SEGMENTS

9 Months Ended

Sep. 30, 2025

SEGMENTS [Abstract]

SEGMENTS

10.

SEGMENTS

The Company manages its business, evaluates performance and allocates resources based on two reportable business segments, Campus Operations and Transitional.

Campus Operations – The Campus Operations segment includes campuses that are continuing in operation and contribute to the Company's core operations and performance. All of the campuses continuing in operation are classified in this segment. The majority of the campuses offer programs across various areas of study.

Transitional – The Transitional segment refers to campuses that are marked for closure and are currently being taught out, in addition to campuses that are held-for-sale or sold. The net assets of the Summerlin, Las Vegas campus were classified as held for sale as of December 31, 2024 and written down by $1.1 million in the fourth quarter of 2024. On January 1, 2025, the Company completed the sale of the Summerlin campus, and no gain or loss was recognized on the sale. Operating results for the Summerlin campus were classified within the Transitional segment.

The individual operating segments have been aggregated into the two main reportable segments based on the method by which our Chief Operating Decision Maker ("CODM") evaluates performance and allocates resources and as a result of the Company's judgment that the reporting units have similar products, production processes, types of customers, methods of distribution, regulatory environment, and economic characteristics. The Company's CODM is comprised of a team of executives deemed the "Executive Committee," which is comprised of the following individuals:

1. Scott Shaw – Chief Executive Officer and Director

2. Brian Meyers – Executive Vice President, Chief Financial Officer, and Treasurer

The CODM assesses segment financial performance by reviewing segment revenue and segment operating income, which includes certain corporate overhead allocations relating directly to the segments disclosed. Some of the allocated costs include the centralization of the Company's financial aid process, national sales and receivables, and default costs. The CODM will make decisions to allocate resources based on the review of monthly, quarterly, and annual financial information categorized by segment. The financial information is presented to the CODM using actual-to-actual results and budget-to-actual results.

We evaluate performance based on operating results. Adjustments to reconcile segment results with consolidated results are included in the caption "Corporate," which primarily includes unallocated corporate activity.

Summary financial information by reporting segment is as follows:

	Three Months Ended September 30,
			Consolidated				Campus Operations							Transitional				Corporate
			2025		2024				2025		2024			2025		2024				2025			2024
REVENUE		$	141,389	$	114,410			$	141,389	$	112,745		$	-	$	1,665			$	-		$	-
COSTS AND EXPENSES:
Instructional			24,813		22,411				24,813		21,834			-		577				-			-
Books and tools			14,915		11,472				14,915		11,156			-		316				-			-
Facilities			12,239		11,111				12,239		10,847			-		264				-			-
Depreciation and amortization			5,316		3,061				5,316		3,042			-		19				-			-
Educational services and facilities			57,283		48,055				57,283		46,879			-		1,176				-			-
Sales and marketing			25,347		20,393				25,347		19,948			-		445				-			-
Student services			6,332		5,365				6,332		5,157			-		208				-			-
Provision for credit losses			17,572		15,261				17,566		15,096			-		165				6			-
Administrative			28,416		22,151				11,590		10,171			-		311				16,826			11,669
Depreciation and amortization			144		169				-		-			-		-				144			169
Selling, general and administrative			77,811		63,339				60,835		50,372			-		1,129				16,976			11,838
Loss (gain) on sale of assets			10		(12	)			10		(12	)		-		-				-			-
Gain on insurance proceeds			-		(2,794	)			-		-			-		-				-			(2,794	)
Total costs and expenses			135,104		108,588				118,128		97,239			-		2,305				16,976			9,044
OPERATING INCOME (LOSS)		$	6,285		5,822			$	23,261	$	15,506		$	-	$	(640	)		$	(16,976	)	$	(9,044	)

		Nine Months Ended September 30,
		Consolidated						Campus Operations					Transitional					Corporate
		2025			2024			2025			2024		2025		2024			2025			2024
REVENUE	$	375,369		$	320,691		$	375,369		$	315,301	$	-	$	5,390		$	-		$	-
COSTS AND EXPENSES:
Instructional		71,372			67,833			71,372			66,030		-		1,803			-			-
Books and tools		29,393			25,472			29,393			24,673		-		799			-			-
Facilities		37,257			34,352			37,257			33,621		-		731			-			-
Depreciation and amortization		13,461			8,982			13,461			8,926		-		56			-			-
Educational services and facilities		151,483			136,639			151,483			133,250		-		3,389			-			-
Sales and marketing		63,920			58,222			63,920			56,968		-		1,254			-			-
Student services		18,933			16,302			18,933			15,640		-		662			-			-
Provision for credit losses		42,584			40,823			42,542			40,175		-		648			42			-
Administrative		85,866			65,815			34,750			30,425		-		871			51,116			34,519
Depreciation and amortization		472			535			-			-		-		-			472			535
Selling, general and administrative		211,775			181,697			160,145			143,208		-		3,435			51,630			35,054
(Gain) loss on sale of assets		(466	)		901			(500	)		590		-		-			34			311
Gain on insurance proceeds		-			(2,794	)		-			-		-		-			-			(2,794	)
Total costs and expenses		362,792			316,443			311,128			277,048		-		6,824			51,664			32,571
OPERATING INCOME (LOSS)	$	12,577		$	4,248		$	64,241		$	38,253	$	-	$	(1,434	)	$	(51,664	)	$	(32,571	)