American Public Education Reports First Quarter 2026 Financial Results and Raises 2026 Full-Year Guidance
Rhea-AI Summary
American Public Education (Nasdaq: APEI) reported Q1 2026 revenue of $174.7 million, up 6.2% year over year, with Health+ and Military+ segments growing 11.0% and 6.5%. Net income rose to $17.7 million and adjusted EBITDA to $29.2 million. The company raised 2026 revenue, net income, EPS and adjusted EBITDA guidance and announced a $50 million share repurchase program and a debt refinancing expected to save $3.7 million in annual interest.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue up 6.2% to $174.7 million
- Health+ segment revenue up 11.0% to $85.4 million
- Military+ segment revenue up 6.5% to $89.4 million
- Net income up 137.6% to $17.7 million
- Adjusted EBITDA up 37.5% to $29.2 million
- Operating cash flow up 71.1% to $63.3 million
- Cash and restricted cash up 25.2% to $221.0 million
- Debt refinancing expected to save $3.7 million annually
- Board authorized up to $50 million share repurchase
- Raised 2026 EPS outlook to $2.33–$2.68 from $1.36 actual 2025
- Raised 2026 revenue outlook to $686–$696 million from $648.9 million
- Higher 2026 adjusted EBITDA guidance to $93–$102 million versus $85.7 million
Negative
- 2026 capital expenditures guided up to $28–$32 million from $15.9 million
News Market Reaction – APEI
On the day this news was published, APEI declined 5.98%, reflecting a notable negative market reaction. Argus tracked a peak move of +10.1% during that session. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $66M from the company's valuation, bringing the market cap to $1.04B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
APEI’s positive move contrasts with mixed peers: LINC up 0.34%, GOTU up 1.03%, while QSG and UDMY declined 3.06% and 6.84%, pointing to stock-specific earnings strength.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Q4 & FY25 results | Positive | +21.2% | Reported FY25 growth in revenue, net income and adjusted EBITDA with buyback. |
| Feb 19 | Earnings call notice | Neutral | -1.9% | Scheduled Q4/FY25 earnings call and provided access details for investors. |
| Nov 10 | Q3 2025 results | Positive | +4.9% | Q3 2025 revenue and adjusted EBITDA beat guidance with higher cash balance. |
| Aug 06 | Q2 2025 results | Positive | -7.9% | Strong Q2 revenue and EBITDA growth but market reacted negatively post-release. |
| Jul 28 | Q2 call scheduling | Neutral | +2.0% | Announced timing and access for upcoming Q2 2025 earnings call. |
Earnings-related news has generally produced positive reactions, with four of the last five earnings-tag events moving in the company’s favor and only one notable selloff on strong results.
Over the past year, APEI’s earnings updates have highlighted consistent improvement. Q2 2025 and Q3 2025 showed solid revenue growth and rising adjusted EBITDA, while Q4/FY 2025 delivered stronger profitability and a new $50M buyback. These events often produced positive share reactions, especially the Q4/FY 2025 report with a large upside move. Today’s Q1 2026 results, featuring higher revenue, earnings and raised guidance, fit this trajectory of operational and financial strengthening.
Historical Comparison
Across the last five earnings-tagged events, APEI’s stock moved an average of 3.64%, and this Q1 2026 earnings release continues the pattern of strong financial updates and outlook raises.
Earnings news has shown a progression from solid Q2–Q3 2025 growth to stronger Q4/FY25 profitability and capital returns, now followed by Q1 2026 results with higher revenue, margins and an increased full-year 2026 outlook.
Market Pulse Summary
The stock moved -6.0% in the session following this news. A negative reaction despite strong Q1 results and raised 2026 guidance would fit past instances where the stock sold off on good news, such as the Q2 2025 decline after solid growth. While fundamentals improved with higher profitability and debt refinancing, sentiment can shift quickly if the market questions the durability of enrollment trends or the complexity of the institutional combination. Monitoring subsequent quarters’ execution and margins would be important.
Key Terms
adjusted EBITDA financial
basis points financial
non-GAAP financial measures financial
EBITDA financial
AI-generated analysis. Not financial advice.
"In the first quarter, we delivered strong results across our key financial metrics. We also took a significant step forward in the institutional combination when we received Higher Learning Commission approval on April 28 to consolidate our APUS, Rasmussen and Hondros College of Nursing programs, locations and operations into a single accredited institution. We remain on pace to complete our planned institutional combination at the start of the third quarter," said Angela Selden, President and Chief Executive Officer of APEI.
Selden concluded, "Q1 2026 is the first quarter of a four-year strategic plan, and the strength of our results gives us the confidence to raise our full-year 2026 guidance on both revenue and adjusted EBITDA. We believe the foundation is built, the strategy is working, and we are just getting started."
