Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $163.2 million, an increase of $10.1 million or 7% from the prior year period [22] - Net income available to common shareholders was $5.6 million, nearly seven times higher than the $700,000 in the prior year [23] - EPS increased significantly to $0.30 per diluted share in Q3 2025 versus $0.04 in the prior year [23] - Adjusted EBITDA increased 60% to $20.7 million compared to $12.9 million in the prior year, with an adjusted EBITDA margin of 13% compared to 8% in the prior year [23] Business Line Data and Key Metrics Changes - At APUS, Q3 revenue increased by 8% to $83.1 million, driven by a corresponding 8% increase in net course registrations [24] - Rasmussen's Q3 revenue was $60.8 million, a 16% increase, fueled by a 12% increase in on-ground enrollment and an 11% increase in online enrollment [24] - Hondros College of Nursing saw a 19% increase in Q3 revenue to $18.4 million, with total enrollment increasing 18% to approximately 3,700 students [25] Market Data and Key Metrics Changes - Registrations at APUS increased 8% year-over-year, while enrollments at Rasmussen increased 10% compared to Q3 2024 [9] - Enrollments at Hondros College of Nursing continued strong momentum, increasing 18% compared to Q3 2024 [9] - The government shutdown has muted military enrollments at APUS for October and November, but several military branches are now authorizing tuition assistance benefits [15][16] Company Strategy and Development Direction - The company is focused on simplifying operations and has received HLC approval for the combination of its institutions, with a new application submitted to the U.S. Department of Education [10][11] - The sale of Graduate School USA allows the company to concentrate on core degree-granting businesses, particularly in military and healthcare sectors [10] - The company aims to leverage existing capacity and improve financial results through operational simplification and strategic growth initiatives [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the team despite the government shutdown and emphasized the importance of tuition assistance as a recruiting tool for military service members [17] - The company remains optimistic about long-term growth potential and plans to share more details during the upcoming Investor Day [32] - Management believes that the combination of institutions will enhance revenue and expense synergies, despite procedural delays [39][41] Other Important Information - The company redeemed all outstanding preferred stock for $43.1 million and completed the sale of two corporate administrative office buildings for net proceeds of $22.5 million [26] - Cash flow from operations for the nine months ended September 30, 2025, increased 56% to $73.5 million, with total cash and equivalents increasing 22% to $193.1 million [25][26] Q&A Session Summary Question: Plans for driving re-enrollments at APUS due to tuition assistance disruption - Management noted that military branches are using tuition assistance funds to allow service members to register, and they expect demand to return as the government shutdown resolves [36][37] Question: Impact of new process on integration of institutions - Management confirmed commitment to the integration and stated that the new process is procedural, with expectations for implementation in Q3 2026 [39][40] Question: Confirmation of fourth quarter guidance assumptions - Management acknowledged a slowdown in registrations due to the government shutdown but expects a return to normal trajectory in December [46] Question: Cost-saving measures and their permanence - Management discussed temporary and permanent reductions in variable costs and operational streamlining, ensuring that revenue generation remains unaffected [48][50] Question: Trends in nursing program demand - Management reported strong growth in nursing enrollments, driven by attractive compensation and job availability, with a focus on first licensure programs [54][56] Question: Enrollment trends and demographics at Rasmussen - Management indicated a shift towards enrolling more BSN students, reflecting effective marketing strategies and macro demand [108]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $163.2 million, an increase of $10.1 million or 7% from the prior year period [19] - Net income available to common shareholders was $5.6 million, nearly seven times higher than the net income of $700,000 in the prior year [20] - EPS increased significantly to $0.30 per diluted share in Q3 2025 versus $0.04 in the prior year [20] - Adjusted EBITDA increased 60% to $20.7 million compared to the prior year period, with an adjusted EBITDA margin of 13% compared to 8% in the prior year [21] Business Line Data and Key Metrics Changes - At APUS, Q3 revenue increased to $83.1 million, an 8% increase compared to the prior year, driven by an 8% increase in net course registrations [22] - Rasmussen's Q3 revenue was $60.8 million, a 16% increase fueled by a 12% increase in on-ground enrollment and an 11% increase in online enrollment [22] - Hondros College of Nursing's Q3 revenue increased 19% to $18.4 million, with total enrollment up 18% to approximately 3,700 students [23] Market Data and Key Metrics Changes - Registrations at APUS increased 8% year-over-year, while enrollments at Rasmussen increased 10% compared to Q3 2024 [8][12] - Enrollments at Hondros College of Nursing continued strong momentum, increasing 18% compared to Q3 2024 [12] Company Strategy and Development Direction - The company is focusing on growing core degree-granting businesses, particularly in military, veteran, nursing, and healthcare communities [9] - APEI is simplifying its operational structure and has submitted a new application for the combination of its institutions, expected to take effect in Q3 2026 [10][34] - The company aims to leverage existing capacity and improve financial results through enrollment growth and operational efficiencies [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the team despite government shutdown uncertainties and highlighted consistent performance over the last 18 months [16] - The company anticipates that the government shutdown will have a temporary impact on enrollments, with expectations of a return to normalcy once the situation stabilizes [32][50] - Management remains optimistic about long-term growth potential and plans to share more details at the upcoming Investor Day [30] Other Important Information - The company completed the sale of Graduate School USA, which was no longer a strategic fit, allowing a focus on core businesses [8][9] - The balance sheet improved with unrestricted cash and equivalents totaling $193.1 million as of September 30, 2025 [10][24] Q&A Session Summary Question: Plans for driving re-enrollments at APUS due to tuition assistance disruption - Management noted that several military branches are using tuition assistance funds to allow service members to register, and they have implemented marketing campaigns to re-engage dropped students [32] Question: Impact of the new process for integrating institutions on expense or revenue synergies - Management confirmed commitment to the integration and stated that the new process is procedural, with expectations for implementation in Q3 2026 [34] Question: Confirmation of a two-month slowdown for APUS registrations - Management acknowledged a slowdown in October but noted a recovery in November, with expectations for a return to normal trajectory in December [37] Question: Details on cost-saving initiatives - Management indicated that they have streamlined operations and reduced variable costs without affecting revenue-generating activities [39] Question: Trends in nursing program demand - Management reported strong growth in nursing enrollments, driven by attractive compensation and job availability in the sector [41] Question: Enrollment trends and demographic changes at Rasmussen - Management highlighted broad-based enrollment growth across campuses, with a particular focus on expanding the BSN student pool [58]

Financial Performance - Consolidated revenue for Q3 2025 increased 7% year-over-year to $163.2 million, driven by 19% growth at Hondros College of Nursing, 16% at Rasmussen University, and 8% at American Public University System[4] - Net income available to common stockholders for Q3 2025 was $5.6 million, a 660% increase compared to $0.7 million in Q3 2024[4] - Adjusted EBITDA rose 60% to $20.7 million from $12.9 million in Q3 2024, reflecting increased revenue and margin expansion of 424 basis points[4] - Revenue for Q3 2025 increased to $163.2 million, up 6.9% from $153.1 million in Q3 2024[27] - Net income for Q3 2025 was $5.56 million, compared to $2.26 million in Q3 2024, representing a 146.5% increase[27] - Basic income per common share rose to $0.31 in Q3 2025 from $0.04 in Q3 2024[27] - APUS Segment revenue grew to $83.14 million, a 8.3% increase from $76.98 million in the prior year[27] - RU Segment revenue increased to $60.83 million, up 15.7% from $52.60 million in Q3 2024[27] - The company expects net income for the twelve months ending December 31, 2025, to be between $17.20 million and $19.65 million[34] - Adjusted EBITDA outlook for the twelve months ending December 31, 2025, is projected to be between $75.58 million and $79.08 million[34] Cash Flow and Assets - Cash flows from operations increased 56% to $73.5 million from $47.3 million in Q3 2024[4] - Total cash, cash equivalents, and restricted cash was $193.1 million at September 30, 2025, up 21.5% from $158.9 million at December 31, 2024[6] - Total current assets decreased slightly to $259.11 million as of September 30, 2025, from $260.57 million at the end of 2024[29] - Total liabilities decreased to $245.96 million as of September 30, 2025, down from $266.22 million at the end of 2024[29] - APEI's balance sheet remains strong with no net debt and a simplified capital structure following the sale of Graduate School USA in July 2025[4] Enrollment and Registrations - APUS net course registrations for Q3 2025 were 100,000, an 8.1% increase from 92,500 in Q3 2024[8] - Rasmussen University total student enrollment increased by 10.4% to 14,900 from 13,500 in Q3 2024[8] Future Guidance - For Q4 2025, APEI expects consolidated revenue between $150.0 million and $153.5 million, representing a year-over-year decline of 6% to 9%[10] - Full year 2025 guidance for consolidated revenue is projected at $640 million to $644 million, reflecting a 2% to 3% increase year-over-year[12]

3Q 2025 Earnings Presentation November 2025 FORWARD- LOOKING STATEMENTS Statements made in this presentation regarding American Public Education, Inc. or its subsidiary institutions ("APEI" or the "Company") that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the industry. In some cases, forward looking statements can be identified by words such as "anticipate," "believe," "seek," "could," "estimate," "expect," "in ...

