APEI reports Q3 results above guidance amid government shutdown impact

American Public Education Inc. (NASDAQ: APEI) said its third quarter 2025 results are expected to exceed the top end of its previously disclosed guidance range for consolidated revenue and net course registrations at American Public University System.

The company provided the preliminary update on October 14, comparing results to guidance ranges disclosed in its August 6 earnings release. The preliminary results are based on management's initial analysis for the quarter ended September 30, 2025, and have not been audited or reviewed by the company's independent registered public accounting firm.

The ongoing federal government shutdown has significantly impacted the company's operations. American Public University System dropped approximately 12,700 course registrations for non-payment on October 11 due to the temporary suspension of the U.S. Department of Defense tuition assistance program. Approximately 1,700 course registrations were not dropped for students using tuition assistance funds authorized in the prior government fiscal year.

The company estimates the government shutdown will reduce its October 2025 revenue by approximately $9.6 million compared to what it would have been otherwise. Net course registrations in October 2025 declined by approximately 35% compared to October 2024. The company stated that without the government shutdown, it believes October 2025 net course registrations would have increased compared to the prior year period.

This marks the first time since 2013 that American Public University System has dropped course registrations for students using tuition assistance funds due to a government shutdown. The company said it is evaluating opportunities to mitigate the shutdown's impact but cannot determine the full effect on fourth quarter and full year 2025 operating results due to the continuing shutdown.

The company expects to report actual third quarter results in November.

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