American Public Education Reports Third Quarter 2025 Financial Results that Exceed Top End of Guidance

Revenue, Net Income, EPS and Adjusted EBITDA All Exceeded Guidance and Prior Year

CHARLES TOWN, W.Va., Nov. 10, 2025 /PRNewswire/ -- American Public Education, Inc. (Nasdaq: APEI) is a company which, through its three subsidiary education institutions, transforms lives, advances careers and improves communities by providing online and campus-based postsecondary education to approximately 108,000 students. APEI has reported unaudited financial and operating results for the third quarter ended September 30, 2025.

Key Third Quarter 2025 Highlights

Management Commentary

"I am very pleased that we have again exceeded our guidance ranges for all metrics by continuing to grow revenue and enrollment and by expanding margins," said Angela Selden, President and Chief Executive Officer of APEI. "Rasmussen delivered double-digit enrollment growth and positive EBITDA in the third quarter. Strong registrations at APUS also meaningfully contributed to revenue growth and margin expansion."

"In the fourth quarter, campus-based enrollments at Rasmussen continue to accelerate with 13% growth. At APUS, the government shutdown has muted military enrollments. We are pleased that several of the military branches are now authorizing tuition assistance ("TA") benefits through the $100 million of TA funds authorized in the One Big Beautiful Bill Act. Meanwhile, we have implemented various cost savings measures and are continuing to evaluate additional opportunities to mitigate the adverse impacts."

Third Quarter 2025 Financial Results

Balance Sheet and Liquidity

Total cash, cash equivalents, and restricted cash was $193.1 million at September 30, 2025, as compared to $158.9 million at December 31, 2024, representing an increase of $34.2 million, or 21.5%. Total unrestricted cash and cash equivalents was $191.3 million at September 30, 2025 as compared to $131.9 million at December 31, 2024, an increase of $59.4 million, or 45.0%.

Registrations and Enrollment

Q3 2025

Q3 2024

% Change

American Public University System 1

For the three months ended September 30,

Net Course Registrations

100,000

92,500

8.1 %

Rasmussen University 2

For the three months ended September 30,

Total Student Enrollment

14,900

13,500

10.4 %

Hondros College of Nursing 3

For the three months ended September 30,

Total Student Enrollment

3,700

3,100

17.6 %

APUS Net Course Registrations represents the approximate aggregate number of courses for which students remain enrolled after the date by which they may drop a course without financial penalty. Excludes students in doctoral programs.

RU Total Student Enrollment represents students in an active status as of the full-term census or billing date.

HCN Total Student Enrollment represents the approximate number of students enrolled in a course after the date by which students may drop a course without financial penalty.

Fourth Quarter and Full Year 2025 Outlook

The following statements are based on APEI's current expectations. These statements are forward-looking and actual results may differ materially. APEI undertakes no obligation to update publicly any forward-looking statements for any reason unless required by law. Refer to APEI's earnings conference call and presentation for further details.

Fourth Quarter 2025 Guidance

(Approximate)

(% Yr/Yr Change)

APUS Net course registrations

65,000 to 74,400

-33% to -23%

HCN Student enrollment

4,000

9 %

RU Student enrollment

15,900

9 %

- On-ground Healthcare

7,100

13 %

- Online

8,800

6 %

($ in millions except EPS)

APEI Consolidated revenue

$150.0 – $153.5

-6% to -9%

APEI Net income available to common stockholders

$5.9 – $8.3

-28% to -50%

APEI Adjusted EBITDA

$18.5 – $22.0

-41% to -30%

APEI Diluted EPS

$0.32 – $0.45

-29% to -49%

Full Year 2025 Guidance

(Approximate)

(% Yr/Yr Change)

($ in millions)

APEI Consolidated Revenue

$640 – $644

2% to 3%

APEI Net income available to common stockholders

$17.2 – $19.6

70% to 95%

APEI Adjusted EBITDA

$75 – $79

5 to 9%

APEI Capital Expenditure (CapEx)

$15 – $17

-19% to -29%

Non-GAAP Financial Measures

This press release contains the non-GAAP financial measures of EBITDA (earnings before interest, taxes, depreciation, and amortization) and adjusted EBITDA (EBITDA less non-cash expenses such as stock compensation and non-recurring expenses). APEI believes that the use of these measures is useful because they allow investors to better evaluate APEI's operating profit and cash generation capabilities.

