STI profit down 22% in March quarter
STI Education Systems Holdings Inc. saw its net income in the three months ending March 2026 fall by 22 percent as changes in revenue recognition weighed on quarterly results despite stable enrollment and continued expansion efforts.
The Eusebio Tanco-led company said on Monday that its net income after tax for the quarter reached P549.4 million. This went down from P706.6 million in the same period last year.
Gross revenues likewise declined by 9 percent to P1.37 billion from P1.51 billion previously.
The education firm said the quarter-on-quarter variance was mainly caused by a “structural shift” in revenue recognition policies implemented starting the school year 2025 to 2026.
Under the updated approach, STI Education Services Group and STI West Negros University now recognize tuition and school fee revenues based on the actual number of school days per quarter instead of monthly recognition.
The company said the accounting change only affected the timing of revenue recognition across quarters and did not impact total revenues recognized for the full academic year.
Tuition and school fee adjustments for the current school year also contributed to the quarterly variance.
“Our performance reflects the resilience of our core education business and the continued strength of tertiary enrollment across the network,” the company said.
For the first nine months of the school year 2025 to 2026, STI Holdings still posted higher earnings. Net income after tax is inching up to P1.63 billion from P1.62 billion a year ago.
Gross revenues rose 2 percent to P4.20 billion while earnings before interest, taxes, depreciation and amortization climbed 6 percent to P2.35 billion.
The company maintained a gross profit margin of 73 percent during the period. Total assets as of March 31 grew 9 percent to P18.53 billion, supported by campus expansion projects, improved tuition collections, stronger cash holdings and land acquisitions in Calamba, Laguna. Total equity increased 13 percent to P14.1 billion.
Student enrollment remained largely stable despite changing industry dynamics. Total enrollees for the school year 2025 to 2026 reached 132,941, slightly lower than the 139,155 recorded in the previous school year.
Students enrolled in programs regulated by the Commission on Higher Education accounted for 77 percent of the total student population.
STI Holdings said it continued to modernize its academic programs through specialized cybersecurity and computer-aided design platforms for criminology and information and communications technology students, alongside Adobe Creative Cloud licenses.
“These investments are aligned with our long-term goal of preparing students for evolving industry requirements while improving graduate employability across key sectors,” the company said.
The firm also highlighted achievements by several schools under its network, including iACADEMY’s recognition as the top-performing school in the 2025 Real Estate Appraisers Licensure Examination after posting a 90-percent passing rate.
