Welcome to Investor Day 2025! November 2025 American Public Education Inc. Do Not Distribute. Angela Selden President and CEO, American Public Education, Inc. 2 Angela Selden was appointed President and CEO of APEI in September 2019. With her father an Air Force veteran who used the GI Bill to complete his education and subsequently lead HR for a VA hospital, and her mother, a lifelong educator, APEI's purpose of "Educating Those in Service to Others" spoke to her. Earlier in her career, Ms. Selden served a ...

Financial Data and Key Metrics Changes - The first quarter revenue was $236 million, with adjusted EBITDA of $5 million, both metrics exceeding previous guidance [18][22] - On an organic constant currency basis, revenue increased by 10% year over year, and adjusted EBITDA rose by 132% [18][22] - The first quarter net loss was $20 million, resulting in a loss per share of $0.13, while the adjusted net loss was $17 million with an adjusted loss per share of $0.11 [18][22] Business Line Data and Key Metrics Changes - In Mexico, new enrollments increased by 8%, with total enrollments up by 7%, driven by strong growth in fully online programs [19][20] - In Peru, new enrollments rose by 6%, with total enrollments up by 5%, reflecting a favorable operating environment post-recession [21][22] - Adjusted for timing of the academic calendar, revenue in Mexico increased by 11% and adjusted EBITDA was up by 22% [20][22] Market Data and Key Metrics Changes - The company noted that participation rates in higher education in Mexico and Peru are growing but remain below developed markets, indicating significant growth opportunities [29] - The macroeconomic backdrop in Peru is stable, with GDP growth projected at approximately 3% for 2025, while Mexico's economic ties to the US provide a solid foundation for growth despite recent trade tensions [9][10] Company Strategy and Development Direction - The company aims to capitalize on the growing demand for quality higher education in Mexico and Peru, leveraging its strong digital capabilities and leading brands [8][29] - The company is committed to returning excess capital to shareholders, with a focus on maintaining a strong balance sheet and efficient operations through campus consolidations in Mexico [22][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, which has historically performed well during economic downturns [7][9] - The company anticipates continued volatility in the macroeconomic environment but remains optimistic about growth prospects in both markets [10][29] Other Important Information - The company repurchased $42 million of stock during the quarter and has $56 million remaining under its stock repurchase authorization [22][27] - The company expects total enrollments for 2025 to be between 491,000 and 495,000 students, reflecting growth of 4% to 5% versus 2024 [26] Q&A Session Summary Question: Are you seeing any hesitancy from potential students in Mexico? - Management noted robust demand during the recent secondary intake, particularly among working adult students, and expects the primary intake to mirror last year's performance [33][34] Question: Can you clarify the intake cycle and normalization of numbers? - Management confirmed that the intake cycle in Peru was delayed by two weeks, which affected the reported numbers but did not indicate any other normalization [39][40] Question: What is the status of fully digital courses? - Management reported that fully online courses are growing at a double-digit rate, significantly outpacing traditional face-to-face programs, with about 20% of the student population enrolled in digital learning [51][52] Question: What are the plans for capital allocation moving forward? - The company is committed to returning excess cash to shareholders, with plans to continue stock repurchases as guided by their capital allocation strategy [54][55]