American Public Education Tops Q3 Forecast and Raises 2026 Outlook

On November 9, 2026, American Public Education (APEI ) reported revenue of $169.1 million for the third quarter ended September 30, 2026, up 3.6% year over year, and raised its full-year outlook after revenue, net income, adjusted EBITDA and diluted earnings per share exceeded its quarterly forecasts. Net income available to common stockholders increased 6.0% to $5.9 million, but adjusted EBITDA, which starts with earnings before interest, taxes, depreciation and amortization and applies company-selected adjustments, fell to $17.5 million from $20.7 million as selling and promotional spending increased and some Military+ revenue moved into the fourth quarter.

Revenue surpassed the August 2026 forecast range of $164.5 million to $167.0 million, while adjusted EBITDA exceeded the $14.0 million to $17.0 million range. Net income and diluted EPS also exceeded their forecast ranges, with EPS rising 6.7% to $0.32 from $0.30.

Health+ Growth Offsets Military+ Timing

Health+ drove the quarter’s growth and generated slightly more revenue than Military+. Segment revenue increased 9.0% year over year to $86.4 million as total student enrollment rose 2.5% to 19,100. The company attributed the improvement primarily to higher campus and online healthcare enrollments, supported by its Fill the Back Row campus enrollment initiative, and modest tuition increases implemented in the second half of 2025.

Military+ revenue edged down 0.5% to $82.7 million even as net course registrations increased 3.8% to 103,800. The company said the decline primarily reflected registration timing that shifted approximately $6.0 million of revenue into the fourth quarter of 2026. Excluding revenue from Graduate School USA, which was sold in July 2025, consolidated revenue would have increased 4.2%.

Spending and Aid Timing Weigh on Cash Generation

Adjusted EBITDA margin narrowed to 10% from 13%, while selling and promotional expense increased $5.7 million to $41.8 million. The company said the spending supported registration and enrollment growth and included investments in marketing optimization and integration. Together with the Military+ revenue shift, those costs help explain why adjusted EBITDA fell even as revenue and net income rose.

The company completed the combination of American Public University System, Rasmussen University and Hondros College of Nursing into one Higher Learning Commission-accredited institution in early August 2026, making the third quarter the first partially operating as that single institution. Cash flow from operations dropped to $11.8 million from $21.7 million. Management attributed the decline to what it believes is a temporary implementation matter involving Title IV disbursements following the combination.

Higher Full-Year Outlook

The company raised its full-year revenue, net income, adjusted EBITDA and diluted EPS ranges from its August 10, 2026 outlook:

The net-income and EPS ranges exclude any potential impact from non-recurring strategic initiative costs. For the fourth quarter of 2026, the company projected revenue of $179.4 million to $185.4 million and adjusted EBITDA of $30.6 million to $37.6 million, alongside Military+ net course registrations of 100,000 to 105,000.

The final quarter will show whether the delayed Military+ revenue is recognized as expected, whether the Title IV disbursement matter proves temporary and whether stronger enrollment and registrations can translate into a recovery in adjusted profitability and cash generation.