AMERICAN PUBLIC EDUCATION INC
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
APEI$39.09+4.9%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001201792-26-000012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001201792-26-000016
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 154 previous paragraphs and 162 current paragraphs.
78 unchanged; 67 reworded; 13 added; 7 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
In February 2026, ED's Office of Inspector General, or ED OIG, notified RU that it would conduct an inspection of RU's process to address unusual enrollment history flags for the 2024-2025 award year. In August 2026, ED OIG completed the inspection and issued a formal report stating that the inspection resulted in no findings.
Current report
State Authorization/Licensure
Current report
Cohort Default Rate
Current report
To remain eligible to participate in Title IV programs, an educational institution’s student loan cohort default rates must remain below certain levels. Pursuant to HEA requirements, if the cohort default rate in any single year exceeds 40%, or is 30% or greater for three consecutive years, an institution loses eligibility to participate in Title IV programs. If an institution’s cohort default rate is equal to or greater than 30% in any single year, it must establish a default prevention task force.
Current report
In September 2026, ED released final official cohort default rates for institutions for federal fiscal year 2023. ED reported a 0.4% cohort default rate for APUS, a 0.2% cohort default rate for RU, and a 0.5% cohort default rate for HCN. The rates were favorably impacted by regulatory relief provided in connection with the COVID-19 pandemic. The end of COVID-19 pandemic-related regulatory relief may lead to higher official cohort default rates in future fiscal years. As a result of the Combination, ED will calculate and publish in future years a single cohort default rate for the System that will include all applicable borrowers from APUS, RU, and HCN rather than separate rates for each academic unit. Each of the reported cohort default rates above predates and does not take into account the Combination.
Current report
Tuition Assistance Programs
Current report
A significant portion of our revenue is derived from the System’s participation in the DoW’s TA programs. The versions of the National Defense Authorization Act, or NDAA, passed by the U.S. House of Representatives and under consideration by the U.S. Senate both address an increase in the limit for reimbursement under the TA programs, though the ultimate passage of the NDAA and whether language will be included on the TA programs is uncertain. We understand that DoW is also currently evaluating potential changes to the TA programs, which, among other things, could include higher or lower reimbursement levels based on new classifications of TA-eligible programs. At this time, we do not know if the DoW will make any changes to the TA programs, and if they make any changes what they would be, and therefore we cannot estimate what the impact would be on our results of operations if any such changes are made.
Current report
Military+ Segment net course registrations for the three months ended September 30, 2026, increased to approximately 103,800 from approximately 100,000, an increase of 3,800, or 3.8%, as compared to the prior year period. Military+ Segment revenue for the three months ended September 30, 2026, decreased to $82.7 million from $83.1 million, or by 0.5%, as compared to the prior year period. Tuition revenue varies from period to period based on the number of students enrolled at our academic units, the number of and types of courses that students take, student payor source, the mix of programs students attend, the number of students starting courses each month during the period, and the timing of course starts each month or term. Military+ Segment revenue for the three months ended September 30, 2026 decreased primarily as a result of the timing of course starts in the three months ended September 30, 2026, when compared to the prior period. Military+ Segment net course registrations for the nine months ended September 30, 2026, increased to approximately 308,600 from approximately 298,800, an increase of 9,800, or 3.3%, as compared to the prior year period. Military+ Segment revenue for the nine months ended September 30, 2026, increased to $257.7 million from $248.8 million, or by 3.6%, as compared to the prior year period. Military+ Segment operating margin declined to 25.9% for the three months ended September 30, 2026, from 30.4% in the prior year period, and increased to 29.4% for the nine months ended September 30, 2026, from 28.5% in the prior year period.
Current report
Health+ Segment enrollment for the three months ended September 30, 2026, increased to approximately 19,100 from approximately 18,600, an increase of 500, or 2.5%, as compared to the prior year period. Health+ Segment revenue for the three months ended September 30, 2026, increased to $86.4 million from $79.3 million, or by 9.0%, as compared to the prior year period. Health+ Segment enrollment for the nine months ended September 30, 2026, increased approximately 5.5%, as compared to the prior year period. Health+ Segment revenue for the nine months ended September 30, 2026, increased to $258.0 million from $233.9 million, or by 10.3%, as compared to the prior year period. Health+ Segment operating margin improved to negative 2.2% for the three months ended September 30, 2026, from negative 2.7% in the prior year period, and improved to negative 0.4% for the nine months ended September 30, 2026, from negative 2.3% in the prior year period.
Current report
Nine Months Ended September 30, 2026, Compared to Nine Months Ended September 30, 2025
Current report
Loss on assets held for sale. We recognized $0.5 million and $1.5 million in non-cash losses on assets held for sale for real property located in Charles Town, West Virginia in our Military+ Segment, for the nine months ended September 30, 2026, and 2025, respectively.
Current report
For the nine months ended September 30, 2026, the $24.2 million, or 10.3%, increase to approximately $258.0 million of revenue in the Health+ Segment was primarily due to a 5.5% increase in total student enrollment which was driven by a
Current report
During 2026, the Company also entered into a five-year customer relationship management and student information system software agreement with total remaining contractual commitments exceeding $10 million as of September 30, 2026. In addition, subsequent to September 30, 2026 and prior to the issuance of these financial statements, the Company executed a five-year agreement for its learning management system with aggregate contractual commitments of approximately $6.2 million.
Removed paragraphs (7)
Previous report
ADN program at the St. Cloud campus, which offers the same curriculum, or, if academically eligible, (ii) transferring to the BSN program at the Fargo campus.
Previous report
State Authorization/Licensure of Our Institutions
Previous report
Military+ Segment net course registrations for the three months ended June 30, 2026, increased to approximately 98,300 from approximately 96,400, an increase of 1,900, or 2.0%, as compared to the prior year period. Military+ Segment revenue for the three months ended June 30, 2026, increased to $85.5 million from $81.7 million, or by 4.7%, as compared to the prior year period. Military+ Segment net course registrations for the six months ended June 30, 2026, increased to approximately 204,900 from approximately 198,900, an increase of 6,000, or 3.0%, as compared to the prior year period. Military+ Segment revenue for the six months ended June 30, 2026, increased to $175.0 million from $165.7 million, or by 5.6%, as compared to the prior year period. Military+ Segment operating margin increased to 27.7% for the three months ended June 30, 2026, from 26.2% in the prior year period, and increased to 31.1% for the six months ended June 30, 2026, from 27.5% in the prior year period.