Core Insights - American Public Education, Inc. (APEI) reported strong financial results for Q3 2025, exceeding guidance across all metrics, with significant revenue and enrollment growth [1][3][5]. Financial Performance - Consolidated revenue for Q3 2025 increased by 7% year-over-year to $163.2 million, driven by revenue increases of 19% at Hondros College of Nursing, 16% at Rasmussen University, and 8% at American Public University System [5][6]. - Net income available to common stockholders for Q3 2025 was $5.6 million, a 660% increase compared to $0.7 million in Q3 2024 [5][11]. - Adjusted EBITDA rose by 60% to $20.7 million from $12.9 million in Q3 2024, reflecting increased revenue and margin expansion [5][11]. - Cash flows from operations increased by 56% to $73.5 million from $47.3 million in Q3 2024 [5]. Enrollment and Registrations - Total student enrollment at American Public University System increased by 8.1% to 100,000, while Rasmussen University saw a 10.4% increase to 14,900 students, and Hondros College of Nursing experienced a 17.6% increase to 3,700 students [8][9]. Cost Management - Total costs and expenses for Q3 2025 were $153.5 million, a 3% increase from $149.0 million in the prior year, with instructional costs decreasing by 0.9% due to the sale of GSUSA [6][11]. - Selling and promotional expenses increased by 8% to $36.1 million, attributed to higher advertising costs [11]. Balance Sheet and Liquidity - Total cash, cash equivalents, and restricted cash increased to $193.1 million as of September 30, 2025, up from $158.9 million at the end of 2024, representing a 21.5% increase [7][27]. Future Outlook - For Q4 2025, APEI expects consolidated revenue to be between $150.0 million and $153.5 million, reflecting a year-over-year decline of 6% to 9% [12]. - Full-year 2025 guidance anticipates consolidated revenue of $640 million to $644 million, a 2% to 3% increase compared to the previous year [12].

