v3.26.1
Segment Reporting
 9 Months Ended
May 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 16. Segment Reporting

We have one operating and reportable segment, the University, which represents all of our consolidated net revenue in the three and nine months ended May 31, 2026 and 2025. Our chief operating decision maker (“CODM”), Christopher Lynne, Chief Executive Officer of the Company, currently evaluates performance and manages our operations at the consolidated level.

Our CODM evaluates performance for the segment and decides how to allocate resources and capital based on profitability metrics, including operating income, that are reported on our condensed consolidated statements of income. Our CODM considers variances in actual results compared to prior periods, and variances in actual results compared to budgets and forecasts for this profit measure when making decisions about resource allocation and assessing performance. Total asset information is evaluated at the consolidated level and, as a result, such information has not been presented below.

No individual customer accounted for more than 10% of our consolidated net revenue in the three and nine months ended May 31, 2026 and 2025.

The following provides information on net revenue, significant expenses and net income for our single reportable segment during the respective periods:

 

 

Three Months Ended May 31,

 

 

Nine Months Ended May 31,

 

($ in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net revenue

 

$

271,801

 

 

$

271,703

 

 

$

756,289

 

 

$

749,801

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and related costs(1)

 

 

115,580

 

 

 

106,036

 

 

 

361,665

 

 

 

310,731

 

Advertising

 

 

47,705

 

 

 

41,148

 

 

 

139,013

 

 

 

130,892

 

Provision for credit losses on accounts receivable

 

 

8,510

 

 

 

12,531

 

 

 

24,585

 

 

 

35,885

 

Strategic alternatives, restructuring and other

 

 

11,937

 

 

 

6,837

 

 

 

31,673

 

 

 

17,886

 

Other(2)

 

 

36,243

 

 

 

34,051

 

 

 

107,927

 

 

 

103,974

 

Total costs and expenses

 

 

219,975

 

 

 

200,603

 

 

 

664,863

 

 

 

599,368

 

Operating income

 

 

51,826

 

 

 

71,100

 

 

 

91,426

 

 

 

150,433

 

Interest income

 

 

2,183

 

 

 

2,278

 

 

 

5,720

 

 

 

8,334

 

Interest expense

 

 

(651

)

 

 

(107

)

 

 

(1,416

)

 

 

(332

)

Income before income taxes

 

 

53,358

 

 

 

73,271

 

 

 

95,730

 

 

 

158,435

 

Provision for income taxes

 

 

14,452

 

 

 

18,622

 

 

 

30,877

 

 

 

40,564

 

Net income

 

$

38,906

 

 

$

54,649

 

 

$

64,853

 

 

$

117,871

 

 

(1)
The increase in compensation and related costs during the three and nine months ended May 31, 2026 compared to the three and nine months ended May 31, 2025 was principally due to share-based compensation resulting from our IPO. See Note 13. Share-Based Awards for further information.
(2)
Other principally consists of costs related to the delivery and administration of our educational programs, depreciation and amortization, information technology infrastructure costs, legal and professional fees, and other general and administrative costs.