Financial Data and Key Metrics Changes - Revenue in Q2 increased by 12.4% to $503.4 million, driven by all three segments, with Walden contributing significantly due to a one-week academic calendar shift [17][26] - Adjusted EBITDA grew to $154.9 million, up 23.9% year-over-year, with an adjusted EBITDA margin of 30.8%, expanding 290 basis points from last year [18][25] - Adjusted net income for the quarter was $87.9 million, a 26.7% increase compared to last year, with adjusted earnings per share rising to $2.43, a 34.3% increase [19][20] Business Line Data and Key Metrics Changes - Chamberlain reported revenue of $183.8 million, a 1.6% increase, but total student enrollment declined by 1% [22] - Walden's revenue reached $217.6 million, a 27% increase, with total student enrollment up 13% [23] - The Medical and Veterinary segment generated $102 million in revenue, a 6.9% increase, with adjusted EBITDA increasing by 17.6% [24][25] Market Data and Key Metrics Changes - Total enrollment across the company grew over 6% to 97,000 students, with Walden achieving record total enrollments of 52,400 students [7][11] - Chamberlain's pre-licensure BSN programs have grown for 14 consecutive quarters, while post-licensure programs faced declines [22][10] Company Strategy and Development Direction - The company is focused on addressing the healthcare workforce crisis by expanding capacity and creating new revenue streams [6][7] - A disciplined, returns-focused approach to capital allocation is being maintained, with $165 million deployed to share repurchases [4][20] - The upcoming Investor Day will outline a multi-year growth framework and capacity expansion plans [7][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue guidance of 6%-8.5% growth and raised adjusted EPS guidance to 17%-20% growth [4][27] - The healthcare workforce crisis is intensifying, creating opportunities for the company to expand its role in healthcare education [6][7] - Management noted that application volumes for nursing programs are up, indicating potential future enrollment growth [10][39] Other Important Information - The company repurchased 1.7 million shares at an average price of $95, completing a prior $150 million authorization and announcing a new $750 million authorization [20] - The trailing twelve months operating cash flow generation reached $428 million, up $146 million year-over-year [20] Q&A Session Summary Question: Update on Walden's growth and market share - Management noted balanced growth across programs, particularly in behavioral sciences and nursing, indicating potential market share gains [32] Question: Regulatory changes and partnership with Sallie Mae - Management confirmed ongoing work with Sallie Mae on documentation for a partnership to provide loan dollars, particularly for the medical and veterinary segment [33] Question: Chamberlain's enrollment and marketing effectiveness - Management discussed improvements in application volumes and marketing effectiveness, expressing confidence in a positive enrollment trajectory for the fall cycle [39][40]

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]

FY25 Performance - Adtalem's revenue reached $1,788.3 million, a 12.9% increase compared to the prior year[15] - Adjusted EBITDA margin was 25.7%, up by 190 bps from the previous year[15] - Adjusted EPS was $6.67, a 33.1% increase compared to the prior year[15] Q4 FY25 Performance - Revenue was $457.1 million, an 11.5% increase compared to the prior year[19, 20] - Adjusted EBITDA margin was 24.1%, up by 30 bps from the prior year[20] - Adjusted EPS was $1.66, a 21.2% increase compared to the prior year[20] - Total enrollment grew by 10.2% year-over-year[18] Enrollment Trends - Total enterprise enrollments reached 91,780, a 10.2% increase year-over-year[33] - Chamberlain's enrollment increased by 5.8% year-over-year[31] - Walden's enrollment increased by 15.0% year-over-year[31] - Medical & Veterinary enrollments increased by 1.0% year-over-year[31] Financial Position - Free Cash Flow was $283 million, up $44 million compared to the prior year[17] - The company returned $211 million in capital to shareholders through share repurchases[17] FY26 Guidance - Revenue is projected to be between $1,900 million and $1,940 million, representing a year-over-year growth of approximately 6.0% to 8.5%[53] - Adjusted EPS is projected to be between $7.60 and $7.90, representing a year-over-year growth of approximately 14.0% to 18.5%[53]

Summary of Adtalem Global Education Conference Call Company Overview - **Company**: Adtalem Global Education - **Industry**: Post-secondary education, specifically healthcare-focused institutions - **Current Enrollment**: Approximately 92,000 to 94,000 students across five institutions, with 92% of programs in healthcare [1][5] Core Business and Strategy - **Mission**: Expand access to high-quality clinical careers for historically overlooked students and address critical workforce shortages in healthcare [4] - **Institutions**: - Chamberlain University: Largest nursing school in the U.S. with over 40,000 students [5] - Walden University: Fully online university with nearly 50,000 students, third largest nursing school [6] - Medical and Veterinary Schools: Two medical schools and one veterinary school serving about 4,500 students [6][7] - **Strategic Focus**: Operational excellence through a three-year strategy termed "growth with purpose," focusing on marketing, enrollment, retention, pricing, and programs [8][10] Financial Performance - **Enrollment Growth**: Total enrollment has grown sequentially for nine straight quarters [9] - **Revenue and Profitability**: Revenue growth has been primarily organic, with profitability improving significantly over the years [11] - **Earnings Per Share**: Attractive growth in earnings per share due to improved profitability and effective balance sheet management [11] Key Metrics and Achievements - **Leading Grantor**: Number one grantor of nursing and MD degrees in the U.S. [12] - **Alumni Success**: Strong employability and low cohort default rates, reflecting the quality of education and job placement [14] - **Diversity**: Largest producer of Black and Latino physicians in the U.S. [19] Market Environment - **Demand Trends**: Normalized demand environment post-COVID, with a growing competitive landscape in healthcare education [21][22] - **Competitive Moat**: Strong brand equity, clinical relationships, and regulatory approvals allow for uncapped student enrollment across states [23] Institutional Branding - **Chamberlain vs. Walden**: Distinct branding strategies allow for capturing different market segments; Chamberlain focuses on pre-licensure nursing while Walden targets post-licensure [24][26] Pricing Strategy - **Pricing Philosophy**: Chamberlain is positioned as a premium brand, while Walden operates as a more affordable option, allowing for a diverse enrollment mix [26][27] - **Price Optimization**: Adjustments made to pricing based on market conditions and enrollment trends [28][29] Future Growth and Sustainability - **Growth Drivers**: Focus on student success, maximizing existing capacity, and introducing new programs in new geographies [35][36] - **Operating Leverage**: Ability to grow revenues without proportional increases in expenses, targeting 100 basis points of margin improvement annually [38][39] Regulatory Environment - **Current Landscape**: Favorable regulatory conditions for proprietary higher education, with potential positive changes in legislation that could benefit Adtalem [47][50] - **Concerns**: Proposed cuts to education funding and loan programs, but the company believes it can manage these challenges through alternative financing options [51][53] Conclusion - **Outlook**: The company is optimistic about sustaining growth and profitability, with plans for future investor updates and projections [44][45]

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]