Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $163.2 million, an increase of $10.1 million or 7% from the prior year period [19] - Net income available to common shareholders was $5.6 million, nearly seven times higher than the net income of $700,000 in the prior year [20] - EPS increased significantly to $0.30 per diluted share in Q3 2025 versus $0.04 in the prior year [20] - Adjusted EBITDA increased 60% to $20.7 million compared to the prior year period, with an adjusted EBITDA margin of 13% compared to 8% in the prior year [21] Business Line Data and Key Metrics Changes - At APUS, Q3 revenue increased to $83.1 million, an 8% increase compared to the prior year, driven by an 8% increase in net course registrations [22] - Rasmussen's Q3 revenue was $60.8 million, a 16% increase fueled by a 12% increase in on-ground enrollment and an 11% increase in online enrollment [22] - Hondros College of Nursing's Q3 revenue increased 19% to $18.4 million, with total enrollment up 18% to approximately 3,700 students [23] Market Data and Key Metrics Changes - Registrations at APUS increased 8% year-over-year, while enrollments at Rasmussen increased 10% compared to Q3 2024 [8][12] - Enrollments at Hondros College of Nursing continued strong momentum, increasing 18% compared to Q3 2024 [12] Company Strategy and Development Direction - The company is focusing on growing core degree-granting businesses, particularly in military, veteran, nursing, and healthcare communities [9] - APEI is simplifying its operational structure and has submitted a new application for the combination of its institutions, expected to take effect in Q3 2026 [10][34] - The company aims to leverage existing capacity and improve financial results through enrollment growth and operational efficiencies [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the team despite government shutdown uncertainties and highlighted consistent performance over the last 18 months [16] - The company anticipates that the government shutdown will have a temporary impact on enrollments, with expectations of a return to normalcy once the situation stabilizes [32][50] - Management remains optimistic about long-term growth potential and plans to share more details at the upcoming Investor Day [30] Other Important Information - The company completed the sale of Graduate School USA, which was no longer a strategic fit, allowing a focus on core businesses [8][9] - The balance sheet improved with unrestricted cash and equivalents totaling $193.1 million as of September 30, 2025 [10][24] Q&A Session Summary Question: Plans for driving re-enrollments at APUS due to tuition assistance disruption - Management noted that several military branches are using tuition assistance funds to allow service members to register, and they have implemented marketing campaigns to re-engage dropped students [32] Question: Impact of the new process for integrating institutions on expense or revenue synergies - Management confirmed commitment to the integration and stated that the new process is procedural, with expectations for implementation in Q3 2026 [34] Question: Confirmation of a two-month slowdown for APUS registrations - Management acknowledged a slowdown in October but noted a recovery in November, with expectations for a return to normal trajectory in December [37] Question: Details on cost-saving initiatives - Management indicated that they have streamlined operations and reduced variable costs without affecting revenue-generating activities [39] Question: Trends in nursing program demand - Management reported strong growth in nursing enrollments, driven by attractive compensation and job availability in the sector [41] Question: Enrollment trends and demographic changes at Rasmussen - Management highlighted broad-based enrollment growth across campuses, with a particular focus on expanding the BSN student pool [58]

