American Public Education Raises 2026 Outlook After Quarterly Revenue Reaches $169.1 Million
Key Facts
American Public Education raised its fiscal 2026 outlook after saying in its November 9 earnings release that it exceeded guidance for revenue, net income, adjusted EBITDA and diluted earnings per share for the third quarter ended September 30. Consolidated revenue totaled $169.1 million, up 3.6% from $163.2 million in the year-earlier period. The company said revenue growth would have been 4.2% excluding revenue from Graduate School USA, which was sold in July 2025. The results reflected diverging performance across its two units, with Health+ revenue rising while Military+ revenue fell. At the same time, net income available to common stockholders and earnings per share increased, but adjusted earnings declined from a year earlier.
Health+ revenue rose 9.0% year over year to $86.4 million in the third quarter. The company attributed the performance to increased on-campus and online healthcare enrollments and tuition increases that began in the second half of 2025. By contrast, Military+ revenue fell 0.5% to $82.7 million. The company said the timing of course starts weighed on revenue, despite a 3.8% increase in net course registrations to about 103,800. About $6.0 million in revenue also shifted to the fourth quarter because of the timing of registrations, according to the company’s statement.
Net income available to common stockholders was $5.9 million, up 6.0% from $5.6 million in the third quarter a year earlier. Diluted earnings per share rose 6.7% to $0.32 from $0.30. Adjusted EBITDA, however, fell to $17.5 million from $20.7 million. The quarterly operating margin declined to 4.7% from 5.9% a year earlier, while the margin for the first nine months rose to 8.4% from 5.8%. The comparison highlights the divergence between net profitability and earnings per share, on one hand, and adjusted earnings and quarterly operating margin, on the other.
Bad debt provisions increased to $7.7 million, or 4.6% of revenue, compared with $5.6 million and 3.4% a year earlier. The company linked the increase to higher student receivable balances and delays in processing Title IV aid following the institutional merger. Cash from operations totaled $11.8 million in the third quarter, compared with $21.7 million in the year-earlier period. The company said the decline reflected what it considers a temporary execution issue involving the disbursement of Title IV aid after the merger. The merger was completed on August 4, 2026, and the third quarter was the first in which the company operated partly as a single institution accredited by the Higher Learning Commission under the name American Public University System.
Cash, restricted cash and short-term investments totaled $216.4 million on September 30, 2026, compared with $176.5 million on December 31, 2025. The total rose $39.9 million, or 22.6%, during the period. The company repurchased 186,032 shares in the third quarter, bringing repurchases for the first nine months to 274,237 shares. The purchases were made under a program approved by the board on March 10, 2026, with a maximum value of $50 million. The company said its system serves about 106,600 students and has four academic units.
An earnings call was scheduled for November 9, 2026, at 5:00 p.m. Eastern time.