Well, I'm going to get up with the financial markets this morning and say three things to them. Firstly, we're extremely confident about the future of Pearson for two reasons. One, that AI is an enormous tailwind for our business. How is your moat protected at this point as you look out into the future. >> Well, the there are two reasons why I feel very strongly about the future for Pearson. The first one is AI as you know is driving a reconfiguration of jobs. uh and every CEO I talked to around the world u ...

Financial Data and Key Metrics Changes - In 2025, the company achieved a revenue growth of 4% and a profit increase of 6%, with adjusted EPS rising by 4% to GBP 0.645, reflecting solid trading performance despite currency headwinds [35][36] - The adjusted operating profit margin expanded from 16.9% to 17.2%, driven by operating leverage from sales growth and continued cost savings [35][38] - Free cash flow conversion was strong at 125%, including state aid recovery, and 98% without it, supporting a 5% increase in dividends [35][39] Business Line Data and Key Metrics Changes - The Assessments and Qualifications (A&Q) segment grew by 4%, with strong performance in clinical assessments and qualifications, benefiting from digital growth and international expansion [36][37] - Virtual Learning saw an 18% increase in sales in H2, with fall enrollments up 13%, supported by enhancements to the enrollment platform and targeted marketing [36][37] - Enterprise Learning and Skills (ELS) grew by 6%, with a notable 20% growth in enterprise solutions in Q4 [36][38] Market Data and Key Metrics Changes - The English Language Learning (ELL) segment maintained revenue levels despite a 15% decline in global market volumes, indicating market share gains [36][37] - The company is focusing on expanding its presence in the early careers market, estimated at a $6 billion opportunity in the U.S., which has been historically underserved [30][31] Company Strategy and Development Direction - The company aims to leverage mega trends in demographics and AI to drive demand for skilling and validation of skills, positioning itself as a leader in lifelong learning [4][8] - The strategy includes focusing on core businesses while investing in faster-growing segments like early careers and enterprise skilling, with a commitment to innovation and operational excellence [12][46] - The company has established nine significant partnerships with major tech firms, enhancing its enterprise solutions and creating new revenue opportunities [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver improved financial performance in 2026, guided by strong execution and strategic focus [46][41] - The management highlighted the importance of validated skills in the AI era, suggesting that the demand for trusted educational content will increase [70][71] - The company anticipates mid-single-digit CAGR in underlying sales growth and sustained margin improvement over the medium term [41][42] Other Important Information - The company has initiated a GBP 350 million share buyback program, reflecting proactive capital allocation to enhance shareholder value [35][45] - The company is transitioning its higher education platforms to streamline offerings, which will incur a one-off impairment but is expected to improve profitability in the long term [39][40] Q&A Session Questions and Answers Question: Can you provide more detail on the moving parts of A&Q growth in 2026? - Management indicated that without the New Jersey contract loss, A&Q growth could be higher than the guided 4%, supported by new contracts and strong performance in existing relationships [56][58] Question: What is the outlook for revenue growth in enterprise solutions? - Management expressed confidence in ELS growth, noting that while it is currently a smaller division, it is expected to grow significantly due to new contracts and partnerships [64][66] Question: What are the primary risks associated with generative AI for Pearson? - Management acknowledged potential risks from AI tools but emphasized that Pearson's focus on validated skills and trusted content positions it well to benefit from the demand for reliable educational resources [70][71]

Pearson (NYSE:PSO) H2 2025 Earnings call February 27, 2026 04:30 AM ET Company ParticipantsArt Valentine - President of Assessment and QualificationCiaran Donnelly - Head of European Media ResearchOmar Abbosh - CEOSally Johnson - CFOTom ap Simon - President of Higher Education and Virtual LearningTony Prentice - Chief Product Officer and President of Direct to ConsumerVishaal Gupta - President of Enterprise Learning and SkillsNone - Company RepresentativeNone - Video NarratorConference Call ParticipantsJame ...

