Phoenix Education Partners, Inc.

Phoenix Education Partners, Inc.

Overview

Phoenix Education Partners operates the University of Phoenix through Phoenix Education Partners, Inc. (formerly AP VIII Queso Holdings, L.P.). The institution focuses on post-secondary education for working adult learners, offering degree and non-degree certificate programs delivered primarily online in asynchronous formats. The business centers on AI-ready data infrastructure, skills-aligned curricula, digital badges, employer partnerships, and a flexible, affordable model designed to connect learning with career opportunities.

Offerings

• Degree programs and non-degree certificates across business, information technology, health professions, social and behavioral sciences, education, nursing, doctoral studies, and general studies.
• Shorter certificates and professional development courses that complement degree programs and support upskilling for employers and individual learners.
• A non-term, continuous enrollment model with flexible, asynchronous learning aimed at adult learners, emphasizing skills-based education, career relevance, and affordability.
• Purpose-built platforms with AI-enabled data infrastructure to enhance student experience, support student success, and connect students, educators, and employers.
• Workforce solutions, including a talent-sourcing platform and skills intelligence/validation capabilities to identify skills gaps and create development pathways linked to career opportunities and internal mobility.
• Use of digital badges to verify demonstrated capabilities and support for employer-sponsored enrollment through established employer relationships.

Scale and scope (key metrics)

• Alumni and degrees: Nearly 1.2 million alumni (including non-degree certificate recipients) and more than 1.3 million degrees conferred (as of August 31, 2026).
• Enrollment (fiscal year ended August 31, 2026): Average Total Degreed Enrollment of 83,700 students total — Undergraduate: 67,400; Graduate: 16,300.
• Degree mix (fiscal year 2026): Bachelor’s 70%; Master’s 17%; Associate’s 10%; Doctoral 3%.
• Employer relationships: Enrollment through employer relationships represented 35.2% of Average Total Degreed Enrollment in fiscal year 2026.
• Student demographics (fiscal year 2026):
  • 73% of enrolled students are employed.
  • 94% of new students are over age 22; average age is 37.
  • 53% are first-generation college students.
  • 62% identify as members of a minority group.
  • 72% are female.

People

• Approximately 3,300 staff members.
• Approximately 2,200 active adjunct faculty members.
• Average tenure: 12 years for staff and 17 years for faculty.

Revenue and financing profile

• Revenue mix (fiscal year 2026): Degree programs represent about 98% of net revenue; non-degree offerings represent the remaining portion.
• Federal student aid dependence: About 88.6% of cash-basis revenue in fiscal year 2026 derived from Title IV funds and other designated federal education assistance.
• 90/10 Rule: Reported 90/10 percentage was 88.6% for 2026.

Corporate and ownership structure

• Completed an initial public offering in October 2025:
  • Sold 4,887,500 shares (including 637,500 shares underwriters’ option) at $32 per share, for a total offering price of $156.4 million.
  • Proceeds from the IPO went to funds affiliated with Apollo Global Management and the Vistria Group; the company did not receive proceeds from the IPO.
• Corporate conversion: Converted from AP VIII Queso Holdings, L.P. to Phoenix Education Partners, Inc. on October 7, 2025.
• Ownership and control (as of October 27, 2026):
  • The Apollo Stockholder beneficially owns about 68% of the voting power of outstanding common stock, making the company a controlled company.
  • Outstanding shares: 36,676,644 shares of common stock; 1,263,058 shares issuable upon exercise of outstanding options; 3,408,253 shares issuable upon exercise of University-related share-based awards.
• Governance and control features: The Apollo Stockholder has substantial influence over board composition and major decisions; the company’s charter and stockholders’ agreements include provisions that affect acquisitions, issuances of securities, and other strategic actions.

Location and facilities

• Maintains one leased facility in Phoenix, Arizona (approximately 600,000 square feet) serving as corporate headquarters and a Phoenix ground campus.
• Lease runs through March 2031; about 79,000 square feet are actively used, with the remainder largely abandoned and partially sublet (approximately 268,000 square feet) through March 2031.

Accreditation and regulatory environment

• Institutional accreditation: Higher Learning Commission (HLC) since 1978; reaffirmed for the ten-year period through 2032–33; next mid-cycle visit scheduled for 2027.
• Programmatic accreditation: Holds various program-specific accreditations (nursing, education, counseling, social work, etc.) that require renewal and may trigger additional reviews if programs change.
• State authorization and distance education: Participates in SARA for distance education in member states; California is excluded from SARA and is subject to direct authorization via California BPPE; authorized to operate in Arizona (home state).
• Title IV participation: Department of Education Program Participation Agreement renewed through June 2031; subject to ongoing compliance with Title IV regulations, including changes from recent rulemaking such as the Earnings Accountability and STATS frameworks.

Intellectual property and technology

• Owns or licenses curricula, course materials, technologies, and proprietary processes; relies on licenses and agreements with faculty, content providers, and other third parties.
• Owns and manages a technology stack designed to support AI-ready data infrastructure, digital badges, and skills-aligned education delivery.
• Key risks include protection and enforcement of IP rights, potential infringement by third parties, and the costs of defending IP.

Cybersecurity and governance

• Maintains a risk-based cybersecurity program aligned with NIST and other applicable frameworks, with investments in security, training, incident response, and governance.
• The Audit Committee oversees cybersecurity and data privacy, with regular reporting to management and the board.
• Security incidents or third-party vulnerabilities could impact operations or data privacy.

Notable business and operational characteristics

• An online-first, non-term delivery model tailored to adult learners managing work, family, and education.
• Emphasis on employer relationships and scalable online delivery to support workforce upskilling.
• Transparent pricing models, including a Tuition Price Guarantee and a Locked-In Pricing Guarantee for new students starting November 2, 2026, to provide cost predictability.
• The business operates in a changing regulatory and policy environment at federal and state levels, with potential impacts on Title IV eligibility, pricing, and program viability.