $66.7 million.
• During the quarter ended September 30, 2025, Perdoceo repurchased 0.7 million shares for $20.6 million.

Share Issuance

• In 2024, the issuance of common stock totaled $2.234 million, primarily related to employee stock compensation.

Outbound Investments

• In December 2024, Perdoceo completed the acquisition of the University of St. Augustine for Health Sciences (USAHS), significantly expanding its academic offerings in graduate health sciences.
• The company's capital allocation strategy includes evaluating acquisitions to further enhance shareholder value.

Capital Expenditures

• Capital expenditures for the full year 2024 were $4.625 million.
• For the year-to-date ended September 30, 2025, capital expenditures amounted to $6.342 million.
• The primary focus of capital expenditures includes investments in student support, technology projects, and academics.