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- **Revenue Beats Expectations**: Q3 revenue up 7% YoY to $163.2M, driven by nursing and military education growth. 
- **Enrollment Resilience**: Rasmussen on-ground enrollment +13% YoY, APUS registrations recover to 30% of prior year levels in November. 
- **Profit Improvement**: Net income +7x YoY to $5.6M; EBITDA +60% to $20.7M. 
- **Government Shutdown Mitigation**: Using $100M OBBB funds,30% of October registrations processed in November. 
- **Strategic Restructuring**: $28M annual savings from Graduate School USA sale; $6M from preferred stock redemption. 
- **Nursing Growth Engine**: Rasmussen ADN/BSN programs +18% YoY, targeting 2026 combination to scale margins. 
- **Cash Flow Strength**: Free cash flow +56% YoY to $45.2M; unrestricted cash $193.1M.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue for Q3 2025 was $163.2 million, a 7% year-over-year increase. Excluding the sold Graduate School USA, revenue growth was 5% (12% when including the school). 
- **Enrollment Momentum**: Rasmussen saw 10% enrollment growth (5th consecutive quarter of YoY growth), while Hondros College of Nursing grew 18%. APUS net course registrations increased 8% YoY. 
- **Strategic Actions**: Sold Graduate School USA in July 2025, reducing lease liabilities by $28 million annually. Completed HLC approval for institution combination, targeting Q3 2026 implementation. 
- **Government Shutdown Impact**: APUS registrations declined in October (-88% YoY) but improved in November (30% of prior year levels). December registrations are expected to recover as the CR is nearing passage. 
- **Balance Sheet Strength**: Unrestricted cash and equivalents totaled $193.1 million as of Q3 end. 

**【CFO Financial Commentary】**
- **Profitability**: Q3 net income available to common shareholders was $5.6 million ($0.30 EPS), up 7x YoY. Adjusted EBITDA rose 60% to $20.7 million. 
- **Segment Performance**: APUS EBITDA grew 19% YoY to $26.2 million. Rasmussen turned from a $4.5 million loss to $825,000 EBITDA. 
- **Free Cash Flow**: 9M 2025 free cash flow (adjusted EBITDA - CapEx) was $45.2 million. 
- **Guidance Update**: Full-year 2025 revenue now expected at $640-644 million (down $20-24 million due to shutdown). 

**【Q&A Highlights】**
- **TA Recovery**: 30% of October registrations were processed in November using $100M OBBB funds. December registrations could approach pre-shutdown levels if CR passes. 
- **Cost Savings**: $6M annual savings from preferred stock redemption; $4M from lease liability reduction. 
- **Nursing Growth**: Rasmussen on-ground enrollment +13% YoY, driven by ADN/BSN programs. 
- **Integration Progress**: Combination process delay resolved; 2026 implementation on track. 
- **Margin Expansion**: Rasmussen operating leverage from filling campus capacity. 
- **APUS 90/10 Ratio**: Cash payers (grad military) offset TA shortfall, supporting compliance. 
- **Investor Day Preview**: November 20 event to detail multi-year nursing growth plans.

American Public Education, Inc. (APEI) Q3 2025 Earnings Call Transcript

Revenue

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APEI

APEI fundamentals

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