CHICAGO--(BUSINESS WIRE)--Company to actively deploy share repurchase authorization reflecting confidence in company's fundamental strength. ...

Michael W. Malafronte, the Lead Independent Director of Adtalem Global Education, purchased 1,000 shares at $91.85 each, increasing his total ownership to 100,445 shares.Adtalem Global Education is recognized by Zacks Investment Research as a strong growth stock, evaluated through Zacks Style Scores.The stock is currently priced at $92.22, with a year's trading range between $79.98 and $156.26, indicating significant volatility.On November 4, 2025, Michael W. Malafronte, the Lead Independent Director of Adt ...

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Core Viewpoint - Adtalem Global Education Inc. is currently under investigation for potential securities fraud violations, prompting stakeholders to consider their rights and options [1] Company Summary - The investigation is being conducted by the DJS Law Group, which is reaching out to affected parties to discuss their rights [1]

Core Points - Cumulus Media held its third quarter 2025 earnings conference call, featuring key executives including the President and CEO, Mary Berner, and CFO, Frank Lopez-Balboa [2] - The company emphasized that certain statements made during the call may be forward-looking and subject to risks and uncertainties, which could lead to actual results differing from those projected [2][3] - Non-GAAP financial measures will be discussed, which the company believes provide useful supplementary information to investors, although they are not considered superior to GAAP measures [3]

Company Performance - Adtalem Global Education reported quarterly earnings of $1.75 per share, exceeding the Zacks Consensus Estimate of $1.57 per share, and up from $1.29 per share a year ago, representing an earnings surprise of +11.46% [1] - The company posted revenues of $462.29 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.45%, compared to $417.4 million in the same quarter last year [2] - Over the last four quarters, Adtalem has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Adtalem shares have increased approximately 55.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [3] - The current Zacks Rank for Adtalem is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $2.26 on revenues of $494.15 million, and for the current fiscal year, it is $7.73 on revenues of $1.92 billion [7] - The outlook for the education industry, where Adtalem operates, is currently in the bottom 33% of the Zacks industry rankings, which may impact stock performance [8] Industry Context - Strategic Education, a competitor in the same industry, is expected to report quarterly earnings of $1.30 per share, reflecting a year-over-year change of +12.1%, with revenues anticipated to be $315.67 million, up 3.2% from the previous year [9][10]

Financial Data and Key Metrics Changes - Total enrollment increased by 8% year over year to 97,000 students, marking the ninth consecutive quarter of growth [3] - Revenue grew nearly 11% to $462 million, with adjusted EBITDA margins expanding by 100 basis points [3][21] - Adjusted earnings per share reached $1.75, reflecting a growth of nearly 36% year over year [3][22] Business Line Data and Key Metrics Changes - Chamberlain's revenue was $179.2 million, a 6.7% increase, with total student enrollment up 2.2% [23] - Walden's revenue increased by 17.6% to $190 million, with total student enrollment up 13.6% [24] - The medical and veterinary segment reported revenue of $93.1 million, a 5.9% increase, with total enrollment up 2.4% [25] Market Data and Key Metrics Changes - The healthcare workforce crisis is intensifying, particularly in rural areas, with nursing shortages projected to triple by 2027 [4] - The demand for nursing education remains strong, with Chamberlain's pre-licensure BSN programs showing robust enrollment [9] Company Strategy and Development Direction - The company aims to address the healthcare workforce shortage by enhancing its educational offerings and operational efficiencies [4][10] - Strategic partnerships, such as with Google Cloud, are being developed to prepare healthcare workers for an AI-enabled future [14][15] - The company maintains its full-year fiscal 2026 guidance, projecting revenue between $1.9 billion and $1.94 billion [17][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges execution challenges at Chamberlain but remains confident in the long-term trajectory and brand strength [8][9] - The company expects continued softness in post-licensure enrollment in the second and third quarters but anticipates a return to stronger enrollment in the latter half of the year [8][18] Other Important Information - The company generated trailing 12-month free cash flow of $319 million and has cash and equivalents of $265 million as of September 30 [15] - The company repurchased $8 million of shares in the first quarter, with $142 million remaining on its share repurchase program [16][22] Q&A Session Summary Question: Commentary on Chamberlain's enrollment outlook - Management believes the recent enrollment deceleration is a result of execution missteps rather than a loss of market share, and they expect recovery [30][31] Question: Margin trajectory in Chamberlain - Management anticipates margin expansion as enrollment recovers, attributing current margin pressure to the recent performance miss [32][33] Question: Technology infrastructure concerns - Management expresses confidence in their technology stack, stating no analogous issues to competitors [34] Question: Update on partnership with Sallie Mae - Management is finalizing documentation with Sallie Mae and expects to announce details soon [36] Question: Impact of increased verification efforts by the Department of Education - Management reports no spike in fraudulent enrollments and attributes enrollment challenges at Chamberlain to marketing and conversion issues [38][39] Question: Details on Google Cloud partnership and AI credentials - The AI programs will run alongside existing degree programs, with no additional costs for students [40] Question: Exposure to military tuition assistance - Management indicates low exposure to active duty military and has not seen issues with student disbursements [41] Question: February Investor Day location - The location for the Investor Day is yet to be determined, but it will not be in Chicago [42]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Q1 FY26 Performance - Adtalem reported revenue of $462.3 million, a 10.8% increase compared to the prior year[13] - The adjusted EBITDA margin was 24.2%, a 100 bps increase compared to the prior year[13] - Adjusted EPS was $1.75, a 35.7% increase compared to the prior year[13] - Total enrollment grew by 8.0% year-over-year, reaching 97,359 students[13,22] Segment Performance - Chamberlain's revenue increased by 6.7% to $179.2 million, with total enrollment up by 2.2% to 39,846 students[27] - Walden's revenue increased by 17.6% to $190.0 million, with total enrollment up by 13.6% to 52,216 students[32] - Medical & Veterinary revenue increased by 5.9% to $93.1 million, with total enrollment up by 2.4% to 5,297 students[35] Financial Position - Trailing twelve months free cash flow was $319 million[17] - Cash and equivalents totaled $265 million as of September 30, 2025[17] - The company repaid $50 million of outstanding Term Loan B balance on October 29, 2025[17] FY26 Guidance - Adtalem projects revenue between $1.90 billion and $1.94 billion, representing year-over-year growth of approximately 6.0% to 8.5%[41] - The company anticipates approximately 100 bps adjusted EBITDA margin expansion[41] - Adjusted EPS is expected to be between $7.60 and $7.90, representing year-over-year growth of approximately 14.0% to 18.5%[41]

