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Revenue Recognition | 9 Months Ended
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Sep. 30, 2025
Revenue From Contract With Customer [Abstract] |
Revenue Recognition | 6. REVENUE RECOGNITION Disaggregation of Revenue The following tables disaggregate our revenue by major source for the quarters and years to date ended September 30, 2025 and 2024 (dollars in thousands):
|  | For the Quarter Ended September 30, 2025 |  |  | For the Quarter Ended September 30, 2024 |
|  | CTU (3) |  |  | AIUS (3) |  |  | USAHS (4) |  |  | Corporate and Other |  |  | Total |  |  | CTU (3) |  |  | AIUS (3) |  |  | USAHS (4) |  |  | Corporate and Other |  |  | Total |
Tuition and fees, net (1) |  | $ | 116,311 |  |  | $ | 56,394 |  |  | $ | 37,969 |  |  | $ | - |  |  | $ | 210,674 |  |  | $ | 111,379 |  |  | $ | 57,063 |  |  | $ | - |  |  | $ | - |  |  | $ | 168,442 |
Other revenue (2) |  |  | 758 |  |  |  | 273 |  |  |  | 2 |  |  |  | 165 |  |  |  | 1,198 |  |  |  | 896 |  |  |  | 291 |  |  |  | - |  |  |  | 199 |  |  |  | 1,386 |
Total revenue |  | $ | 117,069 |  |  | $ | 56,667 |  |  | $ | 37,971 |  |  | $ | 165 |  |  | $ | 211,872 |  |  | $ | 112,275 |  |  | $ | 57,354 |  |  | $ | - |  |  | $ | 199 |  |  | $ | 169,828 |
|  | For the Year to Date Ended September 30, 2025 |  |  | For the Year to Date Ended September 30, 2024 |
|  | CTU (3) |  |  | AIUS (3) |  |  | USAHS (4) |  |  | Corporate and Other |  |  | Total |  |  | CTU (3) |  |  | AIUS (3) |  |  | USAHS (4) |  |  | Corporate and Other |  |  | Total |
Tuition and fees, net (1) |  | $ | 345,376 |  |  | $ | 171,676 |  |  | $ | 113,845 |  |  | $ | - |  |  | $ | 630,897 |  |  | $ | 329,631 |  |  | $ | 171,213 |  |  | $ | - |  |  | $ | - |  |  | $ | 500,844 |
Other revenue (2) |  |  | 2,246 |  |  |  | 769 |  |  |  | 6 |  |  |  | 539 |  |  |  | 3,560 |  |  |  | 2,506 |  |  |  | 903 |  |  |  | - |  |  |  | 579 |  |  |  | 3,988 |
Total revenue |  | $ | 347,622 |  |  | $ | 172,445 |  |  | $ | 113,851 |  |  | $ | 539 |  |  | $ | 634,457 |  |  | $ | 332,137 |  |  | $ | 172,116 |  |  | $ | - |  |  | $ | 579 |  |  | $ | 504,832 |
__________________ (1) Tuition and fees, net, includes revenue earned for all degree-granting programs as well as revenue earned for non-degree and professional development programs. (2) Other revenue primarily includes contract training revenue and miscellaneous non-student related revenue. (3) The prior period operating results for CTU and AIUS were recast to reflect the transition of the Hippo Education institution from CTU to AIUS. (4) USAHS includes revenue beginning on the acquisition date of December 2, 2024. Performance Obligations Our revenue, which is derived primarily from academic programs taught to students who attend our universities, is generally segregated into two categories: (1) tuition and fees, and (2) other. Tuition and fees represent costs to our students for educational services provided by our universities and are reflected net of scholarships and tuition discounts. Our universities charge tuition and fees at varying amounts and bill students a single charge that covers tuition, certain fees and required program materials, such as textbooks and supplies, which we treat as a single performance obligation. Generally, we bill student tuition at the beginning of each academic term for our degree programs and recognize the tuition as revenue on a straight-line basis over the academic term. As part of a student’s course of instruction, certain fees, such as technology fees and graduation fees, are billed separately to students. These fees are generally earned over the applicable term and are not considered separate performance obligations. We generally bill student tuition upon enrollment for our non-degree professional