American Public Education Reports First Quarter 2025 Financial Results
Net Income & Adjusted EBITDA Exceeded Guidance, Driven by Increased Enrollment and Operating Leverage in Rasmussen Segment
CHARLES TOWN, W.V. - May 12, 2025 -- American Public Education, Inc. (Nasdaq: APEI), a portfolio of education companies providing online and campus-based postsecondary education and career learning to over 125,000 students through four subsidiary institutions, has reported unaudited financial and operational results for the first quarter ended March 31, 2025.
Key First Quarter 2025 Highlights
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Consolidated revenue for Q1 2025 increased 6.6% year-over-year to $164.6 million.
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Net income available to common stockholders in Q1 2025 was $7.5 million, compared to a net loss available to common stockholders of ($1.0) million in Q1 2024.
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Net income per diluted common share in Q1 2025 was $0.41, compared to net loss per diluted common share of ($0.06) in Q1 2024.
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Q1 2025 Adjusted EBITDA was $21.2 million compared to $17.1 million in Q1 2024.
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Increasing guidance for full year 2025 net income available to common stockholders to a range between $23 - $30 million and Adjusted EBITDA to a range between $77 million and $87 million. Full year 2025 revenue estimates of between $650 million and $660 million remain unchanged.
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Management Commentary
"This first quarter of 2025 proved to be an excellent start to the year," said Angela Selden, President and Chief Executive Officer of APEI. "We exceeded the expectations we set forth for the first quarter largely due to strong enrollment trends at Rasmussen which are beginning to show the operating leverage benefits of greater enrollment and disciplined operations."
"The areas for improvements that we have focused on over the past two years are driving better and more consistent financial results. We have been able to deliver better results due to improved operations and student outcomes at our educational units, and we continue to educate service-minded professionals in high demand industries," concluded Selden.
First Quarter 2025 Financial Results
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Total consolidated revenue for the three months ended March 31, 2025, was $164.6 million, an increase of $10.1 million, or 6.6%, compared to $154.4 million for the three months ended March 31, 2024. The increase in revenue was primarily due to a $6.1 million increase in revenue in our Rasmussen University ("RU") Segment, a $3.3 million increase in our American Public University System ("APUS") Segment, and a $1.2 million increase in our Hondros College of Nursing ("HCN") Segment.
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Total costs and expenses for the three months ended March 31, 2025, were $152.3 million, an increase of $3.1 million, or 2.0%, compared to $149.3 million for the three months ended March 31, 2024. The increase in costs and expenses for the three months ended March 31, 2025 was primarily driven by increases in employee compensation costs and advertising costs, partially offset by a decrease in information technology costs, and depreciation and amortization expenses.
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Instructional costs and services expenses for the three months ended March 31, 2025, were $74.9 million, an increase of $2.5 million, or 3.5%, compared to $72.4 million for the three months ended March 31, 2024.
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Selling and promotional expenses for the three months ended March 31, 2025, were $35.2 million, an increase of $2.7 million, or 8.5%, compared to $32.5 million for the three months ended March 31, 2024.
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General and administrative expenses for the three months ended March 31, 2025, were $36.4 million, an increase of $0.1 million, or 0.4%, compared to $36.3 million for the three months ended March 31, 2024. General and administrative expenses as a percentage of revenue decreased to 22.1% for the three months ended March 31, 2025, from 23.5% for the three months ended March 31, 2024.
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Net income available to common stockholders was $7.5 million, or $0.41 per diluted common share for the three months ended March 31, 2025, compared to a net loss of ($1.0) million, or ($0.06) per diluted common share, for the three months ended March 31, 2024.
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Adjusted EBITDA was $21.2 million for the three months ended March 31, 2025, compared to $17.1 million for the three months ended March 31, 2024. Adjusted EBITDA excludes adjustment for stock compensation, loss on disposals of long-lived assets, loss on assets held for sale, other professional fees and loss on leases.
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Balance Sheet and Liquidity
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Total cash, cash equivalents, and restricted cash were $187.5 million at March 31, 2025, compared to $158.9 million and December 31, 2024, representing an increase of $28.6 million, or 18.0%.
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Registrations and Enrollment
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Q1 2025
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Q1 2024
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% Change
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American Public University System1
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For the three months ended March 31,
Net Course Registrations
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102,500
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99,000
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3.5%
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Rasmussen University2
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For the three months ended March 31,
Total Student Enrollment
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14,500
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13,500
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7.4%
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Hondros College of Nursing3
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For the three months ended March 31,
Total Student Enrollment
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3,600
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3,300
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9.6%
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APUS Net Course Registrations represents the approximate aggregate number of courses for which students remain enrolled after the date by which they may drop a course without financial penalty. Excludes students in doctoral programs.
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RU Total Student Enrollment represents students in an active status as of the full-term census or billing date.
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HCN Total Student Enrollment represents the approximate number of students enrolled in a course after the date by which students may drop a course without financial penalty.
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Second Quarter and Full Year 2025 Outlook
The following statements are based on APEI's current expectations. These statements are forward-looking and actual results may differ materially. APEI undertakes no obligation to update publicly any forward-looking statements for any reason unless required by law. Refer to APEI's earnings conference call and presentation for further details.
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Second Quarter 2025 Guidance
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(Approximate)
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(% Yr/Yr Change)
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APUS Net course registrations
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93,500 to 96,100
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4% to 7%
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HCN Student enrollment
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3,700
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14%
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RU Student enrollment
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14,600
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8%
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- On-ground Healthcare
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6,400
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3%
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- Online
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8,300
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12%
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($ in millions except EPS)
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APEI Consolidated revenue
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$160.0 - $162.0
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4% to 5%
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APEI Net loss/income available to common stockholders
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($2.5) - ($0.7)
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n.a.
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APEI Adjusted EBITDA
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$11.5 - $14.0
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6% to 28%
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APEI Diluted EPS
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($0.13) - ($0.04)
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n.a.
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Full Year 2025 Guidance
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(Approximate)
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(% Yr/Yr Change)
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($ in millions)
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APEI Consolidated Revenue
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$650 - $660
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4% to 6%
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APEI Net income available to common stockholders
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$23 - $30
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129% to 198%
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APEI Adjusted EBITDA
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$77 - $87
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7% to 20%
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APEI Capital Expenditure (CapEx)
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$18 - $22
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(14%) to 4%
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Non-GAAP Financial Measures
