American Public Education, Inc. Reports Strong Q3 2025 Results

American Public Education, Inc. ((APEI)) has held its Q3 earnings call. Read on for the main highlights of the call.

American Public Education, Inc. (APEI) recently held its third-quarter 2025 earnings call, where the company presented a generally positive outlook despite some challenges. The call highlighted strong financial and enrollment performance across most areas, although issues such as the government shutdown affecting military enrollments and procedural delays in institutional combination plans were acknowledged. Nevertheless, APEI demonstrated resilience and financial flexibility, underscoring its robust position in the education sector.

Exceeded Guidance Across Key Metrics

American Public Education, Inc. surpassed its guidance ranges for several key financial metrics, including revenue, net income, EPS, and adjusted EBITDA for the third quarter of 2025. This achievement was largely driven by momentum in registration and enrollment, as well as expanding margins, showcasing the company’s effective strategic execution.

Significant Enrollment Growth

The company reported notable enrollment growth across its institutions. APUS registrations increased by 8%, Rasmussen enrollments rose by 10%, and Hondros College of Nursing saw an impressive 18% increase compared to the same period in 2024. This growth underscores APEI’s strong market position and appeal to prospective students.

Improved Financial Position

APEI’s financial position strengthened significantly, with unrestricted cash and equivalents totaling $193.1 million as of September 30, 2025. The redemption of preferred equity and the sale of Graduate School USA contributed to an improved cash flow by approximately $10 million annually, enhancing the company’s financial flexibility.

Strong Performance of Nursing and Healthcare Institutions

The company’s nursing and healthcare institutions demonstrated robust performance, with Rasmussen and Hondros College of Nursing both reporting significant enrollment increases. Rasmussen’s enrollment grew by 10% in the third quarter and 9% in the fourth quarter of 2025, while Hondros College of Nursing saw an 18% increase in the third quarter and 9% in the fourth quarter.

Revenue and EBITDA Growth

APEI reported a 7% increase in total revenue, reaching $163.2 million in the third quarter of 2025. Adjusted EBITDA saw a substantial 60% increase, amounting to $20.7 million, with an adjusted EBITDA margin of 13%. This growth highlights the company’s operational efficiency and ability to generate higher profitability.

Impact of Government Shutdown

The government shutdown had a negative impact on military enrollments at APUS in October and November, affecting revenue and leading to a decrease in course registrations. This challenge underscores the sensitivity of certain segments to external governmental factors.

Process Change for Institutional Combination

APEI faced a delay in its institutional combination plans due to a required new process, pushing the timeline for implementation to the third quarter of 2026. This procedural change indicates the complexity of institutional restructuring within the education sector.

Graduate School USA Sale Loss

The sale of Graduate School USA resulted in a $3.9 million loss, which was lower than initially forecasted. This transaction, however, allowed APEI to focus its resources on its core degree-granting businesses, aligning with its strategic priorities.

Forward-Looking Guidance

During the earnings call, APEI expressed optimism about its long-term growth potential despite challenges such as the government shutdown. The company remains committed to implementing cost-saving measures and focusing on its core businesses to sustain its growth trajectory. The strengthened balance sheet and significant enrollment growth are expected to support APEI’s future endeavors.

In conclusion, American Public Education, Inc.’s third-quarter 2025 earnings call reflected a positive sentiment, with strong financial and enrollment performance across its institutions. Despite facing challenges like the government shutdown and procedural delays, the company showcased resilience and strategic focus, positioning itself for continued success in the education sector.