Aspen Group (ASPU) AI Stock Analysis

• Market Cap: $3.24M
• Dividend Yield: N/A
• Average Volume (3M): 110.99K
• Price to Earnings (P/E): 1.1
• Beta (1Y): 0.03
• Revenue Growth: -1.19%
• EPS Growth: N/A
• Country: US
• Employees: 312
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.02
• Shares Outstanding: 25,462,317
• 10 Day Avg. Volume: 18,805
• 30 Day Avg. Volume: 110,989
• PEG Ratio: 0.03
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 17.42
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $0.13 ▼(-37.00% Downside)

The score is primarily held back by weak financial performance—sharp revenue decline and continued net losses—despite improving free cash flow and manageable leverage. Technicals add further caution with the stock trading below key moving averages and muted momentum indicators. Valuation is somewhat supportive due to the very low P/E, but it is not enough to offset the operating and trend weaknesses.

Positive Factors

High gross margin

A 68% gross margin provides a durable buffer against marketing and student-acquisition costs for online programs. Such unit economics support reinvestment in curriculum, technology, and student services, allowing margin expansion as enrollment stabilizes over multiple quarters.

Improving free cash flow

Substantial FCF growth indicates improving cash generation capacity, giving management flexibility to fund program development, invest in student acquisition, or reduce leverage. Sustained FCF gains support multi-quarter operational resilience without constant external financing.

Manageable leverage and capitalization

Moderate debt-to-equity and an equity ratio near 48% signal reasonable capitalization and limited solvency risk. That balance sheet allows strategic investments or targeted M&A and reduces refinancing pressure across the next several quarters compared with highly levered peers.

Negative Factors

Steep revenue decline

A 53% TTM revenue drop reflects significant enrollment or demand erosion, undermining scale economics for online offerings. Prolonged revenue contraction compresses operating leverage, limits reinvestment capacity, and makes multi-quarter recovery more challenging without structural changes.

Negative net margin

A negative net margin indicates the company is not yet delivering bottom-line profitability despite strong gross margins. Persistent net losses erode retained capital, increase reliance on external funding, and constrain the firm's ability to sustainably scale programs over several quarters.

Poor operating cash conversion

An OCF-to-net-income ratio of 0.06 shows earnings convert poorly into cash, suggesting working-capital or non-cash accounting drivers. Weak cash conversion undermines the company’s ability to fund operations organically and may force recurring financing over the medium term.

Aspen Group Business Overview & Revenue Model

Company Description

Aspen Group, Inc. (ASPU) is an education-focused company that operates primarily in the online higher education sector. It provides a range of degree programs and educational services through its subsidiaries, which include Aspen University and the United States University. Aspen Group aims to deliver affordable, accredited education with a focus on serving adult learners and working professionals seeking to advance their careers through flexible online learning options.

How the Company Makes Money

Aspen Group generates revenue primarily through tuition and fees from its online degree programs. The company has a diverse range of offerings, including undergraduate and graduate programs in fields such as business, nursing, and education. Key revenue streams include enrollment fees, course materials, and other educational services. Additionally, Aspen Group may benefit from partnerships with employers or organizations that seek to provide educational opportunities to their employees. Marketing efforts targeting adult learners and partnerships with educational institutions also contribute to its revenue growth. The company's ability to maintain enrollment levels and expand its program offerings plays a crucial role in its financial success.

Aspen Group Financial Statement Overview

Summary

Aspen Group's financial performance shows challenges in revenue growth and profitability, with a negative net profit margin and declining revenue. However, there are positive signs in cash flow improvements and a manageable debt level.

Income Statement

Aspen Group's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 68.22%, which is strong, but the net profit margin is negative at -2.22%, reflecting ongoing profitability challenges. Revenue has been declining, with a significant drop of 53% in the TTM period, indicating potential issues in maintaining sales momentum. The EBIT and EBITDA margins are positive but low, suggesting limited operational efficiency improvements.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.68, indicating a manageable level of leverage. However, the return on equity is negative at -3.43%, highlighting challenges in generating returns for shareholders. The equity ratio stands at 48.39%, suggesting a reasonable level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows improvement, with a significant free cash flow growth of 174.81% in the TTM period. The operating cash flow to net income ratio is low at 0.06, indicating limited cash generation from operations relative to net income. The free cash flow to net income ratio is 0.39, reflecting some ability to convert earnings into cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.30M	51.40M	66.32M	76.69M	67.81M
Gross Profit	30.06M	31.44M	35.53M	41.44M	38.36M
EBITDA	2.94M	-4.80M	-1.85M	-5.07M	-5.94M
Net Income	-1.54M	-13.58M	-8.35M	-9.59M	-10.45M
Balance Sheet
Total Assets	66.77M	75.95M	80.87M	91.07M	80.81M
Cash, Cash Equivalents and Short-Term Investments	1.07M	2.62M	5.72M	6.48M	13.67M
Total Debt	22.43M	26.67M	35.00M	33.72M	18.33M
Total Liabilities	35.80M	43.67M	45.32M	48.52M	31.72M
Stockholders Equity	30.97M	32.28M	35.55M	42.55M	49.09M
Cash Flow
Free Cash Flow	233.72K	-4.81M	-7.00M	-15.61M	-7.99M
Operating Cash Flow	1.19M	-3.66M	-4.40M	-11.28M	985.58K
Investing Cash Flow	-1.02M	-1.33M	-2.60M	-4.33M	-8.98M
Financing Cash Flow	-1.72M	1.89M	-190.47K	14.86M	3.75M

Aspen Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASPU, the sentiment is Negative. The current price of 0.2 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.14, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 33.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASPU.

Aspen Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATGE	79 Outperform	$4.11B	16.98	17.38%	―	12.24%	52.97%
STRA	77 Outperform	$1.96B	17.33	6.76%	2.99%	3.74%	-8.40%
LRN	70 Outperform	$3.04B	10.68	23.04%	―	17.25%	30.15%
APEI	68 Neutral	$725.21M	30.61	11.20%	―	6.75%	141.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	60 Neutral	$781.11M	54.53	7.94%	―	16.90%	41.11%
ASPU	49 Neutral	$3.24M	1.14	-3.17%	―	-1.19%	―