American Public Education Reports Third Quarter 2026 Financial Results
Health+ revenue growth accompanied lower quarterly operating income, while cash and short-term investments increased from year-end.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
American Public Education (APEI) raised its full-year 2026 outlook after reporting third-quarter revenue growth and higher earnings available to common shareholders. Revenue rose 3.6% to $169.1 million, while net income available to common shareholders increased 6.0% to $5.9 million and diluted earnings rose to $0.32 from $0.30. Health+ revenue increased 9.0% to $86.4 million; Military+ revenue fell 0.5% to $82.7 million.
Approximately $6.0 million of revenue shifted into the fourth quarter because of Military+ registration timing. Adjusted EBITDA, a non-GAAP earnings measure, fell to $17.5 million from $20.7 million. Operating cash flow declined to $11.8 million from $21.7 million. The company now expects full-year revenue of $695.0–$701.0 million and diluted earnings of $2.59–$2.84. Earnings guidance excludes any potential impact from non-recurring strategic initiative costs.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance raised to $695.0–$701.0 million, versus $648.9 million in 2025, including $8.0 million from GSUSA.
- Moderate pointThird-quarter revenue increased 3.6% to $169.1 million; growth excluding sold GSUSA revenue was 4.2%.
- Moderate pointThird-quarter common-shareholder net income rose 6.0% to $5.9 million, from $5.6 million.
- Moderate pointCash, restricted cash and short-term investments increased 22.6% to $216.4 million from December 31, 2025.
- Moderate pointInstitutional combination completed in early August, under the Higher Learning Commission-accredited American Public University System.
- Moderate pointNine-month operating income increased to $43.084 million, from $28.968 million.
26 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 common-shareholder net income guidance raised to $48.5–$53.2 million, versus $25.3 million in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 diluted EPS guidance raised to $2.59–$2.84, versus $1.36 in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance raised to $98.0–$105.0 million, versus $85.7 million in 2025.
- Minor pointThird-quarter diluted EPS increased 6.7% to $0.32, from $0.30.
- Minor pointHealth+ third-quarter revenue increased 9.0% to $86.4 million, supported by healthcare enrollment growth and tuition increases.
- Minor pointMilitary+ third-quarter net course registrations increased 3.8% to approximately 103,800, from approximately 100,000.
- Minor pointHealth+ third-quarter student enrollment increased 2.5% to 19,100, from 18,600.
- Minor pointHealth+ third-quarter operating loss narrowed to $1.938 million, from $2.113 million.
- Minor pointCorporate third-quarter operating loss narrowed to $11.547 million, from $13.470 million.
- Minor point186,032 common shares repurchased in the third quarter; nine-month repurchases reached 274,237 shares.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter revenue expected at $179.4–$185.4 million, versus $158.3 million in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter common-shareholder net income expected at $15.2–$19.8 million, versus $12.6 million in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter diluted EPS expected at $0.81–$1.07, versus $0.67 in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter adjusted EBITDA expected at $30.6–$37.6 million, versus $28.7 million in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Military+ registrations expected at 100,000–105,000, up 21.7%–27.7% year over year.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Health+ enrollment expected at 20,100, up 1.0% year over year.
- Minor pointNine-month revenue increased to $515.612 million, from $490.532 million.
- Minor pointNine-month common-shareholder net income increased to $33.396 million, from $12.697 million.
- Minor pointNine-month diluted EPS increased to $1.78, from $0.68.
- Minor pointMilitary+ nine-month revenue increased to $257.708 million, from $248.814 million.
- Minor pointHealth+ nine-month revenue increased to $258.004 million, from $233.852 million.
- Minor pointMilitary+ nine-month operating income increased to $75.841 million, from $70.848 million.
- Minor pointHealth+ nine-month operating loss narrowed to $1.113 million, from $5.309 million.
- Minor pointCorporate nine-month operating loss narrowed to $31.644 million, from $36.571 million.
- Minor pointThird-quarter net interest income was $459,000, versus $1.069 million of net interest expense.