Enrollment and Student Services - The company serves approximately 107,600 students through its three subsidiary institutions: American Public University System (APUS), Rasmussen University (RU), and Hondros College of Nursing (HCN) [123] - As of September 30, 2025, APUS had approximately 89,000 adult learners, with 63% self-reporting military service at the time of enrollment [126] - APUS net course registrations for Q3 2025 increased to approximately 100,000, up 8.1% from 92,500 in the prior year [170] - RU total enrollment for Q3 2025 increased to approximately 14,900, a rise of 10.4% from 13,500 in the prior year [171] - HCN total enrollment for Q3 2025 increased to approximately 3,700, a growth of 17.6% from 3,100 in the prior year [172] Financial Performance - Consolidated revenue for the three months ended September 30, 2025, increased to $163.2 million, a 6.6% increase from $153.1 million in the prior year period [152] - Net income for the three months ended September 30, 2025, was $5.6 million, compared to $2.3 million in the prior year period, an increase of $3.3 million [152] - Consolidated revenue for the nine months ended September 30, 2025, increased to $490.5 million, a 6.5% increase from $460.4 million in the prior year period [153] - Net income for the nine months ended September 30, 2025, was $18.9 million, compared to $3.1 million in the prior year period, an increase of $15.8 million [153] - The operating margin improved to 5.9% for the three months ended September 30, 2025, compared to 2.7% in the prior year period [152] - The operating margin improved to 5.8% for the nine months ended September 30, 2025, compared to 2.5% in the prior year period [155] Legislative and Regulatory Environment - The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, will overhaul certain student loan programs, including eliminating Federal Direct PLUS loans for graduate students effective July 1, 2026 [130][131] - The company is required to comply with extensive regulatory frameworks, including the 90/10 Rule and financial responsibility standards, which may impact its operations [121] - The company anticipates potential changes in student enrollment and course registrations due to legislative and regulatory changes [124] Cost Management and Operational Changes - The company has implemented cost-saving measures, including a reduction in force and hiring freeze, to mitigate the impacts of the ongoing government shutdown [129] - A reduction in force on November 3, 2025, resulted in the termination of 40 non-faculty employees at APUS, representing approximately 6.5% of the non-faculty workforce [148] - The company expects to incur approximately $0.8 million in employee compensation costs for post-employment benefits related to the former CFO's departure [147] Revenue and Expense Analysis - Revenue increases were driven by a $8.2 million (15.6%) increase in the RU Segment, a $6.2 million (8.0%) increase in the APUS Segment, and a $2.9 million (19.0%) increase in the HCN Segment [175] - Costs and expenses for the three months ended September 30, 2025, were $153.5 million, an increase of $4.5 million, or 3.0%, compared to $149.0 million for the same period in 2024 [176] - Instructional costs and services expenses decreased by $0.7 million (0.9%) to $74.7 million for the three months ended September 30, 2025, primarily due to the sale of GSUSA [177] - Selling and promotional expenses increased by $2.7 million (8.0%) to $36.1 million for the three months ended September 30, 2025, driven by higher advertising costs [178] - General and administrative expenses decreased by $0.3 million (1.0%) to $34.7 million for the three months ended September 30, 2025, due to lower information technology costs [179] Cash Flow and Financial Position - Cash, cash equivalents, and restricted cash increased by $34.2 million, or 21.5%, to $193.1 million as of September 30, 2025, primarily due to improved financial performance and asset sales [214] - Net cash provided by operating activities increased to $73.5 million for the nine months ended September 30, 2025, compared to $47.3 million in 2024 [225] - Net cash provided by investing activities was $10.5 million for the nine months ended September 30, 2025, compared to a net cash used of $17.7 million in 2024 [226] - Net cash used in financing activities increased to $49.8 million for the nine months ended September 30, 2025, primarily due to the redemption of Series A Senior Preferred Stock for $43.2 million [227] Strategic Initiatives - The planned combination of APUS, RU, and HCN is expected to be completed by the beginning of Q3 2026, following necessary approvals [125] - APUS expects to explore opportunities to invest in the education industry, including potential acquisitions or investments in education-related companies [222] - An interest rate cap agreement with a notional value of $50.0 million was entered into in January 2025, providing protection if the Term SOFR rate exceeds 5.00% [232]