Financial Data and Key Metrics Changes - In 2025, the company achieved a revenue growth of 4% and a profit increase of 6%, with adjusted EPS rising by 4% to GBP 0.645, reflecting solid trading performance despite currency headwinds [42][44] - The adjusted operating profit margin expanded from 16.9% to 17.2%, driven by operating leverage from sales growth and continued cost savings [42][46] - Free cash flow conversion was strong at 125%, including state aid recovery, and 98% without it, supporting a 5% increase in dividends [42][48] Business Line Data and Key Metrics Changes - Assessments and qualifications delivered solid performance with growth accelerating in H2, particularly in Q4, contributing to a 4% overall growth [44][46] - Virtual learning saw a strong performance, with sales up 18% in H2 and fall enrollments increasing by 13% [44] - Enterprise learning and skills grew by 6%, with a notable 20% growth in enterprise solutions in Q4 [44][46] Market Data and Key Metrics Changes - The English language learning segment maintained revenue levels despite a 15% decline in global market volumes, indicating market share gains [12][44] - The higher education segment showed improved growth, with expectations for further growth in 2026 supported by product and platform innovation [51] Company Strategy and Development Direction - The company is focused on leveraging mega trends such as demographic shifts and AI to drive demand for skilling and validation of skills, positioning itself as a leader in lifelong learning [3][9] - The strategy includes enhancing core businesses while investing in faster-growing segments like early careers and enterprise skilling [11][36] - The company aims to continue embedding AI-driven innovation across its products and services to improve learning experiences [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, citing strong secular demand driven by ongoing demographic shifts and advancements in AI [3][9] - The company anticipates continued growth in 2026, with a financial profile expected to improve further [2][41] - Management highlighted the importance of trust and verified skills in an AI-driven era, positioning the company to benefit from these trends [8][80] Other Important Information - The company has established nine significant partnerships with leading technology firms, which are expected to contribute to future revenue growth [23][24] - The company is investing in modernizing its higher education platforms, which will lead to a one-off impairment but is expected to generate long-term profit improvements [47][50] Q&A Session Summary Question: Can you provide more detail on the moving parts of A&Q growth in 2026? - Management acknowledged the impact of the New Jersey contract loss and indicated that without it, growth could be higher than the guided 4% [66][68] Question: Is there a strong pipeline for potential new contracts going forward? - Management confirmed a strong pipeline with new contracts in various states and partnerships with major tech companies [69][71] Question: What are the primary risks identified regarding generative AI? - Management noted that while there are risks from free AI tools, Pearson's focus on trusted, validated skills positions it well in the market [78][80] Question: What is driving the significant improvement in virtual learning margins? - Management attributed margin improvements to operating leverage and indicated that this trend is expected to continue [85] Question: How is pricing evolving across the businesses? - Management indicated strong pricing power, allowing the company to retain cost savings without significant pressure to pass them on to clients [85] Question: Why is McGraw Hill growing quickly, and can Pearson bridge the gap? - Management acknowledged McGraw Hill's growth but expressed confidence in Pearson's ability to improve its growth rate through innovation and strategic investments [86]

Pearson 2025 Full Year Results Friday 27th February 2026 1 Forward-looking statements Except for the historical information contained herein, the matters discussed in this presentation include forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing, anticipated co ...

