American Public Education (APEI) investor relations material

Executive summary

• Achieved consolidated revenue growth of 3.9% to $648.9 million in 2025, with all three institutions posting gains despite a federal government shutdown and divestiture of Graduate School U.S.A.

• Adjusted EBITDA for 2025 was $85.7 million, up 18.6% from 2024, and net income available to common stockholders increased 151.6% to $25.3 million, exceeding guidance.

• Nursing and healthcare segments, including Rasmussen and Hondros, delivered strong revenue and enrollment growth, offsetting federal shutdown impacts.

• Delivered on strategic commitments: redeemed preferred equity, sold corporate buildings, and lifted regulatory restrictions on Rasmussen.

• Multi-year growth path targets $1 billion revenue and 20–21% adjusted EBITDA margin by 2029.

Financial highlights

• Q4 2025 consolidated revenue was $158.3 million, down 3.5% year-over-year due to the federal government shutdown and GSUSA sale, but above guidance.

• Q4 net income: $12.6 million ($0.67/share), up 9.6% year-over-year; adjusted EBITDA: $28.7 million (18.1% margin).

• Full year 2025 net income: $25.3 million ($1.36/share), up 152% from 2024; cash and equivalents at year-end: $176.5 million; total debt: $96.4 million; net cash: $80.1 million.

• Adjusted EBITDA for Q4 2025 decreased 8.6% to $28.7 million, impacted by the government shutdown.

• Cash flows from operations increased 26.8% to $62.0 million in 2025.

Outlook and guidance

• FY 2026 revenue guidance: $685–$695 million; adjusted EBITDA: $91.5–$100.5 million; net income: $41.3–$47.6 million; EPS: $2.15–$2.47; CapEx: $28–$32 million.

• Q1 2026 revenue guidance: $173–$175 million; net income: $11.1–$12.2 million; adjusted EBITDA: $25.5–$27 million.

• Multi-year framework targets $890–$925 million revenue and 20–21% EBITDA margin by 2029, with 9–12% revenue CAGR.