Key First Quarter 2026 Highlights (as Compared to First Quarter 2025)
- Consolidated revenue of
$174.7 million 6.2% year-over year increase.- Excluding the effect of the sale of GSUSA in July 2025, consolidated revenue would have increased
8.7% when compared to the prior period. - Health+ segment revenue growth of
11.0% year-over-year to$85.4 million - Military+ segment revenue growth of
6.5% year-over-year to$89.4 million - Net income available to common stockholders increased
137.6% to a record$17.7 million $7.5 million
- Excluding the effect of the sale of GSUSA in July 2025, consolidated revenue would have increased
- Adjusted EBITDA increased
37.5% to$29.2 million $21.2 million - Net income per diluted common share increased
129.3% to$0.94 $0.41 - Opened a new Rasmussen University campus in
Orlando, Florida , introducing the University's Practical Nursing Diploma (LPN) program to theOrlando market for the first time. - Cash Flows from Operations increased
71.1% to$63.3 million
Balance Sheet and Liquidity
- Total cash, cash equivalents, and restricted cash were
$221.0 million $176.5 million $44.5 million 25.2% .
Debt Refinancing and Repurchase Program
- On March 9, 2026, the Company refinanced debt, reducing its borrowing rate by 375 basis points at then-current leverage levels. The reduction, combined with a reduction in principal, is expected to generate approximately
$3.7 million - On March 10, 2026, the Company's Board of Directors authorized a share repurchase program of up to
$50 million
Registrations and Enrollment
Q1 2026 | Q1 2025 | % Change | |||
Military+1 | 106,600 | 102,500 | 4.0 % | ||
Health+2 | 19,400 | 18,000 | 7.8 % |
1. | Military+ 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. | |
2. | Health+ Total Student Enrollment represents students in an active status as of the full-term census or billing date. |
Second Quarter and Full Year 2026 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.
In millions, except enrollment, net | Second Quarter 2026 | Second Quarter |
Military+ Net registrations | 98,300-100,300 +2.0 | 96,400 |
Health+ Enrollment | 19,600 + | 18,300 |
Revenue | Includes | |
Net Income (Loss) Available to | ( | |
Adjusted EBITDA | ||
Diluted Earnings per Share | ( |
In millions, except per share data | Full Year 2026 | Full Year 2025 |
Revenue | Includes | |
Net Income Available to Common | ||
Adjusted EBITDA | ||
Diluted Earnings per Share | ||
Capital Expenditures |
First Quarter 2026 Earnings Call
The Company will hold a conference call on Monday, May 11, 2026, at 5:00 PM Eastern Time to discuss its financial results for the first quarter ended March 31, 2026.
Date: Monday, May 11, 2026
Time: 5:00 PM Eastern Time (2:00 PM Pacific Time)
Conference ID: 60598
Webcast: 1Q26 Webcast Link
The Company will also provide a link on its website at https://www.apei.com/overview/default.aspx for those who wish to stream the call via webcast. If dialing in, please call the conference telephone number 5 to10 minutes prior to the start time.
A replay of the conference call will also be available through the Company's website through May 25, 2026.
Non-GAAP Financial Measures
This press release contains the non-GAAP financial measures of EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA (EBITDA less non-cash expenses such as stock compensation and non-recurring expenses), adjusted EBITDA margin, segment EBITDA, and segment EBITDA margin. 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 March 31, 2026, and 2025, 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
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 are included in the tables following this press release (under the captions "GAAP Net Income to Adjusted EBITDA" "GAAP Outlook Net Income to Outlook Adjusted EBITDA" and "Education Unit Profile – Segment Summary") 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 two segments, Military+ and Health+, provides education that transforms lives, advances careers, and improves communities.
Military+ provides online postsecondary education to approximately 89,500 adult learners, directed primarily at the needs of military, veterans, extended military and veteran families, and other public service and service-minded communities through American Public University System, which includes: American Military University and American Public University.
Health+ provides nursing- and health sciences-focused postsecondary education to approximately 19,400 students at 27 campuses in eight states and online through Rasmussen University and Hondros College of Nursing.
Both American Public University System and Rasmussen University are institutionally accredited by the Higher Learning Commission (HLC), an institutional accreditation agency recognized by the
Forward Looking Statements
Statements made in this press release regarding American Public Education, Inc. or its subsidiary institutions ("APEI" or the "Company") that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the industry. Forward-looking statements include, without limitation, statements regarding expectations for growth, registration, enrollments, demand, revenues, net income, earnings per share, EBITDA, adjusted EBITDA, adjusted EBITDA margin, debt refinancing and share repurchase program, the growth and profitability of APEI, and related growth strategies, and plans with respect to and future impacts of recent, current and future initiatives, including the planned combination of American Public University System, Rasmussen University and Hondros College of Nursing into one consolidated institution.