Core Insights - Pearson reported a sales increase of 4% to £3,577 million in 2025, with adjusted operating profit rising 6% to £614 million, reflecting strong performance across various segments [1][4][5] - The company is confident in achieving mid-single digit sales growth for 2026 and beyond, supported by strategic partnerships and advancements in AI technology [1][2][3] Financial Performance - Statutory operating profit decreased by 6% to £507 million due to adverse currency movements and a one-off impairment of legacy product development assets [1][4] - Adjusted earnings per share increased by 4% to 64.5p, with free cash flow rising by 8% to £527 million, resulting in a free cash flow conversion of 125% [1][4][5] - The company completed a £350 million share buyback in 2025, reducing the share count by 5%, and announced a further £350 million buyback in January 2026 [1][2][3] Segment Performance - Assessment & Qualifications segment saw a 4% increase in underlying sales, driven by new contracts and pricing strategies, with adjusted operating profit increasing by 1% [4][5] - Virtual Learning sales grew by 8% on an underlying basis, with a strong performance in the second half of the year, supported by a 13% increase in enrolments for the 2025/26 academic year [4][5] - Higher Education sales increased by 2%, with US Higher Education up 3% due to enrolment growth and pricing in core Courseware [4][5] Strategic Initiatives - Pearson advanced its enterprise strategy by securing eight partnerships with industry-leading firms, including a new partnership with Salesforce [1][2] - The company is focusing on the application of innovative technologies, particularly AI, to enhance learning outcomes and operational efficiencies [1][2][3] - Significant progress was made in expanding into the Early Careers space and enhancing career-readiness solutions for learners transitioning from education to the workforce [2][3] Outlook - For 2026, Pearson expects underlying sales growth to be mid-single digit, with adjusted operating profit projected between £640 million and £685 million [3][4] - The company anticipates stronger growth in Virtual Learning and Higher Education segments, driven by continued product innovation and market expansion [3][4][5] - The effective tax rate on adjusted profit before tax is expected to be around 25% for 2026 [3][4]

McGraw Hill, Inc. (NYSE:MH) is among the most promising education stocks according to hedge funds. On February 12, TheFly reported that Baird trimmed the price target on McGraw Hill, Inc. (NYSE:MH) to $19 from $21 and maintained an Outperform rating. This follows the firm’s model adjustment driven by solid results and improved guidance. On the same day, BMO Capital also lowered the price target on McGraw Hill, Inc. (NYSE:MH) to $19 from $21 and reiterated an Outperform rating. The downward revision comes ...

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Phoenix Education Partners, Inc. due to allegations of materially misleading business information issued to the investing public [1]. Group 1: Legal Action and Investor Rights - Investors who purchased Phoenix Education securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees, facilitated by a contingency fee arrangement [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses related to the alleged misleading information [2]. Group 2: Data Breach Incident - A significant data breach at the University of Phoenix has affected nearly 3.5 million individuals, with the breach traced back to August 2025 when attackers accessed sensitive information [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company and being ranked No. 1 for securities class action settlements in 2017 [3]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone, and has consistently ranked in the top 4 for securities class action settlements since 2013 [3].

Financial Performance - Lincoln Educational Services Corporation (LINC) reported earnings per share (EPS) of $0.50, surpassing the estimated $0.42, marking a positive surprise of 19.05% [1][6] - The company achieved revenue of approximately $142.9 million, exceeding the anticipated $128.5 million [1][6] Consistent Earnings Surprises - LINC has consistently surpassed earnings expectations, with a previous quarter EPS of $0.20 against an anticipated $0.12, resulting in a 66.67% surprise [2] - Over the past four quarters, the company has consistently outperformed consensus EPS estimates, showcasing strong operational capabilities and strategic execution [2] Revenue Growth - For the quarter ending December 2025, LINC's revenue of $142.9 million exceeded the Zacks Consensus Estimate by 7.74% [3] - This revenue figure represents a significant increase from $119.37 million in the same period the previous year, highlighting the company's robust business model and market position [3] Financial Metrics - LINC has a price-to-earnings (P/E) ratio of approximately 72, indicating investor confidence in its earnings potential [4] - The price-to-sales ratio stands at about 2.1, while the enterprise value to sales ratio is approximately 2.47, reflecting the company's valuation in relation to its sales and earnings [4] Financial Challenges - The enterprise value to operating cash flow ratio is around 26.45, suggesting a need for efficient cash flow management [5] - The current ratio is about 0.81, indicating potential challenges in covering short-term liabilities with short-term assets [5] - The company's debt-to-equity ratio of approximately 1.05 shows a balanced approach to financing its assets [5]

Laureate Education, Inc. Q4 2025 Earnings Call Summary - Moby Strategic Performance and Market Positioning Achieved a historical high adjusted EBITDA margin of 30.5% in 2025, driven by productivity initiatives and strong operating leverage in Mexico. Performance attribution in Mexico was characterized by resilience against a soft macroeconomic backdrop, with growth led by fully online programs for working adults. Strategic positioning in Peru shifted toward scaling fully online offerings to mitigate ...