- Minor pointNine-month instructional costs declined to $226.212 million, from $228.065 million.
Negative
- Moderate pointThird-quarter adjusted EBITDA fell to $17.5 million, from $20.7 million.
- Moderate pointThird-quarter operating cash flow fell to $11.8 million, from $21.7 million.
- Moderate pointThird-quarter operating income declined to $7.915 million, from $9.697 million.
- Moderate pointNine-month selling and promotional expense increased to $119.798 million, from $106.392 million.
- Moderate pointNine-month general and administrative expense increased to $113.097 million, from $109.243 million.
- Moderate pointNine-month debt-extinguishment loss was $1.672 million, versus none a year earlier.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 capital expenditures expected at $23.0–$26.0 million, versus $15.9 million in 2025.
8 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Approximately $6.0 million of revenue shifted into fourth-quarter 2026 because of Military+ registration timing.
- Minor pointMilitary+ third-quarter revenue decreased 0.5% to $82.7 million, from $83.1 million.
- Minor pointMilitary+ third-quarter operating income declined to $21.400 million, from $25.280 million.
- Minor pointThird-quarter selling and promotional expense increased to $41.816 million, from $36.139 million.
- Minor pointThird-quarter general and administrative expense increased to $39.315 million, from $34.689 million.
- Minor pointThird-quarter loss on assets held for sale was $498,000, versus none a year earlier.
- Minor pointThird-quarter asset-disposal losses increased to $688,000, from $92,000.
- Minor point. Forward-looking: it has not happened yet and may not happen.Net income and diluted EPS guidance exclude potential non-recurring strategic initiative costs.
News Explained
APEI completed its institutional combination in early August; Q3 was its first partially operating period as one Higher Learning Commission-accredited institution.
APEI repurchased 274,237 common shares during the first nine months of 2026 under a board-approved program authorizing up to
At
Key Figures
- Q3 revenue
- $169.1 million
- Third quarter 2026; up 3.6% year over year
- Net income available to common stockholders
- $5.9 million
- Third quarter 2026; up 6.0% year over year
- Adjusted EBITDA
- $17.5 million
- Third quarter 2026; compared with $20.7 million in Q3 2025
- Diluted earnings per share
- $0.32
- Third quarter 2026; compared with $0.30 in Q3 2025
- Full-year revenue outlook
- $695.0 million–$701.0 million
- Full-year 2026 guidance; raised across key metrics
- Full-year net income outlook
- $48.5 million–$53.2 million
- Full-year 2026 guidance; net income available to common stockholders
- Full-year adjusted EBITDA outlook
- $98.0 million–$105.0 million
- Full-year 2026 guidance
- Full-year diluted EPS outlook
- $2.59–$2.84
- Full-year 2026 guidance
Previous Earnings Reports
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Revenue grew, net income turned positive, adjusted EBITDA rose, and full-year guidance was raised.
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Revenue, net income and adjusted EBITDA increased, and full-year guidance was raised.
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Revenue and adjusted EBITDA increased year over year, with net income above the prior-year result.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
adjusted ebitda financial
gaap financial
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
~ Third Quarter Revenue, Net Income, EPS and Adjusted EBITDA All Exceed Guidance ~
~ Raises Full Year 2026 Guidance Across All Key Metrics ~
"We exceeded our guidance for third quarter revenue, net income, adjusted EBITDA and diluted earnings per share. These results reflect continued growth in Health+ driven primarily by campus and online healthcare enrollments and pricing. The third quarter was also our first partially operating as a single Higher Learning Commission-accredited institution, American Public University System, following completion of our institutional combination in early August," said Angela Selden, President and Chief Executive Officer.
Selden concluded, "With the institutional combination largely behind us, we remain focused on executing our long-range plan and accelerating our momentum in Health+ and Military+."
