# AMERICAN PUBLIC EDUCATION INC (APEI) Informational only - not investment advice. CIK: 0001201792 SIC: 8200 Services-Educational Services SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 82](/major-group/82/) > [SIC 8200 Services-Educational Services](/industry/8200/) Latest 10-K filed: 2026-03-12 SEC page: https://www.sec.gov/edgar/browse/?CIK=1201792 Filing source: https://www.sec.gov/Archives/edgar/data/1201792/000120179226000004/apei-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-03-12 · accession 0001201792-26-000004 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001201792.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 648,862,000 USD | 2025 | verified | | Net income | 31,557,000 USD | 2025 | verified | | Assets | 521,418,000 USD | 2025 | verified | | Free cash flow | 46,101,000 USD | 2025 | computed | | Net margin | 4.86% | 2025 | computed | | Operating margin | 7.39% | 2025 | computed | | Revenue YoY | +3.89% | 2025 | computed | | ROE | 10.71% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | APEI | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 4.9% | 10.0% | 20 | 11 | | Operating margin | 7.4% | 13.7% | 30 | 11 | | Revenue growth | 3.9% | 7.1% | 20 | 11 | | FCF margin | 7.1% | 12.1% | 40 | 11 | | ROE | 10.7% | 16.4% | 40 | 11 | | ROA | 6.1% | 7.6% | 30 | 11 | | Liabilities / equity | 0.77 | 0.77 | 50 | 11 | | Current ratio | 3.46 | 1.75 | 70 | 11 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 8200 Services-Educational Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 648862000 | USD | 2025 | 2026-03-12 | | Net income | 31557000 | USD | 2025 | 2026-03-12 | | Assets | 521418000 | USD | 2025 | 2026-03-12 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001201792.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | 313,139,000 | 299,248,000 | 297,687,000 | 286,270,000 | 321,785,000 | 418,803,000 | 606,328,000 | 600,545,000 | 624,559,000 | 648,862,000 | | Net income | | | | | 24,155,000 | 21,121,000 | 25,639,000 | 10,013,000 | 18,822,000 | 17,752,000 | -114,993,000 | -47,286,000 | 16,113,000 | 31,557,000 | | Operating income | | | | | 38,276,000 | 34,859,000 | 32,526,000 | 12,756,000 | 24,757,000 | 30,371,000 | -137,348,000 | -48,306,000 | 33,066,000 | 47,935,000 | | Diluted EPS | | | | | 1.49 | 1.29 | 1.54 | 0.62 | 1.25 | 0.97 | -6.08 | -2.93 | 0.55 | 1.36 | | Operating cash flow | | | | | 56,014,000 | 47,938,000 | 44,179,000 | 38,370,000 | 44,810,000 | 16,265,000 | 29,215,000 | 45,514,000 | 48,872,000 | 61,965,000 | | Capital expenditures | | | | | 16,399,000 | 14,788,000 | 9,430,000 | 7,255,000 | 4,926,000 | 11,828,000 | 16,389,000 | 13,895,000 | 21,082,000 | 15,864,000 | | Share buybacks | | | | | 848,000 | 1,587,000 | 1,823,000 | 40,506,000 | 15,705,000 | 3,032,000 | 1,538,000 | 10,739,000 | 4,238,000 | 4,262,000 | | Assets | | | | | 315,620,000 | 339,038,000 | 370,958,000 | 354,897,000 | 371,018,000 | 725,608,000 | 615,056,000 | 557,386,000 | 570,103,000 | 521,418,000 | | Liabilities | | | | | 50,950,000 | 49,632,000 | 49,692,000 | 58,164,000 | 64,093,000 | 309,996,000 | 265,329,000 | 265,410,000 | 266,224,000 | 226,636,000 | | Stockholders' equity | | | | | 264,670,000 | 289,406,000 | 321,266,000 | 296,733,000 | 306,925,000 | 415,612,000 | 349,727,000 | 291,976,000 | 303,879,000 | 294,782,000 | | Cash and cash equivalents | 114,901,000 | 94,820,000 | 115,634,000 | 105,734,000 | 146,351,000 | 179,205,000 | | | | | 102,519,000 | 116,660,000 | 131,926,000 | 174,095,000 | | Free cash flow | | | | | 39,615,000 | 33,150,000 | 34,749,000 | 31,115,000 | 39,884,000 | 4,437,000 | 12,826,000 | 31,619,000 | 27,790,000 | 46,101,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | 7.71% | 7.06% | 8.61% | 3.50% | 5.85% | 4.24% | -18.97% | -7.87% | 2.58% | 4.86% | | Operating margin | | | | | 12.22% | 11.65% | 10.93% | 4.46% | 7.69% | 7.25% | -22.65% | -8.04% | 5.29% | 7.39% | | Return on equity | | | | | 9.13% | 7.30% | 7.98% | 3.37% | 6.13% | 4.27% | -32.88% | -16.20% | 5.30% | 10.71% | | Return on assets | | | | | 7.65% | 6.23% | 6.91% | 2.82% | 5.07% | 2.45% | -18.70% | -8.48% | 2.83% | 6.05% | | Liabilities / equity | | | | | 0.19 | 0.17 | 0.15 | 0.20 | 0.21 | 0.75 | 0.76 | 0.91 | 0.88 | 0.77 | | Current ratio | | | | | 3.76 | 4.41 | 5.25 | 4.92 | 4.57 | 2.42 | 2.63 | 2.94 | 3.29 | 3.46 | ## As-reported value updates 4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/APEI/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001201792.