Aspen Group Stock Price, News & Analysis

Aspen Group, Inc. (OTCQB: ASPU) announced that Aspen University (AU) has received a five-year renewal of accreditation from the Distance Education Accrediting Commission (DEAC) through January 2029.

This represents the maximum accreditation period permitted by DEAC, which is recognized by both the U.S. Department of Education and the Council for Higher Education Accreditation (CHEA).

DEAC accreditation serves as a reliable indicator of the value and quality of distance education offered by an institution. The renewal demonstrates Aspen University's commitment to educational standards and ethical business practices that ensure quality, accountability, and improvement in higher education.

Aspen Group (ASPU), an education technology holding company, has successfully up-listed to the OTCQB® Venture Market effective January 22, 2025. The company will maintain its ticker symbol 'ASPU'. The transition from Expert Market to OTCQB was achieved after filing financial results for Q4 FY2024, Q1 FY2025, and Q2 FY2025, along with meeting other OTC Markets QB listing requirements.

The OTCQB, operated by OTC Markets Group and recognized by the SEC, provides a regulated public market platform. This move is expected to help Aspen Group expand its global shareholder base by providing investors with necessary data for securities analysis, valuation, and trading.

Aspen Group Inc. (ASPU) reported Q2 fiscal 2025 results with revenue of $11.5 million, down 17% year-over-year. The company's gross margin improved to 71% from 63%, while reporting a net loss of $(4.2) million, primarily due to a $(4.9) million one-time non-cash lease impairment charge. Adjusted EBITDA improved by 42% year-over-year.

The company's active student body decreased 24% to 6,387, with Aspen University's enrollment down 33% and USU's down 6%. Despite reduced marketing spend, total new student enrollments increased 15% sequentially. The company ended Q2 with $0.8 million in unrestricted cash and transitioned from HCM2 to HCM1 status for receiving student financial aid payments, which should improve cash flow.

Aspen Group (ASPU) reported Q1 fiscal 2025 results with revenue of $11.3 million, down 23% year-over-year. The company posted a net loss of $0.3 million or $0.01 per share, improving from a $0.6 million loss in the prior year. Gross margin remained stable at 66%.

Key operational highlights include transitioning from HCM2 to HCM1 financial aid payment method, restructuring debt, and implementing cost reductions projected to save over $1.5 million annually. The company completed its BSN Pre-licensure program teach-out in September 2024 and is now focusing on post-licensure nursing programs, particularly USU's MSN-FNP program with an LTV of $17,820 per enrollment.

Total active student body decreased to 6,622 from 8,591 year-over-year, while new student enrollments were down 19% year-over-year but increased 3% sequentially.

Aspen Group, Inc. (OTCQB: ASPU) announced that its subsidiary, Aspen University (AU), has been removed from Heightened Cash Monitoring 2 (HCM2) status by the U.S. Department of Education (DOE). Effective August 16, 2024, AU has transitioned to Heightened Cash Monitoring 1 (HCM1) status. This change significantly improves AU's financial aid disbursement process. Under HCM1, while AU still needs to use its own funds for initial disbursements, it can now immediately draw down funds from the DOE after submitting disbursement records. This shift is expected to reduce variability in the Company's unrestricted cash balances, marking a positive development for Aspen Group's financial operations.

Aspen Group, Inc. (OTCQB: ASPU) announced that the Distance Education Accrediting Commission (DEAC) has vacated its show cause directive for Aspen University, effective July 19, 2024. This decision comes after the Commission determined that Aspen has made substantial progress in demonstrating compliance with DEAC standards. The Commission has requested ongoing updates on the teach-out of Nursing Pre-licensure program students through September 2024 and continued monthly and quarterly reports until January 2025. Additionally, the DEAC noted satisfactory progress in addressing accreditation standards under deferred review for Aspen's application to renew accreditation. The Commission will review additional documentation at its January 2025 meeting.

Aspen Group, an education technology holding company, announced that its stockholders have approved an amendment to its Certificate of Incorporation to increase the number of authorized shares of common stock to 85 million. This decision was made during a special stockholder meeting held on June 10, 2024, where 18,215,780 shares were represented, accounting for 71% of the company’s outstanding voting power. The proposal received overwhelming support with 94% of the votes cast in favor, representing 67% of the total outstanding shares. Approximately 1,053,133 votes were against the proposal, and 54,635 shares abstained. This approval made further voting on other proposals unnecessary. The amendment was filed with the Secretary of State of Delaware on the same day.

Aspen Group, Inc. announced amendments to its Senior Secured Debentures, converting $10 million of convertible debt to equity. The amendments reduce debt repayment obligations, provide for prepayment of $500,000, and make the Debentures convertible into common stock at $0.50 per share. Additionally, the company issued a new series of preferred stock to holders of $10 million of convertible notes, eliminating associated interest and principal payment obligations. These actions improve the company's balance sheet, reduce debt service obligations, and enhance financial flexibility for future operations.