For the three months ended September 30, 2025, and 2024, adjusted EBITDA excludes stock compensation, loss on disposals of long-lived assets, loss on sale of subsidiary, transition services, severance expense, other professional fees, and loss on leases.

These non-GAAP measures should not be considered in isolation or as an alternative to measures determined in accordance with generally accepted accounting principles in the United States (GAAP). The principal limitation of our non-GAAP measures is that they exclude expenses that are required by GAAP to be recorded. In addition, non-GAAP measures are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses are excluded.

APEI is presenting EBITDA and adjusted EBITDA in connection with its GAAP results and urges investors to review the reconciliation of EBITDA and adjusted EBITDA to the comparable GAAP financial measures that is included in the tables following this press release (under the captions "GAAP Net Income to Adjusted EBITDA" and "GAAP Outlook Net Income to Outlook Adjusted EBITDA") and not to rely on any single financial measure to evaluate its business.

About American Public Education

American Public Education, Inc. (Nasdaq: APEI), through its institutions American Public University System (APUS), Rasmussen University, and Hondros College of Nursing, provides education that transforms lives, advances careers, and improves communities.

APUS, which operates through American Military University and American Public University, is the leading educator to active-duty military and veteran students* and serves approximately 89,000 adult learners worldwide via accessible and affordable higher education.

Rasmussen University is a 125-year-old nursing and health sciences-focused institution that serves approximately 15,900 students across its 20 campuses in six states and online. It also has schools of Business, Technology, Design, Early Childhood Education and Justice Studies.

Hondros College of Nursing focuses on educating pre-licensure nursing students at eight campuses (six in Ohio, one in Indiana, and one in Michigan). It is the largest educator of PN (LPN) nurses in the state of Ohio** and serves approximately 4,000 total students.

Both APUS and Rasmussen are institutionally accredited by the Higher Learning Commission (HLC), an institutional accreditation agency recognized by the U.S. Department of Education. Hondros is accredited by the Accrediting Bureau of Health Education Schools (ABHES).

*Based on FY 2023 Department of Defense TA data, as reported by Military Times, and Veterans Administration student enrollment data as of 2024.

**Based on information compiled by the National Council of State Boards of Nursing and Ohio Board of Nursing.

Forward Looking Statements

Statements made in this press release regarding APEI or its subsidiaries that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the industry. In some cases, forward-looking statements can be identified by words such as "anticipate," "believe," "seek," "could," "estimate," "expect," "intend," "may," "plan," "should," "will," "would," and similar words or their opposites. Forward-looking statements include, without limitation, statements regarding the Company's future path, expected growth, registration, enrollments, revenues, net income, Adjusted EBITDA and EBITDA, capital expenditures, the growth and profitability of Rasmussen University, plans with respect to recent, current and future initiatives, and the impact of the government shutdown on prospective and current students, the Company, and APUS.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, among others, risks related to: APEI's failure to comply with regulatory and accrediting agency requirements, including the "90/10 Rule", and to maintain institutional accreditation and the impacts of any actions APEI may take to prevent or correct such failure; changes in the post-secondary education regulatory environment as a result of U.S. federal elections, including any changes by or as a result of actions of the current administration to the operations of the Department of Education or changes to or the elimination or implementation of laws, regulations, standards, policies, and practices; potential or actual government shutdowns, including the U.S federal government shutdown that began on October 1, 2025, uncertainties in the estimated impact of the shutdown on APEI and its prospective and current students, and APEI's inability to mitigate these impacts; government budget and federal workforce uncertainty; the impact, timing, and projected benefits of the planned combination of APUS, RU, and HCN into one consolidated institution; APEI's dependence on the effectiveness of its ability to attract students who persist in its institutions' programs; changing market demands; declines in enrollments at APEI's subsidiaries; APEI's inability to effectively market its institutions' programs; APEI's inability to maintain strong relationships with the military and maintain course registrations and enrollments from military students; the loss or disruption of APEI's ability to receive funds under Title IV or TA programs or the reduction, elimination, or suspension of federal funds; adverse effects of changes APEI makes to improve the student experience and enhance the ability to identify and enroll students who are likely to succeed; APEI's need to successfully adjust to future market demands by updating existing programs and developing new programs; APEI's loss of eligibility to participate in Title IV programs or ability to process Title IV financial aid; economic and market conditions and changes in interest rates; difficulties involving acquisitions; APEI's indebtedness and preferred stock, including the refinancing or redemption thereof; APEI's dependence on and the need to continue to invest in its technology infrastructure, including with respect to third-party vendors; the inability to recognize the intended benefits of APEI's cost savings and reduction and revenue generating efforts; APEI's ability to manage and limit its exposure to bad debt; and the various risks described in the "Risk Factors" section and elsewhere in APEI's Annual Report on Form 10-K for the year ended December 31, 2024, and in other filings with the SEC. You should not place undue reliance on any forward-looking statements. APEI undertakes no obligation to update publicly any forward-looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future.