Key Third Quarter 2026 Highlights (as Compared to Third Quarter 2025)
- Consolidated revenue of
$169.1 million 3.6% year-over-year increase, compared to$163.2 million - Excluding revenue from Graduate School
USA (GSUSA), which was sold in July 2025, consolidated revenue would have increased4.2% when compared to the prior period. - Consolidated revenue also reflects a shift of approximately
$6.0 million
- Excluding revenue from Graduate School
- Health+ segment revenue growth of
9.0% year-over-year to$86.4 million - Military+ segment revenue decreased
0.5% year-over-year to$82.7 million - Net income available to common stockholders increased
6.0% to$5.9 million $5.6 million - Adjusted EBITDA was
$17.5 million $20.7 million $5.7 million - Net income per diluted common share increased
6.7% to$0.32 $0.30 - Cash flows from operations were
$11.8 million $21.7 million
Balance Sheet and Liquidity
- Total cash, cash equivalents, restricted cash and short-term investments were
$216.4 million $176.5 million $39.9 million 22.6% .
Repurchase Program
- As previously announced, on March 10, 2026, the Company's Board of Directors approved a common stock repurchase program of up to
$50 million
Registrations and Enrollment
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Q3 2026 |
Q3 2025 |
% Change |
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Military+ 1 |
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For the three months ended September 30, |
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Net Course Registrations |
103,800 |
100,000 |
3.8 % |
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Health+ 2 |
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|
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For the three months ended September 30, |
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|
|
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Total Student Enrollment |
19,100 |
18,600 |
2.5 % |
|
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. |
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2. |
Health+ Total Student Enrollment represents students in an active status as of the full-term census or billing date. |
Fourth 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.
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In millions, except enrollment, net |
Fourth Quarter 2026 |
Fourth Quarter 2025 |
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Military+ Net Registrations |
100,000 to 105,000; + |
82,200 |
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Health+ Enrollment |
20,100; + |
19,900 |
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Revenue |
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Net Income Available to Common Stockholders* |
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Adjusted EBITDA |
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Diluted Earnings per Share* |
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In millions, except per share data |
Full Year 2026 |
Full Year 2025 |
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Revenue |
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Includes |
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Net Income Available to Common Stockholders* |
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Adjusted EBITDA |
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Diluted Earnings per Share* |
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Capital Expenditures |
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*Net Income Available to Stockholders and Diluted Earnings per Share guidance does not include any potential impact from non-recurring strategic initiative costs. |
Third Quarter 2026 Earnings Call
The Company will hold a conference call on Monday, November 9, 2026, at 5:00 PM Eastern Time to discuss its financial results for the third quarter ended September 30, 2026.
Date: Monday, November 9, 2026
Time: 5:00 PM Eastern Time (2:00 PM Pacific Time)
International: 1 585-542-9983
Conference ID: 619 738 671
Webcast: 3Q26 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 to 10 minutes prior to the start time.
A replay of the conference call will also be available through the Company's website through November 9, 2027.
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.
Adjusted EBITDA for the three months ended September 30, 2026, and 2025, excludes stock compensation, loss on disposals of long-lived assets, severance, other professional fees, and in the three months ended September 30, 2025, loss on sale of subsidiary 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 American Public University System (the "System") empowers students through education to transform lives, advance careers, and serve their communities locally and globally. With approximately 106,600 students and over 250,0001 alumni worldwide, the System includes four academic units: American Military University (AMU), American Public University (APU), Rasmussen University (RU), and Hondros College of Nursing (HCN). The System is accredited by the Higher Learning Commission, an institutional accreditation agency recognized by the
1As of September 30, 2026.
The System, including AMU, APU, RU, and HCN, is not affiliated with the
Forward Looking Statements
Statements made in this press release regarding American Public Education, Inc. ("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, 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 recently completed institutional combination and the expected benefits and future impacts thereof.