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | -0.20 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.38 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | -2.93 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 150,838,000 | -4,853,000 | -0.27 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 152,804,000 | 11,475,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 154,432,000 | -1,019,000 | -0.06 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 152,895,000 | -1,160,000 | -0.06 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 153,122,000 | 731,000 | 0.04 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 164,110,000 | 11,505,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 164,551,000 | 7,461,000 | 0.41 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 162,766,000 | -324,000 | -0.02 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 163,215,000 | 5,560,000 | 0.30 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 158,330,000 | 12,608,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 174,738,000 | 17,731,000 | 0.94 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 171,731,000 | 9,773,000 | 0.52 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from APEI's latest 10-K: [/company/APEI/business/](/company/APEI/business/). ## Risk Factors Verbatim Item 1A Risk Factors from APEI's latest 10-K: [/company/APEI/risk-factors/](/company/APEI/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1201792/000120179226000012/apei-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-10 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations     In this Quarterly Report on Form 10-Q, or this Quarterly Report, “we,” “our,” “us,” the “Company” and similar terms refer to American Public Education, Inc., or APEI, and its subsidiary institutions collectively unless the context indicates otherwise. All quarterly information in this Management’s Discussion and Analysis of Financial Condition and Results of Operations is unaudited. The following discussion of our historical results of operations and our liquidity and capital resources should be read in conjunction with the Consolidated Financial Statements and related notes that appear elsewhere in this Quarterly Report and the audited financial information and related notes, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations and other disclosures, included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, or our Annual Report. Forward-Looking Statements This Quarterly Report contains forward-looking statements intended to be covered by the safe harbor provisions for forward-looking statements in Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. We may use words such as “project,” “believe,” “anticipate,” “plan,” “expect,” “estimate,” “intend,” “should,” “would,” “could,” “potentially,” “will,” or “may,” or other words or expressions that convey future events, conditions, circumstances, or outcomes to identify these forward-looking statements. Forward-looking statements in this Quarterly Report include, without limitation, statements regarding: •changes in and our efforts and ability to comply with the extensive regulatory framework applicable to our industry, including the 90/10 Rule and financial responsibility standards, as well as state law and regulations and accrediting agency requirements, and the expected impacts of our efforts to comply and any non-compliance; •federal appropriations and other budgetary matters, including government shutdowns, and the estimated impact of such matters on us and our prospective and current students, and our efforts to mitigate impacts; •actions by the U.S. Department of Education, or ED, institutional and programmatic accreditors, and state authorizing agencies and expectations regarding the effects of those actions; •our ability to manage, grow, and diversify our business and execute our business initiatives and strategy; •legislative and regulatory changes, shifts in regulatory priorities, restrictions on the function, operations, and budgets of federal agencies, including ED, as a result of U.S. presidential and administration transitions and presidential directives regarding governmental actions; •our ability to maintain, develop, and grow our technology infrastructure, including with respect to any current or planned use of artificial intelligence or transform our technology infrastructure and realize the benefits of any such transformation; •our cash needs and expectations regarding cash flow from operations, including the impacts of our debt service; •our ability to undertake initiatives to improve the learning experience, attract students who are likely to persist, and improve student outcomes; •changes to and expectations regarding our student enrollment, net course registrations, and the composition of our student body, including the pace of such changes; •our conversion of prospective students to enrolled students and our retention of active students; •our ability to update and expand the content of existing programs and develop new programs to meet emerging student needs and marketplace demands, and our ability to do so in a cost-effective manner or on a timely basis; •the branding and marketing of our institutions; •our ability to leverage our investments in support of our initiatives, students, and institutions; •our maintenance and expansion of our relationships and partnerships and the development of new relationships and partnerships; •actions by the Department of Defense, or DoD, or branches of the U.S. Armed Forces, including actions related to participating in DoD tuition assistance, or TA, programs, our responses to those actions, and expectations regarding the effects of those actions and responses; •changes in enrollment in postsecondary degree-granting institutions and workforce needs; •the competitive environment in which we operate; •our ability to achieve the intended benefits of our cost savings initiatives and revenue-generating efforts; •the expected benefits of insourcing and outsourcing information technology services to our operations and third-party vendors, respectively; •the expected impact on our students and our business from campus closures and consolidations; •our financial performance generally; and •our expectations and estimates regarding tax and accounting matters. 