Core Insights - Not all cash-generating companies are successful; some fail to reinvest effectively, limiting growth potential [1] - StockStory aims to identify companies with genuine upside potential [1] Companies to Sell - **Elastic (ESTC)** - Trailing 12-Month Free Cash Flow Margin: 20.2% [2] - Current stock price is $88.32, with a forward price-to-sales ratio of 5.3x [4] - **Edgewell Personal Care (EPC)** - Trailing 12-Month Free Cash Flow Margin: 1.9% [5] - Current stock price is $18.53, with a forward P/E ratio of 6.4x [7] Company to Watch - **Laureate Education (LAUR)** - Trailing 12-Month Free Cash Flow Margin: 15.6% [8] - Estimated sales growth of 12.5% for the next 12 months, indicating a slowdown from previous trends [8] - Operating margin increased by 7.7 percentage points over the last year [8] - Free cash flow margin expected to decrease by 2.4 percentage points in the coming year [8] Performance Concerns - **Laureate Education (LAUR)** - Organic revenue has underperformed over the past two years, suggesting a need for acquisitions to stimulate growth [9] - Earnings per share declined by 2.6% annually over the last three years, with flat revenue indicating reduced profitability per sale [9] - Free cash flow margin decreased by 4.9 percentage points over the last year due to increased investments [9] Positive Aspects - **Laureate Education (LAUR)** - Strong operating margin of 23.5% over the past two years due to disciplined cost controls [11] - Free cash flow generation is superior to most peers, enabling exploration of new investment opportunities [11] - Increasing returns on capital as previous investments begin to yield results [11]

Core Insights - Strategic Education reported Q3 CY2025 results that exceeded market expectations, with revenue of $319.9 million, reflecting a 4.6% year-on-year growth and surpassing analyst estimates of $314.5 million by 1.7% [1][5] - The non-GAAP profit was $1.64 per share, which was 25.8% above analysts' consensus estimates of $1.30 [1][5] - The company’s adjusted EBITDA was $69.62 million, achieving a margin of 21.8%, which was a 13.9% beat compared to analyst expectations [5] Revenue and Profitability - The Education Technology and Services segment, particularly Sophia Learning and Workforce Edge, contributed significantly to revenue growth [3][6] - Operating margin remained stable at 11.6%, consistent with the same quarter last year [5] - Domestic student enrollment decreased slightly to 85,640, down by 893 year-on-year [5] Strategic Initiatives - Management emphasized the importance of employer-affiliated enrollments, which increased by approximately 8% year-on-year, now representing 33% of all domestic enrollments [3][6] - The company is targeting up to $100 million in operating expense savings by the end of 2027, with roughly $30 million already realized [6][7] - Future growth is expected to be driven by technology and productivity initiatives, alongside expanding employer partnerships and scaling the Sophia platform [3][6] Challenges and Outlook - The Australia and New Zealand segment faces challenges due to lower international enrollment caused by government-imposed caps and stricter transfer rules [7] - Management anticipates that new student growth will resume in 2026 as these restrictions are lifted, although the near-term outlook remains pressured [7]

Core Insights - Grand Canyon Education's shares fell 9% following disappointing third-quarter results, primarily due to a $35 million litigation settlement reserve impacting profitability significantly [1] - Revenue increased by 9.6% year-on-year to $261.1 million, driven by a 3.5% rise in student enrollments, but this was overshadowed by a 62.6% drop in operating income and nearly 60% decline in net income [1] - The company's earnings per share of $0.58 missed analysts' expectations by over 66%, and full-year earnings guidance also fell short of Wall Street's forecasts [1] Financial Performance - Operating income decreased by 62.6%, while net income fell nearly 60% compared to the previous year [1] - Revenue growth of 9.6% was attributed to a 3.5% increase in student enrollments [1] - The stock is currently trading at $162.09 per share, which is 26.5% below its 52-week high of $220.55 [5] Market Reaction - The stock market's reaction indicates that the news is considered significant, despite Grand Canyon Education's shares being relatively stable with only four moves greater than 5% in the past year [3] - The recent drop follows a previous decline of 5.3% due to the announcement of the $35 million settlement for a lawsuit regarding compensation practices [4] - The market's primary concern appears to be the financial impact of the pending $35 million payment, despite some positive legal outcomes [4]