Previous report
Health+ Segment total enrollment for the three months ended June 30, 2026, increased to approximately 19,600 from approximately 18,300, an increase of 1,300, or 6.6%, as compared to the prior year period. Health+ Segment revenue for the three months ended June 30, 2026, increased to $86.2 million from $77.7 million, or by 11.0%, as compared to the prior year period. Health+ Segment total enrollment for the six months ended June 30, 2026, increased approximately 7.0%, as compared to the prior year period. Health+ Segment revenue for the six months ended June 30, 2026, increased to $171.6 million from $154.6 million, or by 11.0%, as compared to the prior year period. Health+ Segment operating margin improved to 0.4% for the three months ended June 30, 2026, from negative 3.1% in the prior year period, and increased to 0.5% for the six months ended June 30, 2026, from negative 2.1% in the prior year period.
Previous report
$9.3 million increase in revenue, a $1.5 million decrease in loss on assets held for sale, and a $0.8 million decrease in employee compensation costs, partially offset by increases of $3.3 million in advertising costs and $1.2 million in bad debt expense, as compared to the prior year period.
Previous report
Revenue. Our consolidated revenue for the three months ended June 30, 2026, was $171.7 million, an increase of $8.9 million, or 5.5%, compared to $162.8 million for the three months ended June 30, 2025. Revenue increased primarily due to an $8.6 million, or 11.0%, increase in revenue in our Health+ Segment, and a $3.8 million, or 4.7%, increase in revenue in our
Previous report
Six Months Ended June 30, 2026, Compared to Six Months Ended June 30, 2025
Reworded paragraphs (67)
Previous wording
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.
Current wording
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 brands 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.
Previous wording
•the branding and marketing of our institutions;
Current wording
•our branding and marketing of our academic units;
Previous wording
•our ability to leverage our investments in support of our initiatives, students, and institutions;
Current wording
•our ability to leverage our investments in support of our initiatives, students, and academic units;
Previous wording
•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;
Current wording
•actions by the Department of War, or DoW, or branches of the U.S. Armed Forces, including actions related to participating in DoW tuition assistance, or TA, programs, our responses to those actions, and expectations regarding the effects of those actions and responses;
Previous wording
•our dependence on the effectiveness of our ability to attract students who persist in our institutions’ programs;
Current wording
•our dependence on the effectiveness of our ability to attract students who persist in our programs;
Previous wording
•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;
Current wording
•adverse effects of changes our academic units make to improve the student experience and enhance each unit’s ability to identify and enroll students who are likely to succeed;
Previous wording
•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;
Current wording
•risks associated with the recent 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;
Previous wording
•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;
Current wording
•our loss of eligibility to participate in student financial aid programs authorized under Title IV, or Title IV programs, of the Higher Education Act of 1965, as amended, or the HEA, or ability to process Title IV financial aid;
Previous wording
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
Current wording
We are a provider of online and campus-based postsecondary education to approximately 106,600 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 is certified by ED to participate in
Previous wording
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.
Current wording
In January 2025, we announced the Combination, a process that after two steps resulted in the System, a combined Higher Learning Commission, or HLC, 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 APUS, RU, and HCN, 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.
Previous wording
•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.
Current wording
•Our Military+ Segment, which was formerly the APUS Segment, provides online postsecondary education to approximately 87,500 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 September 30, 2026, approximately 61% of Military+ Segment students self-reported that they served in the military on active duty at the time of initial enrollment.
Previous wording
•Health+ Segment, consisting of the businesses that formerly comprised the RU Segment and the HCN Segment, provides nursing- and health sciences-focused and other postsecondary education, including business, technology, and education. Health+ Segment provides these education services to approximately 19,600 students at 27 campuses in eight states and online (excluding one campus being closed as of July 31, 2026) through RU and HCN. As of June 30, 2026, on-ground enrollment was approximately 11,100, and online enrollment was approximately 8,500 students.
Current wording
•Our Health+ Segment, consisting of the businesses that formerly comprised the RU Segment and the HCN Segment, provides nursing- and health sciences-focused and other postsecondary education, including business, technology, and education. Health+ Segment provides these education services to approximately 19,100 students at 27 campuses in eight states and online through RU and HCN. As of September 30, 2026, on-ground enrollment was approximately 11,100, and online enrollment was approximately 8,000 students.
Previous wording
We were required to obtain HLC approval prior to effectuating the Combination, and pursuant to ED’s requirements, undertook the Combination in two steps: (i) the Legal Merger and (ii) the Institutional Combination. In February 2026, HLC approved the continuation of accreditation of APUS and RU after the Legal Merger with an acknowledgment that the intent is to consolidate the three institutions into one HLC accreditation. On April 28, 2026, HLC approved the continuation of accreditation after the Institutional Combination, and on June 12, 2026, HLC reaffirmed that approval. HLC has scheduled a site visit in August 2026 in connection with the Legal Merger. On August 4, 2026, ED approved, and we completed, the Institutional Combination. For additional details regarding regulatory treatment of the Combination, see the Regulatory Environment in our Annual Report captioned “Regulatory Environment – Accreditation – Institutional Accreditation” and “Regulatory Environment – Accreditation – The Planned Combination of APUS, RU, and HCN”, and for additional information regarding risks related to the Combination, see the Risk Factor in our Annual Report with the caption beginning “The planned combination of APUS, RU, and HCN...”.
Current wording
We were required to obtain HLC approval prior to effectuating the Combination, and pursuant to ED’s requirements, undertook the Combination in two steps: (i) the Legal Merger and (ii) the Institutional Combination. In February 2026, HLC approved the continuation of accreditation of APUS and RU after the Legal Merger and acknowledged our intent to consolidate the three institutions into one HLC accreditation. On April 24, 2026, HLC approved the continuation of accreditation following the Institutional Combination, and on June 12, 2026, and July 10, 2026, HLC reaffirmed that approval. On August 4, 2026, ED approved, and we completed, the Institutional Combination. HLC performed a site visit on August 18, 2026, in connection with the Legal Merger and the Institutional Combination. In connection with the Institutional Combination, HCN voluntarily relinquished its Accrediting Bureau of Health Education Schools institutional accreditation, effective August 7, 2026.
