American Public Education (APEI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 5.5% year-over-year to $171.7 million, with adjusted EBITDA up 36.8% to $20.7 million and net income available to common stockholders at $9.8 million ($0.52 per diluted share), compared to a loss of $0.3 million in the prior year.

• Completed the institutional combination of American Public University System, Rasmussen University, and Hondros College of Nursing, forming a unified HLC-accredited entity with over 290 programs and 109,000 students.

• Announced development of an AI-enabled student lifecycle platform with Salesforce, expected to deliver value in early 2027.

• Met or exceeded guidance on all four key metrics, with adjusted EBITDA exceeding high-end guidance by 14.7%.

• Launched a $50 million share repurchase program, with $45 million remaining as of June 30, 2026.

Financial highlights

• Q2 2026 consolidated revenue: $171.7 million (Q2 2025: $162.8 million); excluding Graduate School USA, revenue grew 7.8%.

• Adjusted EBITDA margin expanded to 12% from 9.3% year-over-year.

• Net income per diluted share was $0.52, compared to a loss of $0.02 in Q2 2025.

• Cash, restricted cash, and short-term investments totaled $222.8 million as of June 30, 2026, up 26.2% from year-end 2025.

• Year-to-date cash flows from operations were $75.4 million, up 45.6% year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $690–$698 million; net income $46.5–$52.5 million; adjusted EBITDA $96–$104 million; diluted EPS $2.48–$2.79.

• CapEx guidance for 2026 lowered to $25–$28 million.

• Q3 2026 guidance: revenue $164.5–$167 million, net income $3.4–$5.4 million, adjusted EBITDA $14–$17 million, diluted EPS $0.18–$0.29.

• Multi-year targets include revenue CAGR of 8–12% and adjusted EBITDA margin of 20–21% by 2029.

• Management expects to fund costs and expenses through operating cash flow for the next twelve months and beyond.