American Public Education, Inc. (NASDAQ:APEI) is among the best education stocks to buy right now. According to the latest Form 13F filing with the SEC, 4D Advisors LLC lifted its holdings in American Public Education, Inc. (NASDAQ:APEI), making the stock its 20th largest holding. With the addition of 135,000 shares, the investment firm now owns about 0.75% of the company. If we look at the company’s performance, it has been nothing short of stellar. American Public Education, Inc. (NASDAQ:APEI) delivered ...

CHARLES TOWN, W.Va., Sept. 2, 2025 /PRNewswire/ -- American Public Education, Inc. (Nasdaq: APEI), is a leading provider of online and campus-based postsecondary education and career learning to over 125,000 students through three subsidiary institutions, today announced that Angela Selden, Chief Executive Officer, and Gary Janson, SVP Strategy & Growth, will attend the Lake Street Capital Markets 9th Annual Best Ideas Growth Conference on Thursday, September 11 at The Yale Club in New York City.Management ...

CHARLES TOWN, W.Va., Aug. 11, 2025 /PRNewswire/ -- American Public Education, Inc. (Nasdaq: APEI) announced the appointment of James Kenigsberg as its interim Chief Innovation and Technology Officer, a pivotal leadership role as the organization accelerates its transition to become a data-first, AI-enabled institution. With a mission rooted in serving military, nursing, and other service-minded learners, APEI is investing in intelligent infrastructure, predictive analytics, and personalized digital tools to ...

Financial Performance - For the quarter ended June 2025, American Public Education (APEI) reported revenue of $162.77 million, reflecting a 6.5% increase year-over-year [1] - The earnings per share (EPS) was reported at -$0.02, a decline from $0.01 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $161.01 million by 1.09% [1] - The EPS surprise was +71.43%, compared to the consensus estimate of -$0.07 [1] Key Metrics - Total student enrollment at Rasmussen University (RU) was 14,600, slightly below the average estimate of 14,700 [4] - Total student enrollment for Hondros College, Nursing Programs (HCN) was 3,700, in line with the average estimate of 3,701 [4] - Net course registrations reached 96,400, surpassing the average estimate of 94,122 [4] Revenue Breakdown - Revenue for Rasmussen University (RU) was $59.52 million, exceeding the average estimate of $56.75 million, representing a year-over-year increase of 12.2% [4] - Revenue for Hondros College, Nursing Programs (HCN) was $18.13 million, slightly below the average estimate of $18.21 million, with a year-over-year change of 10.5% [4] - Revenue for American Military & Public University (APUS) was $81.73 million, above the average estimate of $80.28 million, indicating a year-over-year increase of 6.1% [4] Stock Performance - Shares of American Public Education have returned +1.8% over the past month, outperforming the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Company Performance - American Public Education (APEI) reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.07, and compared to earnings of $0.01 per share a year ago, representing an earnings surprise of +71.43% [1] - The company posted revenues of $162.77 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.09%, and compared to year-ago revenues of $152.9 million [2] - Over the last four quarters, APEI has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - APEI shares have increased approximately 41.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the coming quarter is $0.25 on revenues of $159.93 million, and for the current fiscal year, it is $1.42 on revenues of $656.82 million [7] Industry Outlook - The Schools industry, to which APEI belongs, is currently in the top 15% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can materially impact stock performance [5][8]

Financial Data and Key Metrics Changes - Total revenue in Q2 2025 was $162.8 million, an increase of $9.9 million or 6.5% from the prior year period [17] - Net loss available to common shareholders was $300,000 compared to a net loss of $1.2 million in the prior year [18] - Adjusted EBITDA was $15.1 million, a $4.2 million or 38% increase over the prior year period, representing an adjusted EBITDA margin of 9.3% compared to 7.1% in the prior year [18] Business Line Data and Key Metrics Changes - At APUS, revenue increased to $81.7 million, a 6.1% increase compared to the prior year, with net course registrations increasing 7.3% [19] - Rasmussen's revenue was $59.5 million, an increase of 12.2%, with total enrollment growing 7.4% to approximately 14,600 students [19] - Hondros' revenue was up 10.5% to $18.1 million, with total enrollment increasing 13.5% to approximately 