American Public Education Sets 2026 Outlook After Mixed Quarter

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue was $169.1 million, up 3.6% from a year earlier, as the company set full-year 2026 revenue guidance at $695.0 million–$701.0 million.

American Public Education, Inc. (APEI), an online and campus-based postsecondary education company, reported third-quarter revenue of $169.1 million, a 3.6% increase from $163.2 million a year earlier, and said it exceeded its guidance for revenue, net income, adjusted EBITDA and diluted earnings per share.

Growth slowed from 5.5% in the second quarter and 6.2% in the first quarter. Excluding Graduate School USA, which was sold in July 2025, consolidated revenue would have increased 4.2%, compared with 7.8% excluding GSUSA in the second quarter.

The quarter was the first in which the company operated partially as a single Higher Learning Commission-accredited institution, American Public University System, after completing the institutional combination in early August. President and Chief Executive Officer Angela Selden said the results reflected continued growth in Health+, driven primarily by campus and online healthcare enrollments and pricing.

Health+ segment revenue grew 9.0% year-over-year to $86.4 million, down from 11.0% growth in both the second and first quarters. The company attributed the increase primarily to higher healthcare enrollments, supported by the Fill the Back Row campus enrollment initiative, and modest tuition increases implemented in the second half of 2025. Health+ total student enrollment was 19,100, up 2.5% from 18,600 a year earlier.

Military+ segment revenue decreased 0.5% year-over-year to $82.7 million, reversing 4.7% growth in the second quarter and 6.5% growth in the first quarter. The company said the decline primarily reflected a shift of approximately $6.0 million of revenue into the fourth quarter of 2026 due to Military+ registration timing. Military+ net course registrations were 103,800, up 3.8% from 100,000 a year earlier. Military+ EBITDA margin compressed to 27% from 32% a year earlier. Health+ EBITDA margin held at 1%.

Net income available to common stockholders increased 6.0% to $5.9 million from $5.6 million a year earlier, or $0.32 a share. Adjusted EBITDA was $17.5 million, compared with $20.7 million a year earlier, and the adjusted EBITDA margin compressed to 10% from 13%. The company cited the Military+ revenue shift, a $5.7 million increase in selling and promotional expense that supported registration and enrollment growth, and investments in marketing optimization and integration.

Cash flows from operations were $11.8 million, compared with $21.7 million a year earlier, which the company said reflected what it believed to be a temporary implementation matter related to Title IV disbursements following the institutional combination. Total cash, cash equivalents, restricted cash and short-term investments were $216.4 million at September 30, 2026. During the three months ended September 30, the company repurchased 186,032 shares under a $50 million program approved March 10, 2026. Weighted average diluted shares outstanding were 18.7 million.

The company issued full-year 2026 guidance of revenue of $695.0 million to $701.0 million, including $8.0 million of GSUSA revenue; net income available to common stockholders of $48.5 million to $53.2 million; adjusted EBITDA of $98.0 million to $105.0 million; diluted earnings per share of $2.59 to $2.84; and capital expenditures of $23.0 million to $26.0 million.

For the fourth quarter of 2026, APEI expects Military+ net registrations of 100,000 to 105,000, Health+ enrollment of 20,100, revenue of $179.4 million to $185.4 million, net income available to common stockholders of $15.2 million to $19.8 million, adjusted EBITDA of $30.6 million to $37.6 million, and diluted earnings per share of $0.81 to $1.07. Selden said that with the institutional combination largely behind the company, it remains focused on executing its long-range plan and accelerating momentum in Health+ and Military+.