Q3 2025 Performance Highlights - Adtalem's revenue reached $466.1 million, a 12.9% increase compared to the prior year[16] - Adjusted EBITDA margin was 27.4%, a 150 bps increase compared to the prior year[17] - Adjusted EPS was $1.92, a 28.0% increase compared to the prior year[17] - Total enrollment grew by 9.8% year-over-year[15] Segment Performance - Chamberlain's revenue increased by 13.1% to $192.6 million, with a 6.8% increase in total enrollment[30] - Walden's revenue increased by 18.5% to $178.4 million, with a 13.5% increase in total enrollment[35] - Medical & Veterinary revenue increased by 3.6% to $95.0 million, with a 1.2% increase in total enrollment[40] Cash Flow and Capital Allocation - Trailing twelve months free cash flow was $287 million[21] - The company repaid $100 million of outstanding Term Loan B balance on January 17, 2025[21] - A new $150 million share repurchase authorization was approved through May 2028[21] FY 2025 Guidance - The company raised its revenue outlook to $1.760 billion - $1.775 billion[46] - The company raised its Adjusted EPS outlook to $6.40 - $6.60[46]

Core Viewpoint - Adtalem Global Education reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings and revenues [1][2]. Financial Performance - The company achieved quarterly earnings of $1.92 per share, surpassing the Zacks Consensus Estimate of $1.63 per share, and up from $1.50 per share a year ago, representing an earnings surprise of 17.79% [1]. - Revenues for the quarter ended March 2025 were $466.06 million, exceeding the Zacks Consensus Estimate by 4.94% and up from $412.66 million in the same quarter last year [2]. Market Performance - Adtalem shares have increased approximately 26.3% since the beginning of the year, contrasting with a decline of -4.3% in the S&P 500 [3]. - The company's stock is currently rated Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]. Future Outlook - Current consensus EPS estimate for the upcoming quarter is $1.50 on revenues of $436.92 million, and for the current fiscal year, it is $6.22 on revenues of $1.75 billion [7]. - The Schools industry, to which Adtalem belongs, is ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8].

Financial Data and Key Metrics Changes - Revenue increased by 12.9% to $466.1 million, driven by enrollment growth across all segments [13] - Adjusted EBITDA rose by 19.3% to $127.8 million, with an adjusted EBITDA margin of 27.4%, expanding by 150 basis points year over year [13][14] - Adjusted net income for the quarter was $73.3 million, a 23.4% increase compared to the previous year, leading to adjusted earnings per share of $1.92, up 28% [14] Business Line Data and Key Metrics Changes - Chamberlain University reported revenue of $192.6 million, a 13.1% increase, with enrollment up 6.8% [14][15] - Walden University achieved revenue of $178.4 million, an 18.5% increase, with total student enrollment up 13.5% [16] - The Medical and Veterinary segment saw revenue of $95 million, a 3.6% increase, with enrollment up 1.2% [17] Market Data and Key Metrics Changes - Total enrollment across Adtalem institutions climbed to over 94,000 students, marking a 9.8% year-over-year increase [5] - The medical schools achieved a first-time residency attainment rate of over 95%, with significant placements in medically underserved areas [9] Company Strategy and Development Direction - The company aims to expand program capacity and invest in innovation to meet growing demand in healthcare education [10] - A new $150 million share repurchase program was announced, reflecting confidence in the strategic outlook [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable environment for career-oriented education, emphasizing high return on investment for students [28] - The company raised its 2025 revenue guidance to a range of $1.76 billion to $1.775 billion, anticipating adjusted EPS of $6.4 to $6.6 [9][19] Other Important Information - The company completed a $300 million share repurchase program, returning $763 million to shareholders since February 2022 [18] - The balance sheet remains strong, with $219 million in cash and a low adjusted EBITDA net leverage of 0.8 times [18] Q&A Session Summary Question: How do the 2026 targets stand in light of recent performance? - Management noted that the targets set at Investor Day were reasonable and they have outperformed expectations, with plans to recalibrate long-term growth targets [24][25] Question: What is the impact of recent legislative changes on student enrollment? - Management indicated no observed hesitancy among students regarding enrollment, citing strong demand for their programs [33] Question: Can you provide insight into margin degradation in the Medical and Veterinary segment? - Management explained that margin changes were due to one-time costs and investments for future growth, with confidence in long-term margin expansion [34][35] Question: What are the primary limitations on scaling up capacity? - Management identified opportunities for growth in existing programs and potential geographic expansion, with various strategies to increase capacity [50]

