Aspen Group Reports Fourth Quarter and Fiscal Year 2026 Results
Rhea-AI Summary
Aspen Group (OTCQB: ASPU) reported fiscal Q4 2026 revenue of $10.3 million, down 11% year over year, with gross margin expanding to 76%. Full‑year 2026 revenue was $43.3 million versus $45.3 million, and gross margin rose to 75% from 69%.
The company posted a Q4 net loss of $(4.3) million, including $3.2 million in non‑recurring non‑cash charges, leading to a full‑year net loss of $(1.8) million. Adjusted EBITDA reached a record $3.3 million in Q4 and $10.6 million for the year, up from $2.0 million and $5.7 million, respectively. Aspen Group generated $1.0 million of operating cash flow in Q4 and $2.9 million for the year, its sixth consecutive quarter of positive operating cash flow, while restructuring actions eliminated about 75 positions and are expected to save roughly $1.5 million per quarter.
Positive
- Record Adjusted EBITDA of $10.6 million in Fiscal 2026, up from $5.7 million
- Q4 Adjusted EBITDA of $3.3 million versus $2.0 million year over year
- Gross margin expansion to 76% in Q4 and 75% for the year
- Operating cash flow of $2.9 million in Fiscal 2026, sixth straight positive quarter
- USU full-year revenue increased 5% in Fiscal 2026
- Restructuring savings of approximately $1.5 million in quarterly compensation costs
Negative
- Q4 revenue decline to $10.3 million, down 11% year over year
- Full-year revenue fell to $43.3 million from $45.3 million
- Q4 net loss of $(4.3) million versus prior-year profit of $0.6 million
- New student enrollments declined 50% company-wide in Q4 2026
- Active student body fell to 4,076 from 5,809 over five quarters
- Low unrestricted cash of $0.9 million at Q4 and $0.6 million as of August 14, 2026
AI-generated analysis. How Rhea-AI works. Not financial advice.
- United States University revenue increased
5% during Fiscal 2026, driven by solid organic lead generation - Generated operating cash flow of
$1.0 million in the fourth quarter, up from$0.6 million , enabling the resumption of marketing spend - Gross margin expanded by 533 bps to
76% in the fourth quarter, lifting full year gross margin to75% - Fourth quarter net loss of
$(4.3) million reflects two non-recurring non-cash charges totaling$3.2 million ; Fiscal 2026 net loss was$(1.8) million - Record fourth quarter Adjusted EBITDA of
$3.3 million , up from$2.0 million ; Fiscal 2026 Adjusted EBITDA reaches$10.6 million , a Company record, up from$5.7 million
PHOENIX, Aug. 18, 2026 (GLOBE NEWSWIRE) -- Aspen Group, Inc. (OTCQB: ASPU) (“AGI” or the “Company”), an education technology holding company, today announced financial results for its fourth quarter of fiscal year 2026, ended April 30, 2026.
Fourth Quarter Fiscal Year 2026 Summary Results
| Three Months Ended April 30, | Years Ended April 30, | ||||||||||||||
| $ in millions, except per share data | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Revenue | $ | 10.3 | $ | 11.6 | $ | 43.3 | $ | 45.3 | |||||||
| Gross Profit1 | $ | 7.8 | $ | 8.2 | $ | 32.5 | $ | 31.3 | |||||||
| Gross Margin (%)1 | 76 | % | 71 | % | 75 | % | 69 | % | |||||||
| Net Income (Loss)2 | $ | (4.3 | ) | $ | 0.6 | $ | (1.8 | ) | $ | (1.5 | ) | ||||
| Earnings (Loss) per Share - Basic | $ | (0.14 | ) | $ | 0.02 | $ | (0.07 | ) | $ | (0.07 | ) | ||||
| Earnings (Loss) per Share - Diluted | $ | (0.14 | ) | $ | 0.01 | $ | (0.07 | ) | $ | (0.07 | ) | ||||
| EBITDA3 | $ | (3.5 | ) | $ | 1.7 | $ | 1.9 | $ | 2.9 | ||||||
| Adjusted EBITDA3 | $ | 3.3 | $ | 2.0 | $ | 10.6 | $ | 5.7 | |||||||
_______________________
1 GAAP gross profit calculation includes marketing, promotional and instructional costs, and amortization expense of
2 See reconciliations of Net income (loss) to EBITDA and Adjusted EBITDA under “Non-GAAP–Financial Measures” starting on page 5 for details of the two non-recurring non-cash charges for lease impairments and changes in fair value of the put warrant liability included in Net income (loss).
