Aspen Group Delivers Net Income of $0.7 Million for First Quarter Fiscal Year 2027

Higher margins and resumed marketing accompanied lower year-over-year revenue and a smaller active student body.

Rhea-AI Summary

Aspen Group (ASPU) reported net income of $0.7 million for its fiscal first quarter ended July 31, 2026, improving year over year. Net income rose from $0.4 million, while basic and diluted earnings remained $0.01 per share. Revenue fell 10% year over year to $10.3 million but held steady for a third consecutive quarter. United States University revenue increased 3% year over year; Aspen University revenue declined 30% amid discontinued new enrollments associated with their pending merger.

Gross margin increased to 76% from 73%. Adjusted EBITDA, a supplemental profit measure excluding specified costs, rose 21% to $2.3 million. Operating cash flow of $0.7 million supported resumed marketing. Unrestricted cash was $1.1 million at quarter-end and $0.6 million on October 9. Debt refinancing remains unfinished. The company expects USU enrollment growth in the second half of fiscal 2027, supported by increased marketing investment.

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Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointNet income increased to $0.7 million from $0.4 million in fiscal Q1 2026.
• Moderate pointGross margin expanded to 76% from 73% year over year.
• Moderate pointAdjusted EBITDA increased 21% to $2.3 million; margin rose to 22% from 16% year over year.
• Moderate pointOperating cash flow of $0.7 million in fiscal Q1 2027 enabled resumed marketing spending.
• Moderate pointRestructuring savings provide approximately $1.5 million in ongoing quarterly compensation-related savings.
• Moderate point. Forward-looking: it has not happened yet and may not happen.USU enrollment growth is expected in fiscal 2027’s second half, with increased marketing starting in Q2.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Working capital needs can be met for the next 12 months, the company expects from cost reductions.

7 minor points

• Minor pointUSU revenue increased 3% year over year to $7,342,069.
• Minor pointUSU gross margin increased to 77% from 76% year over year.
• Minor pointAU gross margin increased to 76% from 70% year over year.
• Minor pointUSU new enrollments increased 7% sequentially to 277, versus 280 a year earlier.
• Minor pointAU new enrollments increased sequentially to 55 from 49, versus 338 a year earlier.
• Minor pointNet interest expense declined to $215,323 from $310,391 year over year.
• Minor pointStock-based compensation declined to $29,347 from $32,180 year over year.

Negative

• Moderate pointRevenue declined 10% year over year to $10.3 million from $11.4 million.
• Moderate pointAU revenue declined 30% year over year to $2,995,684 amid discontinued new enrollments.
• Moderate pointGross profit declined to $7.9 million from $8.4 million year over year.
• Moderate pointUnrestricted cash was $0.6 million on October 9, versus $1.1 million at quarter-end.
• Moderate pointDebt refinancing remains incomplete; the company continues advancing the transaction.
• Moderate pointAU–USU merger remains pending.
• Moderate pointUSU active students declined to 2,039 from 2,120 sequentially and 2,369 a year earlier.
• Moderate pointAU active students declined to 1,662 from 1,956 sequentially and 3,140 a year earlier.
• Moderate pointCorporate net loss widened to $2,446,551 from $2,311,493 year over year.
• Moderate pointCredit-loss provision increased to $745,584 from $450,000 year over year. 10% of market cap

5 minor points

• Minor pointUSU nursing students declined to 1,901 from 1,992 sequentially and 2,215 a year earlier.
• Minor pointAU nursing students declined to 1,235 from 1,472 sequentially and 2,418 a year earlier.
• Minor pointSeverance expense was $82,572, versus none in the prior-year quarter.
• Minor pointMerger-related legal fees were $9,630, versus none in the prior-year quarter.
• Minor pointFifth restructuring plan eliminated approximately 75 positions within AU and AGI.

