| Segment Information |
Segment Information The Company’s Chief Executive Officer, as the CODM, organizes the company, manages resource allocations, and measures performance among the Company’s reportable segments. The Company has two reportable segments: Military+ Segment and Health+ Segment. The Company has recast its historical results to reflect this change. For additional details, please refer to “Note 1. Nature of the Business” to the accompanying Consolidated Financial Statements.
Corporate and Other includes unallocated corporate activity and eliminations to reconcile segment results to the Consolidated Financial Statements, and, prior to the GSUSA Sale Date, included GSUSA revenue and expenses. GSUSA did not meet the quantitative thresholds to qualify as a reportable segment.
The CODM reviews information about each reportable segment’s revenue and categorized expenses, and allocates resources to, and measures the performance of, each reportable segment using reportable segment operating income (loss). The CODM does not evaluate reportable segment asset or liability information. A summary of financial information by reportable segment is as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Unaudited | | Unaudited | | (In thousands) | | (In thousands) | | Military+ Segment | | | | | | | | | Revenue | $ | 85,538 | | | $ | 81,731 | | | $ | 174,981 | | | $ | 165,677 | | | Instructional costs and services | 27,502 | | | 28,518 | | | 53,709 | | | 55,829 | | | Selling and promotional | 18,304 | | | 15,945 | | | 35,240 | | | 31,646 | | | General and administrative | 14,895 | | | 14,808 | | | 29,286 | | | 29,042 | | Other (1) | 1,114 | | | 1,018 | | | 2,305 | | | 3,592 | | | Income from operations before interest and income taxes | $ | 23,723 | | | $ | 21,442 | | | $ | 54,441 | | | $ | 45,568 | | | Health+ Segment | | | | | | | | | Revenue | $ | 86,216 | | | $ | 77,655 | | | $ | 171,572 | | | $ | 154,582 | | | Instructional costs and services | 49,138 | | | 46,933 | | | 97,584 | | | 91,387 | | | Selling and promotional | 21,586 | | | 18,081 | | | 42,318 | | | 36,480 | | | General and administrative | 12,754 | | | 12,334 | | | 25,681 | | | 24,384 | | Other (2) | 2,430 | | | 2,685 | | | 5,164 | | | 5,527 | | | Income (loss) from operations before interest and income taxes | $ | 308 | | | $ | (2,378) | | | $ | 825 | | | $ | (3,196) | | | | | | | | | | | Corporate and Other | | | | | | | | Revenue (4) | $ | (23) | | | $ | 3,380 | | | $ | (84) | | | $ | 7,058 | | | Instructional costs and services | — | | | 2,972 | | | (23) | | | 6,151 | | | Selling and promotional | 225 | | | 1,022 | | | 424 | | | 2,127 | | | General and administrative | 9,843 | | | 11,005 | | | 18,815 | | | 21,128 | | Other (3) | 414 | | | 420 | | | 797 | | | 753 | | | Loss from operations before interest and income taxes | $ | (10,505) | | | $ | (12,039) | | | $ | (20,097) | | | $ | (23,101) | | | | | | | | | | | Total reportable segment revenue | $ | 171,754 | | | $ | 159,386 | | | $ | 346,553 | | | $ | 320,259 | | Corporate and Other revenue (4) | (23) | | | 3,380 | | | (84) | | | 7,058 | | | Total consolidated revenue | $ | 171,731 | | | $ | 162,766 | | | $ | 346,469 | | | $ | 327,317 | | | Total reportable segment income from operations before interest and income taxes | $ | 24,031 | | | $ | 19,064 | | | $ | 55,266 | | | $ | 42,372 | | | Corporate and Other (loss) from operations before interest and income taxes | (10,505) | | | (12,039) | | | (20,097) | | | (23,101) | | | Total consolidated income from operations before interest and income taxes | $ | 13,526 | | | $ | 7,025 | | | $ | 35,169 | | | $ | 19,271 | |
| | | | | | | (1) | Includes loss on assets held for sale, loss on disposal of long-lived assets, and depreciation and amortization expense. | | (2) | Includes loss on disposal of long-lived assets and depreciation and amortization expense. | | (3) | Includes depreciation and amortization expense. | | (4) | Includes the elimination of intersegment revenue for courses taken by employees of APEI at a reportable segment or by employees of one reportable segment at the other reportable segment. |
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Unaudited | | Unaudited | | (In thousands) | | (In thousands) | | Depreciation and amortization | | | | | | | | | Military+ Segment | $ | 1,113 | | | $ | 983 | | | $ | 2,168 | | | $ | 2,012 | | | Health+ Segment | 2,426 | | | 2,685 | | | 5,142 | | | 5,315 | | | Total reportable segment depreciation and amortization | $ | 3,539 | | | $ | 3,668 | | | $ | 7,310 | | | $ | 7,327 | | | Corporate and Other | 414 | | | 420 | | | 797 | | | 753 | | | Total consolidated depreciation and amortization | $ | 3,953 | | | $ | 4,088 | | | $ | 8,107 | | | $ | 8,080 | | | Interest income (expense), net | | | | | | | | | Military+ Segment | $ | 465 | | | $ | 362 | | | $ | 888 | | | $ | 681 | | | Health+ Segment | 361 | | | 218 | | | 512 | | | 684 | | | Total reportable segment interest income (expense), net | $ | 826 | | | $ | 580 | | | $ | 1,400 | | | $ | 1,365 | | | Corporate and Other | (192) | | | (1,688) | | | (1,491) | | | (3,360) | | | Total consolidated interest income (expense), net | $ | 634 | | | $ | (1,108) | | | $ | (91) | | | $ | (1,995) | | | Income tax expense (benefit) | | | | | | | | | Military+ Segment | $ | 7,727 | | | $ | 6,030 | | | $ | 15,485 | | | $ | 13,764 | | | Health+ Segment | 208 | | | (686) | | | 374 | | | (1,107) | | | Total reportable segment income tax expense | $ | 7,935 | | | $ | 5,344 | | | $ | 15,859 | | | $ | 12,657 | | | Corporate and Other | (3,548) | | | (3,923) | | | (9,957) | | | (8,770) | | | Total consolidated income tax expense | $ | 4,387 | | | $ | 1,421 | | | $ | 5,902 | | | $ | 3,887 | |
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