#1apei AMERICAN PUBLIC EDUCATION, INC. American Public Education, Inc. Second Quarter 2023 Results August 8, 2023 PRESENTED BY Angela Selden President and CEO Richard Sunderland, CPA Executive VP and CFO#2Safe Harbor Statement Statements made in this presentation regarding American Public Education, Inc. or its subsidiaries ("APEI" or the "Company") that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the industry. In some cases, forward-looking statements can be identified by words such as "anticipate," "believe," "seek," "could," "estimate," "expect," "intend," "may," "plan," "should," "will," "would," "potentially," and similar words or their opposites. Forward-looking statements include, without limitation, statements regarding expectations for growth, registration, enrollments, revenues, net income, earnings per share, EBITDA and Adjusted EBITDA, and plans with respect to and future impacts of recent, current and future initiatives. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, among others, risks related to: APEI's dependence on the effectiveness of its ability to attract students who persist in its institutions' programs, the inability to effectively market the Company's programs or expand into new markets, the loss or disruption of the Company's ability to receive funds under tuition assistance programs or the reduction, elimination, or suspension of tuition assistance, the inability to maintain enrollments from military students, effects of changes the Company makes to improve the student experience and enhance the ability to identify and enroll students who are likely to succeed, the inability to adjust to future market demands, continued strong competition in the education market, failure to comply with regulatory and accrediting agency requirements or to maintain institutional accreditation and the impacts of any actions the Company may take to prevent or correct such failure, the impact of recent regulatory rulemakings, the loss of eligibility to participate in Title IV programs or ability to process Title IV financial aid, economic and market conditions and changes in interest rates, difficulties involving business combinations and acquisitions, the Company's indebtedness and preferred stock, dependence on and the need to continue to invest in the Company's technology infrastructure, inability to recognize the intended benefits of the Company's cost savings efforts, inability to attract, retain, and develop skilled personnel, impacts of changes in management, and the risk factors described in the risk factor section and elsewhere in the Company's annual report on Form 10-K and in the Company's other SEC filings. You should not place any undue reliance on any forward-looking statements. The Company undertakes no obligation to update publicly any forward-looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future.#32Q23 Executive Summary Key Take-Aways apei AMERICAN PUBLIC EDUCATION, INC. Guidance Summary ■ APEI delivered revenue of $147.2 million, at the high end of guidance ■ Net loss available to common of $(52.7) million and EPS per diluted common share of $(2.93) Excluding non-cash impairments, net loss available to common of $(4.5) million and EPS per diluted share of $(0.25), both above guidance ranges ■ APEI exceeded Adjusted EBITDA guidance for 2Q23, delivering $8.8 million or by 38% 2Q23 Positive enrollment momentum continued at APUS, HCN, GSUSA, RU Online Significant NCLEX-RN improvements in 2Q23 at RU and HCN ■ 3Q23 positive enrollment momentum, driven by RU Online and HCN RU non-nursing +5% enrollment HCN: +17% vs prior year period ■ With new leadership in place, RU initiatives are gaining traction Right-sizing cost structure to align expenses with current revenue profile ($ in millions) Revenue Net loss avail. to common stockholders 3Q 2023 $148.3 to $150.3 ($5.7) to ($4.3) Adjusted EBITDA (1) $8.4 to $10.4 1) Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization less non- recurring expenses, such as severance, and non-cash expenses, such as stock compensation) is a non-GAAP financial measure. Refer to appendix for GAAP to non- GAAP reconciliation. 