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• Generated operating cash flow of $0.7 million in the first quarter, enabling the resumption of marketing spend
• Revenue held steady at $10.3 million for the third consecutive quarter; United States University increases nearly 6% sequentially, driven by higher revenue per student and continued organic lead generation
• Gross margin expanded by approximately 300 bps to 76% in the first quarter, increasing from 73% in the prior year
• First quarter net income of $0.7 million, up from $0.4 million in the prior year driven by strong underlying financial performance
• Record first quarter Adjusted EBITDA of $2.3 million, up from $1.9 million in the first quarter of 2026
  
  

PHOENIX, Oct. 15, 2026 (GLOBE NEWSWIRE) -- Aspen Group, Inc. (OTCQB: ASPU) (“AGI” or the “Company”), an education technology holding company, today announced financial results for its first quarter of fiscal year 2027, ended July 31, 2026.

First Quarter Fiscal Year 2027 Summary Results

	Three Months Ended July 31,
$ in millions, except per share data		2026				2025
Revenue	$	10.3			$	11.4
Gross Profit1	$	7.9			$	8.4
Gross Margin (%)1		76	%			73	%
Net Income	$	0.7			$	0.4
Earnings per Share - Basic	$	0.01			$	0.01
Earnings per Share - Diluted	$	0.01			$	0.01
EBITDA2	$	1.4			$	1.4
Adjusted EBITDA2	$	2.3			$	1.9

^{_______________________
1} GAAP gross profit calculation includes marketing, promotional and instructional costs, and amortization expense of $0.3 million and $0.4 million, respectively for the three months ended July 31, 2026 and 2025, respectively.
² Non-GAAP financial measures. See reconciliations of GAAP to non-GAAP financial measures under "Non-GAAP–Financial Measures" starting on page 4.

Matt LaVay, Chief Executive Officer of AGI, stated: "Our first quarter results demonstrate the continued strength of the more efficient operating model we have established over the past two years. USU student enrollments increased for the second consecutive quarter, while revenue increased 3% year-over-year and nearly 6% sequentially. Our improved cost structure contributed to a strong first-quarter Adjusted EBITDA and net income performance, and another quarter of positive operating cash flow. We converted 33% of Adjusted EBITDA to operating cash flow, providing us with the flexibility to resume direct marketing investment to support enrollment growth.”

Mr. LaVay continued, “We expect enrollment momentum to strengthen during the remainder of Fiscal 2027, supported by increased marketing investment in the second quarter and a growing number of prospective Aspen University students enrolling in comparable USU programs. We believe these initiatives will support sustained enrollment growth and contribute to revenue growth as we progress through Fiscal 2027.”

Mr. LaVay concluded, "We also continue to advance the refinancing of our existing debt and are making meaningful progress towards completing the transaction. Completing the refinancing remains an important component of our strategy to strengthen our balance sheet and provide additional financial flexibility to further increase marketing and resume growth in our student body. Now, with a more efficient operating model, sustained cash generation and the resumption of marketing, we believe we have established a strong foundation for growth.”

Fiscal Q1 2027 Financial and Operational Results (compared to Fiscal Q1 2026)

Revenue declined by 10% to $10.3 million compared to $11.4 million which was primarily a result of our very limited maintenance marketing spend. The following table presents the Company’s revenue, both per subsidiary and total:

	Three Months Ended July 31,
		2026		$ Change				% Change				2025
USU	$	7,342,069		$	187,471			3	%		$	7,154,598
AU		2,995,684			(1,290,184	)		(30	)%			4,285,868
Revenue	$	10,337,753		$	(1,102,713	)		(10	)%		$	11,440,466

United States University (“USU”) revenue increased by 3% compared to the prior year period and increased 6% sequentially. Although overall enrollment levels reflect the impact of very limited maintenance marketing spend, enrollments increased sequentially due to strong organic leads and the resumption of paid leads during the quarter. Additionally, USU’s performance was supported by higher revenue per student and more students entering their second year of the MSN-FNP program, which includes clinical rotations, and by tuition increases.

Aspen University's (“AU”) revenue decline of $1.3 million, or 30%, is the result of the discontinuation of new student enrollments associated with the pending merger with USU (the "Merger") and lower enrollments due to a maintenance level marketing spend starting in Fiscal 2023.