3 Non-GAAP financial measures. See reconciliations of GAAP to non-GAAP financial measures under "Non-GAAP–Financial Measures" starting on page 5.
Matt LaVay, Chief Executive Officer of AGI, stated: "Our fourth quarter and Fiscal 2026 results provide further evidence that our restructuring initiatives have stabilized the business and established a more efficient operating model. Our improved cost structure has enabled the continued generation of operating cash flow. For Fiscal 2026, AGI generated
"Importantly, during Fiscal 2026, United States University generated
"In parallel, we negotiated a one-year extension of our existing debt facility with JGB Capital and continue to make progress toward its refinancing. With our improved operating cash flow, we are optimistic that we can complete a refinancing of our indebtedness. The planned merger of Aspen University and United States University continues to advance, with prospective Aspen University students increasingly enrolling in comparable United States University programs. We believe these initiatives, together with our streamlined operating model, position Aspen Group to enter Fiscal 2027 from a position of greater financial strength and a stronger foundation for long-term growth.”
Fiscal Q4 2026 Financial and Operational Results (compared to Fiscal Q4 2025)
Revenue declined by
| Three Months Ended April 30, | |||||||||||
| 2026 | $ Change | % Change | 2025 | ||||||||
| USU | $ | 6,930,929 | $ | (241,070 | ) | (3)% | $ | 7,171,999 | |||
| AU | 3,327,785 | (1,069,714 | ) | (24)% | 4,397,499 | ||||||
| Revenue | $ | 10,258,714 | $ | (1,310,784 | ) | (11)% | $ | 11,569,498 | |||
United States University (“USU”) revenue declined modestly by
Aspen University's (“AU”) revenue decline of
GAAP gross profit declined by
USU instructional costs and services represented
The following tables present the Company’s net income (loss), both per subsidiary and total:
| Three Months Ended April 30, 2026 | ||||||||||||||
| Consolidated | AGI Corporate | USU | AU | |||||||||||
| Net income (loss) | $ | (4,329,917 | ) | $ | (2,052,024 | ) | $ | 1,381,652 | $ | (3,659,545 | ) | |||
| Net loss per share– Basic | $ | (0.14 | ) | |||||||||||
| Net loss per share – Diluted | $ | (0.14 | ) | |||||||||||
| Three Months Ended April 30, 2025 | ||||||||||||
| Consolidated | AGI Corporate | USU | AU | |||||||||
| Net income (loss) | $ | 616,848 | $ | (1,870,177 | ) | $ | 2,181,812 | $ | 305,213 | |||
| Net earnings per share - Basic | $ | 0.02 | ||||||||||
| Net earnings per share - Diluted | $ | 0.01 | ||||||||||
The Fiscal Q4 2026 net loss includes non-recurring non-cash charges related to right-of-use asset and tenant improvement impairments of
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 5.
| Three Months Ended April 30, 2026 | ||||||||||||||||
| Consolidated | AGI Corporate | USU | AU | |||||||||||||
| EBITDA | $ | (3,513,826 | ) | $ | (1,743,119 | ) | $ | 1,560,023 | $ | (3,330,730 | ) | |||||
| EBITDA Margin | (34 | )% | NM | 23 | % | (100 | )% | |||||||||
| Adjusted EBITDA | $ | 3,265,348 | $ | (1,047,046 | ) | $ | 2,925,060 | $ | 1,387,334 | |||||||
| Adjusted EBITDA Margin | 32 | % | NM | 42 | % | 42 | % | |||||||||
| NM – Not meaningful | ||||||||||||||||
| Three Months Ended April 30, 2025 | ||||||||||||||||
| Consolidated | AGI Corporate | USU | AU | |||||||||||||
| EBITDA | $ | 1,653,591 | $ | (1,473,450 | ) | $ | 2,332,479 | $ | 794,562 | |||||||
| EBITDA Margin | 14 | % | NM | 33 | % | 18 | % | |||||||||
| Adjusted EBITDA | $ | 1,994,269 | $ | (1,740,083 | ) | $ | 2,563,845 | $ | 1,170,507 | |||||||
| Adjusted EBITDA Margin | 17 | % | NM | 36 | % | 27 | % | |||||||||
Adjusted EBITDA improved by
Operating Metrics
New Student Enrollments
On a Company-wide basis, new student enrollments declined by
New student enrollments for the past five quarters are shown below:
| Q4'25 | Q1'26 | Q2'26 | Q3'26 | Q4'26 | |||||
| USU | 258 | 280 | 310 | 228 | 258 | ||||
| Aspen University | 350 | 338 | 297 | 213 | 49 | ||||
| Total | 608 | 618 | 607 | 441 | 307 | ||||
We anticipate USU student enrollments will increase in the first half of Fiscal 2027 due to a significant increase in marketing spend starting in Q1 Fiscal 2027 and prospective Aspen University students increasingly enrolling in comparable USU programs.