3,700 students [20] Market Data and Key Metrics Changes - Enrollment at Rasmussen increased from 7% in Q2 2025 to 10% in Q3 2025, marking the fifth consecutive quarter of year-over-year enrollment increases [12] - APUS expects continued year-over-year registration growth in the low to mid single digits for the remainder of 2025 [13] Company Strategy and Development Direction - The company is focused on simplifying its business structure and has completed the sale of Graduate School USA, which was deemed no longer a strategic fit [8][9] - APEI is investing in intelligent infrastructure and personalized digital tools to modernize the learner journey [9] - The combination of APUS, Rasmussen, and Hondros into a single accredited institution is ongoing, with approvals received from HLC and state agencies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of the company, citing strong enrollment growth and improved financial performance [28] - The company is maintaining its full-year revenue guidance while increasing adjusted EBITDA guidance to between $81 million and $88 million [11][25] Other Important Information - The company redeemed its preferred equity for approximately $43 million, funded by proceeds from the sale of corporate buildings and the release of restricted cash [7][22] - Cash flow from operations for the first six months of 2025 was $51.8 million compared to $33.2 million in the prior year [21] Q&A Session Summary Question: Can you provide more details on military business enrollments and tuition assistance? - Management noted that the $100 million in funding from the Department of Defense is authorized through September 2029, which will benefit military education providers, including APEI [34][35] Question: What is the outlook for Rasmussen's margins? - Management explained that margins were lower sequentially due to new course material costs and annual salary increases, but they expect operating leverage to improve as enrollments grow [43][46] Question: What are the expectations for new program ads and campus expansions? - Management indicated that they will share a multiyear view of campus opening strategies at the upcoming Investor Day [58] Question: How does the consolidation of educational units impact revenue and cost synergies? - Management highlighted that combining the institutions will allow for shared resources and access to a broader curriculum, enhancing marketing efficiency [68][70] Question: What is the impact of the "big beautiful bill" on the company? - Management stated that the bill has minimal negative impact, with additional funding expected to widen the total addressable market for military students [94][96]

Financial Performance - Revenue for Q2 2025 was $162.8 million, a 7% year-over-year increase[9] - Net loss available to common stockholders was ($0.3) million in Q2 2025, compared to ($1.2) million in Q2 2024[9] - Adjusted EBITDA for Q2 2025 was $15.1 million, compared to $10.9 million in Q2 2024[9] - Cash balance as of June 30, 2025, was $176.6 million[13] Enrollment and Registration - APUS net course registrations increased by 7.3% compared to Q2 2024[14] - Hondros College of Nursing (HCN) enrollment increased by 17.6%[14] - Rasmussen enrollment increased by 10.4% in 3Q'25 compared to 3Q'24[14] - Trailing twelve months (TTM) net course registrations reached 388,400[22] Guidance - Full year 2025 revenue is projected to be between $650 million and $660 million[17] - Full year 2025 net income available to common stockholders is guided to be between $18 million and $24 million[17] - Full year 2025 adjusted EBITDA is expected to be between $81 million and $88 million[17] Strategic Initiatives - APEI completed the sale of GSUSA on July 25, 2025[10] - The company is consolidating APUS, Rasmussen, and HCN into one system[20] - APEI redeemed preferred equity in Q2 2025[20]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended June 30, 2025, reflect a significant increase in net income to $13.4 million, improved operating cash flow to $51.8 million, and a slight decrease in total assets to $537.4 million due to asset sales and preferred stock redemption [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to $537.4 million from $570.1 million, primarily due to the reduction of assets held for sale and preferred stock redemption, while cash and cash equivalents increased to $176.6 million Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$537,369** | **$570,103** | | Cash, cash equivalents, and restricted cash | $176,579 | $158,941 | | Assets held for sale | $0 | $24,469 | | **Total Liabilities** | **$265,129** | **$266,224** | | Long-term debt, net | $94,062 | $93,424 | | **Total Stockholders' Equity** | **$272,240** | **$303,879** | | Preferred