Financial Data and Key Metrics Changes - Revenue increased by 12.9% to $466.1 million, driven by enrollment growth across all segments [14] - Adjusted EBITDA rose by 19.3% to $127.8 million, with an adjusted EBITDA margin of 27.4%, expanding by 150 basis points year over year [14][15] - Adjusted net income for the quarter was $73.3 million, a 23.4% increase compared to the previous year, with adjusted earnings per share rising by 28% to $1.92 [15] Business Line Data and Key Metrics Changes - Chamberlain University reported revenue of $192.6 million, up 13.1%, with enrollment increasing by 6.8% [16] - Walden University achieved an 18.5% revenue increase to $178.4 million, with total student enrollment up 13.5% [18] - The Medical and Veterinary segment saw revenue growth of 3.6% to $95 million, with a slight enrollment increase of 1.2% [19] Market Data and Key Metrics Changes - Total enrollment across Adtalem institutions climbed to over 94,000 students, marking a 9.8% year-over-year increase [7] - The medical schools achieved a 95% first-time residency attainment rate, with over 615 students placed in healthcare facilities [10] Company Strategy and Development Direction - The company is focused on expanding program capacity and investing in innovation to meet growing demand in healthcare education [11] - A new $150 million share repurchase program was announced, reflecting confidence in the strategic outlook [10] - The company aims to balance growth investments with profitability, anticipating adjusted EBITDA margin expansion of more than 150 basis points for fiscal year 2025 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive environment for career-oriented education, emphasizing high return on investment for students [29] - The company is monitoring legislative developments closely but sees no current impact on student enrollment behavior due to potential funding pressures [33] Other Important Information - The company completed a $300 million share repurchase program, returning $763 million to shareholders since February 2022 [20] - Free cash flow for the trailing twelve months was $287 million, indicating strong operational performance [20] Q&A Session Summary Question: How do the 2023 Investor Day targets for FY 2026 stand? - Management acknowledged that targets set were reasonable and expressed satisfaction with outperforming them [25][26] Question: What are the implications of recent legislative proposals on student loans? - Management believes the proposals are generally positive for the industry, as their programs offer high return on investment [28][29] Question: Is there any hesitancy among students regarding enrollment due to funding pressures? - Management reported no signs of hesitancy among prospective or current students regarding financing their education [33] Question: What is the outlook for margin expansion in the Medical and Veterinary segment? - Management indicated confidence in long-term margin expansion despite short-term margin degradation due to investments [34][35] Question: What are the primary limitations on scaling up capacity? - Management identified opportunities for growth in existing programs and potential geographic expansion as key areas for scaling [50]

Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements for Q3 FY2025 reflect significant year-over-year growth in revenue and net income, alongside improved cash flow and a strengthened balance sheet Consolidated Statements of Income Highlights (Q3 & Nine Months Ended Mar 31) | Metric | Q3 2025 ($M) | Q3 2024 ($M) | % Change | Nine Months 2025 ($M) | Nine Months 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $466.1 | $412.7 | 12.9% | $1,331.2 | $1,174.7 | 13.3% | | **Operating Income** | $90.5 | $61.7 | 46.6% | $264.6 | $148.5 | 78.2% | | **Net Income** | $60.8 | $36.8 | 65.2% | $182.9 | $87.4 | 109.3% | | **Diluted EPS** | $1.59 | $0.93 | 71.0% | $4.74 | $2.14 | 121.5% | Consolidated Balance Sheet Highlights | Metric | March 31, 2025 ($M) | June 30, 2024 ($M) | | :--- | :--- | :--- | | Total Assets | $2,789.8 | $2,741.4 | | Long-Term Debt | $552.2 | $648.7 | | Total Liabilities | $1,357.0 | $1,372.3 | | Total Shareholders' Equity | $1,432.7 | $1,369.1 | Consolidated Statements of Cash Flows Highlights (Nine Months Ended Mar 31) | Activity | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $278.2 | $235.5 | | Net Cash used in Investing Activities | ($30.3) | ($32.2) | | Net Cash used in Financing Activities | ($248.0) | ($291.1) | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment performance, and financial obligations, including strong segment growth, lawsuit settlements, debt reduction, share repurchases, and a $179.0 million regulatory letter of credit - Adtalem is a **leading US healthcare educator** with schools including Chamberlain University, Walden University, and medical/veterinary schools (AUC, RUSM, RUSVM)[23](index=23&type=chunk) - Previously issued financial statements were **revised** to correct the presentation of capitalized cloud computing implementation costs, moving them from investing to operating activities in the cash flow statement, which was deemed **not material** to prior periods[33](index=33&type=chunk)[34](index=34&type=chunk) Revenue by Segment (Nine Months Ended Mar 31, 2025) | Segment | Revenue ($M) | % of Total | | :--- | :--- | :--- | | Chamberlain | $541.5 | 40.7% | | Walden | $511.2 | 38.4% | | Medical and Veterinary | $278.4 | 20.9% | | **Total** | **$1,331.2** | **100%** | - The company made a **$100.0 million prepayment** on its Term Loan B debt on January 17, 2025, and a **$50.0 million prepayment** on January 26, 2024[94](index=94&type=chunk) - The company completed its 13th and 14th share repurchase programs and initiated a new 15th program authorizing up to **$150.0 million** in repurchases through May 6, 2028[105](index=105&type=chunk) - A settlement for the Walden DBA student lawsuit was finalized, resulting in a **$28.5 million payment** in November 2024, with Adtalem receiving a **$5.6 million indemnification payment** from the previous owner, Laureate[123](index=123&type=chunk) - The Department of Education (ED) required Adtalem to post an amended letter of credit for **$179.0 million**, representing 10% of consolidated Title IV funds received in FY2024, to maintain Title IV eligibility[100](index=100&type=chunk)[123](index=123&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q3 FY2025 performance to broad revenue growth and improved operating income, while navigating significant regulatory requirements and maintaining strong liquidity [Third Quarter Highlights](index=47&type=section&id=Third%20Quarter%20Highlights) In Q3 FY2025, Adtalem reported a 12.9% revenue increase to $466.1 million and a 71.0% rise in diluted EPS to $1.59, driven by strong enrollment growth across its institutions, alongside debt prepayment and share repurchases - Revenue increased **12.9%** to **$466.1 million**, and net income grew **65.2%** to **$60.8 million** compared to the prior year period[142](index=142&type=chunk) - Total student enrollment increased across all segments: Chamberlain (**+6.8%** for March session), Walden (**+13.5%** as of March 31), and medical/veterinary schools (**+1.2%** for January semester)[142](index=142&type=chunk) - Made a **$100.0 million prepayment** on Term Loan B debt and repurchased **791,420 shares** for approximately **$77.6 million**[142](index=142&type=chunk) [Results of Operations](index=48&type=section&id=Results%20of%20Operations) Revenue for Q3 FY2025 increased 12.9% year-over-year, led by Chamberlain and Walden due to higher enrollment and tuition, while operating income surged 46.6% benefiting from revenue growth and reduced prior-year business integration costs Q3 FY2025 Revenue Growth by Segment | Segment | Q3 FY25 Revenue ($M) | Growth vs. Q3 FY24 ($M) | % Change | | :--- | :--- | :--- | :--- | | Chamberlain | $192.6 | $22.3 | 13.1% | | Walden | $178.4 | $27.8 | 18.5% | | Medical and Veterinary | $95.0 | $3.3 | 3.6% | | **Consolidated** | **$466.1** | **$53.4** | **12.9%** | - Cost of educational services increased **14.0%** to **$199.9 million** in Q3, primarily due to higher labor costs to support increased enrollment and a larger provision for bad debts[150](index=150&type=chunk) - Adjusted operating income increased **17.4%** to **$105.4 million** in Q3, driven by revenue growth, partially offset