Total Active Student Body
AGI's active degree-seeking student body for the past five quarters, including USU and AU, is shown below:
| Q4'25 | Q1'26 | Q2'26 | Q3'26 | Q4'26 | |||||
| USU | 2,434 | 2,369 | 2,302 | 2,096 | 2,120 | ||||
| Aspen University | 3,375 | 3,140 | 2,771 | 2,386 | 1,956 | ||||
| Total | 5,809 | 5,509 | 5,073 | 4,482 | 4,076 | ||||
Nursing Students
AGI’s nursing student body for the past five quarters is shown below:
| Q4'25 | Q1'26 | Q2'26 | Q3'26 | Q4'26 | |||||
| USU | 2,254 | 2,215 | 2,153 | 1,965 | 1,992 | ||||
| Aspen University | 2,606 | 2,418 | 2,122 | 1,815 | 1,472 | ||||
| Total | 4,860 | 4,633 | 4,275 | 3,780 | 3,464 | ||||
Liquidity
The Fiscal Q4 2026 ending unrestricted cash balance was
Our restructuring efforts were designed to achieve sustained operating cash flows, and the resumption of marketing spend in order to renew growth in our student body. The quarter generated operating cash flow of
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) charges from our put warrants; and (4) non-recurring charges. The following table presents a reconciliation of net income (loss) to EBITDA (loss) and Adjusted EBITDA and of net income (loss) margin to the Adjusted EBITDA margin:
| Three Months Ended April 30, | For the Years Ended April 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income (loss) | $ | (4,329,917 | ) | $ | 616,848 | $ | (1,836,698 | ) | $ | (1,544,892 | ) | ||||
| Interest expense, net | 249,007 | 325,603 | 1,131,292 | 1,368,892 | |||||||||||
| Income tax expense (benefit) | (20,480 | ) | 6,381 | 44,962 | 56,149 | ||||||||||
| Depreciation and amortization | 587,564 | 704,759 | 2,516,592 | 3,055,568 | |||||||||||
| EBITDA | (3,513,826 | ) | 1,653,591 | 1,856,148 | 2,935,717 | ||||||||||
| Provision for credit losses | 3,408,643 | 600,000 | 4,758,643 | 1,950,000 | |||||||||||
| Stock-based compensation | 77,472 | (706,895 | ) | 148,235 | (291,548 | ) | |||||||||
| Severance | 81,692 | 13,876 | 404,980 | 135,526 | |||||||||||
| Impairments of right-of-use assets and tenant leasehold improvements | 2,791,426 | — | 2,791,426 | 1,848,209 | |||||||||||
| Change in fair value of put warrant liability | 374,748 | 433,697 | 374,748 | (537,072 | ) | ||||||||||
| Non-recurring charges (income) - Other | 45,193 | — | 242,050 | (387,298 | ) | ||||||||||
| Adjusted EBITDA | $ | 3,265,348 | $ | 1,994,269 | $ | 10,576,230 | $ | 5,653,534 | |||||||
| Net income (loss) Margin | (42)% | 5 | % | (4)% | (3)% | ||||||
| EBITDA Margin | (34)% | 14 | % | 4 | % | 6 | % | ||||
| Adjusted EBITDA Margin | 32 | % | 17 | % | 24 | % | 12 | % | |||
The following tables present a reconciliation of net income (loss) to EBITDA (loss) and Adjusted EBITDA and of Net income (loss) margin to the Adjusted EBITDA margin by business unit:
| Three Months Ended April 30, 2026 | ||||||||||||||
| Consolidated | AGI Corporate | USU | AU | |||||||||||
| Net income (loss) | $ | (4,329,917 | ) | $ | (2,052,024 | ) | $ | 1,381,652 | $ | (3,659,545 | ) | |||
| Interest expense (income), net | 249,007 | 249,897 | — | (890 | ) | |||||||||
| Income tax expense (benefit) | (20,480 | ) | (10,379 | ) | 17,356 | (27,457 | ) | |||||||
| Depreciation and amortization | 587,564 | 69,387 | 161,015 | 357,162 | ||||||||||
| EBITDA | (3,513,826 | ) | (1,743,119 | ) | 1,560,023 | (3,330,730 | ) | |||||||
| Provision for credit losses | 3,408,643 | — | 1,354,965 | 2,053,678 | ||||||||||
| Stock-based compensation | 77,472 | 77,472 | — | — | ||||||||||
| Severance | 81,692 | 79,567 | 2,125 | — | ||||||||||