stock | $0 | $39,691 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) For the three and six months ended June 30, 2025, revenue increased 6.5% to $162.8 million and $327.3 million respectively, with net income surging to $4.5 million and $13.4 million, driven by segment growth and improved expense management Income Statement Summary (in thousands, except per share data) | Metric | Q2 2025 (Unaudited) | Q2 2024 | YTD 2025 (Unaudited) | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$162,766** | **$152,895** | **$327,317** | **$307,327** | | Income from operations | $7,025 | $2,220 | $19,271 | $7,402 | | **Net Income** | **$4,496** | **$371** | **$13,389** | **$887** | | Net (loss) income available to common stockholders | $(324) | $(1,160) | $7,137 | $(2,179) | | **Diluted EPS** | **$(0.02)** | **$(0.06)** | **$0.39** | **$(0.12)** | - A loss on redemption of preferred stock of **$3.5 million** was recorded in Q2 2025, impacting net income available to common stockholders[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased to $51.8 million for the six months ended June 30, 2025, supplemented by $15.4 million from investing activities, while financing activities used $49.5 million primarily for preferred stock redemption Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 (Unaudited) | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$51,807** | **$33,198** | | Net cash provided by (used in) investing activities | $15,350 | $(11,416) | | Net cash used in financing activities | $(49,519) | $(9,933) | | **Net increase in cash** | **$17,638** | **$11,849** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail business segments, revenue recognition, asset sales, lease obligations, goodwill, debt, and segment performance, highlighting the post-quarter sale of GSUSA, preferred stock redemption, and revenue concentration from government programs - On July 10, 2025, APEI entered into a definitive agreement to sell its membership interest in GSUSA for **$0.5 million**, with the sale completed on July 25, 2025, and is expected to result in a loss of **$7.0 million to $8.5 million**[112](index=112&type=chunk) - On June 23, 2025, APEI redeemed all 400 outstanding shares of Series A Senior Preferred Stock for **$43.1 million**, resulting in a **$3.5 million** loss on redemption recorded as a reduction to net income available to common stockholders[108](index=108&type=chunk) - The company's revenue is highly concentrated, with significant portions derived from DoD tuition assistance, VA education benefits, and Title IV programs across its APUS, RU, and HCN segments[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 6.5% consolidated revenue increase driven by enrollment growth and course registrations, improved operating margins from cost management, strategic initiatives including the APUS, RU, and HCN combination and GSUSA divestiture, and strong liquidity despite preferred stock redemption [Overview](index=30&type=section&id=Overview) The company, providing postsecondary education through APUS, RU, and HCN, is pursuing a strategic combination of these institutions, navigating legislative changes like the 'One Big Beautiful Bill Act,' and recently completed the sale of its GSUSA subsidiary - The planned combination of APUS, RU, and HCN into a single institution received HLC approval in June 2025, though implementation may be postponed into the second quarter of 2026 based on ongoing dialogue with the Department of Education (ED) and HLC[121](index=121&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA) was signed into law on July 4, 2025, which will overhaul student loan programs, establish a new program-level accountability framework based on graduate earnings, and create Workforce Pell Grants, effective July 1, 2026[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - The company completed the sale of its Graduate School USA (GSUSA) subsidiary on July 25, 2025[135](index=135&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Consolidated revenue for Q2 2025 increased 6.5% to $162.8 million, driven by growth across all education segments, leading to a significant improvement in operating income to $7.0 million due to modest expense increases Segment Revenue and Operating Income (Loss) - Q2 (in thousands) | Segment | Revenue Q2 2025 | Revenue Q2 2024 | Operating Income (Loss) Q2 2025 | Operating Income (Loss) Q2 2024 | | :--- | :--- | :--- | :--- | :--- | | APUS Segment | $81,731 | $77,048 | $21,442 | $18,291 | | RU Segment | $59,521 | $53,034 | $(1,976) | $(8,826) | | HCN Segment | $18,134 | $16,409 | $(402) | $(744) | - General and administrative expenses increased **10.8%** in Q2 2025, including **$1.7 million** in professional fees related to the planned Combination