23 Forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance, taking into account information currently available to us, and are not guarantees of future results. There are a number of important factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements. Risks and uncertainties involved in the forward-looking statements include, among others: •potential changes to the ED’s and other federal government agencies’ structure, policies, priorities, and oversight, including as a result of federal elections and the Trump administration’s stated intention and actions to dismantle ED; •any adverse impacts of government shutdowns on APUS’s net course registrations and our results of operations, and our inability to realize the intended benefits of any efforts to mitigate any such impacts; •our dependence on the effectiveness of our ability to attract students who persist in our institutions’ programs; •our inability to effectively market our programs or expand into new markets; •the loss of our and our students’ ability to receive funds under TA programs, the reduction, elimination, or suspension of TA, or disruptions due to systems used to request TA; •our inability to maintain enrollments from military students, including due to changes in military activity and deployments, budgets, and government shutdowns; •our inability to predict whether ED will grant borrower defense to repayment, or BDTR, claims; •adverse effects of changes our institutions make to improve the student experience and enhance each institution’s ability to identify and enroll students who are likely to succeed; •our failure to successfully adjust to future market demands; •risks associated with the combination of American Public University System, or APUS, Rasmussen University, or RU, and Hondros College of Nursing, or HCN, into one consolidated institution encompassing all APUS, RU, and HCN programs, campuses, and operations, or the Combination; •our failure to comply with regulatory and accrediting agency requirements or to maintain institutional accreditation, the consequences thereof, and risks related to any actions we may take to prevent or correct such failure; •our failure to meet applicable National Council Licensure Examination, or NCLEX, pass rates and other NCLEX standards, and the consequences thereof; •our failure to comply with the 90/10 Rule; •our loss of eligibility to participate in student financial aid programs authorized under Title IV of the Higher Education Act of 1965, as amended, or Title IV programs, or ability to process Title IV financial aid; •our inability to recognize the intended benefits of our cost savings and reduction and revenue-generating efforts; •economic and market conditions in the United States and abroad and changes in interest rates; •risks related to business combinations, acquisitions, divestitures, and other strategic transactions, including, as applicable, integration challenges, business disruption, dilution of stockholder value, financial charges, and diversion of management attention; •risks related to our indebtedness; and •our dependence on and need to continue to invest in our technology infrastructure. Forward-looking statements should be considered in light of these factors and the factors described elsewhere in this Quarterly Report, in the “Risk Factors” section of this Quarterly Report and our Annual Report, and elsewhere in our various filings with the Securities and Exchange Commission, or the SEC. It is important that you read these factors and the other cautionary statements made in this Quarterly Report as being applicable to all related forward-looking statements wherever they appear in this Quarterly Report. If one or more of these factors materialize, or if any underlying assumptions prove incorrect, our actual results, performance, or achievements may vary materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. You should also read the more detailed description of our business in our Annual Report when considering forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements made by us, which speak only as of the date of this Quarterly Report. We undertake no obligation to publicly update any forward-looking statements after the date of this Quarterly Report, whether as a result of new information, future events, or otherwise, except as required by law. Overview Background     We are a provider of online and campus-based postsecondary education to approximately 109,000 students through our subsidiary, American Public University System, Inc., which currently