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Q2 2026 Earnings Presentation August 10 , 2026 apei American Public Education , Inc.
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American Public Education Inc. Do Not Distribute. Statements made in this presentation regarding American Public Education, Inc. or its subsidiary institutions ("APEI" or the "Company") that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates, and projections about APEI and the industry. Forward-looking statements include, without limitation, statements regarding expectations for growth, registration, enrollments, demand, revenues, net income, earnings per share, EBITDA, adjusted EBITDA, adjusted EBITDA margin, the growth and profitability of APEI and related growth strategies, plans with respect to and future impacts of recent, current, and future initiatives, including the recently completed combination of American Public University System, Rasmussen University, and Hondros College of Nursing into one consolidated institution.Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by suchstatements. Such risks and uncertainties include, among others, risks related to: APEI's failure to comply with, or adverse actions relating to, regulatory andaccrediting agency requirements, including the "90/10 Rule", and to maintain institutional accreditation and the impacts of any actions APEI may take to prevent orcorrect such failure; changes in the post-secondary education regulatory environment as a result of U.S. federal elections, including any changes by or as a result ofactions of the current administration to the operations of the Department of Education or changes to or the elimination or implementation of laws, regulations,standards, policies, and practices; potential or actual government shutdowns and uncertainties in the estimated impacts of any such shutdowns on APEI andMilitary+ and its prospective and current students, and APEI's inability to mitigate these impacts; government budget and federal workforce uncertainty; thecombination of American Public University System, Rasmussen University, and Hondros College of Nursing into one consolidated institution; APEI's dependence onthe effectiveness of its ability to attract students who persist in its institutions' programs; changing market demands; declines in enrollments at APEI's subsidiaries;APEI's inability to effectively market its institutions' programs; APEI's inability to maintain strong relationships with the military and maintain course registrationsand enrollments from military students; the loss or disruption of APEI's ability to receive funds under Title IV or TA programs or the reduction, elimination, orsuspension of federal funds; adverse effects of changes APEI makes to improve the student experience and enhance the ability to identify and enroll students whoare likely to succeed; APEI's need to successfully adjust to future market demands by updating existing programs and developing new programs; APEI's loss ofeligibility to participate in Title IV programs or ability to process Title IV financial aid; economic and market conditions and changes in interest rates; difficultiesinvolving acquisitions; APEI's indebtedness, including the refinancing thereof; APEI's dependence on and the need to continue to invest in its technologyinfrastructure, including with respect to third-party vendors; the inability to recognize the intended benefits of APEI's cost savings and reduction and revenuegenerating efforts; APEI's ability to manage and limit its exposure to bad debt; and the various risks described in the "Risk Factors" section and elsewhere in APEI'sAnnual Report on Form 10-K for the year ended December 31, 2025, and in other filings with the SEC. You should not place undue reliance on any forward-lookingstatements. APEI undertakes no obligation to update publicly any forward-looking statements for any reason, unless required by law, even if new informationbecomes available or other events occur in the future. Forward-Looking Statements2
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22Strong Q2 Results, Continued Momentum Across Key Metrics$171.7MRevenue+5.5% YoY$9.8MNet Income Available to Common Stockholdersvs $(0.3)M in 2Q25$0.52Diluted EPSvs $(0.02) in 2Q25$20.7MAdj. EBITDA*+36.8% YoY2Q 2026 Executive Summary3Q2 2026 Highlights3 *Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) is a non-GAAP financial measure. Please refer to Appendix for GAAP to non-GAAP reconciliation.2Q26 vs 2Q25 YoY Improvement$162.8$171.72Q252Q26+5.5%$15.1$20.72Q252Q26+36.8%$(0.3)$9.82Q252Q26+$10.1M$(0.02)$0.522Q252Q26+$0.54Revenue Adj. EBITDA*Net Income Available to Common StockholdersDiluted EPSExcluding $3.4M from GSUSA in 2Q25, revenue would have increased+7.8%
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Up 2% YoY from approx. 96,400, supporting revenue growth of 4.7%Veterans and Military families registrations grew at a mid-teens rate, a key driver of overall growthActive Duty registrations challenged by Iran war however, Army branch continues to show strengthUp 7% YoY from approx. 18,300, supporting double-digit revenue growth of 11%New Health+ Orlando campus outpacing plan; introduced LPN program to Orlando market Continued success of our campus Fill the Back Row initiative with ~9% campus growth outpacing total Health+ enrollment gainsNet Course Registrations~98,300Registration & Enrollment Growth - 2Q26~19,600Enrollment4
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American Public Education Inc. Do Not Distribute. 2525 Financial Update
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Variance2Q’252Q’26($ in millions)+4.7%$81.7$85.5Military+ Revenue+11.0%$77.7$86.2Health+ Revenue+5.5%$162.8$171.7Total Consolidated Revenue-$(0.3)$9.8Net Income (Loss) Available to Common Stockholders-$(0.02)$0.52Diluted EPS+36.8%$15.1$20.7Adjusted EBITDA*+275 bps9.3%12.0%Adjusted EBITDA Margin*Key TakeawaysMilitary+: Strong revenue and increased registrations build segment momentum.Health+: ‘Fill the back row’ strategy remains effective, with continued enrollment momentum and solid demand driving growth.Graduate School:2Q'25 includes $3.4 million in revenue related to GSUSA, which was sold in July 2025. APEIrevenue improvement would have been 7.8% excluding GSUSA revenue from the Q2'25.Meaningful year-over-year margin expansion 2Q26 Revenue: Strong Segment Performance6 *Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) and adjusted EBITDA margin are non-GAAP financial measures. Please refer to Appendix for GAAP to non-GAAP reconciliation.