development programs and recognize the tuition as revenue on a straight-line basis over the length of the offering. Other revenue, which primarily consists of contract training revenue and miscellaneous non-student related revenue, is billed and recognized as goods are delivered or services are performed. Contract Assets For each term, the portion of tuition and fee payments received from students but not yet earned is recorded as deferred revenue and reported as a current liability on our condensed consolidated balance sheets, as we expect to earn these revenues within the next year. A contract asset is recorded for each student for the current term for which they are enrolled for the amount charged for the current term that has not yet been received as payment and to which we do not have the unconditional right to receive payment because the student has not reached the point in the student’s current academic term at which the amount billed is no longer refundable to the student. On a student by student basis, the contract asset is offset against the deferred revenue balance for the current term and the net deferred revenue balance is reflected within current liabilities on our condensed consolidated balance sheets. For certain of our institutions, students are billed as they enroll in courses, including courses related to future periods. Any billings for future periods would meet the definition of a contract asset as we do not have the unconditional right to receive payment as the course has not yet started. Contract assets related to future periods are offset against the respective deferred revenue associated with the future period. Due to the short-term nature of our academic terms, the contract asset balance which exists at the beginning of each quarter will no longer be a contract asset at the end of that quarter, with the exception of the contract assets associated with future periods. The decrease in contract asset balances are a result of one of the following: it becomes a student receivable balance once a student reaches the point in a student’s academic term where the amount billed is no longer refundable to the student; a refund is made to withdrawn students for the portion entitled to be refunded under each institutions’ refund policy; we receive funds to apply against the contract asset balance; or a student makes a change to the number of classes they are enrolled in which may cause an adjustment to their previously billed amount. As of the end of each quarter, a new contract asset is determined on a student-by-student basis based on the most recently started term and a student’s progress within that term as compared to the date at which the student is no longer entitled to a refund under each institution’s refund policy. Contract assets associated with future periods remain as contract assets until the course begins and the student reaches the point in that course that they are no longer entitled to a refund. The amount of deferred revenue balances which are being offset with contract asset balances as of September 30, 2025 and December 31, 2024 were as follows (dollars in thousands):
|  | As of |
|  | September 30, 2025 |  |  | December 31, 2024 |
Gross deferred revenue |  | $ | 124,920 |  |  | $ | 61,291 |
Gross contract assets |  |  | (65,124 | ) |  |  | (24,551 | )
Deferred revenue, net |  | $ | 59,796 |  |  | $ | 36,740 |
Deferred Revenue Changes in our deferred revenue balances for the quarters and years to date ended September 30, 2025 and 2024 were as follows (dollars in thousands):
|  | For the Quarter Ended September 30, 2025 |  |  | For the Quarter Ended September 30, 2024 |
|  | CTU (2) |  |  | AIUS (2) |  |  | USAHS (3) |  |  | Total |  |  | CTU (2) |  |  | AIUS (2) |  |  | USAHS (3) |  |  | Total |