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
Director, Public Relations
American Public Education, Inc.
ftutalo@apei.com
Investor Relations
Shannon Devine
MZ North America
Direct: 203-741-8811
APEI@mzgroup.us
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American Public Education Inc. |
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Consolidated Statement of Income |
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(In thousands, except per share data) |
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Three Months Ended |
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September 30, |
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2026 |
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2025 |
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(unaudited) |
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|||||
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|
|
|
|
|
|
|
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Revenue |
$ |
169,143 |
|
|
$ |
163,215 |
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Instructional costs and services |
|
74,942 |
|
|
|
74,698 |
|
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Selling and promotional |
|
41,816 |
|
|
|
36,139 |
|
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General and administrative |
|
39,315 |
|
|
|
34,689 |
|
|
Depreciation and amortization |
|
3,969 |
|
|
|
3,946 |
|
|
Loss on assets held for sale |
|
498 |
|
|
|
- |
|
|
Loss on sale of subsidiary |
|
- |
|
|
|
3,877 |
|
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Loss on leases |
|
- |
|
|
|
77 |
|
|
Loss on disposals of long-lived assets |
|
688 |
|
|
|
92 |
|
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Total costs and expenses |
|
161,228 |
|
|
|
153,518 |
|
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Income from operations before |
|
|
|
|
|
|
|
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interest and income taxes |
|
7,915 |
|
|
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9,697 |
|
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Interest income (expense), net |
|
459 |
|
|
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(1,069) |
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Income before income taxes |
|
8,374 |
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8,628 |
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Income tax expense |
|
2,482 |
|
|
|
3,068 |
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Net income |
$ |
5,892 |
|
|
$ |
5,560 |
|
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Preferred stock dividends |
|
- |
|
|
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- |
|
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Loss on redemption of preferred stock |
|
- |
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|
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- |
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Net income available to common stockholders |
$ |
5,892 |
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$ |
5,560 |
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Income (loss) per common share: |
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Basic |
$ |
0.32 |
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$ |
0.31 |
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Diluted |
$ |
0.32 |
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$ |
0.30 |
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Weighted average number of common shares: |
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|
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Basic |
|
18,283 |
|
|
|
18,070 |
|
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Diluted |
|
18,685 |
|
|
|
18,755 |
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Three Months Ended |
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Segment Information: |
September 30, |
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2026 |
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2025 |
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Revenue: |
