American Public Education Q2 2025 Earnings: Revenue Beats Expectations, Narrowing Loss

American Public Education (APEI) reported Q2 2025 results, beating expectations. Revenue increased 6.5% to $162.8m, while the net loss narrowed by 72% to $324k. Earnings per share improved to a loss of $0.018, compared to a loss of $0.066 in Q2 2024. The company's shares are down 6.4% from a week ago.

American Public Education, Inc. (APEI) reported its second quarter (Q2) 2025 financial results, demonstrating significant improvements over the previous year. The company's revenue increased by 6.5% to $162.8 million, while the net loss narrowed by 72% to $324,000 [1]. This performance reflects a strong rebound in the company's financial health.

The Q2 2025 results show that APEI's strategic initiatives, including the simplification of its business operations and the sale of non-core assets, are paying off. The company's adjusted EBITDA increased by 38.2% to $15.1 million, indicating a robust cash generation capability [1]. Additionally, the company's earnings per share (EPS) improved from a loss of $0.066 in Q2 2024 to a loss of $0.018 in Q2 2025, signaling a positive trend in profitability.

APEI's financial performance was driven by strong growth in each of its segments. The revenue from the Rasmussen University (RU) segment increased 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 [1]. These increases are attributable to higher enrollment numbers and increased course registrations across the board.

The company also reported a significant reduction in general and administrative expenses as a percentage of revenue, rising from 22.5% to 23.4% [1]. This reduction underscores APEI's ongoing efforts to optimize its operational efficiency and cost structure.

Despite the positive financial results, APEI's shares have decreased by 6.4% from a week ago. This drop could be attributed to market sentiment or investor expectations, rather than the company's financial performance. APEI's management remains focused on executing its growth strategy and delivering on its financial targets.

Looking ahead, APEI has reset its full-year 2025 guidance for net income available to common stockholders to a range between $18 and $24 million and increased its Adjusted EBITDA guidance to between $81 million and $88 million [1]. These updated projections reflect the company's commitment to achieving sustainable growth and profitability.

References:
[1] https://www.apei.com/news/press-release-details/2025/American-Public-Education-Reports-Second-Quarter-2025-Financial-Results/default.aspx