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APEI Q1 Earnings & Revenues Beat Estimates, Both Up Y/Y, Stock Gains
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American Public Education, Inc. (APEI - Free Report) reported impressive first-quarter 2025 results, wherein adjusted earnings and total revenues topped the Zacks Consensus Estimate and grew year over year.
The quarter’s splendid performance was driven by strong contributions from the Rasmussen University (RU), American Public University System (APUS) and Hondros College of Nursing (HCN) segments. Marginal revenue decline from the Graduate School (GSUSA) segment somewhat offset this robust growth trend.
The company’s focus on operational improvement initiatives is gradually bearing fruit, reflected in the strong cash flow generation and improved margins.
APEI stock rose 1.8% during yesterday’s after-hours trading session after the earnings result announcement. An upbeat second-quarter 2025 outlook is expected to have boosted investors’ sentiments alongside the reported quarter’s performance.
APEI’s Q1 Discussion
The company reported adjusted earnings per share (EPS) of 41 cents, significantly surpassing the Zacks Consensus Estimate of 15 cents by 173.3%. In the year-ago quarter, it reported a loss per share of six cents.
Total revenues of $164.6 million also topped the consensus mark of $162 million by 1.6% and grew 6.6% from the year-ago period. Net course registration and enrollment growth, alongside select tuition and fee increases, aided the results. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
American Public Education, Inc. Price, Consensus and EPS Surprise
Total costs and expenses increased 2% year over year to $152.3 million. The uptick was mainly caused by a 3.5% increase in instructional costs and services expenses and an 8.5% increase in selling and promotional expenses.
Adjusted EBITDA increased year over year by 24% to $21.2 million from $17.1 million. The adjusted EBITDA margin of 13% expanded 200 basis points (bps) year over year from 11%.
American Public’s Segment Discussion
APUS: Revenues of $83.9 million rose 4.1% from the year-ago period’s level of $80.7 million. The uptick was primarily due to growth in net course registrations and favorable impact from tuition and fee increases, accompanied by the timing of course starts within the respective periods. Our model expected the metric to grow 2.1% year over year to $82.3 million.
APUS’ total net course registration increased 3.5% from the year-ago period to about 102,500. In the quarter, military registrations were up 3.1%. The EBITDA margin of 30% remained flat year over year.
RU: The segment reported revenues of $59.3 million, which increased 11.5% year over year from $53.1 million. This was due to growth in enrollment and tuition increases. We expected this segment’s revenues to be up 7.9% year over year.
RU’s total student enrollment increased 7.4% to 14,500 due to 3.2% growth in on-ground enrollment and an 11.1% rise in online enrollment. The EBITDA margin was 3% against a negative EBITDA margin of 5% reported in the prior-year quarter.
HCN: The segment’s revenues rose 7.5% year over year to $17.7 million. The increase was backed by solid growth in student enrollment from community partners. Our projection for this metric was $18 million, reflecting 9.5% year-over-year growth.
Total student enrollment at HCN increased 9.6% from the prior-year quarter’s level to 3,600. The segment reported a negative EBITDA margin of 1% compared with a break-even margin reported in the year-ago quarter.
GSUSA: The segment’s revenues tumbled 11.9% year over year to $3.7 million from $4.2 million. The EBITDA margin was negative 57%, broader than negative 27% a year ago.
APEI’s Financial Highlights
As of March 31, 2025, American Public had cash, cash equivalents and restricted cash of $187.5 million, up from $158.9 million at 2024-end.
Net long-term debt was $93.7 million at the first-quarter end, slightly up from $93.4 million at 2024-end.
American Public Unveils Q2 Guidance
The company expects total revenues to increase 4-5% year over year to $160-$162 million. It expects to report a loss per share between 13 cents and four cents against an adjusted EPS of one cent reported a year ago. Adjusted EBITDA is expected to be in the band of $11.5-$14 million, reflecting growth between 6% and 28% year over year.
APUS’ total net course registrations are likely to be in the band of 93,500-96,100, reflecting growth between 4% and 7% year over year. HCN’s total enrollment is expected to increase 14% from the prior year’s figure to 3,700 students.
