Education company APEI Q2 revenue up 6.5%, beats expectations

American Public Education

06/08/2025 21:28

Overview

American Public Education Q2 2025 revenue up 6.5% yr/yr, beating analyst expectations

Net loss of $0.3 mln includes $3.5 mln preferred equity redemption loss

Adjusted EBITDA increased 38.2% to $15.1 mln

Outlook

Company reconfirms 2025 revenue estimate of $650 mln to $660 mln

APEI sees Q3 revenue between $159 mln and $161 mln

Company expects Q3 adjusted EBITDA of $15 mln to $17 mln

APEI projects full-year adjusted EBITDA of $81 mln to $88 mln

Result Drivers

SEGMENT GROWTH - Revenue increase driven by growth in  Rasmussen University (RU), American Public University System (APUS), and Hondros College of Nursing (HCN) segments

BUSINESS SIMPLIFICATION - Sale of Graduate School USA and administrative buildings, and redemption of preferred equity to streamline operations

REGULATORY RELIEF - Lifting of growth restrictions on Rasmussen University by Department of Education

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$162.80 mln
$161 mln (7 Analysts)
Q2 Net Income
-$300,000
Q2 Adjusted EBITDA
$15.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"

Wall Street's median 12-month price target for American Public Education Inc is $35.50, about 14% above its August 5 closing price of $30.52

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPnZ3ZFma

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)