Government funding and regulatory changes: APEI's significant reliance on federal appropriations and budgetary allocations, particularly for military and veteran students, exposes it to risks from government shutdowns and shifts in federal education policies, including 'gainful employment' requirements.

Competitive pressures in the postsecondary education market: The highly competitive landscape for online and campus-based education means APEI faces the threat of market share loss, leading to increased student acquisition costs and the necessity for continuous investment in marketing and program development. Enrollment trends in key segments, such as Rasmussen University, also impact performance.

Demand for high-demand fields and workforce needs: Growth at institutions like Hondros College of Nursing and Rasmussen University, especially in nursing and healthcare programs, is crucial. Economic conditions and evolving workforce demands that influence enrollment in these specialized fields directly affect the company's prospects.