operates American Public University System, or the System. The System offers purpose-built education programs designed to prepare individuals for productive contributions to their professions and society and opportunities designed to advance students in their current professions or to help them prepare for their next career. The System is accredited and licensed or otherwise authorized by state authorities to offer postsecondary education programs to the extent it believes such licenses or authorizations are required and are certified by ED to participate in 24 Title IV programs. In January 2025, we announced the Combination, a process that after two steps resulted in the System, a combined Higher Learning Commission-accredited institution. Effective March 2, 2026, or the Merger Date, we completed the first step of the Combination, the merger of the legal entities that owned and operated our three institutions, with American Public University System, Inc. surviving the merger, or the Legal Merger, and we subsequently notified ED that the Legal Merger occurred. On August 4, 2026, ED approved, and we completed, the second step of the Combination, the combination of APUS, RU, and HCN into one HLC-accredited institution, or the Institutional Combination. We previously provided our educational services through three reportable segments: the APUS Segment, the RU Segment, and the HCN Segment. Beginning in fiscal 2026, in connection with the Combination, we now provide our educational services through the following two reportable segments: •Military+ Segment, which was formerly the APUS Segment, provides online postsecondary education to approximately 89,400 adult learners, directed primarily at the needs of the military, veterans, extended military and veteran families, and other public service and service-minded communities through two brands: American Military University, and American Public University. As of June 30, 2026, approximately 62% of Military+ Segment students self-reported that they served in the military on active duty at the time of initial enrollment. •Health+ Segment, consisting of the businesses that formerly comprised the RU Segment and the HC [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1201792/000120179226000004/apei-20251231.htm Complete FY 2025 MD&A: /company/APEI/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-03-12 Report date: 2025-12-31 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS You should read the following discussion together with the consolidated financial statements and the related notes included elsewhere in this Annual Report. This discussion contains forward-looking statements that are based on management’s current expectations, estimates, and projections about our business and operations, and involves risks and uncertainties. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements as a result of a number of factors, including those we discuss under “Risk Factors”, “Special Note Regarding Forward-Looking Statements”, and elsewhere in this Annual Report. For a discussion of our financial condition and results of operations for 2024 compared to 2023, refer to Part II, Item 7 of our Annual Report on Form 10-K filed with the SEC, on March 6, 2025, which discussion is incorporated in this Annual Report by reference and which is available free of charge on the SECs website at www.sec.gov. OVERVIEW     We are a provider of online and campus-based postsecondary education to approximately 108,600 students through three subsidiary institutions, American Public University System, or APUS, Rasmussen University, or RU, and Hondros College of Nursing, or HCN. Our subsidiary institutions offer purpose-built education programs designed to prepare individuals for productive contributions to their professions and society, and offer opportunities designed to advance students in their current professions or to help them prepare for their next career. Our subsidiary institutions are licensed or otherwise authorized by state authorities to offer postsecondary education programs to the extent the institutions believe such licenses or authorizations are required and are certified by ED to participate in Title IV programs. Additional information regarding our subsidiary institutions and their regulation is included in the “Business” section of this Annual Report. Our revenue is largely driven by the number of students enrolled at our institutions, the number of and types of courses that students take, student payor source, and the mix of programs students attend. Our consolidated revenue in 2025 was $648.9 million, representing a $24.3 million, or 3.9%, increase from $624.6 million in 2024. This includes revenue from GSUSA through July 25, 2025, or the GSUSA Sale Date. A significant portion of our revenue comes from our institutions’ participation in Title IV programs, and APUS’s participation in the DoD TA programs, and VA education programs, and this creates significant risks to our operations. Our operations for the periods covered by this Annual Report are organized into three reporting segments: •American Public