Here are 1-3 brief analogies for American Public Education (APEI):

• Carvana for higher education: APEI offers online, accessible degree programs for adult learners and working professionals, much like Carvana provides a convenient, online-first experience for buying cars.
• LinkedIn Learning for accredited degrees: Similar to how LinkedIn Learning offers online courses for professional development, APEI provides fully accredited online degree programs tailored for career advancement.

• American Public University System (APUS): Provides online associate, bachelor's, and master's degree programs and certificate programs, primarily serving military, veteran, and public service communities.
• Rasmussen University: Offers online and campus-based associate and bachelor's degree programs in areas such as nursing, health sciences, business, and technology.
• Hondros College of Nursing: Delivers campus-based practical nursing diplomas and associate degree programs in nursing across multiple Ohio locations.

American Public Education, Inc. (APEI) primarily sells its educational services directly to **individuals** (students).

The company serves the following primary categories of customers:

• Military, Veteran, and Public Service Professionals: A significant portion of APEI's student base, particularly through its American Public University System (APUS) institutions (American Military University and American Public University), comprises active-duty military personnel, veterans, reservists, and individuals working in public safety and service roles.
• Adult Learners Seeking Career-Focused Education and Advancement: This broad category includes working adults and career changers who are pursuing degrees, diplomas, or certifications to enhance their skills, advance in their current careers, or transition into new professions. This segment is served across various programs offered by APUS and Rasmussen University in fields like business, technology, education, and various allied health professions.
• Aspiring Healthcare and Nursing Professionals: APEI has a strong focus on healthcare education, particularly through Rasmussen University and Hondros College of Nursing. This category includes individuals seeking to enter or advance within the nursing profession (e.g., LPN, RN, BSN) and other healthcare-related fields.

Suppliers:

• D2L (TSX: D2L)
• Ellucian (Private Company)

Angela Selden Chief Executive Officer

Angela Selden was appointed CEO of American Public Education in September 2019. She brings over 30 years of experience in technology and technology-enabled services within both private-equity and publicly traded environments. Ms. Selden has deep experience executing business transformation initiatives for Fortune 500 clients. She previously served as CEO and board member of DIGARC, an education technology provider. Her prior roles also include CEO of Workforce Insight, a global strategic workforce consulting company, CEO and Executive Co-Chairman of Arise Virtual Solutions, a virtual workforce solutions outsourcer, and interim CEO of Skybridge Americas, a global contact center. Earlier in her career, Ms. Selden spent 18 years at Accenture, where she was the Managing Partner leading the North American Consumer and Industrial Products group to significant growth.

Edward Codispoti Executive Vice President, Chief Financial Officer

Edward H. Codispoti joined American Public Education, Inc. (APEI) as Executive Vice President and Chief Financial Officer, effective October 20, 2025. He has more than 25 years of financial leadership experience across various industries. Most recently, Mr. Codispoti served as Chief Financial Officer of NV5 Global, Inc., a global provider of technology and engineering consulting solutions. Prior to NV5, he was Chief Financial Officer of Ilumno Holdings, Ltd., a higher education company. He also served as Chief Financial Officer of JetSmarter and TradeStation Group, Inc., and held senior finance and accounting positions at Kos Pharmaceuticals. Mr. Codispoti began his career in public accounting with Arthur Andersen, LLP and is a Certified Public Accountant.

Tanya Axenson Senior Vice President, Chief Human Resources Officer

Ms. Axenson joined APEI in February 2022 and brings over 20 years of human resources and labor and employment law experience. She most recently served as Senior Vice President of HR and Chief Diversity Officer for Erickson Senior Living. Previously, Ms. Axenson was Vice President and CHRO at Aerotek, a talent solutions provider, where she led the HR team and supported a large employee base across international staffing and engineering solutions.

Karmela Gaffney Senior Vice President, Chief Marketing Officer

Ms. Gaffney joined APEI in 2023. She brings over 25 years of experience and expertise in marketing strategy, brand development, and customer engagement, with a proven track record in driving successful digital and integrated marketing strategies in Fortune 500 companies.