Core Insights - American Public Education, Inc. (APEI) is set to report its third-quarter 2025 results on November 10, after market close [1] - The company reported an adjusted loss per share that was narrower than the Zacks Consensus Estimate by 71.4%, with revenues exceeding the consensus by 1.1% and growing 6.5% year over year [1] Revenue Performance - APEI's revenue growth is attributed to an increase in students utilizing federal student aid and military-affiliated education benefit programs, along with effective marketing and enrollment strategies [4] - The Zacks Consensus Estimate for revenues in Q3 is $160.5 million, reflecting a 4.8% increase from $153.1 million in the same quarter last year [3] - The company expects net course registrations in the APUS segment to rise by 5-7% year over year, with enrollments in the RU and HCN segments projected to increase by 10% and 18%, respectively [5][6] Earnings Outlook - APEI anticipates a loss per share between 15 cents and 4 cents for the third quarter, with adjusted EBITDA expected to be between $15 million and $17 million, representing a year-over-year increase of 16-32% [8] - The company projects total costs and expenses to rise by 7.7% to $160.4 million compared to the previous year, driven by increased faculty compensation and marketing costs [9] Earnings Prediction Model - The Zacks model indicates that APEI does not have a strong likelihood of an earnings beat this quarter, with an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [10][11]

Core Insights - The article discusses the upcoming virtual conference "Sport United: The Future is Now," which will focus on emerging trends in sports management, including Esports, AI, and personalized digital fan experiences [1][2][3] Group 1: Event Details - The conference will take place on November 6-7 and is organized by the American Public University System (APUS) [2] - It aims to provide a platform for academic leaders, students, industry professionals, athletes, and coaches to share knowledge and network [2][3] Group 2: Keynote Speakers - Notable speakers include Jon Persch, Chief Commercial Officer of the FIFA 2026 Boston Host Committee; Sarah Kneller, an Emmy Award-winning producer; Pati Rolf, a decorated athlete and coach; and Dr. Victor Tringali, a health and wellness professional [4] - These speakers are recognized for their contributions to the sports industry and will provide insights into the future of sports management [4] Group 3: Educational Programs - APUS offers the first Esports program in the U.S. to earn specialty accreditation from The Commission on Sport Management Accreditation (COSMA) [3] - The Esports program covers various aspects, including event management, player performance, and marketing, while the Sports Management program focuses on leadership skills and knowledge in sports finance, law, and public relations [3]

Core Insights - American Public Education, Inc. (APEI) will hold a conference call on November 10, 2025, at 5:00 PM Eastern Time to discuss its financial results for Q3 2025, which ended on September 30, 2025 [1][2] Company Overview - APEI is a leading education services provider offering innovative and affordable educational programs through its subsidiaries [1][2] - The company serves approximately 89,000 adult learners worldwide, focusing on accessible higher education [3] - APEI operates through three main institutions: American Public University System (APUS), Rasmussen University, and Hondros College of Nursing [2][3][4] Institutional Details - APUS is recognized as a leading educator for active-duty military and veteran students, leveraging Department of Defense tuition assistance data [3][6] - Rasmussen University, with a history of 125 years, serves around 14,600 students across 20 campuses and online, offering programs in various fields including nursing and health sciences [4][6] - Hondros College of Nursing is the largest educator of Practical Nursing (LPN) in Ohio, serving approximately 3,700 students across eight campuses [5][6] Accreditation - APUS and Rasmussen University are accredited by the Higher Learning Commission (HLC), while Hondros College is accredited by the Accrediting Bureau of Health Education Schools (ABHES) [6]

Core Insights - American Public Education, Inc. (APEI) has appointed Edward H. Codispoti as the new Executive Vice President and Chief Financial Officer (CFO) [1][2] - Codispoti brings over 25 years of financial leadership experience, having previously served as CFO of NV5 Global, Inc., where he led the finance function through more than 45 M&A transactions [2][4] - APEI is recognized as the leading educator for active-duty military and veterans, serving approximately 88,000 adult learners globally [3][7] Company Overview - APEI provides high-quality post-secondary education through its institutions, including American Public University System, Rasmussen University, and Hondros College of Nursing [1][6] - The company focuses on transforming lives, advancing careers, and improving communities through accessible and affordable education [6] Leadership Transition - Rick Sunderland, the current CFO, will transition to an advisory role to ensure a smooth handover [1][4] - Codispoti expressed enthusiasm about joining APEI and emphasized the importance of supporting students in their educational journeys [4] Institutional Highlights - American Public University System is the top educator for active-duty military and veterans, with a significant enrollment base [3][7] - Rasmussen University has a long history of 125 years and serves approximately 14,900 students across multiple campuses [8] - Hondros College of Nursing is the largest educator of pre-licensure nursing students in Ohio, with around 3,700 students [9]