American Public Education 2025 Q3 Earnings Net Income Surges 145.8%

American Public Education (APEI) delivered a strong earnings performance, with revenue and net income significantly exceeding expectations. The company’s strategic focus on cost-cutting and enrollment growth drove results, positioning it for future operational improvements.

Revenue

American Public Education reported Q3 2025 revenue of $163.22 million, a 6.6% year-over-year increase driven by robust performance across its segments. APUS Segment led with $83.14 million, followed by Rasmussen University’s $60.83 million and Hondros College of Nursing’s $18.44 million. The Corporate and Other segment contributed $808,000, rounding out the total revenue.

Earnings/Net Income

Earnings per share (EPS) surged 675% to $0.31, while net income jumped to $5.56 million—a 145.8% increase from 2024 Q3. This outperformance underscores the company’s profitability improvements and cost discipline.

Post-Earnings Price Action Review

The strategy of buying APEI after a revenue beat and holding for 30 days appears viable, given the stock’s recent outperformance of estimates and technical indicators near oversold levels. However, mixed analyst sentiment and insider sell activity suggest caution. APEI’s cost-saving initiatives and enrollment growth at Rasmussen and Hondros colleges position it for long-term gains, though Q4 guidance reflects expected declines due to the government shutdown’s impact on military enrollments.

CEO Commentary

President and CEO Angela Selden highlighted 8% APUS registration growth, 10% Rasmussen enrollment gains, and 18% Hondros College of Nursing growth. Strategic moves, including the sale of Graduate School USA and institutional consolidations, aim to enhance scale and margins.

Guidance

For Q4 2025, APEI forecasts revenue of $150–153.5 million, adjusted EBITDA of $18.5–22 million, and net income of $5.9–8.3 million. Full-year revenue is revised to $640–644 million, with institutional combination approvals expected by Q3 2026.

Additional News

1. Strategic Restructuring: APEI finalized the sale of Graduate School USA to focus on core degree-granting institutions, aiming to simplify operations and boost margins.

2. Leadership Change: Edward Codispoti joined as Executive Vice President and CFO, effective October 20, 2025, to support financial strategy and operational efficiency.

3. Government Shutdown Impact: While APUS faced military enrollment declines due to the shutdown, tuition assistance benefits under the One Big Beautiful Bill Act partially offset these challenges.

Revenue

American Public Education’s Q3 2025 revenue rose 6.6% to $163.22 million, driven by strong performance across its segments. APUS Segment generated $83.14 million, while Rasmussen University and Hondros College of Nursing contributed $60.83 million and $18.44 million, respectively.

Earnings/Net Income

Earnings per share (EPS) surged 675% to $0.31, and net income increased 145.8% to $5.56 million, reflecting improved profitability and cost management.

Guidance

Q4 2025 revenue is projected at $150–153.5 million, with net income of $5.9–8.3 million. Full-year revenue is revised to $640–644 million, reflecting confidence in long-term growth despite short-term headwinds.

Additional News

APEI’s strategic pivot to core institutions, leadership additions, and enrollment resilience highlight its adaptive approach. The government shutdown’s impact on military enrollments remains a near-term risk, though tuition assistance programs provide some mitigation.