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Military+ Segment |
$ |
82,727 |
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$ |
83,137 |
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Health+ Segment |
$ |
86,432 |
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$ |
79,270 |
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Corporate and other1 |
$ |
(16) |
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$ |
808 |
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Income (loss) from operations before |
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|
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interest and income taxes: |
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Military+ Segment |
$ |
21,400 |
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$ |
25,280 |
|
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Health+ Segment |
$ |
(1,938) |
|
|
$ |
(2,113) |
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Corporate and other |
$ |
(11,547) |
|
|
$ |
(13,470) |
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|
|
|
|
|
|
|
|
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Nine Months Ended |
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September 30, |
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2026 |
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2025 |
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(unaudited) |
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|
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Revenue |
$ |
515,612 |
|
|
$ |
490,532 |
|
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Costs and expenses: |
|
|
|
|
|
|
|
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Instructional costs and services |
|
226,212 |
|
|
|
228,065 |
|
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Selling and promotional |
|
119,798 |
|
|
|
106,392 |
|
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General and administrative |
|
113,097 |
|
|
|
109,243 |
|
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Depreciation and amortization |
|
12,076 |
|
|
|
12,026 |
|
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Loss on sale of subsidiary |
|
- |
|
|
|
3,877 |
|
|
Loss on assets held for sale |
|
498 |
|
|
|
1,527 |
|
|
Loss on leases |
|
- |
|
|
|
77 |
|
|
Loss on disposals of long-lived assets |
|
847 |
|
|
|
357 |
|
|
Total costs and expenses |
|
472,528 |
|
|
|
461,564 |
|
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Income from operations before |
|
|
|
|
|
|
|
|
interest and income taxes |
|
43,084 |
|
|
|
28,968 |
|
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Loss on extinguishment of debt |
|
(1,672) |
|
|
|
- |
|
|
Interest income (expense), net |
|
368 |
|
|
|
(3,064) |
|
|
Income before income taxes |
|
41,780 |
|
|
|
25,904 |
|
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Income tax expense |
|
8,384 |
|
|
|
6,955 |
|
|
Net income |
$ |
33,396 |
|
|
$ |
18,949 |
|
|
Preferred stock dividends |
|
- |
|
|
|
2,751 |
|
|
Loss on redemption of preferred stock |
|
- |
|
|
|
3,501 |
|
|
Net income available to common stockholders |
$ |
33,396 |
|
|
$ |
12,697 |
|
|
|
|
|
|
|
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Income per common share: |
|
|
|
|
|
|
|
|
Basic |
$ |
1.82 |
|
|
$ |
0.71 |
|
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Diluted |
$ |
1.78 |
|
|
$ |
0.68 |
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|
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|
|
|
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Weighted average number of |
|
|
|
|
|
|
|
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common shares: |
|
|
|
|
|
|
|
|
Basic |
|
18,309 |
|
|
|
17,982 |
|
|
Diluted |
|
18,766 |
|
|
|
18,596 |
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Nine Months Ended |
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Segment Information: |
September 30, |
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2026 |
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2025 |
