American Public Education Reports 6.5% Revenue Growth to $162.8 Million in Q2 2025

American Public Education, Inc. (APEI) reported a consolidated revenue of $162.8 million for the three months ended June 30, 2025, marking a 6.5% increase from $152.9 million in the same period last year. For the first half of 2025, revenue reached $327.3 million, up from $307.3 million in the prior year, also reflecting a 6.5% growth. The company’s net income for the second quarter was $4.5 million, a significant increase from $371,000 in the previous year, while net income for the first half of 2025 was $13.4 million, compared to $887,000 in the same period of 2024.

The financial performance was bolstered by increased enrollment across its segments, particularly in the Rasmussen University (RU) segment, which saw a 12.2% rise in revenue to $59.5 million, driven by a 7.4% increase in total student enrollment. The American Public University System (APUS) segment also contributed with a revenue increase of 6.1% to $81.7 million, supported by a 7.3% rise in net course registrations. The Hondros College of Nursing (HCN) segment reported a 10.5% revenue increase to $18.1 million, attributed to a 13.5% rise in total student enrollment.

In terms of operational metrics, APEI's total enrollment across its institutions reached approximately 106,800 students, with APUS serving about 88,500 students, RU approximately 14,600, and HCN around 3,700. The company also reported a decrease in accounts receivable, which fell by approximately $24.9 million compared to the end of 2024, primarily due to improved collections from Title IV programs. The company’s cash and cash equivalents increased to $176.6 million as of June 30, 2025, up from $158.9 million at the end of 2024.

Strategically, APEI announced a planned combination of its APUS, RU, and HCN segments into a single institution, which received approval from the Higher Learning Commission in June 2025. This consolidation aims to streamline operations and enhance educational offerings. Additionally, the company completed the sale of its Graduate School USA (GSUSA) subsidiary in July 2025, which is expected to result in a loss of between $7.0 million and $8.5 million.

Looking ahead, APEI anticipates continued growth driven by its strategic initiatives and improved operational efficiencies. The company is focused on enhancing its educational programs and expanding its market presence while navigating regulatory changes and maintaining compliance with financial responsibility standards. The management remains optimistic about the future, projecting further improvements in enrollment and financial performance as it implements its consolidation strategy and adapts to evolving market conditions.