American Public Education, Inc. (APEI) reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable improvements in revenue and profitability compared to the same periods in 2023.

For the third quarter of 2024, APEI achieved consolidated revenue of $153.1 million, a 1.5% increase from $150.8 million in Q3 2023. The revenue growth was driven by contributions from its subsidiaries, with the American Public University System (APUS) generating $77.0 million, Rasmussen University (RU) at $52.6 million, and Hondros College of Nursing (HCN) at $15.5 million. For the nine months ended September 30, 2024, total revenue reached $460.4 million, up 2.8% from $447.7 million in the prior year.

The company reported a net income of $2.3 million for Q3 2024, a significant turnaround from a net loss of $3.3 million in Q3 2023. For the nine-month period, net income was $3.1 million, compared to a net loss of $60.3 million in the same period last year. This improvement was attributed to a reduction in total costs and expenses, which decreased by 12.3% to $448.9 million for the nine months ended September 30, 2024, from $512.0 million in 2023.

Operating income before interest and income taxes for Q3 2024 was $4.1 million, down from $6.4 million in Q3 2023, while for the nine months, it improved to $11.5 million from a loss of $64.2 million in the prior year. The operating margin for the nine months was 2.5%, a significant recovery from negative 14.3% in the previous year.

APEI's total current assets increased to $236.5 million as of September 30, 2024, from $217.4 million at the end of 2023, with cash and cash equivalents rising to $162.2 million. However, total current liabilities also increased to $89.4 million from $74.0 million. Total stockholders’ equity slightly decreased to $290.4 million from $292.0 million.

Strategically, APEI has been consolidating its operations, including the closure of two campuses at Rasmussen University and a reduction in workforce that resulted in the termination of 74 employees and the elimination of 57 open positions, incurring approximately $3.0 million in pre-tax cash expenses. Additionally, APUS announced plans to expand as a global digital university and has implemented modest tuition increases across its programs.

The company continues to face challenges, including compliance with the Department of Education's regulations and borrower defense to repayment claims, which may impact its financial stability. Despite these challenges, APEI's recent performance indicates a positive trajectory in its operational and financial metrics.