| Impairments of right-of-use assets and tenant leasehold improvements | 2,791,426 | 164,286 | — | 2,627,140 | ||||||||||
| Change in fair value of put warrant liability | 374,748 | 374,748 | — | — | ||||||||||
| Non-recurring charges - Other | 45,193 | — | 7,947 | 37,246 | ||||||||||
| Adjusted EBITDA | $ | 3,265,348 | $ | (1,047,046 | ) | $ | 2,925,060 | $ | 1,387,334 | |||||
| Net income (loss) margin | (42)% | NM | 20 | % | (110)% | |||||
| EBITDA margin | (34)% | NM | 23 | % | (100)% | |||||
| Adjusted EBITDA margin | 32 | % | NM | 42 | % | 42 | % | |||
____________________
NM - Not meaningful
| Three Months Ended April 30, 2025 | ||||||||||||||
| Consolidated | AGI Corporate | USU | AU | |||||||||||
| Net income (loss) | $ | 616,848 | $ | (1,870,177 | ) | $ | 2,181,812 | $ | 305,213 | |||||
| Interest expense, net | 325,603 | 325,603 | — | — | ||||||||||
| Income tax expense | 6,381 | 2,369 | 50 | 3,962 | ||||||||||
| Depreciation and amortization | 704,759 | 68,755 | 150,617 | 485,387 | ||||||||||
| EBITDA | 1,653,591 | (1,473,450 | ) | 2,332,479 | 794,562 | |||||||||
| Provision for credit losses | 600,000 | — | 225,000 | 375,000 | ||||||||||
| Stock-based compensation | (706,895 | ) | (705,230 | ) | 947 | (2,612 | ) | |||||||
| Severance | 13,876 | 4,900 | 5,419 | 3,557 | ||||||||||
| Change in fair value of put warrant liability | 433,697 | 433,697 | — | — | ||||||||||
| Adjusted EBITDA | $ | 1,994,269 | $ | (1,740,083 | ) | $ | 2,563,845 | $ | 1,170,507 | |||||
| Net income (loss) margin | 5 | % | NM | 30 | % | 7 | % | |||
| EBITDA margin | 14 | % | NM | 33 | % | 18 | % | |||
| Adjusted EBITDA margin | 17 | % | NM | 36 | % | 27 | % | |||
| Year Ended April 30, 2026 | ||||||||||||||
| Consolidated | AGI Corporate | USU | AU | |||||||||||
| Net income (loss) | $ | (1,836,698 | ) | $ | (8,684,831 | ) | $ | 9,193,233 | $ | (2,345,100 | ) | |||
| Interest expense (income), net | 1,131,292 | 1,132,182 | — | (890 | ) | |||||||||
| Income tax expense | 44,962 | 3,993 | 22,218 | 18,751 | ||||||||||
| Depreciation and amortization | 2,516,592 | 274,265 | 633,093 | 1,609,234 | ||||||||||
| EBITDA | 1,856,148 | (7,274,391 | ) | 9,848,544 | (718,005 | ) | ||||||||
| Provision for credit losses | 4,758,643 | — | 2,029,965 | 2,728,678 | ||||||||||
| Stock-based compensation | 148,235 | 146,972 | 1,263 | — | ||||||||||
| Severance | 404,980 | 216,041 | 8,775 | 180,164 | ||||||||||
| Impairments of right-of-use assets and tenant leasehold improvements | 2,791,426 | 164,286 | — | 2,627,140 | ||||||||||
| Change in fair value of put warrant liability | 374,748 | 374,748 | — | — | ||||||||||
| Non-recurring charges - Other | 242,050 | 26,325 | 84,213 | 131,512 | ||||||||||
| Adjusted EBITDA | $ | 10,576,230 | $ | (6,346,019 | ) | $ | 11,972,760 | $ | 4,949,489 | |||||
| Net income (loss) margin | (4)% | NM | 33 | % | (15)% | |||||
| EBITDA margin | 4 | % | NM | 35 | % | (5)% | ||||
| Adjusted EBITDA margin | 24 | % | NM | 43 | % | 33 | % | |||
| Year Ended April 30, 2025 | ||||||||||||||
| Consolidated | AGI Corporate | USU | AU | |||||||||||
| Net income (loss) | $ | (1,544,892 | ) | $ | (8,896,051 | ) | $ | 8,672,299 | $ | (1,321,140 | ) | |||
| Interest expense, net | 1,368,892 | 1,368,892 | — | — | ||||||||||
| Income tax expense | 56,149 | 7,690 | 5,296 | 43,163 | ||||||||||
| Depreciation and amortization | 3,055,568 | 292,018 | 584,219 | 2,179,331 | ||||||||||
| EBITDA | 2,935,717 | (7,227,451 | ) | 9,261,814 | 901,354 | |||||||||
