American Public Education raises 2026 outlook after stronger-than-guided third quarter
American Public Education reported higher third-quarter revenue and earnings, with revenue, net income, adjusted EBITDA and diluted earnings per share all exceeding its guidance. It also raised its full-year 2026 guidance across key metrics, though the announcement did not provide revised targets.
Healthcare education growth lifted revenue, while Military+ results were affected by registration timing that shifted about $6 million of revenue into the fourth quarter. The quarter also marked American Public University System’s first partial period operating as a single Higher Learning Commission-accredited institution after an institutional combination completed in early August.
Key details
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Revenue rose 3.6% year over year to $169.1 million, from $163.2 million. Excluding Graduate School USA, which the company sold in July 2025, revenue would have increased 4.2%.
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Health+ revenue climbed 9% to $86.4 million. The company attributed the growth mainly to higher healthcare enrollments, supported by its “Fill the Back Row” campus initiative, and tuition increases introduced in the second half of 2025.
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Military+ revenue slipped 0.5% to $82.7 million. The company said registration timing shifted approximately $6 million in revenue from the third quarter to the fourth quarter. Military+ net course registrations were 103,800, up 3.8% from 100,000 a year earlier.
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Net income available to common stockholders increased 6% to $5.9 million, compared with $5.6 million. Diluted earnings per share rose 6.7% to $0.32, from $0.30.
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Adjusted EBITDA fell to $17.5 million from $20.7 million. The company cited the revenue shift into the fourth quarter, a $5.7 million increase in selling and promotional expenses to support registration and enrollment growth, and investments in marketing optimization and integration.
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Operating cash flow was $11.8 million, down from $21.7 million. Management attributed the decline to what it believes is a temporary implementation issue involving Title IV disbursements after the institutional combination.
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Cash, cash equivalents, restricted cash and short-term investments totaled $216.4 million at Sept. 30, up $39.9 million, or 22.6%, from $176.5 million at the end of 2025.
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The company repurchased 186,032 shares during the quarter and 274,237 shares in the first nine months of 2026 under a board-authorized program of up to $50 million. Average diluted shares outstanding were 18.7 million, compared with 18.8 million a year earlier.
What changes for investors
The company’s higher full-year outlook follows a quarter in which revenue and per-share earnings beat guidance, but adjusted EBITDA declined as selling and promotional expenses and integration investments increased. The Military+ revenue shift is a timing effect; the weaker operating cash flow was attributed to a separate Title IV disbursement issue that management characterized as temporary.