Andy McShane Senior Vice President, Engagement, Automation, and Performance Analytics

Mr. McShane joined APEI in February 2022. His focus is on enhancing the student journey experience, managing websites, marketing automation, lead nurturing, and analytics. Previously, he served as CEO of an investment education platform and as CMO of a portfolio management software company, where he oversaw marketing and sales functions including demand generation, product marketing, funnel marketing, and user experience.

The key risks to American Public Education (APEI) primarily revolve around its heavy reliance on governmental funding, challenges in student enrollment, and operational execution. These factors collectively pose significant threats to the company's financial stability and growth prospects.

1. Regulatory and Governmental Funding Dependence: APEI is highly dependent on U.S. governmental funding sources, including Title IV, Tuition Assistance, and Veterans Affairs funding, which constitute a majority of its revenue. This reliance exposes the company to substantial regulatory risk, as changes in government policies, budgetary pressures, or potential government shutdowns can significantly reduce or cut off these funds. Additionally, the company's nursing programs, particularly at Hondros College of Nursing (HCN), are vulnerable if they fail to meet job placement and accreditation requirements set by regulators. Failing to comply with specified financial responsibility standards by regulators could also lead to additional regulatory requirements and reduced cash flows.

2. Enrollment Challenges and Competitive Pressures: APEI faces ongoing challenges with declining enrollment in certain segments, such as Rasmussen University (RU), and temporary disruptions in military enrollments at American Public University System (APUS) due to events like government shutdowns. Tuition and fee increases at its institutions, including RU, APUS, and HCN, may also deter prospective and current students, potentially leading to further declines in enrollment. The inherent volatility of the education industry and the competitive landscape also contribute to these enrollment risks.

3. Operational Execution and Accreditation Risks: The company has experienced operational challenges and weak performance at Rasmussen University, including issues such as adjunct faculty shortages and regulatory enrollment caps in certain locations. There is execution risk associated with the timing and success of operational recovery initiatives, as well as the ability to fully realize intended cost cuts and synergies from institutional consolidations. Furthermore, specific programs, like the Accreditation Commission For Education In Nursing team's recommendation to discontinue accreditation for the Bloomington, Minnesota program, highlight ongoing accreditation challenges that could impact business.

Clear Emerging Threats for American Public Education (APEI)

• Increased Regulatory Scrutiny and Policy Changes Targeting For-Profit Education

  The U.S. Department of Education under the current administration has re-emphasized oversight and consumer protection measures specifically impacting for-profit higher education institutions. Clear evidence includes the finalization of new "gainful employment" regulations in October 2023, which require programs to demonstrate that their graduates can repay their loans and earn sufficient income, or risk losing access to federal financial aid. There is also increased scrutiny on the "90/10 Rule" and renewed focus on "borrower defense to repayment" claims. These regulatory actions are not hypothetical but are active and directly threaten the revenue models and operational flexibility of companies like APEI, which rely heavily on federal student aid.

• Intensified Competition from Non-Profit Online Programs

  Traditional public and private non-profit universities are significantly expanding and enhancing their online degree and certificate offerings. Many are investing heavily in high-quality online education, often providing competitive tuition rates, greater brand recognition, and perceived institutional prestige. Large state university systems and reputable private institutions are increasingly targeting the same adult learner, military, and career-changer demographics that APEI serves. This trend is accelerating, with more non-profits committing to robust online strategies, directly challenging APEI's market share and differentiation.

• The Rise of Alternative Credentials and Skills-Based Education

  There is a growing and accelerating shift in the labor market towards valuing specific skills and shorter, more focused alternative credentials over traditional multi-year degree programs, particularly in technology and vocational fields. Companies like Google, Amazon, Coursera, and various coding bootcamps offer professional certificates and training programs that promise quicker, cheaper pathways to employment or career advancement. For segments of APEI's target audience seeking efficient career mobility, these alternative, skills-focused educational models present a compelling and emerging threat by offering a different, often faster and less expensive, route to achieving professional goals.