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, or adverse actions relating to, 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
Company Contact
Frank Tutalo
Associate Vice President, Public Relations
American Public Education, Inc.
ftutalo@apei.com
Investor Relations
Shannon Devine
MZ North America
Direct: 203-858-8811
APEI@mzgroup.us
American Public Education, Inc. | |||||||
Consolidated Statement of Income | |||||||
(In thousands, except per share data) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2026 | 2025 | ||||||
(unaudited) | |||||||
Revenue | $ | 174,738 | $ | 164,551 | |||
Costs and expenses: | |||||||
Instructional costs and services | 74,630 | 74,944 | |||||
Selling and promotional | 37,867 | 35,205 | |||||
General and administrative | 36,290 | 36,407 | |||||
Depreciation and amortization | 4,154 | 3,992 | |||||
Loss on assets held for sale | - | 1,527 | |||||
Loss on disposals of long-lived assets | 154 | 230 | |||||
Total costs and expenses | 153,095 | 152,305 | |||||
Income from operations before | |||||||
interest and income taxes | 21,643 | 12,246 | |||||
Loss on extinguishment of debt | (1,672) | - | |||||
Interest expense, net | (725) | (887) | |||||
Income before income taxes | 19,246 | 11,359 | |||||
Income tax expense | 1,515 | 2,466 | |||||
Net income | $ | 17,731 | $ | 8,893 | |||
Preferred stock dividends | - | 1,432 | |||||
Net income available to common stockholders | $ | 17,731 | $ | 7,461 | |||
Income per common share: | |||||||
Basic | $ | 0.97 | $ | 0.42 | |||
Diluted | $ | 0.94 | $ | 0.41 | |||
Weighted average number of | |||||||
common shares: | |||||||
Basic | 18,282 | 17,840 | |||||
Diluted | 18,804 | 18,417 | |||||
Three Months Ended | |||||||
Segment Information: | March 31, | ||||||
2026 | 2025 | ||||||
Revenue: | |||||||
Military+ Segment | $ | 89,443 | $ | 83,946 | |||
Health+ Segment | $ | 85,356 | $ | 76,927 | |||
Corporate and other1 | $ | (61) | $ | 3,678 | |||
Income (loss) from operations before | |||||||
interest and income taxes: | |||||||
Military+ Segment | $ | 30,718 | $ | 24,126 | |||
Health+ Segment | $ | 517 | $ | (818) | |||
Corporate and other | $ | (9,592) | $ | (11,062) | |||
1. Corporate and Other includes tuition and contract training revenue earned by GSUSA and the elimination of intersegment revenue for courses taken by employees of one segment at other segments. |
American Public Education, Inc. | ||||||
Consolidated Balance Sheet | ||||||
(In thousands) | ||||||
As of March 31, 2026 | As of December 31, 2025 | |||||
ASSETS | (Unaudited) | |||||
Current assets: | ||||||
Cash, cash equivalents, and restricted cash | $ | 220,998 | $ | 176,499 | ||
Accounts receivable, net of allowance of | 38,710 | 65,662 | ||||
Prepaid expenses | 19,152 | 14,197 | ||||
Income tax receivable | 3,267 | 3,458 | ||||
Total current assets | 282,127 | 259,816 | ||||
Property and equipment, net | 68,800 | 70,598 | ||||
Operating lease assets, net | 54,925 | 57,686 | ||||
Deferred income taxes | 38,247 | 39,176 | ||||
Intangible assets, net | 28,221 | 28,221 | ||||
Goodwill | 59,593 | 59,593 | ||||
Other assets, net | 6,001 | 6,328 | ||||
Total assets | $ | 537,914 | $ | 521,418 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 8,138 | $ | 4,822 | ||
Accrued compensation and benefits | 22,317 | 22,463 | ||||
Accrued liabilities | 22,643 | 13,375 | ||||
Deferred revenue and student deposits | 25,193 | 23,016 | ||||
Lease liabilities, current | 11,182 | 11,374 | ||||
Long-term debt, current | 5,063 | - | ||||
Total current liabilities | 94,536 | 75,050 | ||||
Lease liabilities, long-term | 54,010 | 56,921 | ||||
Long-term debt, net | 83,203 | 94,665 | ||||
Total liabilities | $ | 231,749 | $ | 226,636 | ||
Stockholders' equity: | ||||||
Common stock, | 184 | 181 | ||||
Additional paid-in capital | 305,750 | 311,119 | ||||
