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Q2 2026 Earnings Presentation
American Public Education Inc. Do Not Distribute.
August 10, 2026
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2Q 2026 Executive Summary 3Strong Q2 Results, Continued Momentum Across Key Metrics
Q2 2026 Highlights
$171.7M
Revenue
+5.5% YoY
$20.7M
Adj. EBITDA*
+36.8% YoY
$9.8M |
Net Income Available to |
Common Stockholders |
vs $(0.3)M in 2Q25 |
$0.52
Diluted EPS
vs $(0.02) in 2Q25
2Q26 vs 2Q25 YoY Improvement
+5.5%
$15.1 | ||||||||||
$(0.3) | $(0.02) | |||||||||
2Q25 | 2Q26 | 2Q25 | 2Q26 | 2Q25 | 2Q26 | 2Q25 | 2Q26 | |||
$162.8 $171.7
Excluding $3.4M from GSUSA in 2Q25, revenue would have increased +7.8%
+36.8%
$20.7
+$10.1M
$9.8
+$0.54
$0.52
Revenue Adj. EBITDA*
Net Income Available to Common Stockholders
Diluted EPS
*Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) is a non-GAAP financial measure. Please refer to Appendix for GAAP to non-GAAP reconciliation.
Registration & Enrollment Growth - 2Q26 4
~98,300
Net Course Registrations
Up 2% YoY from approx. 96,400, supporting revenue growth of 4.7%
Veterans and Military families registrations grew at a mid-teens rate, a key driver of overall growth
Active Duty registrations challenged by Iran war however, Army branch continues to show strength
~19,600Enrollment
Up 7% YoY from approx. 18,300, supporting double-digit revenue growth of 11%
New Health+ Orlando campus outpacing plan; introduced LPN program to Orlando market
Continued success of our campus Fill the Back Row initiative with ~9% campus growth outpacing total Health+ enrollment gains
American Public Education Inc. Do Not Distribute.
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Financial Update
2Q26 Revenue: Strong Segment Performance 6
($ in millions) | 2Q'26 | 2Q'25 | Variance |
Military+ Revenue | $85.5 | $81.7 | +4.7% |
Health+ Revenue | $86.2 | $77.7 | +11.0% |
Total Consolidated Revenue | $171.7 | $162.8 | +5.5% |
Net Income (Loss) Available to Common Stockholders | $9.8 | $(0.3) | - |
Diluted EPS | $0.52 | $(0.02) | - |
Adjusted EBITDA* | $20.7 | $15.1 | +36.8% |
Adjusted EBITDA Margin* | 12.0% | 9.3% | +275 bps |
Key Takeaways
Military+: Strong revenue and increased registrations build segment momentum.
Health+: 'Fill the back row' strategy remains effective, with continued enrollment momentum and solid demand driving growth.
Graduate School: 2Q'25 includes $3.4 million in revenue related to GSUSA, which was sold in July 2025.
APEI revenue improvement would have been 7.8% excluding GSUSA revenue from the Q2'25.
Meaningful year-over-year margin expansion
*Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) and adjusted EBITDA margin are non-GAAP financial measures. Please refer to Appendix for GAAP to non-GAAP reconciliation.
2Q26 Revenue - Growth Across Both Segments 7
$77.0
$83.1 $82.4
$71.0 *
YoY Revenue Growth ($M)
$89.4
$83.9
$81.7
$85.5
$68.1
$79.2 $76.4
YoY Revenue Growth ($M)
$87.3
$76.9
$85.4
$77.7
$86.2
3Q24 3Q25 4Q24 4Q25 1Q25 1Q26 2Q25 2Q26 3Q24 3Q25 4Q24 4Q25 1Q25 1Q26 2Q25 2Q26
+4.7% YoY 2Q26 vs 2Q25 +11.0% YoY 2Q26 vs 2Q25
Seasonality Note: Revenue growth builds on a seasonal basis.
* 4Q25 includes impact of government shutdown as discussed in our 2025 Form 10-K.
Substantial Margin Expansion 8
TTM Net Income Available to Common Stockholders ($M)
$45.7
$35.6
$24.2
$25.3
$18.5
$19.4
$10.0 $10.1
3Q24 3Q25 4Q24 4Q25 1Q25 1Q26 2Q25 2Q26
TTM Adjusted EBITDA* ($M)
TTM Adjusted EBITDA Margin*
14.9%
$66.6
$88.4
$72.3
$85.7
$76.5
$93.7
$80.7
$99.3
10.9%
13.5%
11.6%
13.2%
12.1%
14.2%
12.5%
3Q24 3Q25 4Q24 4Q25 1Q25 1Q26 2Q25 2Q26
3Q24 3Q25 4Q24 4Q25 1Q25 1Q26 2Q25 2Q26
*Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) and Adjusted EBITDA margin are non-GAAP financial measures. Please refer to Appendix for GAAP to non-GAAP reconciliation.
