From GlobeNewswire: 2024-12-06 09:13:00

Aspen Group, Inc. reported revenue of $11.3 million in Fiscal Q1 2025, with a restructuring of operating expenses and debt. Regulatory issues were resolved in 2024, with a teach-out completion for AU BSN Pre-licensure students. Demand for post-licensure nursing degrees remains high. Revenue decreased 23% compared to the previous year, with AU revenue down 38% and USU revenue down 5%. GAAP gross profit decreased to $7.5 million, with AU and USU instructional costs and services representing a percentage of revenue. Net loss available to common stockholders was $(269,016) in Fiscal Q1 2025. EBITDA and Adjusted EBITDA decreased compared to the previous year.

AGI addressed key regulatory challenges, restructured operating expenses and debt, and reported positive EBITDA and Adjusted EBITDA. AU’s BSN Pre-licensure program teach-out was completed in September 2024, with a focus on expanding enrollment in post-licensure nursing programs. New student enrollments decreased year-over-year but increased sequentially. Total active student body and nursing student body decreased over the past five quarters. Non-GAAP financial measures were used to evaluate the company’s performance.

The company’s ending unrestricted cash balance in Fiscal Q1 2025 was approximately $1.3 million, with improvements expected in the second half of the fiscal year. Operating metrics showed a decrease in new student enrollments year-over-year, with a focus on increasing marketing spend to drive enrollments. Financial statements for July 31, 2024, showed a net loss of $(127,864), with adjustments made to reconcile net loss to operating activities. Cash flows from investing and financing activities were reported, with a reconciliation of cash and cash equivalents provided.



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