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]