Positive Enrollment Growth
Rasmussen enrollment increased 7% in Q1 2025 and 8% in Q2 2025, marking the fourth consecutive quarter of year-over-year enrollment increases. Hondros also reported a 9.6% growth in Q1 2025 enrollment with Q2 continuing the positive trend at 13.5% year-over-year.
Improved Financial Performance
APEI reported a revenue increase of 6.6% to $164.6 million and a nearly 25% increase in adjusted EBITDA. Adjusted EBITDA margin expanded by nearly 200 basis points to 12.9% from 11% in Q1 2024.
Increased EBITDA and Revenue Guidance
APEI raised its full year adjusted EBITDA guidance by $2 million to a range of $77 million to $87 million, and net income guidance to be between $23 million and $30 million.
Successful Cost Management
APEI is improving operating leverage through increased enrollment and disciplined cost management, highlighted by a plan to redeem preferred shares saving approximately $6 million in dividend expense annually.
Strong Cash Flow
First quarter cash flow from operations was $37 million, up from $20.7 million in the prior year, with total cash, cash equivalents, and restricted cash increasing by $28.6 million since year-end 2024.