Liquidity and Cash Flows Remain Strong 9
As of June 30, 2026 | |
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments | $222.8M |
Total Debt | $88.9M |
Excess Cash and Short-Term Investments Over Debt | $133.9M |
YTD Cash Flows From Operations | $75.4M (+45.6% YoY) |
Available Working Line of Credit Capacity | $40.0M |
2026 Guidance - Raising Full Year Revenue and Adj. EBITDA 10
These statements are based on current expectations. These statements are forward looking, and actual results may differ materially.
($ in millions, except per share data) | 3Q'26 | 3Q'25 |
Revenue | $164.5 - $167.0 | $163.2 |
Net Income Available to Common Stockholders | $3.4 - $5.4 | $5.6 |
Adjusted EBITDA* | $14.0 - $17.0 | $20.7 |
Diluted Earnings per Share | $0.18 - $0.29 per share | $0.30 |
($ in millions, except per share data) | FY'26 | Prior Guidance | FY'25 |
Revenue | $690.0 - $698.0 | $686.0 - $696.0 | $648.9 (Includes revenue of $8.0 related to GSUSA) |
Net Income Available to Common Stockholders | $46.5 - $52.5 | $44.9 - $51.6 | $25.3 |
Adjusted EBITDA* | $96.0 - $104.0 | $93.0 - $102.0 | $85.7 |
Diluted Earnings per Share | $2.48 - $2.79 per share | $2.33 - $2.68 per share | $1.36 per share |
Capital Expenditures | $25.0 - $28.0 | $28.0 - $32.0 | $15.9 |
*Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) is a non-GAAP financial measure. Please refer to Appendix for GAAP to non-GAAP reconciliation.
APEI Earnings Highlights 11
Strong Performance Across Financial Metrics
Revenue $171.7M (+5.5%), Adj. EBITDA* $20.7M (+37%), 12.0% Adj. EBITDA*
margin (+275 bps), diluted EPS $0.52
Guidance Outperformance
Met or exceeded guidance on all four key metrics in 2Q26; Adj. EBITDA* exceeded high-end guidance by 14.7%
Multi-Year Growth Targets
2029 targets: Revenue CAGR 8-12%, ~$890M-$1.0B revenue, 20-21% Adj. EBITDA* margin
Strong Balance Sheet
$133.9M cash and short-term investments in excess of debt
American Public Education Inc. Do Not Distribute.
$222.8M cash, cash equivalents, restricted cash and short-term investments
A Mission that Matters.
A Company that Compounds Value Over Time.
*Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) and EBITDA are non-GAAP financial measures. Please refer to Appendix for GAAP to non-GAAP reconciliation
American Public Education Inc. Do Not Distribute.
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Appendix
Education Unit Profile 13
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Note- See note 9 and 15 to the financial statements included in the June 30, 2026 10-Q and 2025 10-K, respectively. Reflects income (loss) from operations before interest, income taxes. Please refer to appendix for GAAP to non-GAAP reconciliation.
Military+ excludes $2.8MM of losses in 4Q23, $1.6MM in 4Q24, and $1.5MM in 1Q25 related to Loss on Disposal of Long-lived assets and Losses on assets held for sale.
Health+ excludes a non-cash impairment of $64MM in 2Q23. Also excludes $2.4MM for Collegis transition services expense in 1Q23, $2.9MM in 1Q24 and $0.8MM in 2Q24 for lease termination and campus consolidation expense.
Corporate and Other includes unallocated corporate activity and eliminations to reconcile segment results to the Consolidated Financial Statements.
Corporate and Other excludes the loss on sale of subsidiary of $3.4MM in 3Q25.
APEI GAAP Net Income to Adjusted EBITDA 14
GAAP Net Income to Adjusted EBITDA:
The following table sets forth the reconciliation of the Company's reported GAAP net income to the calculation of adjusted EBITDA, and supplemental financial information, for the three months ended September 30, 2023, through June 30, 2026.