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Revenue: |
|
|
|
|
|
|
|
|
Military+ Segment |
$ |
257,708 |
|
|
$ |
248,814 |
|
|
Health+ Segment |
$ |
258,004 |
|
|
$ |
233,852 |
|
|
Corporate and other1 |
$ |
(100) |
|
|
$ |
7,866 |
|
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Income (loss) from operations before |
|
|
|
|
|
|
|
|
interest and income taxes: |
|
|
|
|
|
|
|
|
Military+ Segment |
$ |
75,841 |
|
|
$ |
70,848 |
|
|
Health+ Segment |
$ |
(1,113) |
|
|
$ |
(5,309) |
|
|
Corporate and other |
$ |
(31,644) |
|
|
$ |
(36,571) |
|
|
|
|
|
|
|
|
|
|
|
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. |
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American Public Education, Inc. |
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|
Consolidated Balance Sheet |
||||||
|
(In thousands) |
||||||
|
|
||||||
|
|
As of September 30, 2026 |
|
|
As of December 31, 2025 |
||
|
ASSETS |
(Unaudited) |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash |
$ |
124,972 |
|
|
$ |
176,499 |
|
Short-term investments |
|
91,455 |
|
|
|
- |
|
Accounts receivable, net of allowance of |
|
51,684 |
|
|
|
65,662 |
|
Prepaid expenses |
|
17,217 |
|
|
|
14,197 |
|
Income tax receivable |
|
5,235 |
|
|
|
3,458 |
|
Assets held for sale |
|
647 |
|
|
|
|
|
Total current assets |
|
291,210 |
|
|
|
259,816 |
|
Property and equipment, net |
|
71,710 |
|
|
|
70,598 |
|
Operating lease assets, net |
|
55,286 |
|
|
|
57,686 |
|
Deferred income taxes |
|
36,279 |
|
|
|
39,176 |
|
Intangible assets, net |
|
28,221 |
|
|
|
28,221 |
|
Goodwill |
|
59,593 |
|
|
|
59,593 |
|
Other assets, net |
|
6,168 |
|
|
|
6,328 |
|
Total assets |
$ |
548,467 |
|
|
$ |
521,418 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
7,662 |
|
|
$ |
4,822 |
|
Accrued compensation and benefits |
|
27,995 |
|
|
|
22,463 |
|
Accrued liabilities |
|
16,839 |
|
|
|
13,375 |
|
Deferred revenue and student deposits |
|
30,746 |
|
|
|
23,016 |
|
Lease liabilities, current |
|
10,698 |
|
|
|
11,374 |
|
Long-term debt, current |
|
6,188 |
|
|
|
- |
|
Total current liabilities |
|
100,128 |
|
|
|
75,050 |
|
Lease liabilities, long-term |
|
56,116 |
|
|
|
56,921 |
|
Long-term debt, net |
|
80,054 |
|
|
|
94,665 |
|
Total liabilities |
$ |
236,298 |
|
|
$ |
226,636 |
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
Common stock, |
|
182 |
|
|
|
181 |
|
Additional paid-in capital |
|
309,119 |
|
|
|
311,119 |
|
Accumulated other comprehensive loss |
|
(26) |
|
|
|
(18) |
|
Retained earnings (accumulated deficit) |
|
2,894 |
|
|
|
(16,500) |
|
Total stockholders' equity |
|
312,169 |
|
|
|
294,782 |
|
Total liabilities and stockholders' equity |
$ |
548,467 |
|
|
$ |
521,418 |
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, 2026 and 2025:
|
|
Three Months Ended |
Nine Months Ended |
||||||||
|
|
September 30, |
September 30, |
||||||||
|
(in thousands) |
2026 |
|
2025 |
2026 |
|
2025 |
||||
|
Net income available to common stockholders |
$ |
5,892 |
|
$ |
5,560 |
$ |
33,396 |
|
$ |
12,697 |
|
Preferred dividends |
|
- |
|
|
- |
|
- |
|
|
2,751 |
|
Loss on redemption of preferred stock |
|
- |
|
|
- |
|
- |
|
|
3,501 |
|
Net income |
$ |
5,892 |
|
$ |
5,560 |
$ |
33,396 |
|
$ |
18,949 |
|
Income tax expense |
|
2,482 |
|
|
3,068 |
|
8,384 |
|
|
6,955 |
|
Interest (income) expense, net |
|
(459) |
|
|
1,069 |
|
(368) |
|
|
3,064 |
|
Loss on extinguishment of debt |
|
- |
|
|
- |
|
1,672 |
|
|
- |
|
Depreciation and amortization |
|
3,969 |
|
|
3,946 |
|
12,076 |
|
|
12,026 |
|
EBITDA |
|
11,884 |
|
|
13,643 |
|
55,160 |
|
|
40,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on assets held for sale |
|
498 |
|
|
- |
|
498 |
|
|
1,527 |
|
Loss on leases |
|
- |
|
|
77 |
|
- |
|
|
77 |
|
Loss on sale of subsidiary |
|
- |
|
|
3,362 |
|
- |
|
|
3,362 |
|
Other professional fees |
|
887 |
|
|
801 |
|
2,768 |
|
|
3,505 |
|
Stock compensation |
|
2,089 |
|
|
1,634 |
|
6,648 |
|
|
6,135 |
|
Loss on disposals of long-lived assets |
|
688 |
|
|
92 |
|
847 |
|
|
357 |
|
Severance |
|
1,477 |
|
|
1,083 |
|
1,477 |
|
|
1,083 |
|
Adjusted EBITDA |
$ |
17,523 |
|
$ |
20,692 |
