Cash flow remains erratic, characterized by a volatile OCF/NI ratio that reached 4.53 in 2026Q2, while management's $80.4 million share repurchase in 2025Q4 raises questions regarding capital allocation priorities.
| Cash from Operations | 145.19M | 87.39M | 163.24M | 105.68M |
| Operating CF Margin % | - | 8.68% | 17.18% | 12.65% |
| Operating CF Growth % | 56.74% | -46.47% | 54.46% | - |
| Net Income | 59.85M | 135.44M | 115.15M | 65.93M |
| Depreciation & Amortization | 22.4M | 22.01M | 21.06M | 23.91M |
| Stock-Based Compensation | 40.53M | 2.63M | 5.78M | 5.56M |
| Deferred Taxes | 31.2M | 36.23M | 20.74M | 17.88M |
| Other Non-Cash Items | 54.92M | 55.01M | 61.25M | 54.7M |
| Working Capital Changes | -102.03M | -163.94M | -60.73M | -62.28M |
| Change in Receivables | -34.66M | -55.39M | -45.9M | -36.39M |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | 4.71M | -7.8M | 10.19M | 17.33M |
| Cash from Investing | -16.13M | -20M | -27.5M | -16.93M |
| Capital Expenditures | -21.65M | -22.46M | -22.59M | -15.72M |
| CapEx % of Revenue | 2.24% | 2.23% | 2.38% | 1.88% |
| Acquisitions | 0 | -1.98M | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | -157K | -146K | -353K | -3.64M |
| Cash from Financing | -114.43M | -250.56M | -75.19M | -6.52M |
| Debt Issued (Net) | -721K | 0 | 0 | -5M |
| Equity Issued (Net) | -80.4M | -214.4M | -69.86M | 0 |
| Dividends Paid | -9.07M | -214.4M | -69.96M | 0 |
| Share Repurchases | -80.4M | -214.4M | -69.96M | 0 |
| Other Financing | -24.24M | 178.25M | 64.63M | -1.52M |
| Net Change in Cash | 14.63M | -183.17M | 60.54M | 82.23M |
| Free Cash Flow | 123.54M | 64.93M | 140.65M | 89.97M |
| FCF Margin % | 12.8% | 6.45% | 14.8% | 10.77% |
| FCF Growth % | - | -53.83% | 56.34% | - |
| FCF per Share | 3.18 | 1.82 | 3.95 | 2.53 |
| FCF Conversion (FCF/Net Income) | 2.06x | 0.65x | 1.44x | 1.63x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 22.36M | 12.76M | 11.45M | 7.07M |
Regulatory Title IV dependency
According to recent financial disclosures, PXED's OCF/NI ratio fluctuated wildly from 0.51 in 2024Q4 to 4.53 in 2026Q2, suggesting that reported net income is a poor proxy for actual cash generation due to significant non-cash adjustments and erratic working capital swings inherent in the business model.
The massive divergence between net income and operating cash flow indicates that accounting profits are heavily influenced by accruals rather than cash inflows. Investors should monitor whether this volatility stems from aggressive revenue recognition timing or the lumpy nature of student aid disbursements.
As reported in quarterly filings, PXED's FCF margin expanded from 6.4% in 2024Q4 to 19.6% in 2026Q2, yet this improvement appears driven more by aggressive working capital management than by sustainable operational efficiency or consistent growth in core tuition-based cash inflows from the student base.
While the upward trend in FCF margins may appear positive, the underlying contraction in enrollment suggests that this cash flow profile is likely unsustainable. The reliance on cost-cutting to preserve cash flow may eventually impair the company's ability to attract new students in a competitive market.
Based on the provided cash flow statements, PXED experienced a massive $61.6 million working capital outflow in 2025Q3 followed by an $8.4 million inflow in 2026Q2, highlighting the extreme sensitivity of the company's cash position to the timing of student enrollment cycles and federal funding receipts.
These dramatic shifts in working capital suggest that the company's cash flow is highly susceptible to timing mismatches between academic terms and cash collection. Such instability warrants further investigation into the company's accounts receivable aging and the potential for future liquidity crunches during off-peak enrollment periods.
As indicated by recent financial statements, PXED utilized $80.4 million for share repurchases in 2025Q4 despite significant operational volatility, suggesting that management is prioritizing capital return to shareholders over reinvestment into the core business or strengthening the balance sheet against potential regulatory-driven revenue shocks.
The decision to deploy substantial cash toward buybacks while enrollment is contracting raises questions about the long-term strategic focus of the firm. Investors should monitor whether this capital allocation strategy leaves the company sufficiently capitalized to navigate potential future regulatory penalties or shifts in Title IV funding.
Quick answers to the most common questions about buying PXED stock.
Phoenix Education Partners, Inc (PXED) generated $87.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Phoenix Education Partners, Inc (PXED) generated $64.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Phoenix Education Partners, Inc (PXED) spent $22.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Phoenix Education Partners, Inc (PXED) returned $214.4M to shareholders via cash dividends and spent $214.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.