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2Q26 Revenue – Growth Across Both Segments7 +11.0% YoY 2Q26 vs 2Q25+4.7% YoY 2Q26 vs 2Q25$77.0$83.1$82.4$71.0$83.9$89.4$81.7$85.53Q24 3Q25 4Q24 4Q25 1Q25 1Q26 2Q25 2Q26YoY Revenue Growth ($M)$68.1$79.2$76.4$87.3$76.9$85.4$77.7$86.23Q24 3Q25 4Q24 4Q25 1Q25 1Q26 2Q25 2Q26YoY Revenue Growth ($M)4Q25 includes impact of government shutdown as discussed in our 2025 Form 10-K.** Seasonality Note: Revenue growth builds on a seasonal basis.
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Substantial Margin Expansion8 *Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) and Adjusted EBITDA margin are non-GAAP financial measures. Please refer to Appendix for GAAP to non-GAAP reconciliation.10.9%13.5%11.6%13.2%12.1%14.2%12.5%14.9%3Q243Q254Q244Q251Q251Q262Q252Q26TTM Adjusted EBITDA Margin*$66.6$88.4$72.3$85.7$76.5$93.7$80.7$99.33Q24 3Q25 4Q24 4Q25 1Q25 1Q26 2Q25 2Q26TTM Adjusted EBITDA* ($M)$10.0$24.2$10.1$25.3$18.5$35.6$19.4$45.73Q24 3Q25 4Q24 4Q25 1Q25 1Q26 2Q25 2Q26TTM Net Income Available to Common Stockholders ($M)
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Liquidity and Cash Flows Remain Strong99As of June 30, 2026$222.8MCash, Cash Equivalents, Restricted Cash, and Short-Term Investments$88.9MTotal Debt$133.9MExcess Cash and Short-Term Investments Over Debt$75.4M (+45.6% YoY)YTD Cash Flows From Operations$40.0MAvailable Working Line of Credit Capacity
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These statements are based on current expectations. These statements are forward looking, and actual results may differ materially.3Q’253Q'26($ in millions, except per share data)$163.2$164.5 - $167.0Revenue$5.6$3.4 - $5.4Net Income Available to Common Stockholders$20.7$14.0 - $17.0Adjusted EBITDA*$0.30$0.18 - $0.29 per shareDiluted Earnings per Share2026 Guidance – Raising Full Year Revenue and Adj. EBITDA9 *Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) is a non-GAAP financial measure. Please refer to Appendix for GAAP to non-GAAP reconciliation. 10FY’25Prior GuidanceFY'26($ in millions, except per share data)$648.9 (Includes revenue of $8.0 related to GSUSA)$686.0 - $696.0$690.0 - $698.0Revenue$25.3$44.9 - $51.6$46.5 - $52.5Net Income Available to Common Stockholders$85.7$93.0 - $102.0$96.0 - $104.0Adjusted EBITDA*$1.36 per share$2.33 - $2.68 per share$2.48 - $2.79 per shareDiluted Earnings per Share$15.9$28.0 - $32.0$25.0 - $28.0Capital Expenditures
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American Public Education Inc. Do Not Distribute. 24 A Mission thatMatters.A Company that Compounds ValueOver Time. Strong Performance Across Financial MetricsRevenue $171.7M (+5.5%), Adj. EBITDA* $20.7M (+37%), 12.0% Adj. EBITDA* margin (+275 bps), diluted EPS $0.52Guidance OutperformanceMet or exceeded guidance on all four key metrics in 2Q26; Adj. EBITDA* exceeded high-end guidance by 14.7%Multi-Year Growth Targets2029 targets: Revenue CAGR 8-12%, ~$890M-$1.0B revenue, 20-21% Adj. EBITDA* marginStrong Balance Sheet$133.9M cash and short-term investments in excess of debt$222.8M cash, cash equivalents, restricted cash and short-term investments APEI Earnings Highlights *Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) and EBITDA are non-GAAP financial measures. Please refer to Appendix for GAAP to non-GAAP reconciliation 11
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American Public Education Inc. Do Not Distribute. 2525 Appendix
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26Education Unit Profile13 2. Military+ excludes $2.8MM of losses in 4Q23, $1.6MM in 4Q24, and $1.5MM in 1Q25 related to Loss on Disposal of Long-lived assets and Losses on assets held for sale. 3. Health+ excludes a non-cash impairment of $64MM in 2Q23. Also excludes $2.4MM for Collegis transition services expense in 1Q23, $2.9MM in 1Q24 and $0.8MM in 2Q24 for lease termination and campus consolidation expense.4. Corporate and Other includes unallocated corporate activity and eliminations to reconcile segment results to the Consolidated Financial Statements. 5. Corporate and Other excludes the loss on sale of subsidiary of $3.4MM in 3Q25.1. Note- See note 9 and 15 to the financial statements included in the June 30, 2026 10-Q and 2025 10-K, respectively. Reflects income (loss) from operations before interest, income taxes. Please refer to appendix for GAAP to non-GAAP reconciliation. 2 34, 5
