Facility, Edu & Info Services: Conf Recap: APG Our Favorite; ARMK Nexus Opportunity; UTI Campus Launches Tracking Well

研报英文原文证据摘录

Facility, Edu & Info Services: Conf Recap: APG Our Favorite; ARMK Nexus Opportunity; UTI Campus Launches Tracking Well

path into higher-level nursing degrees. Other public companies such as Covista (CVSA, Buy) have

demonstrated success bringing back nursing graduates for second or even third degrees (low cost of student

acquisition).

We estimate the combination could blend the combined 90/10 score to the mid-80% range, alleviating a

potential constraint on APU Global growth. Future opportunities to blend down 90/10 exposure could

include outsized growth in the healthcare business or adding international students in APU Global (100% cash

pay). We believe active-duty students have significantly lower cost of acquisition than veterans/military families

and APEI has had to constrain active-duty growth in the past to mitigate 90/10 risk.

Military enrollment remains a key near-term issue. Guidance assumes deployments have impacted roughly

1.5k APU Global students and does not assume those students return at any point in ’26. Accordingly, if the

Iran War ends, we think there could be a slight tailwind relative to guidance assumptions if deployed students

return to coursework.

Recent proposed legislation could aid veteran business for APUS. The legislation would potentially

harmonize the housing allowance for online veteran students relative to on-ground programs. Currently, online

students receive a lower living stipend (approximately 60% of the on-ground amount) which can incentivize

students to choose on-ground programs over online. We think this would potentially eliminate one structural

headwind to recruiting veteran students at APU Global.

We discussed the upcoming cohort default rate (CDR) data release. Management noted that some