and the sale of GSUSA[165](index=165&type=chunk) - Depreciation and amortization expenses decreased by **$1.1 million** in Q2 2025, primarily because definite-lived intangible assets in the RU Segment became fully amortized in 2024[166](index=166&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity improved, with cash and cash equivalents increasing to $176.6 million, driven by $51.8 million from operations and $15.4 million from investing activities, partially offset by $49.5 million used in financing for preferred stock redemption - Cash and cash equivalents increased to **$176.6 million** at June 30, 2025, from **$158.9 million** at year-end 2024[199](index=199&type=chunk) - During the six months ended June 30, 2025, APUS collected approximately **$32.5 million** from DoD Tuition Assistance (TA) related to prior periods due to a change in its invoicing approach[200](index=200&type=chunk) - In May 2025, a **$25.4 million** restricted certificate of deposit securing a letter of credit for the Department of Education was released, making the cash unrestricted[204](index=204&type=chunk) - The company redeemed all outstanding Series A Senior Preferred Stock in June 2025 for **$43.1 million** (excluding dividends), a primary use of cash in financing activities[208](index=208&type=chunk)[211](index=211&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk on its variable-rate debt through an interest rate cap agreement, effective January 2025, which limits Term SOFR at 5.00% on a $50.0 million notional value through June 2026 - The company is exposed to interest rate risk on its variable-rate debt, where a **100 basis point** increase in Term SOFR would increase annual interest expense by approximately **$1.0 million**[216](index=216&type=chunk) - In January 2025, the company entered into a new interest rate cap agreement on a notional value of **$50.0 million**, which protects against the Term SOFR rate exceeding **5.00%** until its expiration in June 2026[216](index=216&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[217](index=217&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[218](index=218&type=chunk) [PART II – OTHER INFORMATION](index=46&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it currently has no material legal proceedings pending - As of the filing date, the company has no material legal proceedings pending[219](index=219&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) The company highlights updated risk factors, including potential delays in the APUS, RU, and HCN combination, and significant risks from the evolving postsecondary education regulatory environment, particularly the impact of the 'One Big Beautiful Bill Act' on financial aid programs - The implementation of the planned combination of APUS, RU, and HCN may be postponed, potentially into the second quarter of 2026, due to ongoing dialogue with the Department of Education and HLC[221](index=221&type=chunk) - The company faces risks from potential changes in the federal regulatory environment, including the Trump administration's stated intention to dismantle the Department of Education, which could disrupt operations and funding[222](index=222&type=chunk)[223](index=223&type=chunk) - The recently passed 'One Big Beautiful Bill Act' (OBBBA) introduces significant changes to federal student aid, including new loan caps and an earnings-based accountability framework, which could adversely impact student enrollment and financial results[226](index=226&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares under its public plans during Q2 2025, with $6.0 million remaining authorized for future repurchases, though 1,286 shares were deemed repurchased for tax withholding - No shares were repurchased under the company's publicly announced stock repurchase programs during the three months ended June 30, 2025[228](index=228&type=chunk) - As of June 30, 2025, approximately **$6.0 million** remained authorized for future share repurchases[228](index=228&type=chunk)[231](index=231&type=chunk) [Other Information](index=49&type=section&id=Item%205.%20Other%20Information) Effective August 4, 2025, James Kenigsberg was appointed Interim Chief Innovation and Technology Officer and resigned from the Board, while Craig MacGibbon will step down as Executive Vice President, Chief Information Officer on August 19, 2025 - Effective August 4, 2025, James Kenigsberg was appointed Interim Chief Innovation and Technology Officer and resigned from the Board of Directors[232](index=232&type=chunk) - Craig MacGibbon will step down from his role as Executive Vice President, Chief Information Officer, effective August 19, 2025[233](index=233&type=chunk)