3#4Education Unit Updates apei AMERICAN PUBLIC EDUCATION, INC.#5APUS Summary 92,900 10% 82,600 -8% -8% 83,100 -2% APUS Registrations 86,600 94,000 1% 83,500 1% 85,800 3% 87,200 96,300 2% 1% 88,300 6% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Guidance Period* Overall margin expansion due to higher enrollments + modest price increase + improved marketing efficiencies Continued positive enrollment growth driven by military (+9.9%) and veteran students Growth with veterans leads to positive long-term contribution 3Q23 Registration guidance of +6% to +8% (90,600 to 92,500 registrations) *Note: 3Q23 reflects mid-point of registration guidance 91,500 7% 5 apei AMERICAN PUBLIC EDUCATION, INC.#6Hondros Summary 45% HCN Total Enrollment Total HCN YOY % Change 3,000 2,800 2,700 36% 2,600 2,500 2,460 2,440 2,380 2,410 2,270 2,300 19% 17% 8% 4% 4% 3% 10% 22% 17% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 ❖ 14 consecutive quarters of yr/yr enrollment growth 3Q23 enrollment guidance is approximately 2,800 (+17% vs. 3Q22) 2Q23 EBITDA was positive Hondros NCLEX-RN scores significantly improved apei AMERICAN PUBLIC EDUCATION, INC. 6#7Rasmussen Summary Rasmussen Total Enrollment Total Ras Enrollment YOY % Change 8% 5% 17,300 17,000 17,100 16,300 16,200 15,900 15,600 -1% -3% 15,000 14,300 13,900 -6% -6% -8% -9% 13,500 -10% -12% -13% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 apei AMERICAN PUBLIC EDUCATION, INC. Permanent leadership in place; 12 of 16 new to role Reducing reliance on ADN program in enrollment capped markets by enrolling students in other approved nursing and allied health programs Efforts to improve outcomes gaining traction in 3Q23 ❖ Significant 2Q23 NCLEX-RN improvements at 14 campuses Positive total 3Q23 start - only second in two years. RU Online fourth consecutive quarter of YoY enrollment growth Initiated further cost savings to right size costs to revenue levels 7#8APEI Financial Results apei AMERICAN PUBLIC EDUCATION, INC.#9Revenue Summary by Education Unit % % ($ in millions) 2Q22 2Q23 Change 1H22 1H23 Change American Public AMU University System APU $ 69.9 $ 73.6 5% $ 143.0 $ 147.5 3% h RASMUSSEN UNIVERSITY HONDROS COLLEGE OF NURSING $ 63.9 $ 52.0 -19% $ 131.0 $ 109.4 -16% $ 11.5 $ 14.3 24% $ 23.0 $ 27.4 19% 1 Graduate School USA $ 4.3 $ 7.4 71% $ 7.3 $ 12.5 71% $ 149.6 $ 147.2 -2% $ 304.4 $ 296.9 -2% apei AMERICAN PUBLIC EDUCATION, INC. 3 of 4 Units delivering solid revenue growth Accelerating growth at APUS, HCN and GSUSA RU revenue declined due primarily to lower nursing enrollments in capped markets 1 Graduate School includes nominal amount of corporate revenue eliminations apei AMERICAN PUBLIC EDUCATION, INC. 9#10Education Unit Operating Income and Margin Profile Operating Income ($ in millions) APUS 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 $ 13.2 $ Margin 18% 1 Rasmussen $ 0.9 $ (146.6) $ Margin Hondros 1% -229% -13% 13.6 $ 12.5 $ 19.1 $ 19% 18% 26% (7.9) $ (13.0) $ -21% 17.1 $ 18.9 23% 26% (12.9) $ (77.3) -22% -149% $ (1.0) $ (0.6) $ (1.4) $ (1.0) $ (1.3) $ (0.2) Margin -9% -5% -12% -8% -10% -2% Graduate School 2 $ (1.6) $ (1.7) $ 1.6 $ (0.0) $ (1.4) $ 0.7 Margin -50% -39% 20% 0% -27% 9% 2 Corporate Consolidated Operating Income (+) Goodwill & intangible impairments $ Consolidated Adj. Operating Income $ Margin SSSS $ (6.3) $ (6.0) $ (5.9) $ (5.4) $ (6.9) $ (7.4) $ 5.2 $ (141.3) $ (1.0) $ (0.3) $ (5.4) $ (65.3) SS $ 144.9 $ $ 2.0 $ $ 64.0 5.2 $ 3.6 $ (1.0) $ 1.7 $ (5.4) $ (1.3) 3% 2% -1% 1% -4% -1% Notes: See note 9 to the financial statements included in the 2Q23 10Q. Reflects income (loss) from operations before interest, income taxes, and gain (loss) from acquisitions. Rasmussen includes a non-cash impairment of $144.9M in 2Q22 and $64M in 2Q23. 