Previous wording
In June 2025, the Minnesota Board of Nursing, or MBN, issued a stipulation and consent order requiring RU’s Moorhead, Minnesota ADN program to, among other things, reach applicable NCLEX pass rate standards by June 30, 2026. The Moorhead, Minnesota ADN program was not anticipated to reach the applicable NCLEX pass rates by June 30, 2026, so on June 1, 2026, RU informed MBN that it intends to voluntarily close its Moorhead, Minnesota ADN program effective December 31, 2027. All current students enrolled in the Moorhead, Minnesota ADN program currently have expected graduation dates on or before the date RU intends to close the program, and enrollment currently represents approximately 120 students, or less than 1% of Health+’s current total enrollment. Moorhead ADN students whose expected completion dates extend beyond December 31, 2027, will have several academic pathways available within RU, including: (i) transferring to the
Current wording
In June 2025, the Minnesota Board of Nursing, or MBN, issued a stipulation and consent order requiring RU’s Moorhead, Minnesota Associate Degree in Nursing, or ADN program to, among other things, reach applicable NCLEX pass rate standards by June 30, 2026. The program was not anticipated to reach the standards by that date, and so on June 1, 2026, RU informed MBN that it intends to voluntarily close the program effective December 31, 2027. Current enrollment in the Moorhead, Minnesota ADN program is approximately 85 students, or less than 1% of Health+’s current total enrollment. Most current students enrolled in the Moorhead, Minnesota ADN program currently have expected graduation dates on or before the date RU intends to close the program. Internal degree completion pathways will be made available to those Moorhead, Minnesota ADN students whose expected completion dates extend beyond December 31, 2027.
Previous wording
Between May 1, 2026 and July 31, 2026, our institutions received 69 BDTR claims from ED, seeking in the aggregate a discharge of approximately $1.5 million in loans. Each of our institutions disputes the validity of these claims and has filed responses to them with ED. We are unable to predict whether ED will grant BDTR relief for the claims, or if so, whether it will seek recoupment from our institutions. For additional information regarding risks related to BDTR claims, see the Risk Factor in our Annual Report captioned “ED rules related to BDTR claims may create significant liability that could have an adverse effect on our business and results of operations”.
Current wording
Between August 1, 2026 and October 31, 2026, our academic units received 340 BDTR claims from ED, seeking in the aggregate a discharge of approximately $7.2 million in loans. Our academic units dispute the validity of these claims and have filed responses to them with ED. We are unable to predict whether ED will grant BDTR relief for the claims, or if so, whether it will seek recoupment from us. For additional information regarding risks related to BDTR claims, see the Risk Factor in our Annual Report captioned “ED rules related to BDTR claims may create significant liability that could have an adverse effect on our business and results of operations”.
Previous wording
On May 1, 2026, ED published a rule, effective July 1, 2026, relating to One Big Beautiful Bill Act, or OBBBA, student loan provisions, defining “professional degree” programs and changing federal student loan programs. The loan changes could reduce student enrollment, increase reliance on private loans, reduce funding for enrolled students, and increase administrative burdens. On June 24, 2026, pending resolution of a court challenge, a U.S. district court preliminarily stayed a portion of the rule’s “professional degree” definition that, among other things, excludes certain advanced nursing degrees. On June 29, 2026, ED reinstated certain advanced nursing degrees as “professional degree” programs during the stay and announced its continued defense of the rule’s definition. There is no assurance as to the stay’s duration or any responsive actions ED may take to the court challenge.
Current wording
On May 1, 2026, ED published a rule, effective July 1, 2026, relating to student loan provisions in the One Big Beautiful Bill Act, or OBBBA. The rule modifies the definition of “professional degree” programs and makes other changes to the federal student loan programs, including changes to federal loan limits. The loan changes could reduce student enrollment, increase student reliance on private loans, reduce funding for enrolled students, and increase administrative burdens. On June 24, 2026, pending resolution of a court challenge, a U.S. district court preliminarily stayed a portion of the rule’s “professional degree” definition that, among other things, excludes certain advanced nursing degrees. On June 29, 2026, ED issued guidance that identifies certain advanced nursing degrees as “professional degree” programs during the stay, and it announced its continued defense of the rule’s definition. There is no assurance as to the stay’s duration or any responsive actions ED may take to the court challenge.
Previous wording
On July 1, 2026, ED published a rule for the OBBBA accountability framework, the Student Tuition and Transparency System, or STATS, and Earnings Accountability framework, generally effective July 1, 2027, with certain reporting changes effective July 1, 2026. Under the rule, for programs to remain eligible for Direct Loans, median annual earnings of graduates must meet specified levels. Programs failing to meet the standard for two of three consecutive years will lose eligibility, and institutions will also lose Title IV eligibility for programs failing to satisfy the measure if at least half their Title IV recipients and half their Title IV funds come from failing programs. Institutions will be required to warn those enrolled in or seeking to enroll in failing programs. Beginning August 31, 2026, ED will amend existing program participation agreements, or PPAs, that condition participation in Title IV programs on compliance with ED regulations and any additional PPA-specified conditions to condition Direct Loan eligibility on incorporation of the STATS and Earnings Accountability framework.
Current wording
On July 1, 2026, ED published a rule for the OBBBA accountability framework, the Student Tuition and Transparency System, or STATS, and Earnings Accountability framework, generally effective July 1, 2027, with certain reporting changes effective July 1, 2026. Under the rule, for programs to remain eligible for Direct Loans, median annual earnings of program graduates must meet specified earnings thresholds. Programs failing to meet the standard for two of three consecutive years will lose eligibility for Direct Loans, and institutions will also lose other Title IV eligibility for programs failing to satisfy the measure if at least half their Title IV recipients or half their Title IV funds come from failing programs. Institutions will be required to warn students enrolled in or seeking to enroll in failing programs.