| Provision for credit losses | 1,950,000 | — | 900,000 | 1,050,000 | ||||||||||
| Stock-based compensation | (291,548 | ) | (304,375 | ) | 5,013 | 7,814 | ||||||||
| Severance | 135,526 | 18,472 | 34,895 | 82,159 | ||||||||||
| Impairments of right-of-use assets and tenant leasehold improvements | 1,848,209 | — | — | 1,848,209 | ||||||||||
| Change in fair value of put warrant liability | (537,072 | ) | (537,072 | ) | — | — | ||||||||
| Non-recurring income - Other | (387,298 | ) | — | — | (387,298 | ) | ||||||||
| Adjusted EBITDA | $ | 5,653,534 | $ | (8,050,426 | ) | $ | 10,201,722 | $ | 3,502,238 | |||||
| Net income (loss) margin | (3)% | NM | 32 | % | (7)% | |||||
| EBITDA margin | 6 | % | NM | 34 | % | 5 | % | |||
| Adjusted EBITDA margin | 12 | % | NM | 38 | % | 19 | % | |||
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, and following that event we will see increased marketing spend and enrollment growth in 2027. 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 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 reach an agreement with another lender which will permit us to refinance our outstanding Convertible Debentures. 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 | |||||||
| April 30, | |||||||
| 2026 | 2025 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 860,384 | $ | 736,871 | |||
| Restricted cash | 462,898 | 338,002 | |||||
| Accounts receivable, net of allowance of | 12,751,986 | 17,167,346 | |||||
| Prepaid expenses | 394,688 | 443,366 | |||||
| Other current assets | 513,486 | 518,171 | |||||
| Total current assets | 14,983,442 | 19,203,756 | |||||
| Property and equipment: | |||||||
| Computer equipment and hardware | 799,250 | 894,251 | |||||
| Furniture and fixtures | 1,974,271 | 1,974,271 | |||||
| Leasehold improvements | 4,471,740 | 5,621,087 | |||||
| Instructional equipment | 506,664 | 529,299 | |||||
| Software | 5,833,430 | 7,527,066 | |||||
| 13,585,355 | 16,545,974 | ||||||
| Accumulated depreciation and amortization | (9,288,001 | ) | (9,907,309 | ) | |||
| Property and equipment, net | 4,297,354 | 6,638,665 | |||||
| Goodwill | 5,011,432 | 5,011,432 | |||||
| Intangible assets | 7,900,000 | 7,900,000 | |||||
| Courseware and accreditation, net | 191,212 | 256,994 | |||||
| Long-term contractual accounts receivable | 23,813,441 | 19,846,823 | |||||
| Operating lease right-of-use assets, net | 3,467,641 | 7,250,407 | |||||
| Deposits and other assets | 497,355 | 657,850 | |||||
| Total assets | $ | 60,161,877 | $ | 66,765,927 | |||
(Continued)
| ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||
| April 30, | |||||||
| 2026 | 2025 | ||||||
| Liabilities and Stockholders’ Equity | |||||||
| Liabilities: | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 3,133,698 | $ | 2,055,173 | |||
| Accrued expenses | 2,375,663 | 2,483,520 | |||||
| Advances on tuition | 1,258,459 | 2,235,332 | |||||
| Deferred tuition | 2,190,378 | 2,535,533 | |||||
| Due to students | 2,055,477 | 2,115,581 | |||||
| Operating lease obligations, current portion | 3,308,872 | 2,811,471 | |||||
| Debt, current portion | 1,400,000 | 2,000,000 | |||||
| Other current liabilities | 93,504 | 185,296 | |||||
| Total current liabilities | 15,816,051 | 16,421,906 | |||||
| Long-term debt, net | 3,930,844 | 5,224,524 | |||||
| Operating lease obligations, less current portion | 9,089,806 | 12,398,678 | |||||
| Warrant liabilities | 1,802,269 | 1,427,521 | |||||
| Other long-term liabilities | 327,402 | 327,402 | |||||
| Total liabilities | 30,966,372 | 35,800,031 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock, | 10 | 10 | |||||
