Aspen Group Delivers Net Income of $0.7 Million for First Quarter Fiscal Year 2027
Key Highlights
- ➤Q1 net income $0.7 million, up from $0.4 million year over year
- ➤Adjusted EBITDA $2.3 million, up 21% year over year
- ➤Operating cash flow $0.7 million marks seventh consecutive positive quarter
- ➤USU revenue $7.3 million, up 3% year over year and 6% sequentially
- ➤Gross margin expanded approximately 300 basis points to 76%
Expert Statements
Matt LaVay, Chief Executive Officer of Aspen Group, Inc.
“Our first quarter results demonstrate the continued strength of the more efficient operating model we have established over the past two years. USU student enrollments increased for the second consecutive quarter, while revenue increased 3% year-over-year and nearly 6% sequentially. Our improved cost structure contributed to a strong first-quarter Adjusted EBITDA and net income performance, and another quarter of positive operating cash flow. We converted 33% of Adjusted EBITDA to operating cash flow, providing us with the flexibility to resume direct marketing investment to support enrollment growth.”
Matt LaVay, Chief Executive Officer of Aspen Group, Inc.
“We expect enrollment momentum to strengthen during the remainder of Fiscal 2027, supported by increased marketing investment in the second quarter and a growing number of prospective Aspen University students enrolling in comparable USU programs. We believe these initiatives will support sustained enrollment growth and contribute to revenue growth as we progress through Fiscal 2027.”
Matt LaVay, Chief Executive Officer of Aspen Group, Inc.
“We also continue to advance the refinancing of our existing debt and are making meaningful progress towards completing the transaction. Completing the refinancing remains an important component of our strategy to strengthen our balance sheet and provide additional financial flexibility to further increase marketing and resume growth in our student body. Now, with a more efficient operating model, sustained cash generation and the resumption of marketing, we believe we have established a strong foundation for growth.”
* Generated operating cash flow of $0.7 million in the first quarter, enabling the resumption of marketing spend * Revenue held steady at $10.3 million for the third consecutive quarter; United States University increases nearly 6% sequentially, driven by higher revenue per student and continued organic lead generation * Gross margin expanded by approximately 300 bps to 76% in the first quarter, increasing from 73% in the prior year * First quarter net income of $0.7 million, up from $0.4 million in the prior year driven by strong underlying financial performance * Record first quarter Adjusted EBITDA of $2.3 million, up from $1.9 million in the first quarter of 2026 PHOENIX, Oct. 15, 2026 (GLOBE NEWSWIRE) -- Aspen Group, Inc. (OTCQB: ASPU) (“AGI” or the “Company”), an education technology holding company, today announced financial results for its first quarter of fiscal year 2027, ended July 31, 2026.
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