Financial Data and Key Metrics Changes - APEI's consolidated revenue for full year 2025 grew by 4% to $649 million compared to 2024, despite challenges such as the mid-year sale of Graduate School U.S.A. and a registration interruption at APUS [9][23] - Adjusted EBITDA for full year 2025 reached $85.7 million, up 19% from 2024, exceeding both revised and initial guidance [9][24] - Fourth quarter revenue was $158.3 million, down 3.5% from $164.1 million in the prior year, primarily due to the federal government shutdown [19][21] Business Line Data and Key Metrics Changes - APUS revenue in Q4 2025 was $71 million, down 13.8% year-over-year, with net course registrations decreasing by 15.3% [19][20] - Rasmussen's revenue for Q4 2025 increased by 15.9% to $66.6 million, driven by an 8.9% growth in enrollment [20] - Hondros College of Nursing reported Q4 revenue of $20.7 million, up 9.2% year-over-year, with enrollment increasing by 8.1% [20] Market Data and Key Metrics Changes - APUS experienced a 41% increase in TA registrations in December 2025 compared to December 2024, following the end of the government shutdown [13] - The military and veteran channels showed high teen registration growth, indicating strong demand despite funding disruptions [13][30] Company Strategy and Development Direction - APEI is focused on a four-year growth strategy introduced at the recent Investor Day, aiming to simplify and strengthen the business [8] - The company plans to launch two new campuses in 2026, expanding into markets with demonstrated demand [14] - APEI is targeting revenue growth of $685 million to $695 million for 2026, with adjusted EBITDA between $91.5 million and $100.5 million [16][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying strength of the business, despite external challenges such as the government shutdown [9][19] - The company anticipates improved profitability and cash flow due to debt refinancing and cost savings [16][26] - Management remains optimistic about long-term growth potential, projecting organic revenue of $890 million to $925 million by 2029 [31][32] Other Important Information - APEI's board authorized a $50 million share repurchase program to offset dilution from stock-based compensation [27] - The company ended 2025 with a strong balance sheet, including cash equivalents of $176.5 million and total debt of $96.4 million [25][26] Q&A Session Summary Question: CapEx cadence for new campus openings - Management expects most CapEx related to new campuses will occur in the second half of the year [35][38] Question: Expected revenue and margin for new campuses - New campuses are expected to generate about $12 million in revenue with a 35% EBITDA margin, taking 8-18 months to reach cash flow positive [38] Question: Marketing strategy post-institution combination - Brands will remain present in local markets, with best practices shared across institutions to optimize marketing spend [54] Question: Impact of government shutdown on Q4 revenue - Actual impact was estimated at $12 million to $15 million short due to a strong December performance [110][117]

Financial Data and Key Metrics Changes - Full-year revenue for 2025 reached $1.7 billion, with Adjusted EBITDA at $519 million, both exceeding prior guidance [5][18] - Adjusted EBITDA margin improved to a historical high of 30.5% for the full year, reflecting a 131 basis point increase [18][19] - Fourth quarter revenue was $541 million, with Adjusted EBITDA of $204 million, both metrics ahead of guidance [17][18] Business Line Data and Key Metrics Changes - New enrollments increased by 8% year-over-year, with total enrollments up 5% for the full year [18][19] - In Mexico, new enrollments rose by 5%, while total enrollments increased by 4%, with revenue growth of 9% driven by a 6% increase in average total enrollments [20][21] - In Peru, new enrollments increased by 13%, with total enrollments up 7%, and revenue growth for the fourth quarter was 22% [22][23] Market Data and Key Metrics Changes - The macroeconomic environment in Mexico is characterized by slower growth, impacting the outlook for 2026 [41][60] - Peru's economy continues to perform solidly, supported by strong domestic demand and favorable macro conditions [13][14] - The private sector accounts for over 55% of university seats in Mexico and Peru, highlighting the critical role