Company Contact

Frank Tutalo

Director, Public Relations

American Public Education, Inc.

ftutalo@apei.com

571-358-3042

Investor Relations

Brian M. Prenoveau, CFA

MZ North America

Direct: 561-489-5315

APEI@mzgroup.us

American Public Education, Inc.

Consolidated Statement of Income

(In thousands, except per share data)

Three Months Ended

September 30,

2025

2024

(unaudited)

Revenue

163,215

153,122

Costs and expenses:

Instructional costs and services

74,698

75,401

Selling and promotional

36,139

33,459

General and administrative

34,689

35,030

Depreciation and amortization

3,946

5,080

Loss on sale of subsidiary

3,877

Loss on leases

Loss on disposals of long-lived assets

Total costs and expenses

153,518

148,993

Income from operations before

interest and income taxes

9,697

4,129

Interest expense, net

(1,069)

(631)

Income before income taxes

8,628

3,498

Income tax expense

3,068

1,236

Net income

5,560

2,262

Preferred stock dividends

1,531

Net income available to common stockholders

5,560

731

Income per common share:

Basic

0.31

0.04

Diluted

0.30

0.04

Weighted average number of

common shares:

Basic

18,070

17,679

Diluted

18,755

18,247

Three Months Ended

Segment Information:

September 30,

2025

2024

Revenue:

APUS Segment

83,137

76,981

RU Segment

60,830

52,604

HCN Segment

18,440

15,493

Corporate and other

808

8,044

Income (loss) from operations before

interest and income taxes:

APUS Segment

25,280

20,765

RU Segment

(1,240)

(7,609)

HCN Segment

(873)

(771)

Corporate and other

(13,470)

(8,256)

American Public Education, Inc.

Consolidated Balance Sheet

(In thousands)

As of September 30, 2025

As of December 31, 2024

ASSETS

(Unaudited)

Current assets:

Cash, cash equivalents, and restricted cash

193,144

158,941

Accounts receivable, net of allowance of $19,837 in 2025

and $19,280 in 2024

43,908

62,465

Prepaid expenses

14,426

13,748

Income tax receivable

7,632

949

Assets held for sale

24,469

Total current assets

259,110

260,572

Property and equipment, net

70,739

73,383

Operating lease assets, net

61,596

94,776

Deferred income taxes

40,075

47,311

Intangible assets, net

28,221

Goodwill

59,593

Other assets, net

5,962

6,247

Total assets

525,296

570,103

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

7,708

7,847

Accrued compensation and benefits

30,033

20,546

Accrued liabilities

18,024

13,735

Deferred revenue and student deposits

23,952

23,474

Lease liabilities, current

11,672

13,553

Total current liabilities

91,389

79,155

Lease liabilities, long-term

60,203

93,645

Long-term debt, net

94,368

93,424

Total liabilities

245,960

266,224

Stockholders' equity:

Preferred stock, $.01 par value; 10,000,000 shares

authorized; 400 shares issued and outstanding in 2024,

($117,439 liquidation preference per share, $46,976 in

aggregate, for 2024) (Note 12)

39,691

Common stock, $.01 par value; 100,000,000 shares

authorized; 18,080,212 issued and outstanding in 2025;

