American Public Education, Inc., a portfolio of education companies providing online and campus-based postsecondary education to over 105,000 students through three subsidiary institutions, has released its unaudited financial and operational results for the second quarter ended June 30, 2025.
Financial Highlights
For the second quarter of 2025, American Public Education, Inc. reported consolidated revenue of $162.8 million, marking a 6.5% increase year-over-year. The net loss available to common stockholders was ($0.3) million, an improvement from the ($1.2) million loss in Q2 2024. Adjusted EBITDA saw a significant rise of 38.2%, reaching $15.1 million compared to $10.9 million in the same period last year.
Business and Operational Highlights
The company experienced growth across its segments, with revenue increases in the Rasmussen University (RU) Segment by $6.5 million, the American Public University System (APUS) Segment by $4.7 million, and the Hondros College of Nursing (HCN) Segment by $1.7 million. Total costs and expenses rose by 3.4% to $155.7 million, driven by higher employee compensation costs, professional fees, and classroom and course materials costs.
Strategic Initiatives and Corporate Developments
American Public Education, Inc. continued its simplification strategy by redeeming all Series A Senior Preferred Stock and selling two administrative office buildings in Charles Town, WV. Additionally, the company completed the sale of Graduate School USA on July 25, 2025. The Department of Education released Rasmussen University from temporary growth restrictions and a $24.5 million letter of credit, freeing up previously restricted cash.
Management’s Perspective
Angela Selden, President and CEO of APEI, stated, “We continue to simplify our business, execute on our growth strategy, and deliver on our stated financial results. We exceeded the expectations we set for the second quarter with continued enrollment growth in our education units.” She also highlighted the redemption of preferred equity, which will save approximately $6 million in annual cash expenses, and the sale of two corporate administrative buildings.
Future Outlook
For the third quarter of 2025, APEI expects consolidated revenue between $159.0 million and $161.0 million, with a net loss available to common stockholders ranging from ($2.9) million to ($0.8) million. Adjusted EBITDA is projected to be between $15.0 million and $17.0 million. For the full year 2025, the company reconfirmed its revenue estimate of $650 million to $660 million, adjusted its net income guidance to $18 million to $24 million, and increased its Adjusted EBITDA guidance to $81 million to $88 million.
SEC Filing: AMERICAN PUBLIC EDUCATION INC [ APEI ] – 8-K – Aug. 06, 2025