| Common stock, | 31,745 | 28,390 | |||||
| Additional paid-in capital | 122,215,485 | 122,152,533 | |||||
| Accumulated deficit | (93,051,735 | ) | (91,215,037 | ) | |||
| Total stockholders’ equity | 29,195,505 | 30,965,896 | |||||
| Total liabilities and stockholders’ equity | $ | 60,161,877 | $ | 66,765,927 | |||
| ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| April 30, | |||||||
| 2026 | 2025 | ||||||
| Revenue, net | $ | 43,308,522 | $ | 45,302,082 | |||
| Operating expenses: | |||||||
| Cost of revenue (exclusive of depreciation and amortization shown separately below) | 9,336,768 | 12,190,949 | |||||
| General and administrative | 24,179,297 | 26,889,423 | |||||
| Impairments of right-of-use assets and tenant leasehold improvements | 2,791,426 | 1,848,209 | |||||
| Loss on asset dispositions | 12,101 | 35,984 | |||||
| Provision for credit losses | 4,758,643 | 1,950,000 | |||||
| Depreciation and amortization | 2,516,592 | 3,055,568 | |||||
| Total operating expenses | 43,594,827 | 45,970,133 | |||||
| Operating loss | (286,305 | ) | (668,051 | ) | |||
| Other income (expense): | |||||||
| Interest expense | (1,132,182 | ) | (1,368,892 | ) | |||
| Change in fair value of put warrant liability | (374,748 | ) | 537,072 | ||||
| Other income, net | 1,499 | 11,128 | |||||
| Total other expense, net | (1,505,431 | ) | (820,692 | ) | |||
| Loss before income taxes | (1,791,736 | ) | (1,488,743 | ) | |||
| Income tax expense | 44,962 | 56,149 | |||||
| Net loss | (1,836,698 | ) | (1,544,892 | ) | |||
| Dividends attributable to preferred stock | (396,068 | ) | (370,600 | ) | |||
| Net loss available to common stockholders | $ | (2,232,766 | ) | $ | (1,915,492 | ) | |
| Per share information available to common stockholders: | |||||||
| Loss per share - Basic and diluted | $ | (0.07 | ) | $ | (0.07 | ) | |
| Weighted average number of common stock outstanding: | |||||||
| Basic and diluted | 30,311,486 | 27,140,245 | |||||
| ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY YEARS ENDEDAPRIL 30, 2026AND2025 | |||||||||||||||||||||
| Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||
| Balance as of April 30, 2024 | 10,000 | $ | 10 | 25,701,603 | $ | 25,702 | $ | 121,921,048 | $ | (89,670,145 | ) | $ | 32,276,615 | ||||||||
| Stock-based compensation | — | — | — | — | 256,786 | — | 256,786 | ||||||||||||||
| Common stock issued for vested restricted stock units | — | — | 340,516 | 341 | (341 | ) | — | — | |||||||||||||
| Amortization of warrant-based cost issued for services | — | — | — | — | 7,000 | — | 7,000 | ||||||||||||||
| Warrants issued in connection with the | — | — | — | — | 12,965 | — | 12,965 | ||||||||||||||
| Common Stock issued for accrued dividends | — | — | 2,347,412 | 2,347 | 325,678 | — | 328,025 | ||||||||||||||
| Accrued dividends | — | — | — | — | (370,603 | ) | — | (370,603 | ) | ||||||||||||
| Net loss | — | — | — | — | — | (1,544,892 | ) | (1,544,892 | ) | ||||||||||||
| Balance as of April 30, 2025 | 10,000 | $ | 10 | 28,389,531 | $ | 28,390 | $ | 122,152,533 | $ | (91,215,037 | ) | $ | 30,965,896 | ||||||||
| Stock-based compensation | — | — | — | — | 148,235 | — | 148,235 | ||||||||||||||
| Common stock issued for vested restricted stock units | — | — | 305,169 | 305 | (305 | ) | — | — | |||||||||||||
| Common stock issued for services | — | — | 250,000 | 250 | (250 | ) | — | — | |||||||||||||
| Common Stock issued for accrued dividends | — | — | 2,800,018 | 2,800 | 311,340 | — | 314,140 | ||||||||||||||
