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]