Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $116.5 million, a 15.1% increase year-over-year, driven by strong student start growth [22][30] - Adjusted EBITDA grew by 56% to $10.5 million, up from $6.7 million, with total consolidated adjusted EBITDA increasing by 68% [25][30] - Net income for the quarter was $1.6 million, or $0.05 per diluted share, with adjusted net income at $2.7 million, or $0.09 per diluted share [26] Business Line Data and Key Metrics Changes - Student starts for the quarter were approximately 5,900, representing a 22% growth over the prior year [23] - Transportation skilled trades programs saw a 32% increase in starts, while healthcare programs experienced an 8% decline due to a pause in nursing program enrollment [23][24] - The company achieved an 18.3% growth rate in student starts at existing campuses, driven by effective marketing initiatives [12] Market Data and Key Metrics Changes - The company is focused on training students for careers in fields with a chronic shortage of skilled employees, such as electrical, HVAC, automotive, welding, and nursing [8][9] - The demand for skilled trade training is expected to increase due to macroeconomic factors, including federal government actions impacting student loans [7] Company Strategy and Development Direction - The company plans to open two new campuses each year and aims for $25 million to $30 million in annualized revenue and $7 million to $10 million of EBITDA by the fourth year of operation for each new campus [14] - Corporate partnerships and program replications at existing campuses are key components of the growth strategy [15] - The company is investing in improving its nursing programs and seeking degree-granting status in multiple states to enhance its healthcare offerings [52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand for skilled trades, citing significant workforce needs in various sectors [18] - The company raised its full-year guidance, expecting revenue between $490 million and $500 million and adjusted EBITDA between $60 million and $65 million [30] Other Important Information - The company is experiencing a temporary slowdown in Title IV drawdowns due to increased verification selections by the Department of Education, which is expected to impact cash collections in the second half of the year [27][28] - Capital expenditures for the first half of the year were approximately $58 million, with an increase in full-year CapEx guidance to $75 million to $80 million [29][30] Q&A Session Summary Question: What are the expectations for student starts in Q3 and Q4? - Management indicated that Q3 starts are expected to be relatively flat due to high comparison from the previous year, while Q4 is anticipated to align with growth trends seen in the first half of the year [33][36] Question: What impact does the One Big Beautiful Bill have on the company? - Management noted that while the bill introduces annual and lifetime borrowing limits on Parent PLUS loans, it is not expected to have a material financial impact on the company [38][39] Question: Can you comment on the healthcare program's performance? - Management acknowledged that the healthcare segment is not as profitable as skilled trades and is undergoing restructuring to improve its performance, with expectations for growth in 2026 and 2027 [48][52] Question: What is the company's strategy for military and veteran outreach? - Management stated that military students currently represent less than 10% of total enrollment, and the company plans to re-enroll veterans once degree-granting status is achieved [56][59] Question: What programs are driving strong student starts? - The company highlighted that all four programs at the East Point campus (auto, HVAC, electrical, and welding) are performing well, contributing to strong enrollment growth [66][67]