American Public Education’s Health+ segment generated $300,000 of operating income in Q2 2026 compared with a $2.4 million operating loss a year earlier, as segment revenue increased 11% to $86.2 million from $77.7 million. The improvement shows that the company’s nursing and health sciences operation is beginning to translate enrollment growth into segment profitability.
Health+ EBITDA increased to $2.7 million from just $300,000, while EBITDA margin reached 3% compared with approximately zero in the prior-year quarter.
The revenue increase was driven primarily by higher enrollment and modest tuition increases. Health+ enrollment reached 19,600 students, up 6.6% from 18,300, meaning revenue increased faster than the student base during the quarter.
The company is also expanding the segment physically. Management highlighted the opening of Health+’s new Orlando campus as part of its Trailblazer campus-opening strategy, providing another location from which to grow its nursing and health sciences enrollment base.
Health+ is now nearly equal in size to American Public Education’s Military+ operation. Military+ generated $85.5 million of Q2 revenue, up 4.7%, while Health+ generated $86.2 million, making the healthcare-oriented segment slightly larger by quarterly revenue.
Military+ remains substantially more profitable, generating $23.7 million of operating income and $24.8 million of EBITDA during the quarter. But the move into positive operating income at Health+ gives American Public Education a second segment that is contributing positively at the operating level rather than relying primarily on Military+ to support consolidated earnings.
Consolidated Q2 revenue increased 5.5% to $171.7 million from $162.8 million. Excluding Graduate School USA, which was sold in July 2025, revenue would have increased 7.8%.
Net income available to common shareholders reached $9.8 million compared with a $300,000 loss, while adjusted EBITDA increased 36.8% to $20.7 million from $15.1 million. Diluted EPS improved to $0.52 from a $0.02 loss.
American Public Education also strengthened its liquidity. Cash, cash equivalents, restricted cash and short-term investments totaled $222.8 million at June 30, up $46.3 million, or 26.2%, from the end of 2025. Another $45 million remained available under its share-repurchase authorization.
After quarter-end, the company completed the combination of American Public University System, Rasmussen University and Hondros College of Nursing into a single Higher Learning Commission-accredited institution named American Public University System. The consolidated organization serves approximately 109,000 students across Military+ and Health+.
The company also raised its full-year outlook. American Public Education now expects $690 million to $698 million of 2026 revenue, $46.5 million to $52.5 million of net income available to common shareholders and $96 million to $104 million of adjusted EBITDA. For comparison, 2025 net income available to common shareholders was $25.3 million.
Health+’s move into operating profitability is therefore important beyond one quarter. With enrollment expanding, new campuses opening and the institutional structure being consolidated, the segment is becoming a larger and more financially meaningful part of American Public Education.
KEY QUOTES:
“I am pleased with the strong financial results we delivered in the second quarter, reflecting continued demand across our businesses and disciplined execution against our strategic priorities, including the opening of Health+’s new Orlando campus, part of our ‘Trailblazer’ campus opening strategy. Following the end of the quarter, I am very pleased to announce that we completed the combination of American Public University System, Rasmussen University, and Hondros College of Nursing into one Higher Learning Commission-accredited institution named American Public University System.”
“As we raise revenue, net income and adjusted EBITDA guidance for 2026, we remain focused on disciplined execution and building on the momentum established in the first half of the year.”
Angela Selden, President and Chief Executive Officer of American Public Education
