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]