GAAP gross profit declined by $0.5 million to $7.9 million. Consolidated gross margin was 76% compared to 73%. USU's gross margin was 77% versus 76%, and AU's gross margin was 76% versus 70%. GAAP gross profit declined primarily due to lower consolidated revenue while gross margin improved on increased revenue per student combined with reduced cost of revenue at USU and AU, driven by increased efficiencies in the use of faculty.

USU’s instructional costs and services represented 19% of its revenue, compared to 20% for AU. Marketing and promotional costs represented 2% of USU’s revenue, compared to less than 1% for AU.

The following tables present the Company’s net income (loss), both per subsidiary and total:

	Three Months Ended July 31, 2026
	Consolidated			AGI Corporate				USU			AU
Net income (loss)	$	677,397		$	(2,446,551	)		$	2,623,709		$	500,239
Earnings per share– Basic	$	0.01
Earnings per share – Diluted	$	0.01

	Three Months Ended July 31, 2025
	Consolidated			AGI Corporate				USU			AU
Net income (loss)	$	406,805		$	(2,311,493	)		$	2,478,675		$	239,623
Earnings per share - Basic	$	0.01
Earnings per share - Diluted	$	0.01

The following tables present the Company’s Non-GAAP measures, both per subsidiary and total. See reconciliations of GAAP to non-GAAP financial measures under “Non-GAAP–Financial Measures” starting on page 4.

		Three Months Ended July 31, 2026
		Consolidated				AGI Corporate				USU				AU
EBITDA		$	1,409,594			$	(2,165,557)			$	2,774,514			$	800,637
EBITDA Margin			14%				NM				38%				27%
Adjusted EBITDA		$	2,276,727			$	(2,056,642)			$	3,215,858			$	1,117,511
Adjusted EBITDA Margin			22%			NM					44%				37%
NM – Not meaningful
		Three Months Ended July 31, 2025
		Consolidated				AGI Corporate				USU				AU
EBITDA		$	1,394,277			$	(1,932,996)			$	2,633,420			$	693,853
EBITDA Margin			12%				NM				37%				16%
Adjusted EBITDA		$	1,876,457			$	(1,901,763)			$	2,859,367			$	918,853
Adjusted EBITDA Margin			16%			NM					40%				21%

Adjusted EBITDA improved by 21% to $2.3 million primarily due to increased revenue per student at USU, increased instructional efficiencies at AU and USU and reduced general and administrative costs attributed to our restructurings. As a result, Adjusted EBITDA margin expanded by approximately 560 basis points to 22% from 16% on the year ago quarter.

Operating Metrics 

New Student Enrollments

Year-over-year new student enrollments were flat at USU as continued strong organic leads offset the maintenance level of marketing spend. AU new enrollments declined to 55 students in the quarter due to the impact of discontinuing new student enrollments associated with the pending Merger. USU enrollments were up 7% sequentially due to continued strong organic enrollments and the resumption of limited marketing spend.

New student enrollments for the past five quarters are shown below:

	Q1'26		Q2'26		Q3'26		Q4'26		Q1'27
USU	280		310		228		258		277
AU	338		297		213		49		55
Total	618		607		441		307		332

The Company expects USU student enrollments to grow in the second half of Fiscal 2027, supported by increased marketing investment starting in Fiscal Q2 2027, and prospective AU students enrolling in comparable USU programs following the cessation of new enrollments at AU.

Total Active Student Body

The active degree-seeking student body for the past five quarters is shown below:

	Q1'26		Q2'26		Q3'26		Q4'26		Q1'27
USU	2,369		2,302		2,096		2,120		2,039
AU	3,140		2,771		2,386		1,956		1,662
Total	5,509		5,073		4,482		4,076		3,701

Nursing Students

The nursing student body for the past five quarters is shown below:

	Q1'26		Q2'26		Q3'26		Q4'26		Q1'27
USU	2,215		2,153		1,965		1,992		1,901
AU	2,418		2,122		1,815		1,472		1,235
Total	4,633		4,275		3,780		3,464		3,136

Liquidity

The Fiscal Q1 2027 ending unrestricted cash balance was $1.1 million. As of October 9, 2026, the Company had $0.6 million of unrestricted cash on hand. In Fiscal Q2 2026, we implemented a fifth restructuring plan that resulted in additional cash benefits for the Company starting in Fiscal Q3 2026. The restructuring resulted in the elimination of approximately 75 positions within AU and AGI. The resulting additional ongoing quarterly compensation-related savings from the restructuring are approximately $1.5 million.