of private education [11] Company Strategy and Development Direction - The company plans to invest in future growth and innovation while returning excess capital to shareholders, with an additional $150 million authorized for stock repurchase [7][23] - Continued focus on expanding online education offerings, particularly for working adults, is a key strategic initiative [8][12] - The company aims to build additional campuses in new cities over the next five years, addressing capacity constraints in Peru [12][15] Management's Comments on Operating Environment and Future Outlook - Management expects sustained growth opportunities in both Mexico and Peru, with guidance for 2026 indicating revenue growth of 11%-12% [11][26] - The company anticipates improved macroeconomic conditions in Mexico in the second half of 2026 following USMCA negotiations [12][60] - Management remains confident in the demand for quality higher education, driven by rising participation rates and strong wage premiums for graduates [10][11] Other Important Information - The company ended 2025 with a net cash position of $18 million, having repurchased $217 million of common stock [23] - Adjusted earnings per share for 2026 is expected to be in the range of $1.95-$2.03, reflecting growth of 13%-18% [27] Q&A Session Summary Question: Timing and decision-making for new campus openings - It takes about 18-24 months to launch a new campus, and typically, building is more economical than buying [33][34] Question: AI disruption risks - AI is viewed as beneficial, improving retention and learning outcomes, with a focus on launching programs for future job markets [36] Question: 2026 guidance and FX neutral revenue growth - Slight deceleration in FX neutral revenue growth is attributed to softer macroeconomic conditions in Mexico and capacity constraints in Peru [41][42] Question: Distance learning market dynamics in Peru - The market is receptive to innovative products, with robust growth in the online segment, and pricing increases have been cautious to favor rapid growth [45][46] Question: Impact of economic conditions on investment plans - Softer economic conditions in Mexico are expected to continue, but clarity on USMCA may lead to increased investment and GDP growth in 2026 [60][61]

Financial Performance - Q3 2025 - Revenue reached $400 million, a 9% increase as reported, and a 4% increase organically/CC compared to Q3 2024 [26] - Adjusted EBITDA was $95 million, a 4% increase as reported, but a 3% decrease organically/CC compared to Q3 2024 [26] - Net income was $34 million in Q3 2025 [17] - YTD Revenue reached $1161 million, a 2% increase as reported, and a 6% increase organically/CC compared to Q3 YTD 2024 [29] - YTD Adjusted EBITDA was $315 million, a 2% increase as reported, and a 5% increase organically/CC compared to Q3 YTD 2024 [29] Segment Results - Q3 2025 - Mexico's revenue was $195 million, a 5% increase organically/CC compared to Q3 2024 [34] - Mexico's Adjusted EBITDA was $26 million, a 25% increase organically/CC compared to Q3 2024 [34] - Peru's revenue was $205 million, a 3% increase organically/CC compared to Q3 2024 [37] - Peru's Adjusted EBITDA was $78 million, a 9% decrease organically/CC compared to Q3 2024 [37] Outlook and Capital Allocation - Full-year 2025 revenue is expected to grow by 7%-8% on a USD reported basis and ~8% on an organic constant currency basis [49] - Full-year 2025 Adjusted EBITDA is expected to grow by 13%-14% on a USD reported basis and 12%-13% on an organic constant currency basis [49] - The company announced a $150 million increase in stock buyback authorization, bringing the total capacity to $177 million [17, 42]

Financial Data and Key Metrics Changes - Year-to-date new and total enrollments increased by 76% compared to the prior year, driving a 9% growth in revenue on a timing adjusted and constant currency basis [6][7] - Revenue for the second quarter was $524 million, with adjusted EBITDA at $214 million, both metrics exceeding previous guidance [15] - Second quarter net income was $97 million, resulting in earnings per share of $0.65, while adjusted net income was $118 million with adjusted earnings per share of $0.79 [15][21] Business Line Data and Key Metrics Changes - In Mexico, new enrollments increased by 6% and total enrollments rose by 7%, with revenue for the second quarter up 9% and