American Public Education 2025 Q2 Earnings Strong Performance as Net Income Surges 1111.9%

American Public Education (APEI) reported its fiscal 2025 Q2 earnings on August 7, 2025, delivering strong results that exceeded expectations. The company significantly narrowed its losses and more than doubled its net income year-over-year. APEI also raised its full-year Adjusted EBITDA guidance and reaffirmed revenue targets, signaling confidence in its strategic execution and operational improvements.

Revenue
Revenue for APEI’s second quarter of 2025 reached $162.77 million, reflecting a 6.5% year-over-year increase. The APUS segment contributed the largest portion at $81.73 million, followed by the RU segment with $59.52 million. The HCN segment reported $18.13 million in revenue, while the corporate and other segment added $3.38 million to the total.

Earnings/Net Income
American Public Education significantly improved its profitability, narrowing its loss to $0.02 per share in 2025 Q2 from $0.07 per share in the prior-year period. The company reported net income of $4.50 million, an impressive 1111.9% increase from $371,000 in 2024 Q2, marking a substantial turnaround in financial performance.

Price Action
Shares of APEI gained 3.07% in intraday trading on the day of the earnings release, with a stronger performance of 9.18% for the week. The stock has risen 5.24% month-to-date, reflecting renewed investor interest.

Post-Earnings Price Action Review
A strategy of buying APEI following its earnings beat and holding for 30 days resulted in a -35.69% return, significantly underperforming the benchmark by 121.88%. Despite a maximum drawdown of 0.00% and a negative Sharpe ratio of -0.26, the approach was low-risk but yielded poor returns, both in absolute and risk-adjusted terms.

CEO Commentary
Angela Selden, President and CEO of APEI, emphasized the company’s progress in simplification and growth execution, with strong enrollment results across its educational units. Key strategic actions included the redemption of preferred equity—saving $6 million annually—and the sale of two administrative office buildings. She also highlighted the Department of Education's $24.5 million letter of credit and the completion of the Graduate School USA sale as major milestones.

Guidance
APEI reaffirmed its full-year 2025 revenue guidance of $650 million to $660 million and raised its Adjusted EBITDA guidance to $81 million to $88 million. Net income available to common stockholders is now expected between $18 million and $24 million, factoring in one-time losses from the sale of Graduate School USA and the preferred equity redemption.

Additional News
On August 7, 2025, APEI hosted its Q2 2025 earnings call, providing detailed insights into its financial and operational performance. The transcript is available for viewing once JavaScript and cookies are enabled on the platform. While no additional earnings metrics were disclosed in this specific content, the earnings call served as a key communication platform for leadership to discuss strategic priorities and long-term goals. The company remains focused on strengthening its balance sheet and executing its operational simplification initiatives.