American Public Education, Inc. reported third‑quarter 2025 results that surpassed analyst expectations, with revenue of $163.2 million, a net income of $5.56 million, and a diluted EPS of $0.30. Adjusted EBITDA for the quarter was $20.7 million, up from $12.9 million in Q3 2024, reflecting a 60% year‑over‑year increase that drove the earnings beat.
The earnings beat is largely attributable to disciplined cost management and a favorable enrollment mix. Revenue grew 7% year‑over‑year, driven by 8% growth at APUS, 16% at Rasmussen University, and 19% at Hondros College of Nursing. These segment gains offset the impact of the July 2025 divestiture of Graduate School USA, which removed a $4 million annual lease liability but also reduced top‑line growth. Cost controls—particularly in marketing and administrative expenses—kept operating leverage strong, allowing the company to lift adjusted EBITDA margin from 8% in Q3 2024 to 13% in Q3 2025.
Compared with the prior quarter, the company’s net income rose from $0.73 million in Q3 2024 to $5.56 million in Q3 2025, a 7.6‑fold increase that reflects both higher revenue and improved margins. The EPS beat of $0.39 over the consensus estimate of $-0.09 underscores the effectiveness of the turnaround strategy and the resilience of the core student markets. The company’s adjusted EBITDA margin expansion of 500 basis points signals that the company is successfully converting revenue growth into profitability, a key indicator for investors and analysts.
Management raised its full‑year 2025 outlook, projecting revenue of $640–$644 million, net income of $17.2–$19.6 million, and adjusted EBITDA of $75–$79 million. The guidance increase reflects confidence in sustained enrollment momentum and the continued impact of cost‑control initiatives. The new net‑income range is lower than the previously reported $18.6–$21.0 million, aligning the guidance with the consensus range and acknowledging the headwind from the federal government shutdown, which dampened military enrollments in the APUS segment.
CEO Angela Selden highlighted the company’s “continued growth in revenue and enrollment, coupled with margin expansion” as the foundation for the raised outlook. CFO Edward H. Codispoti, who joined in October, emphasized the importance of maintaining disciplined spending while investing in high‑return verticals. The company also announced an Investor Day on November 20 to discuss strategic initiatives, including further expansion in high‑demand programs and the integration of new technology platforms to support student success.
The market reacted positively to the results, with analysts noting the strong EPS beat and margin expansion as evidence of a successful turnaround. The company’s ability to generate a $5.56 million net income from a $0.73 million base in the prior year, combined with a 13% adjusted EBITDA margin, positions it well for continued growth in a competitive education landscape.
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