by increased investments in marketing, growth initiatives, and higher bad debt provisions[163](index=163&type=chunk) - Interest expense decreased to **$13.1 million** in Q3 from **$16.6 million** in the prior year, mainly due to lower borrowings and a reduced interest rate on the Term Loan B[167](index=167&type=chunk) [Legislative and Regulatory Requirements](index=59&type=section&id=Legislative%20and%20Regulatory%20Requirements) Adtalem operates under significant regulatory scrutiny, including a provisional Program Participation Agreement and a required $179.0 million letter of credit due to a low financial responsibility score, while complying with the "90/10 Rule" - ED notified Adtalem its FY2022 composite score was **0.2** (below the 1.0 threshold), leading to provisional certification for its institutions and a requirement to post a letter of credit[177](index=177&type=chunk) - Adtalem delivered an amended letter of credit for **$179.0 million** to ED, representing 10% of consolidated Title IV funds for FY2024, with an expiration of January 31, 2026[177](index=177&type=chunk)[184](index=184&type=chunk) 90/10 Rule Rates | Institution | FY 2024 Rate | FY 2023 Rate | | :--- | :--- | :--- | | Chamberlain University | 68% | 65% | | Walden University | 82% | 78% | | AUC School of Medicine | 87% | 81% | | RUSM | 87% | 87% | | RUSVM | 78% | 79% | | **Consolidated** | **77%** | **75%** | [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) Adtalem's liquidity is primarily sourced from student tuition, with net cash from operations increasing to $273.8 million for the first nine months of FY2025, funding capital expenditures, share repurchases, and debt repayments, while maintaining a $400.0 million revolving credit facility - Net cash provided by operating activities increased by **$46.7 million** to **$273.8 million** for the first nine months of FY2025, driven by higher operating income[191](index=191&type=chunk) - Net cash used in financing activities was **$248.0 million**, primarily for share repurchases (**$146.4 million**) and net long-term debt repayments (**$100.0 million**)[193](index=193&type=chunk) - Anticipated capital spending for the full fiscal year 2025 is projected to be between **$40 million** and **$50 million**[192](index=192&type=chunk) - As of March 31, 2025, the company had principal debt balances of **$405.0 million** in Senior Secured Notes and **$153.3 million** in its Term Loan B[197](index=197&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material changes in its market risk exposure during the first nine months of fiscal year 2025 compared to the disclosures in its 2024 Form 10-K - There have been **no material changes** in Adtalem's market risk exposure from those set forth in the 2024 Form 10-K[215](index=215&type=chunk) [Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the third quarter of fiscal year 2025 - The CEO and CFO concluded that Adtalem's disclosure controls and procedures were **effective** as of March 31, 2025[216](index=216&type=chunk) - **No changes** in internal control over financial reporting occurred during the third quarter of fiscal year 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[217](index=217&type=chunk) Part II. Other Information [Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is detailed in Note 17 of the Consolidated Financial Statements, including the settlement of the Walden DBA lawsuit and ongoing borrower defense to repayment applications - For details on legal proceedings, the report refers to Note 17 "Commitments and Contingencies" in the financial statements[218](index=218&type=chunk) [Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those disclosed in its 2024 Form 10-K - **No material changes** to Adtalem's risk factors have occurred since the filing of the 2024 Form 10-K[218](index=218&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of fiscal year 2025, Adtalem repurchased 791,420 shares of its common stock at an average price of $98.06 per share, with approximately $62.5 million remaining available for future repurchases Issuer Purchases of Equity Securities (Q3 FY2025) | Period | Total Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | Jan 2025 | 29,894 | $94.36 | | Feb 2025 | 47,496 | $101.95 | | Mar 2025 | 714,030 | $97.95 | | **Total** | **791,420** | **$98.06** | - As of March 31, 2025, **$62.5 million** remained available for share repurchases under the company's fourteenth share repurchase program[219](index=219&type=chunk) [Other Information](index=74&type=section&id=Item%205.%20Other%20Information) During the third quarter of fiscal year 2025, no directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - **No directors or executive officers adopted or terminated** any Rule 10b5-1 trading plans during the three months ended March 31, 2025[221](index=221&type=chunk) [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including CEO and CFO certifications (31.1, 31.2), Sarbanes-Oxley certifications (32.1), and Inline XBRL data files (101 series) - The report includes required certifications from the CEO and CFO, as well as Inline XBRL data files as exhibits[222](index=222&type=chunk)