Core Points - Nanjing University introduced a high-end seafood item, Kamchatka crab, priced at 999 yuan, which sparked significant discussion among students [1] - The university's logistics service group acknowledged the feedback and clarified that the crab was part of a trial for diverse menu offerings [1] - The university aims to enhance its dining services while promoting frugality and aligning with its educational values [1] Group 1 - The introduction of Kamchatka crab at a price of 999 yuan has generated considerable attention and debate among students [1] - The ninth cafeteria is undergoing a service upgrade and menu testing phase to provide a more diverse dining experience [1] - The university's logistics service group expressed gratitude for the community's interest and feedback regarding campus dining services [2] Group 2 - The university has implemented various affordable meal options, such as 1 penny breakfast and low-priced student meal sets, which have been well-received [2] - Future plans include expanding the variety of dishes and improving food quality to offer better value and service to students [2] - The university aims to strengthen the educational role of its dining services, making the cafeteria a key part of its holistic education approach [2]

Core Viewpoint - Hainan University has announced procurement intentions for three types of instruments and equipment, with a total budget of 1.08 billion yuan, scheduled for procurement between June and November 2025 [2][3]. Procurement Summary - The total budget for the procurement of instruments and equipment is 1.08 billion yuan, which includes high-resolution inverted laser scanning confocal microscopes, satellite communication equipment, and artificial intelligence computing power platform replacement equipment [3][5]. - The procurement is aimed at enhancing educational and research capabilities, particularly in artificial intelligence and network security [5][6]. Detailed Procurement Items - **Artificial Intelligence Computing Power Platform**: - Budget: 41.65 million yuan - Quantity: 20 sets - Purpose: To improve computing power performance and support large-scale parallel computing needs, facilitating GPU resource sharing and efficient scheduling [5][6]. - **Satellite Communication Equipment**: - Budget: 63.09 million yuan - Quantity: 1 batch - Purpose: To establish a comprehensive network security system for real-time monitoring and data accuracy across various regions [5][6]. - **High-Resolution Inverted Laser Scanning Confocal Microscope**: - Budget: 31 million yuan - Quantity: 1 set - Purpose: To achieve high-resolution imaging and spectral detection capabilities, ensuring compliance with international safety standards [5][6].

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]

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]

Core Insights - Strategic Education, Inc. has launched Signal Labs in collaboration with LearnLaunch Fund + Accelerator [1] Company Overview - Strategic Education, Inc. is focused on enhancing educational opportunities through innovative initiatives [1] - The partnership with LearnLaunch Fund + Accelerator aims to foster educational technology and innovation [1] Industry Implications - The launch of Signal Labs signifies a growing trend in the education sector towards integrating technology and innovation [1] - This initiative may attract further investments and partnerships within the educational technology landscape [1]

Financial Performance - Q3 2025 - Revenue reached $400 million, a 9% increase as reported, and a 4% increase organically/CC compared to Q3 2024 [26] - Adjusted EBITDA was $95 million, a 4% increase as reported, but a 3% decrease organically/CC compared to Q3 2024 [26] - Net income was $34 million in Q3 2025 [17] - YTD Revenue reached $1161 million, a 2% increase as reported, and a 6% increase organically/CC compared to Q3 YTD 2024 [29] - YTD Adjusted EBITDA was $315 million, a 2% increase as reported, and a 5% increase organically/CC compared to Q3 YTD 2024 [29] Segment Results - Q3 2025 - Mexico's revenue was $195 million, a 5% increase organically/CC compared to Q3 2024 [34] - Mexico's Adjusted EBITDA was $26 million, a 25% increase organically/CC compared to Q3 2024 [34] - Peru's revenue was $205 million, a 3% increase organically/CC compared to Q3 2024 [37] - Peru's Adjusted EBITDA was $78 million, a 9% decrease organically/CC compared to Q3 2024 [37] Outlook and Capital Allocation - Full-year 2025 revenue is expected to grow by 7%-8% on a USD reported basis and ~8% on an organic constant currency basis [49] - Full-year 2025 Adjusted EBITDA is expected to grow by 13%-14% on a USD reported basis and 12%-13% on an organic constant currency basis [49] - The company announced a $150 million increase in stock buyback authorization, bringing the total capacity to $177 million [17, 42]