[Overview of Q2 2025 Performance](index=1&type=section&id=Overview%20of%20Q2%202025%20Performance) American Public Education (APEI) exceeded Q2 2025 guidance with increased revenue and Adjusted EBITDA, advancing its business simplification and receiving favorable regulatory updates for Rasmussen University [Key Second Quarter 2025 Highlights](index=1&type=section&id=Key%20Second%20Quarter%202025%20Highlights) APEI surpassed Q2 2025 guidance with a 6.5% revenue increase and a 38.2% rise in Adjusted EBITDA, while progressing its business simplification strategy and securing favorable regulatory outcomes for Rasmussen University Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | $162.8 million | $152.9 million | +6.5% | | Net Loss available to common stockholders | ($0.3) million | ($1.2) million | N/A | | Adjusted EBITDA | $15.1 million | $10.9 million | +38.2% | - APEI continued its business simplification strategy with several key transactions: the sale of Graduate School USA (completed July 25, 2025), the redemption of all Series A Senior Preferred Stock, and the sale of two administrative office buildings[1](index=1&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) - Rasmussen University received positive regulatory updates from the Department of Education in May 2025, which lifted temporary growth restrictions and released a **$24.5 million** letter of credit, making the cash unrestricted[4](index=4&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Angela Selden highlighted strong Q2 performance driven by successful execution of growth and simplification strategies, including significant balance sheet improvements and the completion of the Graduate School USA sale - Management attributes the strong Q2 performance, which exceeded expectations, to continued business simplification and enrollment growth across its education units[5](index=5&type=chunk) - The company improved its balance sheet by redeeming preferred equity, which will save approximately **$6 million** in annual cash expenses[5](index=5&type=chunk) - The sale of Graduate School USA (GSUSA) was completed on July 25, 2025, marking a key step in the company's simplification efforts[3](index=3&type=chunk)[5](index=5&type=chunk) [Financial and Operational Results](index=2&type=section&id=Financial%20and%20Operational%20Results) APEI's Q2 2025 results show increased revenue across segments, improved net loss, and strengthened cash position, alongside broad-based enrollment growth [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) Consolidated revenue for Q2 2025 increased by 6.5% to $162.8 million, driven by growth in the RU, APUS, and HCN segments, while net loss improved despite a one-time preferred stock redemption loss Q2 2025 Revenue by Segment (Year-over-Year) | Segment | Q2 2025 Revenue | Increase from Q2 2024 | | :--- | :--- | :--- | | RU Segment | $59.5 million | +$6.5 million | | APUS Segment | $81.7 million | +$4.7 million | | HCN Segment | $18.1 million | +$1.7 million | - Total costs and expenses increased by **3.4%** year-over-year, primarily due to higher employee compensation, professional fees, and classroom materials costs[6](index=6&type=chunk) - The Q2 2025 net loss of **($0.3) million** included a **$3.5 million** one-time loss on the redemption of preferred stock[6](index=6&type=chunk) [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2025, APEI's cash position significantly strengthened, with total cash, cash equivalents, and restricted cash growing by 11.1% to $176.6 million Cash Position Comparison | Metric | June 30, 2025 | Dec 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Cash, Cash Equivalents, and Restricted Cash | $176.6 million | $158.9 million | +11.1% | | Unrestricted Cash and Cash Equivalents | $174.9 million | $131.9 million | +32.6% | [Registrations and Enrollment](index=3&type=section&id=Registrations%20and%20Enrollment) APEI experienced broad-based enrollment growth across all institutions in Q2 2025, with Hondros College of Nursing leading with a 13.5% increase in total student enrollment Q2 2025 Enrollment and Registration (Year-over-Year) | Institution | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | | American Public University System | Net Course Registrations | 96,400 | 89,800 | 7.3% | | Rasmussen University | Total Student Enrollment | 14,600 | 13,600 | 7.4% | | Hondros College of Nursing | Total Student Enrollment | 3,700 | 3,300 | 13.5% | [Future Outlook](index=3&type=section&id=Future%20Outlook) APEI provides guidance for Q3 and full-year 2025, projecting continued revenue and Adjusted EBITDA growth, while adjusting net income guidance for one-time losses [Third Quarter 2025 Guidance](index=3&type=section&id=Third%20Quarter%202025%20Outlook) For Q3 2025, APEI anticipates consolidated revenue between $159.0 million and $161.0 million, with Adjusted EBITDA projected from $15.0 million to $17.0 million, and a net loss between ($2.9) million and ($0.8) million Q3 2025 Guidance | Metric | Guidance Range | YoY % Change | | :--- | :--- | :--- | | Consolidated Revenue | $159.0 million – $161.0 million | 4% to 5% | | Net Loss available to common stockholders | ($2.9) million – ($0.8) million | N/A | | Adjusted EBITDA | $15.0 million – $17.0 million | 16% to 32% | | Diluted EPS | ($0.15) – ($0.04) | N/A | - Enrollment growth is expected to continue in Q3 2025, with APUS net course registrations projected to increase by **5-7%**, RU enrollment by **10%**, and HCN enrollment by **18%** year-over-year[10](index=10&type=chunk) [Full Year 2025 Guidance](index=4&type=section&id=Full%20Year%202025%20Outlook) APEI reconfirmed full-year 2025 revenue guidance of $650 million to $660 million, updated net income to $18 million to $24 million reflecting one-time losses, and increased Adjusted EBITDA guidance to $81 million to $88 million Full Year 2025 Guidance | Metric | Guidance Range | YoY % Change | | :--- | :--- | :--- | | Consolidated Revenue | $650 million – $660 million | 4% to 6% | | Net Income available to common stockholders | $18 million – $24 million | 84% to 142% | | Adjusted EBITDA | $81 million – $88 million | 12% to 22% | | Capital Expenditure (CapEx) | $18 million – $22 million | (14%) to 4% | - The company reset its full-year net income guidance to account for losses associated with the sale of Graduate School USA and the redemption of preferred equity[4](index=4&type=chunk) - Despite the reset to net income, the guidance for full-year 2025 Adjusted EBITDA was increased, signaling strong underlying operational performance[4](index=4&type=chunk) [Appendix: Financial Statements and Reconciliations](index=6&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) This section provides detailed financial statements, including the Consolidated Statement of Income, Consolidated Balance Sheet, and GAAP to Non-GAAP reconciliations for Q2 2025 and future guidance [Consolidated Statement of Income](index=6&type=section&id=Consolidated%20Statement%20of%20Income) For Q2 2025, APEI reported revenue of $162.8 million and net income of $4.5 million, with all segments showing year-over-year revenue growth, resulting in a net loss available to common stockholders of ($0.3) million after one-time adjustments Q2 2025 vs Q2 2024 Income Statement Summary (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $162,766 | $152,895 | | Income from operations | $7,025 | $2,220 | | Net income | $4,496 | $371 | | Net loss available to common stockholders | $(324) | $(1,160) | [Consolidated Balance Sheet](index=7&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, APEI's balance sheet shows total assets of $537.4 million and total liabilities of $265.1 million, with preferred stock fully removed from equity following its redemption Key Balance Sheet Items (in thousands) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $537,369 | $570,103 | | Total Liabilities | $265,129 | $266,224 | | Preferred Stock | $0 | $39,691 | | Total Stockholders' Equity | $272,240 | $303,879 | [GAAP to Non-GAAP Reconciliation](index=8&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section reconciles GAAP Net Income to Adjusted EBITDA for Q2 2025, showing adjustments for items like interest, taxes, depreciation, stock compensation, and professional fees, and provides a similar reconciliation for future guidance Q2 2025 GAAP Net Income to Adjusted EBITDA Reconciliation (in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $4,496 | | Add: Income tax expense | $1,421 | | Add: Interest expense, net | $1,108 | | Add: Depreciation and amortization | $4,088 | | **EBITDA** | **$11,113** | | Add: Other professional fees | $1,715 | | Add: Stock compensation | $2,238 | | Add: Other adjustments | $35 | | **Adjusted EBITDA** | **$15,101** | - The full-year 2025 guidance reconciliation shows significant adjustments from projected Net Income to Adjusted EBITDA, including an estimated **$8.5 million to $7.0 million** loss on the sale of GSUSA, **$17.4 million** in depreciation & amortization, and **$8.9 million** in stock compensation[32](index=32&type=chunk)

Q2 2025 Revenue, Net Income, and Adjusted EBITDA Exceeded Guidance Simplification Continues with Sale of Graduate School USA, Redemption of All Preferred Equity, and Sale of Two Administrative Office Buildings CHARLES TOWN, W.V., Aug. 6, 2025 /PRNewswire/ -- American Public Education, Inc. (Nasdaq: APEI), a portfolio of education companies providing online and campus-based postsecondary education to over 105,000 students through three subsidiary institutions, has reported unaudited financial and operational ...