American Public Education — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue reached $169.1 million, a 3.6% year-over-year increase compared to $163.2 million in Q3 2025; excluding revenue from the sold Graduate School USA (GSUSA), revenue would have increased 4.2%.
• Net income available to common stockholders increased 6.0% to $5.9 million, up from $5.6 million in the prior year period.
• Diluted earnings per share rose 6.7% to $0.32, compared to $0.30 in Q3 2025.
• Adjusted EBITDA was $17.5 million, down from $20.7 million in Q3 2025, reflecting a $6.0 million revenue shift to Q4 due to Military+ registration timing, a $5.7 million increase in selling and promotional expenses, and investments in marketing optimization and integration.
• Cash flows from operations were $11.8 million, compared to $21.7 million in Q3 2025, attributed to a temporary implementation matter regarding Title IV disbursements following the institutional combination.
• Total cash, cash equivalents, restricted cash, and short-term investments totaled $216.4 million at September 30, 2026, an increase of $39.9 million (22.6%) from $176.5 million at December 31, 2025.
• Long-term debt, net, decreased to $80.1 million at September 30, 2026, from $94.7 million at December 31, 2025.
• Deferred revenue and student deposits increased to $30.7 million at September 30, 2026, from $23.0 million at December 31, 2025.

Guidance and Future Outlook:

• The Company raised full-year 2026 guidance across all key metrics.
• Full-year 2026 revenue guidance is set at $695.0 million to $701.0 million, including $8.0 million of GSUSA revenue.
• Full-year 2026 net income guidance is $48.5 million to $53.2 million.
• Full-year 2026 adjusted EBITDA guidance is $98.0 million to $105.0 million.
• Full-year 2026 diluted EPS guidance is $2.59 to $2.84.
• Full-year 2026 capital expenditures guidance is $23.0 million to $26.0 million.
• Fourth Quarter 2026 revenue guidance is $179.4 million to $185.4 million.
• Fourth Quarter 2026 net income guidance is $15.2 million to $19.8 million.
• Fourth Quarter 2026 adjusted EBITDA guidance is $30.6 million to $37.6 million.
• Fourth Quarter 2026 diluted EPS guidance is $0.81 to $1.07.
• Fourth Quarter 2026 Military+ net registrations are expected to be 100,000 to 105,000, representing a 21.7% to 27.7% year-over-year increase.
• Fourth Quarter 2026 Health+ enrollment is expected to be 20,100, a 1.0% year-over-year increase.

Business Segments and Product Lines:

• Health+ segment revenue grew 9.0% year-over-year to $86.4 million, driven by increased healthcare enrollments supported by the "Fill the Back Row" campus enrollment initiative and modest tuition increases implemented in the second half of 2025.
• Military+ segment revenue decreased 0.5% year-over-year to $82.7 million, primarily due to the revenue shift into the fourth quarter of 2026 caused by registration timing.
• Military+ net course registrations for Q3 2026 were 103,800, a 3.8% increase from 100,000 in Q3 2025.
• Health+ total student enrollment for Q3 2026 was 19,100, a 2.5% increase from 18,600 in Q3 2025.
• The Company completed its institutional combination in early August 2026, operating as a single Higher Learning Commission-accredited institution, American Public University System.
• Graduate School USA (GSUSA) was sold in July 2025 and is no longer included in consolidated revenue.

Market and Competitive Landscape:

• The Company serves approximately 106,600 students across online and campus-based postsecondary education.
• The system includes four academic units: American Military University (AMU), American Public University (APU), Rasmussen University (RU), and Hondros College of Nursing (HCN).

Risks and Challenges:

• Cash flow from operations was impacted by temporary implementation matters related to Title IV disbursements following the institutional combination.
• Selling and promotional expenses increased by $5.7 million year-over-year to support registration and enrollment growth.
• Forward-looking statements are subject to risks including regulatory compliance (e.g., the "90/10 Rule"), changes in the post-secondary education regulatory environment, government shutdowns, federal workforce uncertainty, and the ability to maintain institutional accreditation.
• Risks also include the loss of eligibility for Title IV programs, dependence on military student registrations, and the effectiveness of marketing and program development.

Management Commentary and Tone:

• CEO Angela Selden stated that the Company exceeded guidance for third-quarter revenue, net income, adjusted EBITDA, and diluted earnings per share.
• Management noted that results reflect continued growth in Health+ driven by campus and online healthcare enrollments and pricing.
• Selden indicated that with the institutional combination largely behind them, the focus remains on executing the long-range plan and accelerating momentum in Health+ and Military+.

Other Key Points:

• On March 10, 2026, the Board approved a common stock repurchase program of up to $50 million.
• During the three months ended September 30, 2026, the Company repurchased 186,032 shares; for the nine months ended September 30, 2026, it repurchased 274,237 shares.
• Weighted average diluted shares outstanding decreased to 18.7 million for the three months ended September 30, 2026, from 18.8 million in the same period last year.
• The Company held a conference call on November 9, 2026, to discuss these results.