Our restructuring efforts were designed to achieve sustained operating cash flows, and the resumption of marketing spend to renew growth in our student body. The quarter generated operating cash flow of $0.7 million, which is the seventh consecutive quarter of operating cash flow. As a result of sustained operating cash flows, we resumed marketing spend in Fiscal Q1 2027.

Cost reductions associated with the restructuring plans and other corporate cost reductions ensure that the Company will have sufficient cash to meet its working capital needs for the next 12 months.

Non-GAAP – Financial Measures

This press release includes both financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to net income (loss), operating income (loss), and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of AGI nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.

Our management uses and relies on EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin, which are non-GAAP financial measures. We believe that management, analysts, and shareholders benefit from referring to the following non-GAAP financial measures to evaluate and assess our core operating results from period-to-period after removing the impact of items that affect comparability. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.

We have included a reconciliation of our non-GAAP financial measures to the most comparable financial measures calculated in accordance with GAAP. We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between AGI and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules.

AGI defines Adjusted EBITDA as EBITDA excluding: (1) provision for credit losses; (2) stock-based compensation; (3) severance; and (4) legal fees related to the Merger. The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA and of net income margin to the Adjusted EBITDA margin:

	Three Months Ended July 31,
		2026				2025
Net income	$	677,397			$	406,805
Interest expense, net		215,323				310,391
Income tax expense, net		3,006				7,419
Depreciation and amortization		513,868				669,662
EBITDA		1,409,594				1,394,277
Provision for credit losses		745,584				450,000
Stock-based compensation		29,347				32,180
Severance		82,572				—
Legal fees related to the Merger		9,630				—
Adjusted EBITDA	$	2,276,727			$	1,876,457
Net income Margin		7	%			4	%
EBITDA Margin		14	%			12	%
Adjusted EBITDA Margin		22	%			16	%

The following tables present a reconciliation of net income (loss) to EBITDA (loss) and Adjusted EBITDA and of net income margin to the Adjusted EBITDA margin by business unit:

	Three Months Ended July 31, 2026
	Consolidated			AGI Corporate				USU			AU
Net income (loss)	$	677,397		$	(2,446,551	)		$	2,623,709		$	500,239
Interest expense, net		215,323			215,323				—			—
Income tax expense, net		3,006			156				—			2,850
Depreciation and amortization		513,868			65,515				150,805			297,548
EBITDA		1,409,594			(2,165,557	)			2,774,514			800,637
Provision for credit losses		745,584			—				437,525			308,059
Stock-based compensation		29,347			29,347				—			—
Severance		82,572			79,568				3,004			—
Legal fees related to the Merger		9,630			—				815			8,815
Adjusted EBITDA	$	2,276,727		$	(2,056,642	)		$	3,215,858		$	1,117,511

Net income Margin	7%			NM		36%			17%
EBITDA Margin	14%			NM		38%			27%
Adjusted EBITDA Margin	22%			NM		44%			37%

__________________
NM – Not meaningful

	Three Months Ended July 31, 2025
	Consolidated			AGI Corporate				USU			AU
Net income (loss)	$	406,805		$	(2,311,493	)		$	2,478,675		$	239,623
Interest expense, net		310,391			310,391				—			—
Income tax expense, net		7,419			83				—			7,336
Depreciation and amortization		669,662			68,023				154,745			446,894
EBITDA		1,394,277			(1,932,996	)			2,633,420			693,853
Provision for credit losses		450,000			—				225,000			225,000
Stock-based compensation		32,180			31,233				947			—
Adjusted EBITDA	$	1,876,457		$	(1,901,763	)		$	2,859,367		$	918,853

Net income Margin	4%			NM		35%			6%
EBITDA Margin	12%			NM		37%			16%
Adjusted EBITDA Margin	16%			NM		40%			21%

Definitions

EBITDA Margin is defined as EBITDA divided by revenue.

Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue.

We believe EBITDA Margin and Adjusted EBITDA Margin are useful for management, analysts and investors as these measures allow for a more meaningful comparison between our performance and that of our competitors. EBITDA Margin and Adjusted EBITDA Margin have certain limitations in that they do not take into account the impact to our consolidated statement of operations of certain expenses.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including our expectations that we will refinance our debt, our revenue growth, our liquidity and increases in USU’s enrollment. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include our ability to reach an agreement with a new lender on favorable terms, the continued demand of nursing students for the new programs, student attrition, national and local economic factors including the impact of international conflicts including the war in Iran and tariffs on the economy and affordability in general, competition from nursing schools in local markets, the competitive impact from the trend of major non-profit universities using online education and consolidation among our competitors, the impact, if any from any future U.S. government shutdowns, and our ability to resolve the amounts we may owe to landlords on our former campuses. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About Aspen Group, Inc.

Aspen Group, Inc. is an education technology holding company that leverages its infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again.

Investor Relations Contact

Kim Rogers
Managing Director
Hayden IR
385-831-7337 
Kim@HaydenIR.com

GAAP Financial Statements

ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
	July 31, 2026				April 30, 2026
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,133,963			$	860,384
Restricted cash		462,898				462,898
Accounts receivable, net of allowance of $3,971,872 and $7,913,937, respectively		14,156,479				12,751,986
Prepaid expenses		808,038				394,688
Other current assets		605,975				513,486
Total current assets		17,167,353				14,983,442
Property and equipment:
Computer equipment and hardware		802,763				799,250
Furniture and fixtures		1,974,271				1,974,271
Leasehold improvements		4,471,740				4,471,740
Instructional equipment		506,664				506,664
Software		5,943,339				5,833,430
		13,698,777				13,585,355
Accumulated depreciation and amortization		(9,781,526	)			(9,288,001	)
Property and equipment, net		3,917,251				4,297,354
Goodwill		5,011,432				5,011,432
Intangible assets, net		7,900,000				7,900,000
Courseware and accreditation, net		183,119				191,212
Long-term contractual accounts receivable		22,542,658				23,813,441
Operating lease right-of-use assets, net		3,135,636				3,467,641
Deposits and other assets		543,462				497,355
Total assets	$	60,400,911			$	60,161,877

(Continued)

ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (CONTINUED)
	July 31, 2026				April 30, 2026
	(Unaudited)
Liabilities and Stockholders’ Equity
Liabilities:
Current liabilities:
Accounts payable	$	3,696,398			$	3,133,698
Accrued expenses		2,308,776				2,375,663
Advances on tuition		982,879				1,258,459
Deferred tuition		2,052,138				2,190,378
Due to students		2,026,047				2,055,477
Current portion of long-term debt		4,989,704				1,400,000
Operating lease obligations, current portion		3,453,044				3,308,872
Warrant liabilities		1,802,269				—
Other current liabilities		733,477				93,504
Total current liabilities		22,044,732				15,816,051
Long-term debt, net		—				3,930,844
Operating lease obligations, less current portion		8,177,812				9,089,806
Warrant liabilities		—				1,802,269
Other long-term liabilities		77,402				327,402
Total liabilities		30,299,946				30,966,372
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 1,000,000 shares authorized,
10,000 issued and outstanding at both July 31, 2026 and April 30, 2026		10				10
Common stock, $0.001 par value; 85,000,000 shares authorized, 32,427,462 and
31,744,718 issued and outstanding at July 31, 2026 and April 30, 2026, respectively		32,427				31,745
Additional paid-in capital		122,442,866				122,215,485
Accumulated deficit		(92,374,338	)			(93,051,735	)
Total stockholders’ equity		30,100,965				29,195,505
Total liabilities and stockholders’ equity	$	60,400,911			$	60,161,877

ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	Three Months Ended July 31,
		2026				2025
	(Unaudited)				(Unaudited)
Revenue	$	10,337,753			$	11,440,466
Operating expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below)		2,143,389				2,685,052
General and administrative		6,038,593				6,911,137
Provision for credit losses		745,584				450,000
Depreciation and amortization		513,868				669,662
Total operating expenses		9,441,434				10,715,851
Operating income		896,319				724,615
Other income (expense):
Interest expense		(215,323	)			(310,391	)
Other expense, net		(593	)			—
Total other expense, net		(215,916	)			(310,391	)
Income before income taxes		680,403				414,224
Income tax expense		3,006				7,419
Net income		677,397				406,805
Dividends attributable to preferred stock		(211,727	)			(42,345	)
Net income available to common stockholders	$	465,670			$	364,460
Per share information available to common stockholders:
Earnings per share - Basic	$	0.01			$	0.01
Earnings per share - Diluted	$	0.01			$	0.01
Weighted average number of common stock outstanding:
Basic		32,404,954				29,073,583
Diluted		43,486,527				38,726,820

ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
	Three Months Ended July 31,
		2026				2025
	(Unaudited)				(Unaudited)
Cash flows from operating activities:
Net income	$	677,397			$	406,805
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		745,584				450,000
Depreciation and amortization		513,868				669,662
Stock-based compensation		29,347				32,180
Amortization of debt issuance costs		—				26,580
Non-cash lease benefit		(200,876	)			(225,313	)
Changes in operating assets and liabilities:
Accounts receivable		(879,294	)			(1,400,700	)
Prepaid expenses		(413,350	)			70,314
Other current assets		(92,489	)			(608,979	)
Deposits and other assets		(46,107	)			3,447
Accounts payable		562,700				680,689
Accrued expenses		(94,251	)			124,627
Due to students		(29,430	)			36,722
Advances on tuition and deferred tuition		(413,820	)			(357,377	)
Other current liabilities		639,973				527,951
Other long-term liabilities		(250,000	)			—
Net cash provided by operating activities		749,252				436,608
Cash flows from investing activities:
Purchases of courseware and accreditation		(12,250	)			(12,750	)
Purchases of property and equipment		(113,423	)			(180,148	)
Net cash used in investing activities		(125,673	)			(192,898	)
Cash flows from financing activities:
Repayment of portion of 15% Senior Secured Debentures		(350,000	)			(500,000	)
Net cash used in financing activities		(350,000	)			(500,000	)
Net increase (decrease) in cash, cash equivalents and restricted cash		273,579				(256,290	)
Cash, cash equivalents and restricted cash at beginning of period		1,323,282				1,074,873
Cash, cash equivalents and restricted cash at end of period	$	1,596,861			$	818,583
Supplemental disclosure of cash flow information:
Cash paid for interest	$	206,463			$	283,811
Cash paid for income taxes	$	3,006			$	7,419
Supplemental disclosure of non-cash investing and financing activities:
Accrued dividends	$	211,727			$	42,345
Common stock issued for accrued dividends	$	184,341			$	102,412

(Continued)

ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(UNAUDITED)

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying consolidated balance sheet to the total amounts shown in the accompanying unaudited consolidated statements of cash flows:

	July 31,
		2026			2025
	(Unaudited)			(Unaudited)
Cash and cash equivalents	$	1,133,963		$	480,581
Restricted cash		462,898			338,002
Total cash, cash equivalents and restricted cash	$	1,596,861		$	818,583

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Aspen Group’s fiscal Q1 2027 earnings?

Aspen Group reported $0.7 million in net income for the quarter ended July 31, 2026, versus $0.4 million a year earlier. Basic and diluted earnings per share were $0.01 in both periods.

What does Aspen Group exclude from adjusted EBITDA?

Aspen Group defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, excluding credit-loss provisions, stock-based compensation, severance and merger-related legal fees. It is a supplemental, non-GAAP measure rather than a substitute for net income or operating cash flow.

Why did United States University revenue increase in Aspen Group’s fiscal Q1 2027?

USU revenue growth reflected higher revenue per student, tuition increases and more students entering the second year of its MSN-FNP nursing program, which includes clinical rotations. Organic leads and resumed paid leads also supported sequential enrollment growth.