American Public Education Reports Second Quarter 2025 Financial Results

Core Insights - American Public Education, Inc. (APEI) reported strong financial results for Q2 2025, exceeding guidance with a revenue increase of 6.5% year-over-year to $162.8 million and a significant rise in Adjusted EBITDA by 38.2% to $15.1 million [6][14] - The company is focused on simplifying its operations, highlighted by the sale of Graduate School USA and the redemption of all preferred equity, which is expected to save approximately $6 million in annual cash expenses [4][6] - APEI reaffirmed its full-year 2025 revenue guidance of $650 million to $660 million while adjusting net income guidance to a range of $18 million to $24 million due to losses from the sale of Graduate School USA [6][16] Financial Performance - Consolidated revenue for Q2 2025 was $162.8 million, up from $152.9 million in Q2 2024, driven by revenue increases across all segments: $6.5 million in Rasmussen University, $4.7 million in American Public University System, and $1.7 million in Hondros College of Nursing [7][14] - Total costs and expenses rose by 3.4% to $155.7 million, primarily due to increased employee compensation, professional fees, and course materials costs [7][8] - The net loss available to common stockholders was ($0.3) million, an improvement from a net loss of ($1.2) million in Q2 2024, reflecting a $3.5 million loss on the redemption of preferred equity [6][14] Operational Highlights - Enrollment growth was noted across the company's educational units, with American Public University System net course registrations increasing by 7.3% and Rasmussen University total student enrollment rising by 7.4% [10][11] - The Department of Education released a $24.5 million letter of credit previously held as restricted cash, further improving the company's balance sheet [4][6] - APEI's total cash, cash equivalents, and restricted cash increased to $176.6 million as of June 30, 2025, compared to $158.9 million at the end of 2024 [9] Future Outlook - For Q3 2025, APEI expects net course registrations for APUS to be between 97,000 and 99,000, and Adjusted EBITDA is projected to be between $15 million and $17 million, reflecting a year-over-year increase of 16% to 32% [13][34] - Full-year 2025 guidance for Adjusted EBITDA has been increased to a range of $81 million to $88 million, indicating a growth of 12% to 22% compared to the previous year [16][34]