17,712,575 issued and outstanding in 2024

181

177

Additional paid-in capital

308,290

305,823

Accumulated other comprehensive loss

(27)

(7)

Accumulated deficit

(29,108)

(41,805)

Total stockholders' equity

279,336

303,879

Total liabilities and stockholders' equity

525,296

570,103

Education Unit Profile

Segment Summary

($ in millions)

3Q24

3Q25

American Public University System

Revenue

77.0

83.1

Operating Income

20.8

25.3

+ Depreciation and Amortization

1.2

0.9

EBITDA

22.0

26.2

EBITDA Margin

29 %

32 %

Rasmussen University

Revenue

52.6

60.8

Operating Income

(7.6)

(1.2)

+ Depreciation and Amortization

3.1

2.0

EBITDA

(4.5)

0.8

EBITDA Margin

-9 %

1 %

Hondros College of Nursing

Revenue

15.5

18.4

Operating Income

(0.8)

+ Depreciation and Amortization

0.5

EBITDA

(0.3)

EBITDA Margin

-2 %

Graduate School USA

Revenue

8.0

0.8

Operating Income

(8.1)

(13.5)

+ Depreciation and Amortization

0.3

0.4

EBITDA

(7.8)

(13.1)

EBITDA Margin

-98 %

-1638 %

American Public Education, Inc.

Consolidated Revenue

153.1

163.2

Consolidated EBITDA

9.2

13.6

+ Adjustments

3.7

7.1

Consolidated Adjusted EBITDA

12.9

20.7

Adjusted EBITDA Margin

8 %

13 %

Operating Income reflects income (loss) from opoerations before interest, income taxes in note 9 of the financial statements in our Q3 2025 10-Q.

Adjustments include stock compensation expense, loss on disposals of long-lived assets, loss on assets held for sale, loss on sale of subsidiary, transition services, severance expense, loss on leases and other professional fees.

GAAP Net Income to Adjusted EBITDA:

The following table sets forth the reconciliation of the

Company's reported GAAP net income to the

calculation of adjusted EBITDA for the three and nine

months ended September 30, 2025 and 2024:

Three Months Ended

Nine Months Ended

September 30,

(in thousands, except per share data)

2025

2024

2025

2024

Net income (loss) available to common stockholders

5,560

731

12,697

(1,448)

Preferred dividends

1,531

2,751

4,597

Loss on redemption of preferred stock

3,501

Net income

5,560

2,262

18,949

3,149

Income tax expense

3,068

1,236

6,955

2,433

Interest expense, net

1,069

631

3,064

1,542

Equity investment loss

4,407

Depreciation and amortization

3,946

5,080

12,026

15,440

EBITDA

13,643

9,209

40,994

26,971

Loss on assets held for sale

1,527

Loss on leases

3,715

Loss on sale of subsidiary

3,362

Other professional fees

801

813

3,505

813

Stock compensation

1,634

1,761

6,135

5,502

Loss on disposals of long-lived assets

357

235

Transition services costs

1,092

3,139

Severance

1,083

530

Adjusted EBITDA

20,692

12,923

57,040

40,905

GAAP Outlook Net Income to Outlook Adjusted EBITDA:

The following table sets forth the reconciliation of the Company's outlook GAAP

net income to the calculation of outlook adjusted EBITDA for the six months

ending September 30, 2025 and twelve months ending December 31, 2025:

Three Months Ending

Twelve Months Ending

December 30, 2025

December 31, 2025

(in thousands, except per share data)

Low

High

Low

High

Net income available to common stockholders

5,871

8,321

17,199

19,649

Preferred dividends

2,751

Loss on redemption of preferred stock

3,501

Net Income

5,871

8,321

23,452

25,902

Income tax expense

2,516

3,566

10,051

11,101

Interest expense

1,387

4,476

Loss on minority investment

Depreciation and amortization

3,945

16,750

EBITDA

13,719

17,219

54,729

58,229

Stock compensation

1,932

8,067

Professional Services

200

3,402

Transition services cost

2,649

3,417

Other

5,961

Adjusted EBITDA

18,500

22,000

75,575

79,075

SOURCE American Public Education, Inc.