Previous wording
The State of Illinois enacted legislation effective January 2024 that changed the Illinois NCLEX pass rate requirements from a one-year measurement based on first attempts to a three-year average that includes all test attempts, and temporarily removed all nursing programs, including RU’s Illinois ADN program, from probationary status until September 2026, or the probationary status moratorium. On July 10, 2026, the State of Illinois enacted legislation regarding measurement of NCLEX pass rates and of nursing education programs that fail to satisfy the requisite pass rate following expiry of the probationary status moratorium. The legislation prevents programs from being placed on probation until calendar year 2026 NCLEX results can be measured and provides that any program with a calendar year 2026 pass rate below the 75% threshold will receive a written warning of noncompliance from the Illinois Department of Financial and Professional Regulation, or IDFPR, rather than being placed on probationary status. The IDFPR has publicly reported that RU’s Illinois ADN program has not met the required NCLEX pass rate for the prior six years. RU’s Illinois ADN program is currently approved; however, there can be no assurance that IDFPR will not seek to impose different or additional requirements as a result of failures to satisfy the required NCLEX pass rate for consecutive years.
Current wording
The State of Illinois enacted legislation effective January 2024 that temporarily removed all nursing programs, including RU’s Illinois ADN program, from probationary status until September 2026, or the probationary status moratorium. On July 10, 2026, the State of Illinois enacted legislation regarding measurement of NCLEX pass rates and of nursing education programs that fail to satisfy the requisite pass rate following expiry of the probationary status moratorium. The legislation prevents programs from being placed on probation until calendar year 2026 NCLEX results can be measured and provides that any program with a calendar year 2026 pass rate below the 75% threshold will receive a written warning of noncompliance from the Illinois Department of Financial and Professional Regulation, or IDFPR, rather than being placed on probationary status. The IDFPR has publicly reported that RU’s Illinois ADN program has not met the required NCLEX pass rate for the prior six years. RU’s Illinois ADN program is currently approved; however, there can be no assurance that IDFPR will not seek to impose different or additional requirements as a result of failures to satisfy the required NCLEX pass rate for consecutive years.
Previous wording
Consolidated revenue for the three months ended June 30, 2026, increased to $171.7 million from $162.8 million, or by 5.5%, as compared to the prior year period. The growth was primarily driven by increased enrollment in our Health+ Segment and higher net course registrations in our Military+ Segment, partially offset by the absence of revenue from GSUSA due to its sale in July 2025. Our net income for the three months ended June 30, 2026, was $9.8 million, compared to $4.5 million in the prior year period, an increase of $5.3 million. The increase in net income for the three months ended June 30, 2026, was primarily related to the increase in revenue of $8.9 million, partially offset by an increase in operating expenses of $2.5 million, as compared to the prior year period. Our operating margin improved to 7.9% for the three months ended June 30, 2026, as compared to 4.3% in the prior year period.
Current wording
Consolidated revenue for the three months ended September 30, 2026, increased to $169.1 million from $163.2 million, or by 3.6%, as compared to the prior year period. The growth was primarily driven by increased enrollment in our Health+ Segment, which was partially offset by the absence of revenue from GSUSA due to its sale in July 2025. Our net income for the three months ended September 30, 2026, was $5.9 million, compared to $5.6 million in the prior year period, an increase of $0.3 million. The increase in net income for the three months ended September 30, 2026, was primarily related to the increase in revenue of $5.9 million and an increase in net interest income of $1.5 million, partially offset by an increase in operating expenses of $7.7 million, as compared to the prior year period. Our operating margin declined to 4.7% for the three months ended September 30, 2026, as compared to 5.9% in the prior year period.
Previous wording
Consolidated revenue for the six months ended June 30, 2026, increased to $346.5 million from $327.3 million, or by 5.9%, as compared to the prior year period. The growth was primarily driven by increased enrollment in our Health+ Segment and higher net course registrations in our Military+ Segment, partially offset by the absence of revenue from GSUSA due to its sale in July 2025. Our net income for the six months ended June 30, 2026, was $27.5 million, compared to $13.4 million in the prior year period, an increase of $14.1 million. The increase in net income for the six months ended June 30, 2026, was primarily related to the increase in revenue of $19.2 million, partially offset by an increase in operating expenses of $3.3 million and the extinguishment of debt of $1.7 million, as compared to the prior year period. Our operating margin improved to 10.2% for the six months ended June 30, 2026, as compared to 5.9% in the prior year period.
Current wording
Consolidated revenue for the nine months ended September 30, 2026, increased to $515.6 million from $490.5 million, or by 5.1%, as compared to the prior year period. The growth was primarily driven by increased enrollment in our Health+ Segment and higher net course registrations in our Military+ Segment, partially offset by the absence of revenue from GSUSA due to its sale in July 2025. Our net income for the nine months ended September 30, 2026, was $33.4 million, compared to $18.9 million in the prior year period, an increase of $14.4 million. The increase in net income for the nine months ended September 30, 2026, was primarily related to the increase in revenue of $25.1 million, partially offset by an increase in operating expenses of $11.0 million and the extinguishment of debt of $1.7 million, as compared to the prior year period. Our operating margin improved to 8.4% for the nine months ended September 30, 2026, as compared to 5.8% in the prior year period.
Previous wording
Our financial results for the three and six months ended June 30, 2025, reflect the financial results of GSUSA in Corporate and Other.
Current wording
Our financial results for the three and nine months ended September 30, 2025, reflect the financial results of GSUSA in Corporate and Other.
Previous wording
During the three months ended June 30, 2026, in connection with the preparation of this Quarterly Report, we performed a qualitative assessment of our Health+ Segment goodwill and indefinite-lived intangible assets. As part of the assessment, we considered the events and circumstances expressly required by ASC 350, in addition to other entity-specific factors. Factors considered included financial and enrollment performance against internal targets, economic factors, and the continued favorable growth outlook for nursing education. After completing the qualitative review of goodwill and indefinite-lived intangible assets, the Company concluded it was more likely than not that the fair value of our Health+ Segment was more than the respective carrying value, and therefore, no quantitative impairment test and no impairment charge was necessary.
