American Public Education (APEI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 5.5% year-over-year to $171.7 million, or 7.8% excluding divested Graduate School USA revenue, driven by Health+ enrollment and Military+ net course registrations.

• Adjusted EBITDA increased 36.8% to $20.7 million, and net income available to common stockholders was $9.8 million, reversing a prior year loss.

• Completed the institutional combination of American Public University System, Rasmussen University, and Hondros College of Nursing, forming a single HLC-accredited institution with over 290 degree programs and 109,000 students.

• Announced development of an AI-enabled student lifecycle platform with Salesforce, expected to deliver operational efficiencies and improved student experience starting in 2027.

• Met or exceeded guidance on all four key metrics; adjusted EBITDA exceeded high-end guidance by 14.7%.

Financial highlights

• Q2 2026 consolidated revenue: $171.7 million, up 5.5% year-over-year; adjusted EBITDA: $20.7 million, up 36.8%; net income: $9.8 million ($0.52 per diluted share) vs. a loss of $0.3 million prior year.

• Cash, equivalents, and short-term investments: $222.8 million as of June 30, 2026, up 26.2% from year-end; excess cash over debt: $133.9 million.

• Year-to-date cash flow from operations: $75.4 million, up 45.6% year-over-year.

• Operating margin improved to 8% from 4% year-over-year; adjusted EBITDA margin expanded by 275 basis points to 12%.

• Trailing twelve-month adjusted EBITDA reached $99.3 million, with margin at 14.9%.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $690–$698 million; net income $46.5–$52.5 million; adjusted EBITDA $96–$104 million; diluted EPS $2.48–$2.79.

• CapEx guidance lowered to $25–$28 million.

• Q3 2026 guidance: revenue $164.5–$167 million, net income $3.4–$5.4 million, adjusted EBITDA $14–$17 million, diluted EPS $0.18–$0.29.

• Multi-year targets include revenue CAGR of 8–12% and adjusted EBITDA margin of 20–21% by 2029.

• Management expects to fund costs and expenses through operating cash flow for the next twelve months and beyond.