Accumulated other comprehensive loss | - | (18) | ||||
Retained earnings (accumulated deficit) | 231 | (16,500) | ||||
Total stockholders' equity | 306,165 | 294,782 | ||||
Total liabilities and stockholders' equity | $ | 537,914 | $ | 521,418 | ||
Education Unit Profile | |||||||
Segment Summary | |||||||
($ in millions) | |||||||
1Q26 | 1Q25 | ||||||
Military+ | |||||||
Revenue | $ 89.4 | $ 83.9 | |||||
Operating Income1 | 30.7 | 24.1 | |||||
+ Depreciation and Amortization | 1.0 | 1.0 | |||||
EBITDA | $ 31.8 | $ 25.2 | |||||
EBITDA Margin | 36 % | 30 % | |||||
Health+ | |||||||
Revenue | $ 85.4 | $ 76.9 | |||||
Operating Income1 | 0.5 | (0.8) | |||||
+ Depreciation and Amortization | 2.7 | 2.6 | |||||
EBITDA | $ 3.2 | $ 1.9 | |||||
EBITDA Margin | 4 % | 2 % | |||||
Graduate School | |||||||
Revenue | $ - | $ 3.7 | |||||
Operating Income1 | - | (2.2) | |||||
+ Depreciation and Amortization | - | 0.1 | |||||
EBITDA | $ - | $ (2.1) | |||||
Corporate | |||||||
EBITDA 3 | $ (9.2) | $ (8.6) | |||||
American Public Education, Inc. | |||||||
Consolidated Revenue | $ 174.7 | $ 164.6 | |||||
Consolidated EBITDA | 25.8 | 16.2 | |||||
+ Adjustments 2 | 3.4 | 5.0 | |||||
Consolidated Adjusted EBITDA | $ 29.2 | $ 21.2 | |||||
Adjusted EBITDA Margin | 17 % | 13 % | |||||
1. | Operating Income reflects income (loss) from operations before interest and income taxes in our Q1 2026 10-Q. |
2. | Adjustments include stock compensation expense, loss on disposals of long-lived assets, loss on assets held for sale, and other professional fees. |
3. | Corporate results include unallocated corporate activity and eliminations. |
GAAP Net Income Available to Common Stockholders to Adjusted EBITDA:
The following table sets forth the reconciliation of the Company's reported GAAP net income available to common stockholders to the calculation of adjusted EBITDA for the three months ended March 31, 2026 and 2025:
Consolidated | ||||||
3 Months Ended | ||||||
March 31, | ||||||
(in thousands) | 2026 | 2025 | ||||
Net income available to common stockholders | $ | 17,731 | $ | 7,461 | ||
Preferred stock dividends | - | 1,432 | ||||
Net income | 17,731 | 8,893 | ||||
Income tax expense | 1,515 | 2,466 | ||||
Interest expense, net | 725 | 887 | ||||
Loss on extinguishment of debt | 1,672 | - | ||||
Depreciation and amortization | 4,154 | 3,992 | ||||
EBITDA | 25,797 | 16,238 | ||||
Loss on assets held for sale | - | 1,527 | ||||
Other professional fees | 943 | 989 | ||||
Stock compensation | 2,327 | 2,263 | ||||
Loss on disposals of long-lived assets | 154 | 230 | ||||
Adjusted EBITDA | $ | 29,221 | $ | 21,247 | ||
GAAP Outlook Net Income Available to Common Stockholders to Outlook Adjusted EBITDA:
The following table sets forth the reconciliation of the Company's outlook GAAP net income available to common stockholders to the calculation of outlook adjusted EBITDA for the three months ended June 30, 2026 and twelve months ended December 31, 2026.
Three Months Ending | Twelve Months Ending | ||||||||||||
June 30, 2026 | December 31, 2026 | ||||||||||||
(in thousands) | Low | High | Low | High | |||||||||
Net Income | $ | 6,475 | $ | 7,493 | $ | 44,927 | $ | 51,595 | |||||
Income tax expense | 3,071 | 3,553 | 16,299 | 18,631 | |||||||||
Interest income, net | (400) | (400) | (300) | (300) | |||||||||
Loss on extinguishment of debt | - | - | 1,672 | 1,672 | |||||||||
Depreciation and amortization | 4,154 | 4,154 | 18,102 | 18,102 | |||||||||
EBITDA | 13,300 | 14,800 | 80,700 | 89,700 | |||||||||
Stock compensation | 2,100 | 2,100 | 8,700 | 8,700 | |||||||||
Other professional fees | 1,100 | 1,100 | 3,400 | 3,400 | |||||||||
Other | - | - | 200 | 200 | |||||||||
Adjusted EBITDA | $ | 16,500 | $ | 18,000 | $ | 93,000 | $ | 102,000 | |||||
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SOURCE American Public Education, Inc.