RU’s student enrollment is expected to be up 8% year over year to 14,600. On-ground healthcare enrollment is likely to increase 3% to 6,400 and online enrollment is expected to rise 12% year over year to 8,300.
APEI Revises 2025 Guidance
Total revenues are still expected to grow 4-6% year over year to $650-$660 million. Adjusted EBITDA is now expected to be between $77 million and $87 million (up from the prior projected band of $75-$85 million), reflecting 7-20% growth year over year.
Capital expenditures continue to be expected in the band of $18-$22 million, reflecting a decline of 14% to growth of 4%.
Adtalem Global Education Inc. (ATGE - Free Report) posted impressive third-quarter fiscal 2025 results, wherein adjusted earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
The quarter’s performance was driven by robust performance across all the company’s reportable segments, resulting in top-line growth. The segments’ performances were mainly backed by increased enrollment and higher tuition rates. Also, Adtalem’s focus on strategic investments to boost student experience is boding well.
Universal Technical Institute, Inc. (UTI - Free Report) reported impressive second-quarter fiscal 2025 results. Both earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
The company achieved strong growth in the fiscal second quarter, driven by its strategy, focused on expansion, diversification and optimization. Both divisions saw year-over-year improvements in key financial and operational areas. Higher revenues, an increase in active students and strong new enrollments contributed to the bottom-line growth. Owing to strong performance, Universal Technical has raised its guidance for fiscal 2025 while remaining aligned with long-term growth objectives.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported impressive results for the first quarter of 2025. Its adjusted earnings and revenues topped the Zacks Consensus Estimate. On a year-over-year basis, both the top and bottom lines increased.
Strategic Education’s quarter witnessed robust employer-affiliated enrollment, strong growth from Sophia Learning subscriptions and continued enrollment growth in the U.S. Higher Education (USHE) segment. Sophia Learning’s average total subscribers increased approximately 37% from the year-ago period’s level. Employer-affiliated enrollment reached a record high of 31.2% of USHE enrollment, up from 29.2% in the year-ago period.
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APEI Q1 Earnings & Revenues Beat Estimates, Both Up Y/Y, Stock Gains
American Public Education, Inc. (APEI - Free Report) reported impressive first-quarter 2025 results, wherein adjusted earnings and total revenues topped the Zacks Consensus Estimate and grew year over year.
The quarter’s splendid performance was driven by strong contributions from the Rasmussen University (RU), American Public University System (APUS) and Hondros College of Nursing (HCN) segments. Marginal revenue decline from the Graduate School (GSUSA) segment somewhat offset this robust growth trend.
The company’s focus on operational improvement initiatives is gradually bearing fruit, reflected in the strong cash flow generation and improved margins.
APEI stock rose 1.8% during yesterday’s after-hours trading session after the earnings result announcement. An upbeat second-quarter 2025 outlook is expected to have boosted investors’ sentiments alongside the reported quarter’s performance.
APEI’s Q1 Discussion
The company reported adjusted earnings per share (EPS) of 41 cents, significantly surpassing the Zacks Consensus Estimate of 15 cents by 173.3%. In the year-ago quarter, it reported a loss per share of six cents.
Total revenues of $164.6 million also topped the consensus mark of $162 million by 1.6% and grew 6.6% from the year-ago period. Net course registration and enrollment growth, alongside select tuition and fee increases, aided the results. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
American Public Education, Inc. Price, Consensus and EPS Surprise
American Public Education, Inc. price-consensus-eps-surprise-chart | American Public Education, Inc. Quote
Total costs and expenses increased 2% year over year to $152.3 million. The uptick was mainly caused by a 3.5% increase in instructional costs and services expenses and an 8.5% increase in selling and promotional expenses.
Adjusted EBITDA increased year over year by 24% to $21.2 million from $17.1 million. The adjusted EBITDA margin of 13% expanded 200 basis points (bps) year over year from 11%.
American Public’s Segment Discussion
APUS: Revenues of $83.9 million rose 4.1% from the year-ago period’s level of $80.7 million. The uptick was primarily due to growth in net course registrations and favorable impact from tuition and fee increases, accompanied by the timing of course starts within the respective periods. Our model expected the metric to grow 2.1% year over year to $82.3 million.