Gross deferred revenue, July 1 |  | $ | 64,396 |  |  | $ | 22,716 |  |  | $ | 26,473 |  |  | $ | 113,585 |  |  | $ | 61,297 |  |  | $ | 29,488 |  |  | $ | - |  |  | $ | 90,785 |
Revenue earned from prior balances |  |  | (59,163 | ) |  |  | (16,104 | ) |  |  | (25,713 | ) |  |  | (100,980 | ) |  |  | (54,925 | ) |  |  | (21,876 | ) |  |  | - |  |  |  | (76,801 | )
Billings during period(1) |  |  | 101,912 |  |  |  | 64,006 |  |  |  | 56,204 |  |  |  | 222,122 |  |  |  | 97,256 |  |  |  | 62,871 |  |  |  | - |  |  |  | 160,127 |
Revenue earned for new billings during the period |  |  | (57,148 | ) |  |  | (40,290 | ) |  |  | (12,256 | ) |  |  | (109,694 | ) |  |  | (56,454 | ) |  |  | (35,187 | ) |  |  | - |  |  |  | (91,641 | )
Other adjustments |  |  | (524 | ) |  |  | (322 | ) |  |  | 733 |  |  |  | (113 | ) |  |  | (152 | ) |  |  | (111 | ) |  |  | - |  |  |  | (263 | )
Gross deferred revenue, September 30 |  | $ | 49,473 |  |  | $ | 30,006 |  |  | $ | 45,441 |  |  | $ | 124,920 |  |  | $ | 47,022 |  |  | $ | 35,185 |  |  | $ | - |  |  | $ | 82,207 |
|  | For the Year to Date Ended September 30, 2025 |  |  | For the Year to Date Ended September 30, 2024 |
|  | CTU (2) |  |  | AIUS (2) |  |  | USAHS (3) |  |  | Total |  |  | CTU (2) |  |  | AIUS (2) |  |  | USAHS (3) |  |  | Total |
Gross deferred revenue, January 1 |  | $ | 33,168 |  |  | $ | 26,555 |  |  | $ | 1,568 |  |  | $ | 61,291 |  |  | $ | 36,409 |  |  | $ | 27,561 |  |  | $ | - |  |  | $ | 63,970 |
Revenue earned from prior balances |  |  | (29,825 | ) |  |  | (25,022 | ) |  |  | (455 | ) |  |  | (55,302 | ) |  |  | (32,389 | ) |  |  | (26,164 | ) |  |  | - |  |  |  | (58,553 | )
Billings during period(1) |  |  | 361,969 |  |  |  | 175,160 |  |  |  | 157,734 |  |  |  | 694,863 |  |  |  | 340,676 |  |  |  | 178,592 |  |  |  | - |  |  |  | 519,268 |
Revenue earned for new billings during the period |  |  | (315,551 | ) |  |  | (146,654 | ) |  |  | (113,390 | ) |  |  | (575,595 | ) |  |  | (297,242 | ) |  |  | (145,049 | ) |  |  | - |  |  |  | (442,291 | )
Other adjustments |  |  | (288 | ) |  |  | (33 | ) |  |  | (16 | ) |  |  | (337 | ) |  |  | (432 | ) |  |  | 245 |  |  |  | - |  |  |  | (187 | )
Gross deferred revenue, September 30 |  | $ | 49,473 |  |  | $ | 30,006 |  |  | $ | 45,441 |  |  | $ | 124,920 |  |  | $ | 47,022 |  |  | $ | 35,185 |  |  | $ | - |  |  | $ | 82,207 |
______________ (1) Billings during period includes adjustments for prior billings. (2) The prior period amounts for CTU and AIUS were recast to reflect the transition of the Hippo Education institution from CTU to AIUS. (3) USAHS includes deferred revenue starting from the acquisition date on December 2, 2024. Tuition Refunds If a student withdraws from one of our academic institutions prior to the completion of the academic term, we refund the portion of tuition and fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded to a student is calculated based upon the percent of the term attended and the amount of tuition and fees paid by the student as of their withdrawal date. In certain circumstances, we have recognized revenue for students who have withdrawn that we are not entitled to retain. We have estimated a reserve for these limited circumstances based on historical evidence in the amount of $2.3 million and $2.1 million as of September 30, 2025 and December 31, 2024, respectively. Students are typically entitled to a partial refund until approximately a little more than halfway through their term. Pursuant to each university’s policy, once a student reaches the point in the term where no refund is given, the student would not have a refund due if withdrawing from the university subsequent to that date.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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