APEI Sets 2025 Adjusted EBITDA Target of $81M-$88M Amid Simplification and Enrollment Growth

American Public Education Inc. (APEI) expects an adjusted EBITDA target of $81M-$88M for 2025, driven by business simplification and enrollment growth. The company exceeded Q2 2025 guidance for revenue, net income, EPS, and adjusted EBITDA, according to CEO Angela K. Selden.

American Public Education Inc. (APEI), a provider of online and campus-based postsecondary education, reported strong financial results for the second quarter of 2025. The company exceeded its Q2 2025 guidance for revenue, net income, EPS, and adjusted EBITDA, according to CEO Angela K. Selden. The quarter was marked by robust enrollment growth and operational progress, despite some cost pressures and regulatory challenges.

Key financial highlights include:

- GAAP revenue rose 6.5% year-over-year to $162.8 million, surpassing the $161.0 million consensus estimate [1].
- Adjusted EBITDA climbed 38.2% to $15.1 million, significantly exceeding internal guidance [1].
- GAAP diluted EPS was $0.02, missing the $0.015 consensus estimate due to a $3.5 million one-time loss from preferred stock redemption [1].
- The company's APUS segment revenue increased by 6.1%, while the RU segment saw a 12.3% growth [1].

APEI's strategic focus on business simplification and enrollment growth is evident in its Q2 results. The company finalized the divestiture of Graduate School USA and redeemed all Series A Senior Preferred Stock, freeing up resources and reducing costs. Additionally, the lifting of growth restrictions on Rasmussen University by the U.S. Department of Education provided further regulatory relief [1].

Looking ahead, APEI expects GAAP revenue between $159.0 million and $161.0 million for Q3 2025, representing year-over-year growth of 4–5%. The company projects Q3 adjusted EBITDA (non-GAAP) to be between $15 million and $17 million, translating to year-over-year growth in the range of 16–32% [1]. For the full year 2025, APEI reaffirmed its revenue target of $650–$660 million and reset its net income (GAAP) guidance to $18–$24 million, while raising adjusted EBITDA (non-GAAP) guidance to $81–$88 million [1].

Analysts remain optimistic about APEI's prospects, with the current average analyst rating on the shares being "buy" and a median 12-month price target of $35.50 [2]. The stock recently traded at 17 times the next 12-month earnings, indicating investor confidence in the company's growth trajectory.

References:

[1] https://www.nasdaq.com/articles/apei-earnings-rise-6
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXF481E5:0-education-company-apei-q2-revenue-up-6-5-beats-expectations/
[3] https://www.prnewswire.com/news-releases/american-public-education-reports-second-quarter-2025-financial-results-302523549.html