American Public Education, Inc. (APEI) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Enrollment Growth in Key Segments: APEI anticipates continued enrollment growth across its primary education units, particularly the American Public University System (APUS), Rasmussen University (RU), and Hondros College of Nursing (HCN). For instance, APUS achieved an 8% year-over-year registration growth in Q3 2023, and Rasmussen University and Hondros College of Nursing are also projected to see increases in student enrollment. Specifically, Rasmussen University's total student enrollment is expected to reach approximately 14,900, an increase from 13,500 year-over-year, and Hondros College of Nursing's enrollment is anticipated to reach 3,701 students, up from 3,100 year-over-year. This growth in student numbers directly translates to higher tuition revenue.
2. Expansion of Program Offerings, Especially in High-Demand Fields: APEI's vision includes expanding its program offerings in high-demand fields such as technology, healthcare, and business. This strategic expansion is designed to attract a broader student base and capitalize on market needs. The company has demonstrated positive enrollment growth in all nursing programs (except for ADN), allied health, and online programs, indicating success in these areas.
3. Strategic Simplification and Operational Efficiency: The company is undertaking strategic initiatives to streamline operations and strengthen its financial position, including the sale of Graduate School USA and the redemption of preferred equity. While not a direct revenue driver, improved operational efficiency and a more focused portfolio can lead to better resource allocation and potentially allow for greater investment in growth areas, ultimately supporting top-line expansion. Management commentary highlighted a focus on core military/veteran and nursing/health-ed businesses that have stable and long-term demand.
4. Positive Impact of Regulatory Changes: Favorable regulatory developments, such as the legislation enacted in Illinois in January 2024, are expected to benefit Hondros College of Nursing. This legislation allows Illinois programs to be removed from probationary status related to NCLEX performance, which is anticipated to aid accreditation, state approvals, and enable the enrollment of more students in existing programs and the addition of new programs to its Illinois campuses. In May 2025, Rasmussen University was also released from temporary growth restrictions by the Department of Education, allowing it to add new programs and locations.

Capital Allocation Decisions for American Public Education (APEI) (Last 3-5 Years)

Here is a summary of American Public Education's (APEI) capital allocation decisions over the last 3-5 years, categorized as requested:

Share Repurchases

• On November 3, 2025, American Public Education's Board of Directors authorized a new stock repurchase program to purchase up to an aggregate of $500 million of common stock.
• As of June 30, 2025, $150.0 million of authorized share repurchases remained under a previous share repurchase program.
• The company made common stock repurchases in 2023, contributing to a decrease in cash. Additionally, cash paid for common stock repurchases increased during the three months ended March 31, 2024.

Share Issuance

• On December 28, 2022, APEI issued $40 million of Series A Senior Preferred Stock to affiliates of existing common stockholders.
• In June 2025 (completed July 1, 2025), APEI redeemed all 400 outstanding shares of its Series A Senior Preferred Stock for approximately $44.5 million, which included $1.4 million in accrued and unpaid dividends.

Outbound Investments

• American Public Education acquired Rasmussen University for $329 million. The deal was announced in October 2020 and completed on September 2, 2021, and was funded with $300 million in cash and an additional $29 million paid in cash in lieu of issuing preferred stock.
• APEI acquired substantially all the assets of Graduate School USA for $1 million. The agreement was signed in August 2021 and the acquisition was completed on January 1, 2022.
• APEI completed the sale of Graduate School USA on July 25, 2025, for $0.50 million.

Capital Expenditures

• For the trailing twelve months ended June 2025, APEI's capital expenditures were approximately $17.27 million.
• The company provided full-year 2024 guidance for capital expenditures ranging between $17 million and $20 million.
• Capital expenditures for the three months ended March 31, 2024, were $6.2 million, up from $3.2 million for the same period in 2023, primarily due to campus relocations at the Hondros College of Nursing and Rasmussen University segments, and increased information technology capital expenditures.