Revenue Growth - Adtalem's revenue increased 10.8%, or $44.9 million, to $462.3 million in Q1 FY 2026 compared to the prior year period, driven by increased revenue across all segments[130]. - Chamberlain revenue increased 6.7%, or $11.3 million, to $179.2 million in Q1 FY 2026, driven by enrollment growth and higher tuition rates[139]. - Walden revenue increased 17.6%, or $28.4 million, to $190.0 million in Q1 FY 2026, attributed to higher enrollment and tuition rates[142]. - Medical and Veterinary revenue increased 5.9%, or $5.2 million, to $93.1 million in Q1 FY 2026, driven by enrollment growth and higher tuition rates[144]. Enrollment Statistics - Total student enrollment at Chamberlain increased by 4.5% and 2.2% for the July and September 2025 sessions, respectively[130]. - Walden's total student enrollment increased 13.6% as of September 30, 2025, compared to the previous year[141]. - Medical and Veterinary schools' total student enrollment rose 2.4% for the September 2025 semester compared to the same semester last year[144]. Income and Profitability - Net income rose 33.9%, or $15.7 million, to $61.8 million in Q1 FY 2026, primarily due to increased revenue and decreased restructuring and interest expenses[130]. - Consolidated operating income increased by 21.7%, or $15.2 million, to $85.5 million in Q1 FY 2026, primarily due to revenue growth and reduced restructuring expenses[152]. - Adjusted operating income increased by 19.0%, or $14.4 million, to $90.3 million in Q1 FY 2026, driven by revenue growth, partially offset by increased costs[153]. - Walden segment adjusted operating income increased by 31.5%, or $13.4 million, to $56.1 million in Q1 FY 2026, primarily due to revenue growth[156]. Expenses and Costs - Cost of educational services increased by 7.9%, or $14.8 million, to $200.8 million in Q1 FY 2026 compared to the prior year period, primarily due to increased labor and other costs to support enrollment growth[147]. - As a percentage of revenue, cost of educational services decreased from 44.6% in Q1 FY 2025 to 43.4% in Q1 FY 2026, reflecting revenue growth and cost efficiencies[148]. - Student services and administrative expenses rose by 10.5%, or $16.7 million, to $175.7 million in Q1 FY 2026, driven by increased marketing expenses and investments in growth initiatives[149]. Financial Position - As of September 30, 2025, Adtalem's consolidated cash and cash equivalents were $264.7 million, up from $199.6 million as of June 30, 2025[187]. - Net cash provided by operating activities increased by $41.1 million to $130.6 million for the three months ended September 30, 2025, compared to $89.6 million in the prior year[189]. - Adtalem has $179.0 million in letters of credit outstanding in favor of the Department of Education as of September 30, 2025[194]. - The company has principal balances of $405.0 million in Senior Secured Notes due 2028 and $153.3 million in Term Loan B due 2028, with an additional prepayment of $50.0 million made on October 29, 2025[193]. - Adtalem's liquidity is supported by a $500.0 million revolving credit facility, fully available as of September 30, 2025[195]. Regulatory and Compliance - The One Big Beautiful Bill Act may have both adverse and positive effects on Adtalem's business, with significant changes to federal student aid impacting funding for students[133][134]. - The new Gainful Employment rules effective July 1, 2024, require programs to meet specific debt-to-earnings and earnings premium tests to maintain Title IV eligibility[178]. - The company continues to face risks related to federal financial aid programs, which could materially affect its business and financial condition[166]. Shareholder Actions - Adtalem repurchased 56,817 shares at an average cost of $133.66 per share during Q1 FY 2026[132]. - The diluted shares outstanding decreased to 37,057,000 in Q3 2025 from 39,109,000 in Q3 2024[210]. Tax and Interest - Interest expense decreased from $14.5 million in Q1 FY 2025 to $11.1 million in Q1 FY 2026, attributed to lower borrowings and interest rates[158]. - Effective tax rate from continuing operations decreased from 20.8% in Q1 FY 2025 to 20.6% in Q1 FY 2026, mainly due to increased tax benefits on stock-based compensation[161]. Adjusted Metrics - Adjusted net income for the same period was $64,932,000, compared to $50,524,000 in 2024, reflecting a significant year-over-year growth[208]. - Adjusted earnings per share (EPS) increased to $1.75 in Q3 2025 from $1.29 in Q3 2024, marking a 35.7% rise[210]. - Adjusted EBITDA for Adtalem Global Education reached $112,007,000, up 15.8% from $96,739,000 in the prior year[214]. - The adjusted EBITDA margin improved to 24.2% in Q3 2025, compared to 23.2% in Q3 2024[214].