Current wording
During the three months ended September 30, 2026, in connection with the preparation of this Quarterly Report, we performed a routine qualitative assessment of our Health+ Segment goodwill and indefinite-lived intangible assets. As part of the assessment, we considered the events and circumstances expressly required by ASC 350, in addition to other entity-specific factors. Factors considered included financial and enrollment performance against internal targets, economic factors, and the continued favorable growth outlook for nursing education. After completing the qualitative review of goodwill and indefinite-lived intangible assets, the Company concluded it was more likely than not that the fair value of our Health+ Segment was more than its carrying value, and therefore, no quantitative impairment test and no impairment charge was necessary.
Previous wording
Significant assumptions inherent to valuation methodologies for goodwill and indefinite-lived intangible assets include, but are not limited to, prospective financial information, growth rates, terminal value, discount rates, and comparable multiples from publicly traded companies in the higher education market. Future changes, including minor changes in the significant assumption or other factors including revenue, operating income, valuation multiples, and other inputs to the valuation process may result in future impairment charges, and those charges could be material.
Current wording
Significant assumptions inherent to valuation methodologies for goodwill and indefinite-lived intangible assets include, but are not limited to, prospective financial information, growth rates, terminal value, discount rates, and comparable multiples from publicly traded companies in the higher education market. Future changes, including minor changes in significant assumptions or other factors, including revenue, operating income, valuation multiples, and other inputs to the valuation process may result in future impairment charges, and those charges could be material.
Previous wording
Below we have included a discussion of our operating results and material changes in our operating results during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025. Our revenue and operating results normally fluctuate as a result of seasonal or other variations in our enrollments and the level of expenses in our reportable segments. Our student population varies as a result of new enrollments, graduations, student attrition, the success of our marketing programs, and other reasons that we cannot always anticipate. We expect quarterly fluctuations in operating results to continue as a result of various enrollment patterns and changes in revenue and expenses.
Current wording
Below we have included a discussion of our operating results and material changes in our operating results during the three and nine months ended September 30, 2026, compared to the three and nine months ended September 30, 2025. Our revenue and operating results normally fluctuate as a result of seasonal or other variations in our enrollments and the level of expenses in our reportable segments. Our student population varies as a result of new enrollments, graduations, student attrition, the success of our marketing programs, and other reasons that we cannot always anticipate. We expect quarterly fluctuations in operating results to continue as a result of various enrollment patterns and changes in revenue and expenses.
Previous wording
Military+ Segment net course registrations for the three months ended June 30, 2026, increased to approximately 98,300 from approximately 96,400, an increase of 1,900, or 2.0%, as compared to the prior year period primarily due to increases in military registrations from students utilizing TA and financial aid. Military+ Segment net course registrations for the six months ended June 30, 2026, increased to approximately 204,900 from approximately 198,900, an increase of 6,000, or 3.0%, as compared to the prior year period primarily due to increases in military registrations from students utilizing TA, financial aid, and military-affiliated students utilizing education benefit programs administered by the U.S. Department of Veterans Affairs, or VA. Operating margin increased to 27.7% for the three months ended June 30, 2026, from 26.2% in the prior year period and increased to 31.1% for the six months ended June 30, 2026, from 27.5% in the prior year period. Operating margin for the three months ended June 30, 2026, increased primarily due to the $3.8 million increase in revenue and a $0.8 million decrease in employee compensation costs, partially offset by a $2.0 million increase in advertising costs, as compared to the prior year period. Operating margin for the six months ended June 30, 2026, increased primarily due to the
Current wording
Military+ Segment net course registrations for the three months ended September 30, 2026, increased to approximately 103,800 from approximately 100,000, an increase of 3,800, or 3.8%, as compared to the prior year period primarily due to increases in military registrations from students utilizing TA and increases in students utilizing financial aid. Military+ Segment net course registrations for the nine months ended September 30, 2026, increased to approximately 308,600 from approximately 298,800, an increase of 9,800, or 3.3%, as compared to the prior year period primarily due to increases in military registrations from students utilizing TA, students utilizing financial aid, and military-affiliated students utilizing education benefit programs administered by the U.S. Department of Veterans Affairs, or VA. Operating margin decreased to 25.9% for the three months ended September 30, 2026, from 30.4% in the prior year period and increased to 29.4% for the nine months ended September 30, 2026, from 28.5% in the prior year period. Operating margin for the three months ended September 30, 2026, decreased primarily due to an increase of $2.1 million in advertising costs, as compared to the prior year period. Operating margin for the nine months ended September 30, 2026, increased primarily due to the $8.9 million increase in revenue, a $3.7 million decrease in employee compensation costs, and a $1.0 million decrease in loss on assets held for sale, partially offset by an increase of $5.3 million in advertising costs, as compared to the prior year period.
Previous wording
Health+ Segment total enrollment for the three months ended June 30, 2026, increased to approximately 19,600 from approximately 18,300, an increase of 1,300, or 6.6%, as compared to the prior year period, driven by an 9.2% increase in on-ground enrollment and a 3.4% increase in online enrollment. Health+ Segment total enrollment for the six months ended June 30, 2026, increased approximately 7.0%, as compared to the prior year period, driven by a 9.0% increase in on-ground enrollment and a 4.6% increase in online enrollment. Health+ Segment operating margin improved to 0.4% for the three months ended June 30, 2026, from negative 3.1%, in the prior year period. The improvement in the operating margin for the three months ended June 30, 2026, was primarily due to the $8.6 million revenue increase, partially offset by increases of $3.1 million in advertising costs, $1.4 million in employee compensation costs, and $1.0 million in information technology costs, as compared to the prior year period. Health+ Segment operating margin improved to 0.5% for the six months ended June 30, 2026, from negative 2.1%, in the prior year period. The improvement in the operating margin for the six months ended June 30, 2026, was primarily due to the $17.0 million revenue increase, partially offset by increases of $4.9 million in advertising costs, $3.2 million in classroom and course materials costs, $2.7 million in employee compensation costs, $1.4 million in bad debt expense, and $1.3 million in technology costs, as compared to the prior year period.
