American Public Education Raises 2026 Outlook After Quarterly Revenue Reaches $169.1 Million
Key Facts
American Public Education said on November 9, 2026, that consolidated revenue in the third quarter rose 3.6% year over year to $169.1 million, exceeding the company's guidance for the period, and raised its fiscal 2026 outlook. Net income available to common shareholders was $5.9 million, up 6.0% from the same period, while diluted earnings per share rose 6.7% to $0.32. The results show a divergence between revenue and earnings growth and the adjusted earnings measure, which fell from its level a year earlier. CEO Angela Selden said the results reflected continued growth in Health+, attributing it mainly to healthcare enrollments on campus and online, as well as pricing. The company's online and campus-based education business serves about 106,600 students, according to the results statement.
Health+ revenue was about $86.4 million, up 9.0% year over year, supported by higher healthcare enrollments and modest tuition increases implemented in the second half of 2025. Health+ active students reached 19,100 in the third quarter, compared with 18,600 a year earlier, an increase of 2.5%. By contrast, Military+ revenue fell 0.5% to $82.7 million. The company attributed the decline mainly to enrollment timing, which shifted some revenue into the fourth quarter. Net course registrations in Military+ were about 103,800, up 3.8% from 100,000 in the third quarter of 2025, reflecting higher registrations despite the timing effect on revenue recorded during the period.
At the group level, revenue rose from $163.2 million in the third quarter of 2025 to $169.1 million in the corresponding period of 2026. The company said growth would have been 4.2% excluding revenue from Graduate School USA, which was sold in July 2025, compared with reported growth of 3.6%. It added that about $6.0 million in revenue shifted to the fourth quarter because of the timing of Military+ enrollments. This shift explains part of the gap between revenue recorded in the quarter and revenue expected for the year, but does not change the fact that Military+ revenue fell year over year during the quarter. The company also linked the decline in Adjusted EBITDA partly to this revenue shift.
Adjusted EBITDA was about $17.5 million in the third quarter, compared with $20.7 million a year earlier. Along with the shift in revenue to the fourth quarter, the company attributed the decline to a $5.7 million increase in sales and promotion expenses, as well as investments in marketing optimization and integration. This came alongside increases in net income and diluted earnings per share, highlighting the differing direction of reported profitability metrics and adjusted earnings. Cash flow from operations fell to $11.8 million from $21.7 million in the third quarter of 2025. The company said the decline reflected a temporary execution issue that it believes was related to the disbursement of Title IV aid following the institutional merger.
By contrast, total cash and cash equivalents, restricted cash and short-term investments rose to $216.4 million on September 30, 2026, from $176.5 million on December 31, 2025. That represents an increase of $39.9 million, or 22.6%, during the period. The company said the third quarter was its first period operating partly as a single institution accredited by the Higher Learning Commission, after completing the merger in early August. Selden said the results reflected continued growth in Health+, driven mainly by campus and online healthcare enrollments and pricing. The merger and its timing provide context for the company's comment on the execution of Title IV aid disbursements, while the company continues to describe the issue as temporary.
American Public Education raised its fiscal 2026 revenue outlook to $695.0–$701.0 million and its outlook for net income available to common shareholders to $48.5–$53.2 million. It also expects Adjusted EBITDA of $98.0–$105.0 million and diluted earnings per share of $2.59–$2.84. The outlook follows the company’s announcement that it exceeded third-quarter guidance, while quarterly adjusted earnings remained below the year-earlier level. APEI shares closed at $37.28 on November 6, 2026, after closing at $38.22 on November 5. The company approved a program on March 10, 2026, to repurchase up to $50 million of common stock, and repurchased 186,032 shares during the third quarter and 274,237 shares during the nine months ended September 30.