(in thousands) Ǫ3 2023 Ǫ4 2023 Ǫ1 2024 Ǫ2 2024 Ǫ3 2024 Ǫ4 2024 Ǫ1 2025 Ǫ2 2025 Ǫ3 2025 Ǫ4 2025 Ǫ1 2026 Ǫ2 2026
Net income (loss) available to common stockholders | $ (4,853) | $ 11,475 | $ (1,019) $ | (1,160) | $ 731 | $ 11,505 | $ 7,461 | $ (324) | $ 5,560 | $ 12,608 | $ 17,731 | $ 9,773 |
Preferred stock dividends | 1,525 | 1,539 | 1,535 | 1,531 | 1,531 | 1,459 | 1,432 | 1,319 | - | - | - | - |
Loss on redemption of preferred stock | - | - | - | - | - | - | - | 3,501 | - | - | - | - |
Net (loss) income | (3,328) | 13,014 | 516 | 371 | 2,262 | 12,964 | 8,893 | 4,496 | 5,560 | 12,608 | 17,731 | 9,773 |
Income tax (benefit) expense | 3,712 | 2,124 | 1,213 | (16) | 1,236 | 7,986 | 2,466 | 1,421 | 3,068 | 5,193 | 1,515 | 4,387 |
Interest income (expense), net | 792 | 791 | 126 | 785 | 631 | 585 | 887 | 1,108 | 1,069 | 1,166 | 725 | (634) |
Equity investment loss | 5,224 | 3 | 3,327 | 1,080 | - | - | - | - | - | - | - | - |
Loss on extinguishment of debt | - | - | - | - | - | - | - | - | - | - | 1,672 | - |
Depreciation and amortization | 7,026 | 5,081 | 5,128 | 5,232 | 5,080 | 3,863 | 3,992 | 4,088 | 3,946 | 4,122 | 4,154 | 3,953 |
EBITDA | 13,426 | 21,013 | 10,310 | 7,452 | 9,209 | 25,398 | 16,238 | 11,113 | 13,643 | 23,089 | 25,797 | 17,479 |
Impairment of goodwill and intangible assets | - | - | - | - | - | - | - | - | - | - | - | - |
Stock Compensation | 1,733 | 1,715 | 1,918 | 1,823 | 1,761 | 2,166 | 2,263 | 2,238 | 1,634 | 2,217 | 2,327 | 2,232 |
Loss (gain) on disposals of long-lived assets | (16) | 537 | 28 | 184 | 23 | 148 | 230 | 35 | 92 | 87 | 154 | 5 |
Other professional fees | - | - | - | - | 813 | 1,404 | 989 | 1,715 | 801 | 228 | 943 | 938 |
Severance | 2,959 | - | - | 505 | 25 | - | - | - | 1,083 | 2,244 | - | - |
Transition services costs | - | - | 1,865 | 182 | 1,092 | 659 | - | - | - | 821 | - | - |
Loss on sale of subsidiary | - | - | - | - | - | - | - | - | 3,362 | - | - | - |
Loss on leases | - | - | 2,936 | 779 | - | - | - | - | 77 | - | - | - |
Loss on assets held for sale | - | 2,425 | - | - | - | 1,618 | 1,527 | - | - | - | - | - |
Adjusted EBITDA | 18,102 | 25,690 | 17,057 | 10,925 | 12,923 | 31,393 | 21,247 | 15,101 | 20,692 | 28,686 | 29,221 | 20,654 |
TTM ADJ EBITDA | 66,595 | 72,298 | 76,488 | 80,664 | 88,433 | 85,726 | 93,700 | 99,253 | ||||
TTM Net income available to common stockholders | 10,027 | 10,057 | 18,537 | 19,373 | 24,202 | 25,305 | 35,575 | 45,672 | ||||
Revenue | 150,838 | 152,804 | 154,432 | 152,895 | 153,122 | 164,110 | 164,551 | 162,766 | 163,215 | 158,330 | 174,738 | 171,731 |
TTM Revenue | 613,253 | 624,559 | 634,678 | 644,549 | 654,642 | 648,862 | 659,049 | 668,014 | ||||
TTM ADJ EBITDA Margin | 10.9% | 11.6% | 12.1% | 12.5% | 13.5% | 13.2% | 14.2% | 14.9% |
APEI Non-GAAP Disclosures 15
The following table sets forth the reconciliation of the Company's reported GAAP net income to the calculation of adjusted EBITDA for the three and six months ended June 30, 2026, and 2025:
APEI Non-GAAP Disclosures 16
The following table sets forth the reconciliation of the Company's outlook GAAP net income to the calculation of outlook adjusted EBITDA for the three months ended September 30, 2026 and twelve months ending December 31, 2026:
Thank You
Company
Gary Janson
Chief Strategy & Growth Officer [email protected]
Investor Relations Shannon Devine MZ North America 203-741-8811
American Public Education Inc. Do Not Distribute.
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