Current wording
Health+ Segment total enrollment for the three months ended September 30, 2026, increased to approximately 19,100 from approximately 18,600, an increase of 500, or 2.5%, as compared to the prior year period, driven by a 6.8% increase in on-ground enrollment partially offset by a 2.9% decrease in online enrollment. Health+ Segment total enrollment for the nine months ended September 30, 2026, increased approximately 5.5%, as compared to the prior year period, driven by a 8.2% increase in on-ground enrollment and a 2.1% increase in online enrollment. Health+ Segment operating margin improved to a negative 2.2% for the three months ended September 30, 2026, from negative 2.7%, in the prior year period. The improvement in the operating margin for the three months ended September 30, 2026, was primarily due to the $7.2 million revenue increase, partially offset by increases of $2.6 million in bad debt expense caused by higher student receivable balances resulting from delays in Title IV financial aid processing due to delays in ED’s effectuation of changes in its system to reflect the Combination and to a lesser degree by changes a vendor made to its systems to mitigate a cybersecurity risk, $2.3 million in advertising costs, and $2.3 million in employee compensation costs, as compared to the prior year period. Health+ Segment operating margin improved to a negative 0.4% for the nine months ended September 30, 2026, from negative 2.3% in the prior year period. The improvement in the operating margin for the nine months ended September 30, 2026, was primarily due to the $24.2 million revenue increase, a $1.2 million decrease in occupancy costs, partially offset by increases of $7.2 million in advertising costs, $4.7 million in employee compensation costs, $3.9 million in bad debt expense, and $3.1 million in classroom and course materials costs, as compared to the prior year period.
Previous wording
Military+ Segment, partially offset by a $3.4 million decrease in GSUSA revenue included in Corporate and Other for the period prior to the GSUSA Sale Date. Our Health+ Segment revenue increase was primarily due to a 6.6% increase in total student enrollment and the impact of tuition increases in the second half of 2025. Our Military+ Segment revenue increase was primarily due to a 2.0% increase in net course registrations, as compared to the prior year period.
Current wording
Revenue. Our consolidated revenue for the three months ended September 30, 2026, was $169.1 million, an increase of $5.9 million, or 3.6%, compared to $163.2 million for the three months ended September 30, 2025. Revenue increased primarily due to a $7.2 million, or 9.0%, increase in revenue in our Health+ Segment, partially offset by a $0.8 million decrease in GSUSA revenue included in Corporate and Other for the period prior to the GSUSA Sale Date, and a $0.4 million, or 0.5%, decrease in revenue in our Military+ Segment. Our Health+ Segment revenue increase was primarily due to a 2.5% increase in total student enrollment and the impact of tuition increases in the second half of 2025. Our Military+ Segment revenue decrease was primarily due to the timing of course starts in the three months ended September 30, 2026, when compared to the prior year period.
Previous wording
Costs and expenses. Costs and expenses for the three months ended June 30, 2026, were $158.2 million, an increase of $2.5 million, or 1.6%, compared to $155.7 million for the three months ended June 30, 2025. Costs and expenses for the three months ended June 30, 2026, include $0.9 million in professional fees related to the Combination in Corporate and Other. The results in the prior year period included $1.7 million in professional fees in Corporate and Other relating to the Combination and the sale of GSUSA. Costs and expenses for the three months ended June 30, 2026, as compared to the prior year period, excluding the items noted above, increased $3.3 million, or 2.1%, primarily due to increases of $5.1 million in advertising costs to drive increases in registrations and enrollment, $1.3 million in technology costs, and $1.2 million in bad debt expense, partially offset by a decrease of $6.0 million in Corporate and Other due to the sale of GSUSA. Costs and expenses as a percentage of revenue decreased to 92.1% for the three months ended June 30, 2026, from 95.7% for the three months ended June 30, 2025.
Current wording
Costs and expenses. Costs and expenses for the three months ended September 30, 2026, were $161.2 million, an increase of $7.7 million, or 5.0%, compared to $153.5 million for the three months ended September 30, 2025. Costs and expenses for the three months ended September 30, 2026, include $1.5 million in severance costs across both segments, $0.9 million in professional fees related to the Combination in Corporate and Other, and a $0.5 million non-cash loss on assets held for sale in our Military+ Segment. The results in the prior year period included a $3.9 million loss on sale of subsidiary in Corporate and Other related to the sale of GSUSA, $0.8 million in professional fees in Corporate and Other relating to the Combination and the sale of GSUSA, $0.6 million in severance costs in our Health+ Segment and Corporate and Other, and a $0.1 million loss on leases in our Health+ Segment. Costs and expenses for the three months ended September 30, 2026, as compared to the prior year period, excluding the items noted above, increased $10.2 million, or 6.9%, primarily due to increases of $4.4 million in advertising costs across both segments to drive increases in registrations and enrollment, $2.6 million in bad debt expense in our Health+ Segment caused by higher student receivable balances resulting from delays in Title IV financial aid processing due to delays in ED’s effectuation of changes in its system to reflect the Combination and to a lesser degree by changes a vendor made to its systems to mitigate a cybersecurity risk, $1.9 million in professional services costs primarily in Corporate and Other, and $1.7 million in other employee compensation costs primarily in our Health+ Segment, partially offset by a decrease of $1.7 million in Corporate and Other due to the sale of GSUSA in 2025. Costs and expenses as a percentage of revenue increased to 95.3% for the three months ended September 30, 2026, from 94.1% for the three months ended September 30, 2025.
Previous wording
Instructional costs and services expenses. Our instructional costs and services expenses for the six months ended June 30, 2026, were $151.3 million, a decrease of $2.1 million, or 1.4%, compared to $153.4 million for the six months ended June 30, 2025. Instructional costs and services expenses decreased primarily due to the $6.2 million decrease in Corporate and Other due to the sale of GSUSA, a $2.2 million decrease in employee compensation costs in our Military+ Segment primarily due to a change in its part-time faculty compensation plan, and a $0.8 million decrease in occupancy costs in our Health+ Segment related to campus and office space closures in 2025, partially offset by increases of $3.2 million in classroom and course material costs due to increased vendor costs and enrollment, and $2.9 million in employee compensation costs in our Health+ Segment related to increased enrollment. Instructional costs and services expenses as a percentage of revenue decreased to 43.7% for the six months ended June 30, 2026, from 46.9% for the six months ended June 30, 2025.
