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Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Stock Incentive Plans
The American Public Education, Inc. 2017 Omnibus Incentive Plan, or 2017 Incentive Plan, became effective on May 12, 2017. Grants under the 2017 Incentive Plan generally vest over a period of three years and the Company recognizes compensation expense over that period. The 2017 Incentive Plan includes a provision that allows individuals who have reached certain service and retirement eligibility criteria on the date of grant an accelerated service period of one year. The Company recognizes compensation expense for these individuals over the accelerated one year period.

Restricted Stock and Restricted Stock Unit Awards

The fair value of the Company’s restricted stock and restricted stock unit awards is calculated based on the closing price of the Company’s stock on the date of grant. The estimated fair value of these awards is recognized as stock-based compensation expense and is expensed over the vesting period using the straight-line method for Company employees and the graded-vesting method for members of the Company’s Board of Directors. The Company recognizes the estimated fair value of performance-based restricted stock units by assuming the satisfaction of any performance-based objectives at the “target” level, which is the most probable outcome determined for accounting purposes at the time of grant and multiplying the corresponding number of shares earned based upon such achievement by the closing price of the Company’s stock on the date of grant. To the extent performance goals are not met, compensation cost is not ultimately recognized against the goals and, to the extent
previously recognized, compensation cost is reversed. The Company also estimates forfeitures of share-based awards at the time of grant and revises such estimates in subsequent periods if actual forfeitures differ from original estimates.

The table below sets forth the restricted stock and restricted stock unit activity for the year ended December 31, 2023:

Number
of Shares		Weighted
Average Grant
Price and Fair Value
Non vested, December 31, 2022
669,673 $22.00 
Shares granted831,746 11.83 
Vested shares(319,225)22.03 
Shares forfeited(130,030)17.53 
Non vested, December 31, 2023
1,052,164 $14.74 

The table below sets forth the restricted stock and restricted stock unit activity for the year ended December 31, 2024:

Number
of Shares		Weighted
Average Grant
Price and Fair Value
Non vested, December 31, 2023
1,052,164 $14.74 
Shares granted595,976 10.71 
Vested shares(475,116)14.89 
Shares forfeited(66,768)14.60 
Non vested, December 31, 2024
1,106,256 $12.63 

The table below sets forth the restricted stock and restricted stock unit activity for the year ended December 31, 2025:
Number
of Shares		Weighted
Average Grant
Price and Fair Value
Non vested, December 31, 2024
1,106,256 $12.63 
Shares granted548,171 22.91 
Vested shares(517,471)13.50 
Shares forfeited(210,194)16.64 
Non vested, December 31, 2025
926,762 $17.01 

For the years ended December 31, 2023, 2024, and 2025, there were 885,080, 0, and 8,477 shares of anti-dilutive restricted stock or restricted stock units, respectively, excluded in the computation of diluted net income per common share.

At December 31, 2025, total unrecognized compensation expense in the amount of $8.3 million relates to non-vested restricted stock and restricted stock units, which will be recognized over a weighted average period of 1.8 years.

As a result of termination of employment, the Company accepted the following common shares for forfeiture: 110,632 shares for $1,866,736 in 2023, 33,788 shares for $380,948 in 2024, and 179,245 shares for $2,932,091 in 2025.

Option Awards
The fair value of each option award is estimated at the date of grant using a Black-Scholes option-pricing model. The Company makes assumptions with respect to expected stock price volatility based on the average historical volatility of the Company’s common stock. In addition, the Company determines the risk-free interest rate by selecting the U.S. Treasury
constant maturity for the same maturity as the estimated life of the option, quoted on an investment basis in effect at the time of grant for that business day. Estimates of fair value are subjective and are not intended to predict actual future events, and subsequent events are not necessarily indicative of the reasonableness of the original estimates of fair value made under ASC 718. Options currently outstanding vest ratably over a period of three years and expire ten years from the date of grant.
The table below sets forth stock option activity for the year ended December 31, 2023:

Number
of Options		Weighted
Average Exercise
Price		Weighted
Average
Contractual
Life (years)		Aggregate
Intrinsic
Value
   (in thousands)
Outstanding, December 31, 2022
133,588 $21.04 8.09$37 
Options granted33,762 6.71 10$— 
Awards exercised— — 
Options forfeited(3,968)26.20 
Outstanding, December 31, 2023
163,382 $17.95 7.73$119 
Exercisable, December 31, 2023
83,644 $23.16 6.78$— 

The table below sets forth stock option activity for the year ended December 31, 2024:

Number
of Options		Weighted
Average Exercise
Price		Weighted
Average
Contractual
Life (years)		Aggregate
Intrinsic
Value
   (in thousands)
Outstanding, December 31, 2023
163,382 $17.95 7.73$119 
Options granted— — — $— 
Awards exercised(5,796)11.60 
Options forfeited(4,616)5.36 
Outstanding, December 31, 2024
152,970 $18.57 6.64$799 
Exercisable, December 31, 2024
116,332 $21.10 6.25$397 

The table below sets forth stock option activity for the year ended December 31, 2025:

Number
of Options		Weighted
Average Exercise
Price		Weighted
Average
Contractual
Life (years)		Aggregate
Intrinsic
Value
   (in thousands)
Outstanding, December 31, 2024
152,970 $18.57 6.64$799 
Options granted— — — $— 
Awards exercised(75,715)18.81   
Options forfeited(1,600)32.33   
Outstanding, December 31, 2025
75,655 $18.04 5.07$1,495 
Exercisable, December 31, 2025
66,710 $19.52 4.78$1,220 
The following table sets forth the assumptions used in calculating the grant date fair value of each option award granted for the year ended December 31, 2023. There were no options granted during the years ended December 31, 2024 and 2025:
Year Ended December 31,
 2023
Expected volatility53.50 %
Expected dividends— %
Expected term, in years10
Risk-free interest rate3.49 %
Weighted-average fair value of options granted during the year$4.44 
For the years ended December 31, 2023, 2024, and 2025, there were 163,382, 109,638, and 470 anti-dilutive stock options, respectively, excluded from the calculation of diluted net income per share.
At December 31, 2025, total unrecognized compensation expense in the amount of $7,472 relates to non-vested stock options, which will be recognized over a weighted average period of 0.2 years.
Stock-Based Compensation Expense
For the years ended December 31, 2023, 2024, and 2025, the Company recognized stock-based compensation expense as follows (in thousands):

 Year Ended December 31,
 202320242025
Instructional costs and services$895 $808 $770 
Selling and promotional490 562 759 
General and administrative6,355 6,298 6,823 
Total stock-based compensation expense$7,740 $7,668 $8,352 
The Company recognized income tax benefits of $1.1 million, $1.9 million, and $3.4 million from vested restricted stock and restricted stock units for the years ended December 31, 2023, 2024, and 2025, respectively.

Repurchase
The Company’s Board of Directors approved a stock repurchase program for common stock, under which the Company could annually purchase up to the cumulative number of shares issued or deemed issued in that year under the equity incentive and stock purchase plans. Repurchases could be made from time to time in the open market at prevailing market prices or in privately negotiated transactions based on business and market conditions. The stock repurchase program does not obligate the Company to repurchase any shares, may be suspended or discontinued at any time, and is funded using available cash.

In November 2023, the Company’s Board of Directors authorized the repurchase of up to $10.0 million of shares of the Company’s common stock. Subject to market conditions, applicable legal requirements, and other factors, the repurchases under these authorizations may be made from time to time in the open market or in privately negotiated transactions, in transactions structured through investment banking institutions, or a combination thereof. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of shares under these authorizations. The authorizations do not obligate the Company to acquire any shares, and purchases may be commenced or suspended at any time based on market conditions and other factors the Company deem appropriate. The amount and timing of repurchases are subject to a variety of factors, including liquidity, cash flow, stock price and general business and market conditions. The authorization under this program was in addition to the Company’s repurchase program under which the Company was authorized to annually purchase up to the cumulative number of shares issued or deemed issued in that year under its equity incentive and stock purchase plan. The Company’s credit agreement includes restrictions on its ability to repurchase its common stock.

During the years ended December 31, 2023, and 2024, the Company repurchased 1,515,766 and 251,146 shares of common stock for $9.7 million and $2.8 million, respectively, under the November 2023 and prior repurchase authorizations.
Effective February 1, 2024, the Company ceased purchases under the November 2023 purchase authorization, and the Company did not repurchase shares of common stock during the year ended December 31, 2025. As of December 31, 2025, the Company has approximately $6.0 million remaining under this share repurchase authorization.
During the years ended December 31, 2023, 2024, and 2025, the Company was deemed to have repurchased 91,855, 122,186, and 181,387 shares, respectively, of common stock forfeited by employees to satisfy minimum tax-withholding requirements in connection with the vesting of restricted stock grants. These repurchases were not part of the stock repurchase programs authorized by the Company’s Board of Directors as described above.