$ |
67,398 |
|
$ |
57,040 |
|
Segment Summary ($ in millions) |
|||
|
|
|||
|
|
|
3Q26 |
3Q25 |
|
Military+ |
Revenue |
$ 82.7 |
$ 83.1 |
|
|
Operating Income1 |
21.4 |
25.3 |
|
|
+ Depreciation and Amortization |
1.2 |
0.9 |
|
|
EBITDA |
$ 22.6 |
$ 26.2 |
|
|
EBITDA Margin |
27 % |
32 % |
|
|
|
|
|
|
Health+ |
Revenue |
$ 86.4 |
$ 79.3 |
|
|
Operating Income1 |
(1.9) |
(2.1) |
|
|
+ Depreciation and Amortization |
2.4 |
2.6 |
|
|
EBITDA |
$ 0.5 |
$ 0.5 |
|
|
EBITDA Margin |
1 % |
1 % |
|
|
|
|
|
|
Graduate School |
Revenue |
$ - |
$ 0.8 |
|
|
Operating Income1 |
- |
(0.9) |
|
|
+ Depreciation and Amortization |
- |
0.1 |
|
|
EBITDA |
$ - |
$ (0.8) |
|
|
|
|
|
|
Corporate 3 |
Operating Income1 |
$ (11.5) |
$ (12.6) |
|
|
+ Depreciation and Amortization |
0.4 |
0.4 |
|
|
EBITDA |
$ (11.1) |
$ (12.2) |
|
|
|
|
|
|
American Public Education, Inc. |
Consolidated Revenue |
$ 169.1 |
$ 163.2 |
|
|
Operating Income |
7.9 |
9.7 |
|
|
Net income available to common stockholders |
5.9 |
5.6 |
|
|
Margin |
5 % |
6 % |
|
|
+Depreciation and Amortization |
4.0 |
3.9 |
|
|
Consolidated EBITDA |
11.9 |
13.6 |
|
|
+ Adjustments 2 |
5.6 |
7.1 |
|
|
Consolidated Adjusted EBITDA |
$ 17.5 |
$ 20.7 |
|
|
Adjusted EBITDA Margin |
10 % |
13 % |
|
|
|
|
|
|
1 |
Operating Income reflects income (loss) from operations before interest and income taxes, as reflected in our Q3 2026 Form 10-Q. |
|
2 |
Adjustments include stock compensation expense, loss on disposals of long-lived assets, loss on assets held for sale, severance and other professional fees and in the three months ended September 30, 2025 only, loss on sale of subsidiary and loss on leases. |
|
3 |
Corporate results include unallocated corporate activity and eliminations. |
GAAP Net Income to 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 three and twelve months ending December 31, 2026:
|
|
|
Three Months Ending |
|
Twelve Months Ending |
|||||
|
|
|
December 31, 2026 |
|
December 31, 2026 |
|||||
|
(in thousands) |
Low |
|
High |
Low |
High |
||||
|
Net Income |
$ |
15,153 |
|
$ |
19,808 |
|
$ 48,549 |
|
$ 53,204 |
|
Income tax expense |
|
7,634 |
|
|
9,979 |
|
16,018 |
|
18,363 |
|
Interest income, net |
|
(300) |
|
|
(300) |
|
(668) |
|
(668) |
|
Loss on extinguishment of debt |
|
- |
|
|
- |
|
1,672 |
|
1,672 |
|
Depreciation and amortization |
|
4,820 |
|
|
4,820 |
|
16,896 |
|
16,896 |
|
EBITDA |
|
27,307 |
|
|
34,307 |
|
82,467 |
|
89,467 |
|
Stock compensation |
|
2,000 |
|
|
2,000 |
|
8,648 |
|
8,648 |
|
Other professional fees |
|
450 |
|
|
450 |
|
3,218 |
|
3,218 |
|
Severance |
|
845 |
|
|
845 |
|
2,322 |
|
2,322 |
|
Other1 |
|
- |
|
|
- |
|
1,345 |
|
1,345 |
|
Adjusted EBITDA |
$ |
30,602 |
|
$ |
37,602 |
|
$ 98,000 |
|
$ 105,000 |
|
1. |
Includes losses on assets held for sale and disposals of long-lived assets. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/american-public-education-reports-third-quarter-2026-financial-results-302933838.html
SOURCE American Public Education, Inc.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were American Public Education's third-quarter 2026 earnings results?
American Public Education reported $169.1 million in revenue, $5.9 million in net income available to common shareholders and $0.32 in diluted earnings per share. Revenue increased 3.6% year over year, common-shareholder net income increased 6.0%, and diluted earnings per share increased 6.7%.
What is APEI's updated full-year 2026 guidance?
APEI expects $695.0–$701.0 million in revenue, $48.5–$53.2 million in net income available to common shareholders, $2.59–$2.84 in diluted earnings per share and $98.0–$105.0 million in adjusted EBITDA. Net income and diluted earnings guidance exclude any potential impact from non-recurring strategic initiative costs.
Why did American Public Education's third-quarter 2026 operating cash flow decline?
The company attributed the decline to what it believes is a temporary implementation matter related to Title IV disbursements following the institutional combination. Operating cash flow was $11.8 million, compared with $21.7 million a year earlier.