American Public Education Q2 Earnings Call Highlights

APEI raised its full-year 2026 outlook after reporting second-quarter revenue and adjusted EBITDA that exceeded the high end of its guidance ranges. The company also completed the institutional combination of its education units and announced plans to implement an AI-enabled student lifecycle platform with Salesforce. Total second-quarter revenue rose 5.5% year over year to $171.7 million. Excluding $3.4 million in prior-year revenue from Graduate School USA, a business APEI sold in July 2025, revenue growth would have been 7.8%, President and Chief Executive Officer Angela Selden said.

Adjusted EBITDA increased 36.8% to $20.7 million from $15.1 million a year earlier, while adjusted EBITDA margin expanded to 12% from 9.3%. Net income available to common stockholders was $9.8 million, or $0.52 per diluted share, compared with a loss of $0.3 million, or $0.02 per diluted share, in the prior-year period.

Health+ Drives Revenue Growth

APEI’s Health+ segment generated $86.2 million in revenue, up 11% from the prior year, supported by 7% enrollment growth to roughly 19,600 students and a modest price increase. The company said its on-ground healthcare campuses delivered approximately 9% enrollment growth as it continued its “Fill the Back Row” strategy, which focuses on adding students to available seats in existing programs and campuses. The company’s Orlando Health+ campus welcomed its first class during the quarter, with enrollment running ahead of plan, according to Selden. The campus also introduced a licensed practical nurse program in the Orlando market. APEI said its Detroit II campus remains on track to begin enrolling students in 2026, while it signed a lease for a Fort Lauderdale, Florida, location expected to begin enrollment in the fourth quarter of 2027. Health+ recorded income from operations of $0.3 million, compared with an operating loss of $2.4 million a year earlier. Chief Financial Officer Edward Codispoti said enrollment momentum and early benefits from capacity utilization efforts were partially offset by advertising and technology investments. Selden also said Mark Arnold, president of the Health+ division, is leaving for personal reasons. Duane Bertotto will continue to lead day-to-day Health+ operations, including the Fill the Back Row and “Leverage the Ladder” initiatives.

Military+ Faces Deployment-Related Pressure

Military+ revenue increased 4.7% to $85.5 million, while net course registrations rose 2% to approximately 98,300 students. Segment income from operations increased 10.6% to $23.7 million, and segment adjusted EBITDA margin expanded 150 basis points to 29.4%. Selden said registrations from veterans and military families continued to grow at a mid-teens rate. However, active-duty enrollment has faced pressure from continuing deployments of Navy, Air For...