Current wording
Instructional costs and services expenses. Our instructional costs and services expenses for the three months ended September 30, 2026, were $74.9 million, an increase of $0.2 million, or 0.3%, compared to $74.7 million for the three months ended September 30, 2025. Instructional costs and services expenses increased primarily due to a $2.4 million increase in employee compensation costs in our Health+ Segment related to increased enrollment and severance costs, partially offset by the $0.9 million decrease in Corporate and Other due to the sale of GSUSA in 2025 and a $0.6 million decrease in employee compensation costs in our Military+ Segment primarily due to a change in its part-time faculty compensation plan. Instructional costs and services expenses as a percentage of revenue decreased to 44.3% for the three months ended September 30, 2026, from 45.8% for the three months ended September 30, 2025.
Previous wording
Selling and promotional expenses. Our selling and promotional expenses for the three months ended June 30, 2026, were $40.1 million, an increase of $5.1 million, or 14.5%, compared to $35.0 million for the three months ended June 30, 2025. Selling and promotional expenses increased primarily due to an increase of $5.1 million in advertising costs across both segments to further drive enrollment. Selling and promotional expenses as a percentage of revenue increased to 23.4% for the three months ended June 30, 2026, from 21.5% for the three months ended June 30, 2025.
Current wording
Selling and promotional expenses. Our selling and promotional expenses for the three months ended September 30, 2026, were $41.8 million, an increase of $5.7 million, or 15.7%, compared to $36.1 million for the three months ended September 30, 2025. Selling and promotional expenses increased primarily due to an increase of $4.4 million in total advertising costs across both segments to further drive enrollment. Selling and promotional expenses as a percentage of revenue increased to 24.7% for the three months ended September 30, 2026, from 22.1% for the three months ended September 30, 2025.
Previous wording
General and administrative expenses. Our general and administrative expenses for the three months ended June 30, 2026, were $37.5 million, a decrease of $0.7 million, or 1.7%, compared to $38.1 million for the three months ended June 30, 2025. For the three months ended June 30, 2026 and 2025, general and administrative expenses included $0.9 million and $1.4 million, respectively, in professional fees relating to the Combination in Corporate and Other. General and administrative expenses decreased primarily due to a $1.9 million decrease in Corporate and Other due to the sale of GSUSA, partially offset by a $1.2 million increase in bad debt expense in both segments. Consolidated bad debt expense for the three months ended June 30, 2026, was $5.9 million, or 3.4% of revenue, compared to $4.8 million, or 3.0% of revenue in the prior year period. General and administrative expenses as a percentage of revenue decreased to 21.8% for the three months ended June 30, 2026, from 23.4% for the three months ended June 30, 2025. As we continue to evaluate enhancements to our business capabilities, we may incur additional costs, and our general and administrative expenses will vary from time to time.
Current wording
General and administrative expenses. Our general and administrative expenses for the three months ended September 30, 2026, were $39.3 million, an increase of $4.6 million, or 13.3%, compared to $34.7 million for the three months ended September 30, 2025. For the three months ended September 30, 2026, and 2025, general and administrative expenses included $0.9 million and $0.8 million, respectively, in professional fees relating to the Combination in Corporate and Other. General and administrative expenses increased primarily due to increases of $2.3 million in professional services costs primarily in Corporate and Other and $2.2 million in bad debt expense primarily in our Health+ Segment, partially offset by the $0.5 million decrease in Corporate and Other due to the sale of GSUSA in 2025. Consolidated bad debt expense for the three months ended September 30, 2026, was $7.7 million, or 4.6% of revenue, compared to $5.6 million, or 3.4% of revenue in the prior year period, which is primarily due to higher student receivable balances resulting from delays in Title IV financial aid processing due to delays in ED’s effectuation of changes in its system to reflect the Combination and to a lesser degree due to changes a vendor made to its systems to mitigate a cybersecurity risk. General and administrative expenses as a percentage of revenue increased to 23.2% for the three months ended September 30, 2026, from 21.3% for the three months ended September 30, 2025. As we continue to evaluate enhancements to our business capabilities, we may incur additional costs, and our general and administrative expenses will vary from time to time.
Previous wording
Depreciation and amortization expenses. Depreciation and amortization expenses were $4.0 million for the three months ended June 30, 2026, compared to $4.1 million in the prior year period, a decrease of $0.1 million. Depreciation and amortization expenses as a percentage of revenue were 2.3% and 2.5% for the three months ended June 30, 2026, and 2025, respectively.
Current wording
Depreciation and amortization expenses. Depreciation and amortization expenses were $4.0 million for the three months ended September 30, 2026, compared to $3.9 million in the prior year period, an increase of $0.1 million. Depreciation and amortization expenses as a percentage of revenue were 2.3% and 2.4% for the three months ended September 30, 2026, and 2025, respectively.
Previous wording
Loss on assets held for sale. There were no losses on assets held for sale in the six months ended June 30, 2026. For the six months ended June 30, 2025, the $1.5 million non-cash loss on assets held for sale was for real property in Charles Town, West Virginia in our Military+ Segment.
Current wording
Loss on assets held for sale. For the three months ended September 30, 2026, the $0.5 million non-cash loss on assets held for sale is for real property located in Charles Town, West Virginia in our Military+ Segment. There was no loss on assets held for sale in the prior year.
Previous wording
Loss on disposals of long-lived assets. The loss on disposal of long-lived assets was $0.2 million for the six months ended June 30, 2026, as compared to $0.3 million for the six months ended June 30, 2025.
Current wording
Loss on disposals of long-lived assets. The loss on disposals of long-lived assets was $0.7 million for the three months ended September 30, 2026, as compared to $0.1 million for the three months ended September 30, 2025.
Previous wording
Stock-based compensation expenses. Stock-based compensation expenses included in instructional costs and services, selling and promotional, and general and administrative expenses were $2.2 million for each of the three months ended June 30, 2026, and 2025, respectively. Stock-based compensation costs included accelerated expense for retirement-eligible employees and performance stock unit incentive costs.