APUS’ total net course registration increased 3.5% from the year-ago period to about 102,500. In the quarter, military registrations were up 3.1%. The EBITDA margin of 30% remained flat year over year.
RU: The segment reported revenues of $59.3 million, which increased 11.5% year over year from $53.1 million. This was due to growth in enrollment and tuition increases. We expected this segment’s revenues to be up 7.9% year over year.
RU’s total student enrollment increased 7.4% to 14,500 due to 3.2% growth in on-ground enrollment and an 11.1% rise in online enrollment. The EBITDA margin was 3% against a negative EBITDA margin of 5% reported in the prior-year quarter.
HCN: The segment’s revenues rose 7.5% year over year to $17.7 million. The increase was backed by solid growth in student enrollment from community partners. Our projection for this metric was $18 million, reflecting 9.5% year-over-year growth.
Total student enrollment at HCN increased 9.6% from the prior-year quarter’s level to 3,600. The segment reported a negative EBITDA margin of 1% compared with a break-even margin reported in the year-ago quarter.
GSUSA: The segment’s revenues tumbled 11.9% year over year to $3.7 million from $4.2 million. The EBITDA margin was negative 57%, broader than negative 27% a year ago.
APEI’s Financial Highlights
As of March 31, 2025, American Public had cash, cash equivalents and restricted cash of $187.5 million, up from $158.9 million at 2024-end.
Net long-term debt was $93.7 million at the first-quarter end, slightly up from $93.4 million at 2024-end.
American Public Unveils Q2 Guidance
The company expects total revenues to increase 4-5% year over year to $160-$162 million. It expects to report a loss per share between 13 cents and four cents against an adjusted EPS of one cent reported a year ago. Adjusted EBITDA is expected to be in the band of $11.5-$14 million, reflecting growth between 6% and 28% year over year.
APUS’ total net course registrations are likely to be in the band of 93,500-96,100, reflecting growth between 4% and 7% year over year. HCN’s total enrollment is expected to increase 14% from the prior year’s figure to 3,700 students.
RU’s student enrollment is expected to be up 8% year over year to 14,600. On-ground healthcare enrollment is likely to increase 3% to 6,400 and online enrollment is expected to rise 12% year over year to 8,300.
APEI Revises 2025 Guidance
Total revenues are still expected to grow 4-6% year over year to $650-$660 million. Adjusted EBITDA is now expected to be between $77 million and $87 million (up from the prior projected band of $75-$85 million), reflecting 7-20% growth year over year.
Capital expenditures continue to be expected in the band of $18-$22 million, reflecting a decline of 14% to growth of 4%.
APEI’s Zacks Rank & Peer Releases
American Public currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adtalem Global Education Inc. (ATGE - Free Report) posted impressive third-quarter fiscal 2025 results, wherein adjusted earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
The quarter’s performance was driven by robust performance across all the company’s reportable segments, resulting in top-line growth. The segments’ performances were mainly backed by increased enrollment and higher tuition rates. Also, Adtalem’s focus on strategic investments to boost student experience is boding well.
Universal Technical Institute, Inc. (UTI - Free Report) reported impressive second-quarter fiscal 2025 results. Both earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
The company achieved strong growth in the fiscal second quarter, driven by its strategy, focused on expansion, diversification and optimization. Both divisions saw year-over-year improvements in key financial and operational areas. Higher revenues, an increase in active students and strong new enrollments contributed to the bottom-line growth. Owing to strong performance, Universal Technical has raised its guidance for fiscal 2025 while remaining aligned with long-term growth objectives.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported impressive results for the first quarter of 2025. Its adjusted earnings and revenues topped the Zacks Consensus Estimate. On a year-over-year basis, both the top and bottom lines increased.
Strategic Education’s quarter witnessed robust employer-affiliated enrollment, strong growth from Sophia Learning subscriptions and continued enrollment growth in the U.S. Higher Education (USHE) segment. Sophia Learning’s average total subscribers increased approximately 37% from the year-ago period’s level. Employer-affiliated enrollment reached a record high of 31.2% of USHE enrollment, up from 29.2% in the year-ago period.