University System, or APUS Segment. This segment reflects the operational activities of APUS. •Rasmussen University Segment, or RU Segment. This segment reflects the operational activities of RU. •Hondros College of Nursing Segment, or HCN Segment. This segment reflects the operational activities of HCN. Beginning in fiscal year 2026, we will have two reporting segments: APU Global, formerly the APUS Segment, and RU Health+, the business that formerly comprised the RU Segment and HCN Segment. On January 28, 2025, we announced the planned combination of APUS, RU, and HCN, or the Combination, which will result in a combined institution named American Public University System comprised of two divisions named (i) APU Global, comprised of AMU and APU, and (ii) RU Health+, comprised of RU’s campus-based and online nursing programs, RU’s healthcare programs, HCN’s campus-based nursing and healthcare programs, and RU’s non-healthcare programs. The Combination constitutes a Change of Control, Structure or Organization pursuant to HLC policy and, accordingly, we were required to obtain HLC approval prior to effectuating the Combination. In December 2024, APUS and RU jointly submitted an application for Change of Control, Structure or Organization to HLC. Subsequently, ED informed us that we would need to follow a different process to implement the Combination that entails two steps instead of one: (i) merger of the legal entities that own and operate APUS, RU, and HCN, with the APUS entity surviving following the merger, and (ii) combination of the institutions into one HLC-accredited institution. As a result of this process change, HLC required APUS and RU to submit a new joint application for Change of Control, Structure or Organization to HLC in September 2025 containing substantially the same information that had been submitted previously and reflecting the two-step process. In February 2026, HLC approved the continuation of accreditation of APUS and RU after the legal entity merger with an acknowledgment that the intent is to eventually consolidate the three institutions into one HLC accreditation. ABHES has also informed HCN that it will continue HCN’s ABHES accreditation after the legal entity merger. On March 2, 2026, we completed the merger of the legal entities that 84 own and operate APUS, RU, and HCN with the APUS entity surviving the merger, and subsequently notified ED that the merger occurred and resulted in RU and HCN being directly owned by the same legal entity that directly owns APUS. We currently expect to complete the implementation of step two of the Combination in the third quarter of 2026, subject to obtaining required approvals. We will evaluate changes to our segment reporting as a result of the Combination. For the years ended December 31, 2024, and 2025, we incurred $2.2 million and $3.5 million in professional fees, respectively, and we expect to incur between approximately $2.0 million and $4.0 million in professional fees in 2026 to complete the Combination. See the Risk Factor with the caption beginning “The planned combination of APUS, RU, and HCN …” and “Business – Regulatory Environment – Accreditation – Institutional Accreditation – The Planned Combination of APUS, RU, and HCN” for more information. U.S. Federal Government Shutdown. On October 1, 2025, the U.S. federal government shut down due to a failure by Congress to pass appropriations legislation, resulting in, among other things, suspension of the DoD TA programs and ultimately an inability of APUS students seeking to use TA as a payment source to register, or in some cases stay registered, for courses. The 2025 Shutdown ended on November 12, 2025. In connection with the 2025 Shutdown, APUS TA course registrations decreased by approximately 20,600 in the fourth quarter 2025, when compared to the prior year period. This was the first time since 2013 that APUS had dropped course registrations as a result of a government shutdown because the Defense Appropriations Bill, which annually funds TA, was not passed before the 2025 Shutdown. Prior to the end of the 2025 Shutdown, on October 24, 2025, the Navy announced that TA funding was restored for classes starting on or before December 31, 2025, using TA funds appropriated as part of the OBBBA, or OBBBA TA Funds. Also, prior to the end of the 2025 Shutdown, certain individuals responsible for oversight of the voluntary education programs at the Army, Air Force, Navy, and Marines returned to their roles and, in the cases of the Army, Air Force, and Navy, began approving TA requests using OBBBA TA Funds. As of November 10, 2025, APUS estimated that it was able to recover approximately 5,000 course registrations for November 2025 course starts by students using OBBBA TA funds. As a result of the 2025 Shutdown, we implemented various cost savings measures, including a reduction in force, hiring freeze, and a reduction in travel and discretionary costs. The One Big Beautiful Bill Act. As discussed in “Business –Regulatory Actions and Restrictions on Operations – Other Regulations – The One Big Beautiful Bill Act”, President