Current wording
Stock-based compensation expenses. Stock-based compensation expenses included in instructional costs and services, selling and promotional, and general and administrative expenses were $2.1 million and $1.6 million for the three months ended September 30, 2026, and 2025, respectively. Stock-based compensation costs included accelerated expense for retirement-eligible employees and performance stock unit incentive costs.
Previous wording
Interest income (expense), net. Interest income, net of interest expense and other income, was $0.6 million for the three months ended June 30, 2026, compared to interest expense, net of interest income and other income of $1.1 million, in the prior year period. The increase in net interest income in the three months ended June 30, 2026, as compared to the prior year period, was primarily due to a decrease in interest expense due to the refinance of corporate debt and an increase in interest income earned on investment securities, for the comparable periods.
Current wording
Interest income (expense), net. Interest income, net of interest expense and other income, was $0.5 million for the three months ended September 30, 2026, compared to interest expense, net of interest income and other income of $1.1 million in the prior year period. The increase in net interest income in the three months ended September 30, 2026, as compared to the prior year period, was primarily due to a decrease in interest expense due to the refinance of corporate debt and an increase in interest income earned on investment securities, for the comparable periods.
Previous wording
Income tax expense. We recognized income tax expense of $4.4 million and $1.4 million for the three months ended June 30, 2026, and 2025, respectively, or an effective tax rate of 31.0% in 2026 and 24.0% in 2025. The effective tax rate in 2026 was impacted by higher non-deductible expenses, when compared to the prior period.
Current wording
Income tax expense. We recognized income tax expense of $2.5 million and $3.1 million for the three months ended September 30, 2026, and 2025, respectively, or an effective tax rate of 29.6% in 2026 and 35.6% in 2025. The effective tax rate was negatively impacted by higher non-deductible compensation expenses in relation to pretax income in the prior period.
Previous wording
Net income. Our net income was $9.8 million and $4.5 million for the three months ended June 30, 2026, and 2025, respectively, an increase of $5.3 million. This increase was due to the factors discussed above.
Current wording
Net income. Our net income was $5.9 million and $5.6 million for the three months ended September 30, 2026, and 2025, respectively, an increase of $0.3 million. This increase was due to the factors discussed above.
Previous wording
Net income (loss) available to common stockholders. The net income available to common stockholders was $9.8 million for the three months ended June 30, 2026, compared to a net loss available to common stockholders of $0.3 million for the three months ended June 30, 2025, an improvement of $10.1 million. This improvement was due to the factors discussed above.
Current wording
Net income (loss) available to common stockholders. The net income available to common stockholders was $5.9 million for the three months ended September 30, 2026, compared to net income available to common stockholders of $5.6 million for the three months ended September 30, 2025, an improvement of $0.3 million. This improvement was due to the factors discussed above.
Previous wording
Revenue. Our consolidated revenue for the six months ended June 30, 2026, was $346.5 million, an increase of $19.2 million, or 5.9%, compared to $327.3 million for the six months ended June 30, 2025. Revenue increased primarily due to a $17.0 million, or 11.0%, increase in revenue in our Health+ Segment, and a $9.3 million, or 5.6%, increase in revenue in our Military+ Segment, partially offset by a $7.1 million decrease in GSUSA revenue included in Corporate and Other for the period prior to the GSUSA Sale Date. Our Health+ Segment revenue increase was primarily due to a 7.0% increase in total student enrollment and the impact of tuition increases in the second half of 2025. Our Military+ Segment revenue increase was primarily due to a 3.0% increase in net course registrations, as compared to the prior year period.
Current wording
Revenue. Our consolidated revenue for the nine months ended September 30, 2026, was $515.6 million, an increase of $25.1 million, or 5.1%, compared to $490.5 million for the nine months ended September 30, 2025. Revenue increased primarily due to a $24.2 million, or 10.3%, increase in revenue in our Health+ Segment, and an $8.9 million, or 3.6%, increase in revenue in our Military+ Segment, partially offset by an $8.0 million decrease in GSUSA revenue included in Corporate and Other for the period prior to the GSUSA Sale Date. Our Health+ Segment revenue increase was primarily due to a 5.5% increase in total student enrollment and the impact of tuition increases in the second half of 2025. Our Military+ Segment revenue increase was primarily due to a 3.3% increase in net course registrations, as compared to the prior year period.
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Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
For additional details regarding regulatory treatment of the Combination, see the Regulatory Environment in our Annual Report captioned “Regulatory Environment – Accreditation – Institutional Accreditation” and “Regulatory Environment – Accreditation – The Planned Combination of APUS, RU, and HCN”, and for additional information regarding risks related to the Combination, see the Risk Factor in our Annual Report with the caption beginning “The planned combination of APUS, RU, and HCN...”.
Current report — wording carried from elsewhere
Loss on disposals of long-lived assets. The loss on disposals of long-lived assets was $0.8 million for the nine months ended September 30, 2026, as compared to $0.4 million for the nine months ended September 30, 2025.
Current report — wording carried from elsewhere
We derive a significant portion of our revenue from our participation in ED’s Title IV programs, for which disbursements are governed by federal regulations. We have typically received disbursements under Title IV programs within 30 days of the start of the applicable course or term. During the three months ended September 30, 2026, we experienced delays in Title IV processing due to delays in ED’s effectuation of changes in its system to reflect the Combination.
Current report — wording carried from elsewhere
On March 9, 2026, we entered into a Credit Agreement with PNC Bank, National Association, as administrative agent and collateral agent, PNC Capital Markets LLC as joint lead arranger and bookrunner, and a syndicate of lenders, or the 2026 Credit Agreement. The 2026 Credit Agreement provides for (i) a $90.0 million senior secured term loan, or the 2026 Term
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Preferred stock dividends. There were no preferred stock dividends for the three months ended June 30, 2026 due to the redemption of all outstanding shares of our Series A Senior Preferred Stock in June 2025. Preferred stock dividends for the three months ended June 30, 2025 were $1.3 million.
Previous report — wording carried elsewhere
Loss on redemption of preferred stock. In June 2025, we redeemed all outstanding shares of Series A Senior Preferred Stock for $43.1 million, excluding unpaid and accrued dividends of $1.4 million, resulting in a loss of $3.5 million related to the redemption premium and fees.