| Accrued dividends | — | — | — | — | (396,068 | ) | — | (396,068 | ) | ||||||||||||
| Net loss | — | — | — | — | — | (1,836,698 | ) | (1,836,698 | ) | ||||||||||||
| Balance as of April 30, 2026 | 10,000 | $ | 10 | 31,744,718 | $ | 31,745 | $ | 122,215,485 | $ | (93,051,735 | ) | $ | 29,195,505 | ||||||||
| ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| Years Ended April 30, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (1,836,698 | ) | $ | (1,544,892 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Provision for credit losses | 4,758,643 | 1,950,000 | |||||
| Depreciation and amortization | 2,516,592 | 3,055,568 | |||||
| Stock-based compensation | 148,235 | 256,786 | |||||
| Change in fair value of put warrant liability | 374,748 | (537,072 | ) | ||||
| Amortization of warrant-based cost | — | 7,000 | |||||
| Amortization of debt issuance costs | 106,321 | 53,160 | |||||
| Loss on asset dispositions | 12,101 | 35,984 | |||||
| Non-cash lease benefit | (1,294,903 | ) | (318,971 | ) | |||
| Impairments of right-of-use assets and tenant leasehold improvements | 2,791,426 | 1,848,209 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (4,309,901 | ) | (1,744,612 | ) | |||
| Prepaid expenses | 48,678 | 59,385 | |||||
| Other current assets | 4,685 | 1,267,450 | |||||
| Deposits and other assets | 160,495 | 61,038 | |||||
| Accounts payable | 1,078,525 | (256,187 | ) | ||||
| Accrued expenses | (189,785 | ) | (396,958 | ) | |||
| Due to students | (60,104 | ) | (442,911 | ) | |||
| Advances on tuition and deferred tuition | (1,322,028 | ) | (2,141,182 | ) | |||
| Other current liabilities | (91,792 | ) | 98,801 | ||||
| Other long-term liabilities | — | 39,472 | |||||
| Net cash provided by operating activities | 2,895,238 | 1,350,068 | |||||
| Cash flows from investing activities: | |||||||
| Purchases of courseware and accreditation | (61,133 | ) | (57,210 | ) | |||
| Purchases of property and equipment | (585,696 | ) | (960,969 | ) | |||
| Net cash used in investing activities | (646,829 | ) | (1,018,179 | ) | |||
| Cash flows from financing activities: | |||||||
| Repayment of portion of | (2,000,000 | ) | (1,721,066 | ) | |||
| Payments of debt issuance costs | — | (155,377 | ) | ||||
| Net cash used in financing activities | (2,000,000 | ) | (1,876,443 | ) | |||
| Net increase (decrease) in cash and cash equivalents | 248,409 | (1,544,554 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of year | 1,074,873 | 2,619,427 | |||||
| Cash, cash equivalents and restricted cash at end of year | $ | 1,323,282 | $ | 1,074,873 | |||
(Continued)
| ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) | |||||
| Years Ended April 30, | |||||
| 2026 | 2025 | ||||
| Supplemental disclosure cash flow information: | |||||
| Cash paid for interest | $ | 1,025,861 | $ | 1,315,733 | |
| Cash paid for income taxes | $ | 66,975 | $ | 56,149 | |
| Supplemental disclosure of non-cash investing and financing activities: | |||||
| Accrued dividends | $ | 184,341 | $ | 102,412 | |
| Common stock issued for accrued dividends | $ | 314,140 | $ | 328,025 | |
| Relative fair value of warrants issued as part of the | $ | — | $ | 12,965 | |
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 consolidated statements of cash flows:
| April 30, | |||||
| 2026 | 2025 | ||||
| Cash and cash equivalents | $ | 860,384 | $ | 736,871 | |
| Restricted cash | 462,898 | 338,002 | |||
| Total cash, cash equivalents and restricted cash | $ | 1,323,282 | $ | 1,074,873 | |