adjusted EBITDA up 19% [17][18] - In Peru, total enrollment growth was 6%, with revenue increasing by 7% and adjusted EBITDA up 9% [19][20] Market Data and Key Metrics Changes - Mexico's economy is showing resilience with solid financial systems and continued interest rate cuts, positioning it for improved GDP growth in 2026 and beyond [8][9] - Peru's economy has shown a turnaround with 3.1% GDP growth year-to-date, supported by stable inflation and strong business confidence [10] Company Strategy and Development Direction - The company is expanding its academic portfolio and digital offerings while strategically opening new campuses in high-growth areas [25][26] - Two new campuses are set to open in Monterrey, Mexico, and Lima, Peru, with plans for additional campuses in the future [7][41] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the demand for quality higher education in Mexico and Peru, citing a growing middle class and favorable regulatory environments [25][27] - The company is raising its full-year 2025 outlook for revenue by $55 million and for adjusted EBITDA by $16 million, reflecting improved foreign currency exchange rates [7][21] Other Important Information - The company ended June with $135 million in cash and $116 million in gross debt, resulting in a net cash position of $19 million [20] - The company repurchased $71 million of common stock under a previously announced $100 million repurchase program [20] Q&A Session Summary Question: Any indications on the student application pipeline for Mexico's primary intake period this fall? - Management is encouraged by the trends, noting strong growth in working adult programs and positive indicators for traditional undergraduate students [30][31] Question: What contributed to the revenue upside for the quarter? - The outperformance was primarily associated with foreign exchange rates, with $18 million attributed to FX and $2 million to operational outperformance [33][34] Question: How is the online learning trend developing in Peru? - The online learning business in Peru is growing double digits, with strong interest from working adult students, similar to trends seen in Mexico [39][40] Question: Can you provide details about the new campuses? - New campuses are opening in Monterrey for Unitech and in East Lima for UPN, with strong demand anticipated [40][41] Question: How does the CapEx level change with new campus openings? - CapEx as a percentage of revenues is expected to increase to about 5% to support growth, with potential increases if additional campuses are launched [42][43]

Core Viewpoint - American Public Education, Inc. (APEI) is expected to report first-quarter 2025 results on May 12, with positive trends in enrollment and revenue growth anticipated despite some pressure on margins [1][3][7]. Revenue and Enrollment - APEI's first-quarter revenues are projected to increase by 4-6% year over year, reaching between $161 million and $163 million [4]. - The Zacks Consensus Estimate for first-quarter revenues is set at $161.9 million, indicating a 4.9% year-over-year rise [2]. - Strong enrollment growth is expected across all segments, particularly in the American Public University System (APUS), which accounted for 50.8% of total revenues in the previous quarter, and the Hondros College of Nursing (HCN) segment, which accounted for 10.8% [3][5]. Segment Performance - APUS is expected to have net course registrations between 100,500 and 102,000, reflecting a growth of 1.5-3% year over year [5]. - HCN's total enrollment is anticipated to increase by 10% to 3,600 students, while Rasmussen University (RU) is expected to see a 7% increase in enrollment to 14,500 students [5]. - Revenue growth predictions for APUS and HCN segments are 2.1% to $82.3 million and 9.5% to $18 million, respectively, while RU's revenue is expected to grow by 7.9% to $57.3 million [6]. Earnings and Margins - APEI expects net income to be between $1.7 million and $3.1 million, compared to a loss of $1 million a year ago [7]. - Adjusted EPS is anticipated to be between 9 cents and 17 cents, improving from a loss of 6 cents reported in the previous year [7]. - Adjusted EBITDA is projected to be between $13.5 million and $15.5 million, reflecting a decline of 21-9% year over year, with adjusted EBITDA margins expected to decrease by 170 basis points to 9.3% [7][8].