American Public Education (APEI) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue rose 3.9% year-over-year to $152.9 million, driven by growth at APUS and Hondros College of Nursing.

• Adjusted EBITDA increased 24% year-over-year to $10.9 million, near the midpoint of guidance.

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

• Rasmussen University saw its first year-over-year enrollment increase since acquisition, and Hondros reached record nursing enrollments.

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

Financial highlights

• Q2 2024 revenue: $152.9 million, up from $147.2 million in Q2 2023; adjusted EBITDA margin expanded to 7.2%.

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

• Cash, cash equivalents, and restricted cash at June 30, 2024: $156.2 million, up $11.8 million from year-end 2023.

• Free cash flow for the first six months: $16.6 million, up from $9.2 million year-over-year.

• Total costs and expenses decreased 29.1% year-over-year, reflecting a prior-year $64 million non-cash impairment charge.

Outlook and guidance

• Full-year 2024 revenue guidance reiterated at $620–$630 million; adjusted EBITDA: $60–$70 million.

• Net income available to common stockholders expected between $6–$13 million for 2024.

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

• Rasmussen expected to achieve positive EBITDA in Q4 2024, improving profit outlook for 2025.

• Management expects continued investment in technology and campus facilities, with capital expenditures likely to rise.