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26APEI GAAP Net Income to Adjusted EBITDA14GAAP Net Income to Adjusted EBITDA:The following table sets forth the reconciliation of the Company’s reported GAAP net income to the calculation of adjusted EBITDA, and supplemental financial information, for the three months ended September 30, 2023, through June 30, 2026. (in thousands)Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026Net income (loss) available to common stockholders (4,853)$ 11,475$ (1,019)$ (1,160)$ 731$ 11,505$ 7,461$ (324)$ 5,560$ 12,608$ 17,731$ 9,773$ Preferred stock dividends 1,525 1,539 1,535 1,531 1,531 1,459 1,432 1,319 - - - - Loss on redemption of preferred stock - - - - - - - 3,501 - - - - Net (loss) income (3,328) 13,014 516 371 2,262 12,964 8,893 4,496 5,560 12,608 17,731 9,773 Income tax (benefit) expense 3,712 2,124 1,213 (16) 1,236 7,986 2,466 1,421 3,068 5,193 1,515 4,387 Interest income (expense), net 792 791 126 785 631 585 887 1,108 1,069 1,166 725 (634) Equity investment loss 5,224 3 3,327 1,080 - - - - - - - - Loss on extinguishment of debt - - - - - - - - - - 1,672 - Depreciation and amortization 7,026 5,081 5,128 5,232 5,080 3,863 3,992 4,088 3,946 4,122 4,154 3,953 EBITDA 13,426 21,013 10,310 7,452 9,209 25,398 16,238 11,113 13,643 23,089 25,797 17,479 Impairment of goodwill and intangible assets - - - - - - - - - - - - Stock Compensation 1,733 1,715 1,918 1,823 1,761 2,166 2,263 2,238 1,634 2,217 2,327 2,232 Loss (gain) on disposals of long-lived assets (16) 537 28 184 23 148 230 35 92 87 154 5 Other professional fees - - - - 813 1,404 989 1,715 801 228 943 938 Severance 2,959 - - 505 25 - - - 1,083 2,244 - - Transition services costs - - 1,865 182 1,092 659 - - - 821 - - Loss on sale of subsidiary - - - - - - - - 3,362 - - - Loss on leases - - 2,936 779 - - - - 77 - - - Loss on assets held for sale - 2,425 - - - 1,618 1,527 - - - - - Adjusted EBITDA 18,102 25,690 17,057 10,925 12,923 31,393 21,247 15,101 20,692 28,686 29,221 20,654 TTM ADJ EBITDA 66,595 72,298 76,488 80,664 88,433 85,726 93,700 99,253 TTM Net income available to common stockholders 10,027 10,057 18,537 19,373 24,202 25,305 35,575 45,672 Revenue 150,838 152,804 154,432 152,895 153,122 164,110 164,551 162,766 163,215 158,330 174,738 171,731 TTM Revenue 613,253 624,559 634,678 644,549 654,642 648,862 659,049 668,014 TTM ADJ EBITDA Margin 10.9% 11.6% 12.1% 12.5% 13.5% 13.2% 14.2% 14.9%
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26The following table sets forth the reconciliation of the Company’s reported GAAP net income to the calculation of adjusted EBITDA for the three and six months ended June 30, 2026, and 2025: 1. Reflects guidance provided on November 10, 2025. Inclusion of this guidance in this presentation should not be construed as a reaffirmation or update of this guidance as of any later date. APEI Non-GAAP Disclosures815
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26The following table sets forth the reconciliation of the Company’s outlook GAAP net income to the calculation of outlook adjusted EBITDA for the three months ended September 30, 2026 and twelve months ending December 31, 2026:APEI Non-GAAP Disclosures16
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American Public Education Inc. Do Not Distribute. 2828 Thank YouCompanyGary JansonChief Strategy & Growth Officer investorrelations@apei.com Investor Relations Shannon Devine MZ North America203-741-8811APEI@mzgroup.us