2 Graduate School and Corporate combined comprise the Corporate & Other segment apei AMERICAN PUBLIC EDUCATION, INC. 10#11Education Unit EBITDA and Margin Profile EBITDA ($ in millions) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 APUS 14.9 15.2 14.1 20.6 18.5 20.2 Margin 20% 22% 21% 28% 25% 28% 1 Rasmussen 7.0 4.5 (1.9) (5.0) (6.9) (7.1) Margin 10% 7% -3% -8% -12% -14% Hondros (0.8) (0.4) (1.1) (0.7) (1.0) 0.1 Margin -7% -3% -10% -6% -8% 1% 2 Graduate School (1.4) (1.6) 1.8 0.1 (1.3) 0.8 Margin -46% -36% 22% 2% -24% 11% 2 Corporate (6.3) (6.0) (5.9) (5.4) (6.9) (7.4) Consolidated EBITDA 13.3 11.8 7.0 9.6 2.4 6.7 (+) Adjustments 4.0 2.8 2.5 5.8 4.6 2.1 Consolidated Adj. EBITDA Margin 17.3 14.6 9.5 15.4 7.0 8.8 11% 10% 6% 10% 5% 6% h apei AMERICAN PUBLIC EDUCATION, INC. American Public AMU University System APU 600 basis point improvement in margin driven by higher enrollments, select price increases, lower marketing costs and lower G&A expenses RASMUSSEN UNIVERSITY EBITDA decline and margin contraction driven by impact of lower enrollments, especially nursing, on RU's fixed operating cost structure HONDROS COLLEGE OF NURSING Increased scale and improved cost control delivering positive EBITDA and margin in 2Q23 Graduate School USA Higher enrollments and contract business driving margin expansion over its large fixed cost base Note: See note 9 to the financial statements included in the 2Q23 10Q. Reflects income (loss) from operations before interest, income taxes, gain (loss) from acquisitions, + depreciation & amortization Please refer to slide 15 and appendix for GAAP to non-GAAP reconciliation 1 Rasmussen excludes a non-cash impairment of $144.9M in 2Q22 and $64M in 2Q23. 2Graduate School and Corporate combined comprise the Corporate & Other segment, as discussed in footnote 9 within the 2Q23 10Q disclosure. 11#12Capitalization & Liquidity apei AMERICAN PUBLIC EDUCATION, INC. ($ in millions) 12/31/2022 6/30/2023 Cash $ 129 $ 139 ($ in millions) (-) Restricted cash (27) (27) Annualized Annualized Outstanding Unrestricted cash $ 103 $ 113 (1) Financing Costs Amount Rate Interest expense $ 9.6 $ 99 9.7% Term Loan (principal) $ 99 $ 99 Preferred dividends $ 5.9 $ 40 14.8% Revolver, drawn I Dividends & interest $ 15.5 $ 139 11.1% Total Debt $ 99 $ 99 Cash (net of debt) 3 $ 14 (1) Includes effective interest rate, net of hedge, for Term Loan and represents the annualized YTD 2Q23 amount for Preferred Equity Preferred equity $ 40 $ 40 12#13APEI's 3Q23 Outlook These statements are based on current expectations. These statements are forward-looking and actual results may differ materially. apei AMERICAN PUBLIC EDUCATION, INC. APUS Net course registrations¹ HCN Student enrollment 2 RU Student enrollment - Nursing - Non-Nursing ($ in millions except EPS) 2 APEI Consolidated revenue APEI Net loss available to common stockholders APEI Adjusted EBITDA³ 3 APEI Diluted EPS Third Quarter 2023 Guidance (Approximate) (% Yr/Yr Change) 90,500 to 92,500 6% to 8% 2,800 17% 13,500 -10% 5,700 -25% 7,700 5% $148.3 to $150.3 -1% to +1% -$5.7 to -$4.3 n.m. $8.4 to $10.4 -11% to 10% -$0.32 to -$0.24 n.m. (1) APUS Net course registrations represent the approximate aggregate number of courses for which students remain enrolled after the date by which they may drop a course without financial penalty. (2) HCN and Rasmussen student enrollment represents the total number of students enrolled in a course after the date by which students may drop a course without financial penalty. (3) Please refer to Appendix for GAAP to Non-GAAP reconciliation 13#14Thank You#151Q22 Education Unit Overview - Operating Income to EBITDA Reconciliation American Public AMU University System APU ($ in millions) Revenue Operating Income (1) (+) D&A EBITDA 2Q22 3Q22 4Q22 1Q23 2Q23 73.1 69.9 68.7 73.4 74.0 73.6 13.2 13.6 12.5 19.1 17.1 18.9 1.7 1.6 1.6 1.5 1.4 1.3 14.9 15.2 14.1 20.6 18.5 20.2 EBITDA Margin 20.4% 21.8% 20.5% 28.1% 25.0% 27.5% Revenue 67.1 63.9 61.5 60.7 57.5 52.0 Operating Income (1) 0.9 (146.6) (7.9) (13.0) (12.9) (77.3) (+) D&A 6.1 6.2 6.0 6.0 5.9 6.2 RASMUSSEN UNIVERSITY (+) Impairment / Other 144.9 2.0 64.0 EBITDA 7.0 4.5 (1.9) (5.0) (6.9) (7.1) EBITDA Margin 10.4% 7.1% -3.1% -8.3% -12.1% -13.6% Revenue 11.5 11.5 11.4 12.6 13.1 14.3 h HONDROS Operating Income (1) (1.0) (0.6) (1.4) (1.0) (1.3) (0.2) (+) D&A 0.2 0.2 0.2 0.3 0.3 0.3 COLLEGE OF NURSING EBITDA (0.8) (0.4) (1.1) (0.7) (1.0) 0.1 EBITDA Margin -6.7% -3.3% -10.0% -5.8% -7.7% 0.6% Revenue 3.0 4.3 7.8 5.7 5.1 7.4 Corporate + Operating Income (1) (7.9) (7.7) (4.3) (5.4) (8.3) (6.7) (+) D&A 0.1 0.2 0.1 0.1 0.1 0.1 Graduate School USA EBITDA (7.7) (7.6) (4.1) (5.2) (8.1) (6.6) Revenue 154.7 149.6 149.5 152.4 149.7 147.2 Operating Income (1) 5.2 (141.3) (1.0) (0.3) (5.4) (65.3) (+) D&A 8.1 8.1 8.0 7.9 7.8 8.0 (+) Impairment / Other 144.9 2.0 64.0 EBITDA 13.3 11.8 7.0 9.6 2.4 6.7 apei AMERICAN PUBLIC EDUCATION, INC. EBITDA Margin 8.6% 7.9% 4.7% 6.3% 1.6% 4.5% (+) Adjustments 4.0 2.8 2.5 5.8 4.6 2.1 - Adjusted EBITDA Adjusted EBITDA Margin (1) See note 9 to the financial statements in the 2Q23 10Q. Reflects income (loss) from operations before interest, income taxes, and gain/(loss) from acquisition. 17.3 14.5 9.5 15.4 7.0 8.8 11.2% 9.7% 6.3% 10.1% 4.7% 6.0% 15#16Enrollment and Registration Summary APUS Registrations Total Rasmussen Enrollment 2Q 2023 2Q 2022 % Change 88,300 83,500 6% 13,900 15,900 -12% Rasmussen Nursing Enrollment 6,400 8,200 -22% Rasmussen Non-Nursing Enrollment 7,500 7,700 -3% HCN Enrollment 3,000 2,440 22% apei AMERICAN PUBLIC EDUCATION, INC. 16#17Disclosures AMERICAN PUBLIC EDUCATION, INC. apei American Public Education is presenting adjusted EBITDA in connection with its GAAP results and urges investors to review the reconciliation of adjusted net income to the comparable GAAP financial measure that is included in the table below (under the caption "GAAP Net Income to Adjusted EBITDA") and not to rely on any single financial measure to evaluate its business. GAAP Net Income to Adjusted EBITDA: The following table sets forth the reconciliation of the Company's reported GAAP net income to the calculation of adjusted EBITDA for the three months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2023 Net loss available to common shareholders Preferred stock dividends $ Net loss Income tax benefit Interest expense SA (52,719) 1.487 (51,232) $ 2022 (110,029) $ $ (15,137) 1,097 2023 (59,916) $ 2,944 (110,029) $ (56,972) (35,332) (16,551) 2022 (104,696) $ (104,696) 3,390 2,876 (34,292) 6,745 Equity investment loss Depreciation and amortization EBITDA 4 6 9 11 7,953 (57,315) 8,119 (133,846) 15,709 (54,929) 16,267 (115,965) Impairment of goodwill and intangible assets Adjustment to gain on acquisition 64,000 144,900 64,000 144,900 705 (3,828) Stock Compensation Loss on disposals of long-lived assets 2,068 2,350 32 (9) 4,292 33 4,706 784 M&A -related professional Transition services Adjusted EBITDA 437 - 1,273 2,403 EA $ 8,785 EA $ 14,537 $ 15,799 $ 31,870 17#18Disclosures (continued) apei AMERICAN PUBLIC EDUCATION, INC. American Public Education is presenting adjusted EBITDA in connection with its GAAP outlook and urges investors to review the reconciliation of projected adjusted net income to the comparable GAAP financial measure that is included in the table below (under the caption "GAAP Outlook Net Income to Outlook Adjusted EBITDA") and not to rely on any single financial measure to evaluate its business. GAAP Outlook Net Income to Outlook Adjusted EBITDA: The following table sets forth the reconciliation of the Company's outlook GAAP net income to the calculation of outlook adjusted EBITDA for the three months ending September 30, 2023: (in thousands, except per share data) Net loss available to common stockholders Preferred dividends Net loss Income tax benefit Interest expense Depreciation and amortization EBITDA Stock compensation Severance expense Adjusted EBITDA Three Months Ending September 30, 2023 Low High EA (5,681) $ (4,281) 1,488 1,488 (4,193) (2,793) (1,797) (1,197) 2,555 2,555 7,222 7,222 3,787 5,787 1,796 1,796 2,800 2,800 $ 8,383 $ 10,383 18