Trump recently signed into law the OBBBA, which, among other things, makes significant changes to federal student financial aid programs and related eligibility requirements. New caps on federal loans may limit borrowing options for our students and a new accountability framework could limit the availability of certain programs due to a potential loss of Direct Loans, which could have a significant adverse impact on enrollments and our business, operations, and financial results. See “Risk Factors – Risks Related to the Regulation of Our Industry – “The One Big Beautiful Bill Act . . . .” for additional information regarding risks relating to the OBBBA. Student Body. At APUS and for RU programs excluding pre-licensure nursing and allied health programs, all coursework is delivered online. As of December 31, 2025, approximately 62% of APUS’s students self-reported that they served in the military on active duty at the time of initial enrollment, and as a result APUS is particularly reliant on TA programs, and the DoD budget. At APUS, active-duty military students generally take fewer courses per year on average than non-military students and have a lower revenue per net course registration than students utilizing other funding sources. A significant portion of APUS’s registrations is also attributable to students using VA education benefits, and funds from Title IV programs. RU nursing students and HCN students generally attend classes at physical campuses and use Title IV program funds. For the fiscal year ended December 31, 2025, 39% of RU students were enrolled in nursing programs, 26% in health sciences programs, 15% in business programs, with the remainder of students in education, technology, design and justice studies programs. For the fiscal year ended December 31, 2025, approximately 67% of HCN students were enrolled in the PN program, while 32% were enrolled in the ADN program. Efforts to Attract and Retain Students. We believe that in order to continue to attract and retain qualified students our institutions need to continuously update and expand the content of their existing programs and develop new programs, specializations and modes of teaching, faculty engagement initiatives, and co-curricular initiatives. These efforts may require obtaining appropriate regulatory approvals, incurring marketing expenses, and making investments in management and capital expenditures, including technology-related expenditures. Initiatives to attract and retain qualified students require significant time, energy, and resources, and if our efforts are not successful, our results of operations, cash flows, and financial condition may be adversely impacted. For more information about the risks related to attracting and retaining qualified students please refer to “Risk Factors – Risks Related to Attracting and Retaining Students”. 85 Reductions in Force. In the third quarter of 2023, we completed a reduction in force that resulted in the termination of 74 employees, primarily non-faculty, and the elimination of 57 open positions across a variety of roles and departments at APEI, RU, HCN and GSUSA. We incurred an aggregate of approximately $3.0 million of pre-tax cash expenses associated with employee severance costs as a result of this reduction in force. These headcount reductions reflect our ongoing efforts focused on realigning our organizational structure, eliminating redundancies, and optimizing certain functions. In the fourth quarter of 2025, as a result of the 2025 Shutdown, we completed a reduction in force that resulted in the termination of approximately 40 non-faculty employees at APUS, representing approximately 6.5% of the APUS non-faculty workforce. Separately, in the fourth quarter of 2025, approximately 20 information technology employees at APEI were terminated in connection with our ongoing efforts to optimize certain information technology functions. We incurred an aggregate of approximately $1.3 million of pre-tax ca [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/APEI/mda/fy2025/ All MD&A years: /company/APEI/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/APEI/mda/fy2024/): filed 2025-03-06; accession 0001201792-25-000004 (https://www.sec.gov/Archives/edgar/data/1201792/000120179225000004/apei-20241231.htm) - [FY 2023 MD&A](/company/APEI/mda/fy2023/): filed 2024-03-05; accession 0001201792-24-000005 (https://www.sec.gov/Archives/edgar/data/1201792/000120179224000005/apei-20231231.htm) - [FY 2022 MD&A](/company/APEI/mda/fy2022/): filed 2023-03-14; accession 0001201792-23-000004 (https://www.sec.gov/Archives/edgar/data/1201792/000120179223000004/apei-20221231.htm) - [FY 2021 MD&A](/company/APEI/mda/fy2021/): filed 2022-03-02; accession 0001201792-22-000003 (https://www.sec.gov/Archives/edgar/data/1201792/000120179222000003/apei-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 8200 Services-Educational Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/APEI.md · JSON record: /company/APEI.json · verified financials: /company/APEI/financials.json / /company/APEI/financials.csv · machine TOC for the whole site: /llms.txt