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American Public Education beats Q2 guidance and raises its outlook
Second-quarter revenue rose 5.5% to $171.7 million, and the company generated $75.4 million of operating cash flow year to date while funding a $50 million buyback.
American Public Education (APEI) reported second-quarter results that topped the high end of its own guidance on nearly every line and raised its outlook for the rest of the year, according to Yahoo Finance. The company said revenue increased 5.5% to $171.7 million, adjusted EBITDA climbed 36.8% to $20.7 million, and it swung to a profit of $9.8 million from a net loss a year earlier.
The latest quarter also followed a restructuring milestone that combined American Military University, American Public University, Rasmussen University, and Hondros College of Nursing into a single institution. On August 4, the unified system received one accreditation from the Higher Learning Commission and Department of Education approval for federal financial aid, which lifted a Department of Education growth restriction on Rasmussen placed in 2021, the outlet reported.
APEI provided segment details tied to that broader push. Health+ revenue rose 11% to $86.2 million with 7% enrollment growth to about 19,600 students, as the segment narrowed from a $2.4 million operating loss to $0.3 million of operating income, while its Fill the Back Row initiative helped drive a 9% enrollment gain.
In its Military+ segment, revenue grew 4.7% to $85.5 million and operating margin expanded 150 basis points to 29.4%, Yahoo Finance reported. The company also said cash flow from operations rose 45.6% year to date to $75.4 million, supporting an active $50 million buyback, while net course registrations increased 2%, which management attributed to ongoing deployments tied to the Middle East conflict.