Overview

* American Public Education ( APEI ) Q3 revenue grows 7% yr/yr, beating analyst expectations

* Net income for Q3 rises 660% yr/yr to $5.6 mln

* Adjusted EBITDA for Q3 increases 60% to $20.7 mln

Outlook

* Company expects Q4 2025 revenue between $150 mln and $153.5 mln, down 6% to 9%

* Company sees full-year 2025 revenue of $640 mln to $644 mln, up 2% to 3%

* Expects Q4 2025 APEI net income of $5.9 mln to $8.3 mln, down 28% to 50%

Result Drivers

* SUBSIDIARY GROWTH - Revenue growth driven by 19% increase at Hondros College of Nursing and 16% at Rasmussen University

* MARGIN EXPANSION - Improved margins due to cost-saving measures and increased enrollments, particularly at Rasmussen University

* MILITARY ENROLLMENTS IMPACT - Government shutdown muted military enrollments at APUS, but tuition assistance funds helped mitigate impact

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $163.2 $160.1

Revenue mln mln (8

Analysts

)

Q3 EPS $0.30

Q3 Net $5.60

Income mln

Q3 $20.70

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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 ( APEI ) is $40.00, about 22.3% above its November 7 closing price of $31.07

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

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(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.)