Aspen Group Reports Second Consecutive Quarter of Net Income for First Quarter Fiscal 2026

Core Viewpoint - Aspen Group, Inc. reported stable revenue and improved financial performance in the first quarter of fiscal year 2026, with a focus on cost control and restructuring initiatives to enhance liquidity and support future growth [1][2][3]. Financial Performance - Revenue for Q1 FY 2026 was $11.4 million, a 1% increase from $11.3 million in Q1 FY 2025 [2][3]. - Gross profit rose to $8.4 million, up from $7.5 million, resulting in a gross margin of 73%, compared to 66% in the previous year [2][6]. - Net income was $0.4 million, a significant improvement from a net loss of $0.1 million in the same quarter last year [2][4]. - Adjusted EBITDA increased to $1.9 million from $0.4 million, reflecting improved operational efficiency [2][4][19]. Operational Highlights - Aspen University's revenue decreased by 11% to approximately $4.3 million due to lower post-licensure enrollments, while United States University saw a 9% increase in revenue to $7.2 million [3][4]. - New student enrollments increased by 6% year-over-year, driven by strong organic leads and returning inactive students [9][10]. - The company maintained positive operating cash flow for the third consecutive quarter, amounting to $0.4 million [4][14]. Cost Management and Restructuring - The company implemented restructuring initiatives expected to yield approximately $1.5 million in quarterly savings by Q3 FY 2026 [2][13]. - General and administrative costs were reduced, contributing to the overall improvement in financial performance [4][14]. Liquidity Position - As of July 31, 2025, the company had an unrestricted cash balance of $0.5 million, with ongoing restructuring efforts aimed at enhancing liquidity [13][14]. - The company anticipates resuming marketing expenditures in the second half of FY 2026 to support enrollment growth [9][14].