American Public Education (APEI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 6.2% year-over-year to $174.7 million, reaching the top end of guidance, with net income up 137.6% to $17.7 million; excluding divested GSUSA, revenue growth was 8.7%.

• Adjusted EBITDA rose 37.5% to $29.2 million, with margin expanding to 16.7%; diluted EPS increased to $0.94 from $0.41 year-over-year.

• Outperformed guidance on all four key tracked metrics in Q1 2026, prompting raised full-year 2026 guidance for revenue, Adjusted EBITDA, and EPS.

• Completed legal merger of institutional entities in March 2026; full institutional combination expected in Q3 2026, pending regulatory approvals.

• Now reports under two segments, Military+ and Health+, following the legal entity merger.

Financial highlights

• Q1 2026 revenue: $174.7 million, up from $164.6 million in Q1 2025; net income available to common stockholders: $17.7 million ($0.94 per diluted share), up from $7.5 million ($0.41 per share) in Q1 2025.

• Adjusted EBITDA: $29.2 million, up from $21.2 million; margin expanded to 16.7% from 12.9% year-over-year.

• Cash, equivalents, and restricted cash at quarter-end: $221 million; total debt: $90 million.

• Cash flows from operations were $63.3 million, up 71% year-over-year.

• Operating income before interest and taxes was $21.6 million, up from $12.2 million in Q1 2025.

Outlook and guidance

• Full-year 2026 guidance: revenue $686–$696 million, net income $44.9–$51.6 million, Adjusted EBITDA $93–$102 million, EPS $2.33–$2.68.

• Q2 2026 guidance: revenue $170–$172 million, net income $6.5–$7.5 million, Adjusted EBITDA $16.5–$18 million, EPS $0.34–$0.39.

• Multi-year targets for 2029: revenue CAGR of 8–12%, $890M–$1.0B revenue, and 20–21% adjusted EBITDA margin.

• CapEx for 2026 expected at $28–$32 million; expects to incur $1.0–$3.0 million in professional fees for institutional combination.

• Guidance reflects continued Health+ enrollment momentum, margin expansion, and incorporates uncertainty around military deployments.