American Public Education's Q4 2024: Contradictions in Enrollment, EBITDA, and Revenue Dynamics

These are the key contradictions discussed in American Public Education's latest 2024Q4 earnings call, specifically including: Army and Air Force TA portals' outage impact, Rasmussen's expected EBITDA contribution, Rasmussen's enrollment momentum and EBITDA improvement, and APUS's revenue per student trends:



Revenue and Enrollment Growth:
- American Public Education, Inc. (APEI) reported revenue of $624 million for the full year 2024, exceeding the top end of its original guidance.
- The growth was driven by increased enrollment and revenue at APEI's nursing and healthcare institutions, particularly Rasmussen University, which experienced positive year-over-year enrollment growth and achieved positive EBITDA in the fourth quarter.

Simplification and Consolidation Initiatives:
- APEI announced plans to combine its three degree-granting institutions into a single consolidated institution, American Public University System, by the fourth quarter of 2025.
- The goal is to simplify operations, find revenue and cost synergies, and redeem preferred shares, which is expected to be accretive to net income and earnings per share.

APUS Enrollment and Revenue Increase:
- APUS reported a 7% increase in net course registrations year-over-year in the fourth quarter, resulting in a 4% increase in revenue.
- The growth is attributed to increased registrations from both military and military-affiliated students, alongside investments in curriculum modernization and IT infrastructure.

Rasmussen University Turnaround:
- Rasmussen University delivered positive EBITDA of $5.5 million in the fourth quarter, marking a significant turnaround from previous losses.
- The improvement was driven by a 4% year-over-year enrollment increase and positive enrollment growth, particularly in on-ground nursing and healthcare programs.

Hondros College of Nursing Expansion:
- Honda