American Public Education Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 11 May 2026: press release. Guidance figures: 4 raised, 6 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 6.2% to $174.7 million: Consolidated revenue was $174.7 million, up 6.2% from $164.6 million in the first quarter of 2025. Source
• Net income reached a record: Net income available to common stockholders was a record $17.7 million. Diluted EPS was $0.94, compared with $0.41 a year earlier. Source
• Adjusted EBITDA rose 37.5%: Adjusted EBITDA was $29.2 million, against $21.2 million in the prior-year quarter. Source
• Military+ revenue rose 6.5%: Military+ revenue was $89.4 million, mainly from increased registrations. Segment operating income was $30.7 million, against $24.1 million. Source
• Health+ revenue rose 11.0%: Health+ revenue was $85.4 million, mainly from higher enrollments and modest price increases. Segment operating income was $0.5 million, against a loss of $0.8 million. Source
• Orlando campus opened with LPN program: Rasmussen opened a new campus in Orlando, Florida, introducing its Practical Nursing Diploma (LPN) program to that market for the first time. Source
• Segment EBITDA margins higher year over year: Military+ EBITDA margin was 36%, against 30%. Health+ EBITDA margin was 4%, against 2%. Consolidated adjusted EBITDA margin was 17%, against 13%. Source
• Cash balance rose $44.5 million: Cash, cash equivalents and restricted cash were $221.0 million, an increase of $44.5 million, or 25.2%, from year-end 2025. Source
• Institutional combination approved by HLC: Higher Learning Commission approved consolidating APUS, Rasmussen and Hondros programs, locations and operations into one accredited institution on April 28. Source
• Full-year revenue and EBITDA raised: Management said first-quarter results supported raising full-year 2026 guidance for revenue and adjusted EBITDA. Source

“In the first quarter, we delivered strong results across our key financial metrics.”

Angela Selden, President and Chief Executive Officer of APEI

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 revenue and adjusted EBITDA ranges raised, as management tied the change to first-quarter results. Source
• Guidance raised: Full-year 2026 net income and diluted EPS ranges raised from the ranges given in March 2026. Source
• New guidance: Second-quarter 2026 guidance given for the first time, covering registrations, enrollment, revenue, net income, adjusted EBITDA and EPS. Source
• New: Higher Learning Commission approved consolidating APUS, Rasmussen and Hondros programs, locations and operations into one accredited institution on April 28. Source
• New: Rasmussen opened a campus in Orlando, Florida, introducing its Practical Nursing Diploma (LPN) program to that market. Source
• New: The company now describes itself as operating through two segments, Military+ and Health+, where the prior release named three institutions. Source

Results and growth drivers

• Revenue rose 6.2% to $174.7 million: Consolidated revenue was $174.7 million, up 6.2% from $164.6 million in the first quarter of 2025. Source
• Net income reached a record: Net income available to common stockholders was a record $17.7 million. Diluted EPS was $0.94, compared with $0.41 a year earlier. Source
• Adjusted EBITDA rose 37.5%: Adjusted EBITDA was $29.2 million, against $21.2 million in the prior-year quarter. Source
• Growth excluding GSUSA sale: Management said consolidated revenue would have grown 8.7% if the July 2025 sale of GSUSA were excluded from the comparison. Source

Segment results

• Military+ revenue rose 6.5%: Military+ revenue was $89.4 million, mainly from increased registrations. Segment operating income was $30.7 million, against $24.1 million. Source
• Health+ revenue rose 11.0%: Health+ revenue was $85.4 million, mainly from higher enrollments and modest price increases. Segment operating income was $0.5 million, against a loss of $0.8 million. Source
• Corporate revenue fell after GSUSA sale: Corporate and other revenue was negative $61 thousand, compared with $3.7 million a year earlier. Corporate EBITDA was $(9.2) million against $(8.6) million. Source

“We remain on pace to complete our planned institutional combination at the start of the third quarter”

Angela Selden, President and Chief Executive Officer of APEI

Campuses, programs and students

• Orlando campus opened with LPN program: Rasmussen opened a new campus in Orlando, Florida, introducing its Practical Nursing Diploma (LPN) program to that market for the first time. Source
• Health+ operates 27 campuses: Health+ serves students at 27 campuses in eight states and online, through Rasmussen University and Hondros College of Nursing. Source
• Military+ serves adult learners: Military+ serves adult learners, directed mainly at military, veterans and related communities, through American Public University System. Source

Costs, margins and pricing

• Selling costs rose, instructional flat: Selling and promotional expense was $37.9 million, against $35.2 million. Instructional costs and services were $74.6 million, against $74.9 million. Source
• Segment EBITDA margins higher year over year: Military+ EBITDA margin was 36%, against 30%. Health+ EBITDA margin was 4%, against 2%. Consolidated adjusted EBITDA margin was 17%, against 13%. Source
• Debt extinguishment loss recorded: A $1.7 million loss on extinguishment of debt was recorded this quarter. Net interest expense was $0.7 million, against $0.9 million. Source

“We believe the foundation is built, the strategy is working, and we are just getting started.”

Angela Selden, President and Chief Executive Officer of APEI

Capital, cash and shareholder returns

• Operating cash flow rose 71.1%: Cash flows from operations were $63.3 million in the quarter. Source
• Cash balance rose $44.5 million: Cash, cash equivalents and restricted cash were $221.0 million, an increase of $44.5 million, or 25.2%, from year-end 2025. Source
• Refinancing reduced borrowing rate: Debt was refinanced on March 9, reducing the borrowing rate by 375 basis points at then-current leverage. Annual interest savings of about $3.7 million are expected. Source
• $50 million buyback authorized: A $50 million share repurchase program was authorized on March 10 and replaces prior authorizations. 17,840 shares had been repurchased through quarter end. Source
• Receivables fell from year-end: Accounts receivable, net, were $38.7 million at March 31, 2026, down from $65.7 million at December 31, 2025. Source

Strategy and institutional combination

• Institutional combination approved by HLC: Higher Learning Commission approved consolidating APUS, Rasmussen and Hondros programs, locations and operations into one accredited institution on April 28. Source
• Four-year strategic plan begun: Management described the first quarter of 2026 as the first quarter of a four-year strategic plan. Source
• Two-segment reporting structure: The company describes its business through two segments, Military+ and Health+, in place of the three institutions named in the prior release. Source

Full-year and second-quarter guidance

• Full-year revenue and EBITDA raised: Management said first-quarter results supported raising full-year 2026 guidance for revenue and adjusted EBITDA. Source
• Net income and EPS ranges raised: Full-year 2026 net income and diluted EPS ranges were raised from the March 2026 ranges. Source
• Second-quarter guidance first given: Second-quarter 2026 ranges were given for the first time, covering registrations, enrollment, revenue, net income, adjusted EBITDA and EPS. Source

Coming up, as management said on 11 May 2026

• Institutional combination at start of Q3: Management said the planned consolidation of APUS, Rasmussen and Hondros is on pace to complete at the start of the third quarter. Source

Figures management reported

Earlier plans management reported on

• On track: Management said it remains on pace to complete the planned combination at the start of the third quarter. Source
• Not stated: In March, management said it remained committed to sustained growth, expanding margins and delivering on its strategic priorities.

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.