American Public Education (APEI) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue rose 3.9% year-over-year to $152.9 million, with adjusted EBITDA up 24% to $10.9 million and margin expanding to 7.2%.

• Net loss available to common stockholders improved to ($1.2) million from ($52.7) million in Q2 2023, which included a $64 million non-cash impairment at Rasmussen University.

• Rasmussen University posted its first year-over-year positive enrollment and revenue quarter since acquisition, with Q3 2024 enrollment up year-over-year.

• APUS and Hondros segments saw revenue and enrollment growth, while Graduate School USA and Rasmussen faced margin and regulatory challenges.

• Focus remains on core military/veterans and nursing/health-education businesses with stable, long-term demand.

Financial highlights

• Q2 2024 revenue was $152.9 million, up from $147.2 million in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $10.9 million, up from $8.8 million in Q2 2023, with margin at 7.2%.

• Net loss per diluted share improved to ($0.06), compared to ($2.93) in Q2 2023; excluding impairment, Q2 2023 net loss per share was ($0.25).

• Cash, cash equivalents, and restricted cash totaled $156.2 million at June 30, 2024, up $11.8 million from year-end.

• Free cash flow for the first six months was $16.6 million, with full-year 2024 expected to reach $46.5 million.

Outlook and guidance

• Full-year 2024 revenue guidance remains $620–$630 million, with adjusted EBITDA of $60–$70 million.

• Net income available to common stockholders expected between $5.8–$13 million for 2024.

• Q3 2024 revenue expected between $152–$155 million; adjusted EBITDA between $9–$12 million.

• Anticipates notable increase in adjusted EBITDA in Q4, especially as Rasmussen turns positive.

• Management expects continued investment in technology and campus facilities, with capital expenditures guidance for 2024 at $17–$20 million.