1. ASPU reports Q2 FY2026 net income of $0.7 million, recovering from losses. 2. Revenue decreased by 2% to $11.2 million, reflecting marketing spend cuts. 3. USU revenue increased 9% driven by higher enrollment and tuition rates. 4. Operating cash flow positive for the fourth consecutive quarter at $0.5 million. 5. Restructuring initiatives expected to save $1.5 million quarterly by Q3 FY2026.
FAQ
Why Bullish?
The positive net income and operational improvements could boost investor confidence, similar to past recoveries in companies post-financial losses.
How important is it?
The reported profitability, despite minor revenue decline, indicates a crucial shift stabilizing the company financially.
Why Short Term?
Immediate effects from positive financial results are likely to be reflected in upcoming stock performance.
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Aspen Group Reports Third Consecutive Quarter of Net Income
PHOENIX, Dec. 15, 2025 (GLOBE NEWSWIRE) - Aspen Group, Inc. (OTCQB: ASPU), an innovative leader in education technology, announced today its financial results for the second quarter of fiscal year 2026, which ended on October 31, 2025. The company achieved a net income of $0.7 million, marking a significant turnaround from a net loss of $(1.1) million in the same quarter of the previous year and an increase from a net income of $0.4 million in Q1 FY2026.
Financial Highlights for Q2 FY2026
- Revenue: $11.2 million, a 2% decline from $11.5 million year-over-year.
- Operating Income: $1.0 million, facilitated by disciplined cost controls.
- Adjusted EBITDA: Improved to $2.5 million, compared to $1.5 million, achieving a margin of 22%.
- Positive Operating Cash Flow: Achieved for the fourth consecutive quarter at $0.5 million.
Performance Overview
The financial results reflect a strategic focus on efficiency and disciplined execution. Michael Mathews, Chairman and CEO of AGI, commented, “This quarter has shown solid top-line stability coupled with material margin expansion, leading to our third consecutive quarter of positive net income. Our rigorous cost controls and restructuring initiatives keep Aspen Group on track for an anticipated $1.5 million in additional quarterly G&A savings by Q3 FY2026.”
Despite a 2% decrease in revenue, Aspen experienced significant growth at United States University (USU), where revenue rose by 9% year-over-year to $7.3 million, driven by increased student engagement and enhanced revenue per student.
Operational Metrics and Student Enrollments
New student enrollments saw a 29% decline year-over-year, influenced by ongoing reduced marketing efforts. However, USU noted an increase in enrollments due to favorable organic lead generation and an influx of returning students. The company anticipates resuming effective marketing expenditures to support growth in its student body.
Recent statistics reveal:
- Aspen University's revenue fell by 17%, largely due to lower post-licensure enrollments.
- Overall active student body count decreased from the same period last year, impacting revenue.
Financial Standing and Future Outlook
Aspen Group ended Q2 FY2026 with an unrestricted cash balance of $0.3 million, which has since slightly increased to $0.4 million as of December 12, 2025. The implementation of a fifth restructuring plan aims to enhance cash flow, achieve breakeven operations, and support growth in enrollment, particularly within post-licensure nursing programs.
The company is committed to leveraging its improved profitability and positive cash flow to expand educational resources and strategic marketing initiatives, positioning itself favorably for the remainder of fiscal year 2026.