Exhibit 99.1 News Release Investor Contact Jay Spitzer Investor.Relations@Adtalem.com +1 312-906-6600 Media Contact Britt Mitchell AdtalemMedia@Adtalem.com +1 872-270-0301 Adtalem Global Education Third Quarter Fiscal Year 2025 Results; Guidance Raised Total enrollment up 9.8% YoY Revenue up 12.9% YoY Diluted earnings per share $1.59; Adjusted EPS $1.92, growth of 28.0% YoY Third quarter highlights Capital allocation Fiscal year 2025 guidance ● Total student enrollment 94,223, up 9.8% year-over-year ● Reven ...

Core Viewpoint - Adtalem Global Education (ATGE) is anticipated to report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended March 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for Adtalem's quarterly earnings is $1.63 per share, reflecting an increase of +8.7% year-over-year, while revenues are projected to reach $444.11 million, up 7.6% from the previous year [3]. - The consensus EPS estimate has been revised 1.47% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Adtalem is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.20%, which indicates a likelihood of beating the consensus EPS estimate [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. Historical Performance - In the last reported quarter, Adtalem exceeded the expected earnings of $1.39 per share by delivering $1.81, resulting in a surprise of +30.22% [12]. - Over the past four quarters, Adtalem has consistently beaten consensus EPS estimates [13]. Conclusion - Adtalem is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors influencing stock performance beyond just earnings results [16].

Core Insights - Adtalem Global Education (ATGE) has consistently beaten earnings estimates, particularly in the last two quarters with an average surprise of 22.70% [1][4] - In the last reported quarter, Adtalem achieved earnings of $1.81 per share, surpassing the Zacks Consensus Estimate of $1.39 per share by 30.22% [2] - The previous quarter also saw a positive surprise, with actual earnings of $1.29 per share against an expected $1.12 per share, resulting in a 15.18% surprise [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Adtalem, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [4][7] - The current Earnings ESP for Adtalem is +0.20%, suggesting analysts have recently become more optimistic about the company's earnings prospects [7] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [5] Earnings Release Information - The next earnings report for Adtalem is expected to be released on May 8, 2025 [7] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6]

Company Overview - Adtalem Global Education (ATGE) shares increased by 7.8% to $106.48, with a notable trading volume, compared to a 5.5% gain over the past four weeks [1] - The stock's surge followed President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, indicating renewed investor optimism [1] Earnings Expectations - Adtalem is projected to report quarterly earnings of $1.63 per share, reflecting an 8.7% year-over-year increase [2] - Expected revenues for the upcoming quarter are $443.49 million, which is a 7.5% increase from the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Adtalem has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without earnings estimate revisions [3] - Adtalem currently holds a Zacks Rank of 1 (Strong Buy), indicating strong market confidence [3] Industry Context - Adtalem is part of the Zacks Schools industry, which includes Laureate Education (LAUR) [3] - Laureate Education's consensus EPS estimate has also remained unchanged at -$0.08, representing a 14.3% decrease compared to the previous year [4] - Laureate Education holds a Zacks Rank of 1 (Strong Buy), similar to Adtalem [4]

Group 1 - Adtalem Global Education (ATGE) is currently outperforming its peers in the Consumer Discretionary sector, gaining approximately 13.3% year-to-date, while the sector has lost about 1.9% on average [4] - The Zacks Rank for Adtalem Global Education is 1 (Strong Buy), indicating a positive earnings outlook and improving analyst sentiment, with a 5.3% increase in the consensus estimate for full-year earnings over the past quarter [3][4] - Adtalem Global Education belongs to the Schools industry, which is ranked 52 in the Zacks Industry Rank, and has outperformed the average gain of 4% for this group so far this year [6] Group 2 - The Consumer Discretionary group is currently ranked 9 within the Zacks Sector Rank, which evaluates 16 different groups based on the average Zacks Rank of individual stocks [2] - Another stock in the Consumer Discretionary sector, Gray Media (GTN), has also shown strong performance, with a year-to-date increase of 40% and a Zacks Rank of 2 (Buy) [5] - The Schools industry, to which Adtalem Global Education belongs, includes 18 individual stocks, while the Broadcast Radio and Television industry, which includes Gray Media, consists of 19 stocks and is currently ranked 36 [6]