B. Riley has refreshed its assessments of several leading publicly traded education companies, adjusting select price targets and modeling assumptions while expressing continued confidence in the names it views as best positioned within the sector. The research note examines current operating results, revised fiscal forecasts and valuation multiples for Phoenix Education Partners (PXED), American Public Education Inc. (APEI) and Universal Technical Institute Inc. (UTI).
Phoenix Education Partners (PXED)
B. Riley trimmed its price target on Phoenix Education Partners from $54 to $51 but retained a positive stance on the stock. The firm reduced its fiscal 2026 revenue estimate slightly, from $1,026 million to $1,023 million, while nudging up its expected EBITDA range to $246 million to $250 million from a prior $244 million to $249 million - a change the firm attributes to continued cost discipline and an improvement in bad debt expense.
Operational performance in the third quarter included free cash flow of $32 million, above B. Riley's $29 million projection. Enrollment rose 0.6% year-over-year, though average tuition per student eased by 0.6% as the company grows its B2B enrollment mix. On valuation, B. Riley notes PXED is trading at roughly 3.5x EV/EBITDA on fiscal 2026 estimates, well below a median 8.2x multiple for the broader peer group, despite PXED's comparatively higher margins.
PXED is highlighted as the only company in the coverage group paying a dividend, offering a 2.8% annual yield based on a $0.21 per-share quarterly payout. B. Riley's cash-flow modeling shows cumulative free cash flow of $232 million through fiscal 2027, which the firm says could provide capacity for strategic growth initiatives and share repurchases.
American Public Education Inc. (APEI)
For American Public Education, B. Riley models second-quarter fiscal 2026 results of $170 million in revenue and $17.5 million in EBITDA, figures it expects around August 10 and which sit within management's guidance. At the company's November 2025 Investor Day, APEI set an organic revenue target for fiscal 2029 of $890 million to $925 million, a range that B. Riley says implies roughly a 9% compound annual growth rate.
B. Riley is monitoring execution of APEI's "fill the back row" initiative, aimed at adding nearly 6,000 incremental Health+ seats. The firm quantifies that opportunity as representing up to $120 million in potential additional revenue. Given APEI's growth trajectory, B. Riley applies an 11x fiscal 2027 EV/EBITDA valuation methodology in its work.
Recent results have shown upside versus expectations: APEI reported first-quarter fiscal 2026 earnings per share of $0.94 on revenue of $174.7 million. The company has also attracted other positive coverage, with D.A. Davidson reiterating a Buy rating and adding the stock to its Best-of-Breed Bison list.
Universal Technical Institute Inc. (UTI)
B. Riley expects Universal Technical Institute to report third-quarter fiscal 2026 revenue of $219 million and EBITDA of $17.3 million when results are released around August 5, a pace that implies about 7.3% annual growth. As part of UTI's North Star Strategy, management plans to open up to five new campuses and introduce roughly 20 new programs each year, with a stated aim of exceeding $1.2 billion in revenue and approaching $220 million in EBITDA by fiscal 2029.
UTI is in the process of building five campuses in Atlanta, Salt Lake City, Houston and Phoenix. B. Riley reiterates a $49 price target on the shares, based on a 16x EV/EBITDA multiple applied to fiscal 2028 estimates. UTI reported second-quarter fiscal 2026 earnings per share of $0.01, beating forecasts, and was selected for inclusion in the S&P SmallCap 600 index. Separately, Truist Securities increased its price target on UTI to $47 from $40 while maintaining a Buy rating.
Takeaways
- B. Riley's updates combine modest target revisions with continued endorsement of specific education operators, rooted in expected cash flow, margin performance and identifiable growth initiatives.
- The firm applies differentiated valuation frameworks across the three companies - a lower multiple for PXED's fiscal 2026 EV/EBITDA comparison, an 11x fiscal 2027 EV/EBITDA method for APEI, and a 16x multiple on fiscal 2028 estimates for UTI - reflecting distinct growth and margin profiles.
- Near-term metrics vary by company: PXED posted stronger-than-expected free cash flow and small enrollment growth alongside modest tuition pressure; APEI continues to target multi-year organic expansion and incremental Health+ seat monetization; UTI is investing in campus expansion and program growth intended to lift revenue and EBITDA toward fiscal 2029 goals.
Context and implications
B. Riley's analysis underscores the mixed dynamics within the education services segment: steady cash generation and margin strength for some operators versus tuition and enrollment pressures in the near term. The firm's models and valuation approaches suggest the names it favors could use free cash flow for shareholder returns or reinvestment, while execution of expansion strategies will be important to realize modeled upside.