Adtalem Global Education Third Quarter Fiscal Year 2025 Results; Guidance Raised
Total enrollment up 9.8% YoY
Revenue up 12.9% YoY
Diluted earnings per share $1.59; Adjusted EPS $1.92, growth of 28.0% YoY
Third quarter highlights
-- Total student enrollment 94,223, up 9.8% year-over-year
-- Revenue $466.1 million, up 12.9% year-over-year
-- Chamberlain University achieved ninth straight quarter of total
enrollment growth, up 6.8% year-over-year, highest total enrollment in
university history
-- Walden University achieved seventh straight quarter of total enrollment
growth, up 13.5% year-over-year
-- Medical & Veterinary segment achieved total enrollment growth, up 1.2%
year-over-year
-- Robust momentum, GAAP net income $60.8 million; adjusted EBITDA $127.8
million, up 19.3% year-over-year
-- Growth with Purpose strategy generating significant returns
Capital allocation
-- Completed $300 million January 2024 Board-authorized share repurchase
program on May 5, 2025, representing a substantial return for
shareholders
-- New $150 million Board-authorized share repurchase program through May
2028
-- Net leverage 0.8x as of Mar. 31, 2025
Fiscal year 2025 guidance
-- Revenue $1,760 million to $1,775 million -- Adjusted earnings per share $6.40 to $6.60 CHICAGO--(BUSINESS WIRE)--May 08, 2025--
Adtalem Global Education Inc. $(ATGE)$, the leading healthcare educator in the United States, today reported third quarter fiscal year 2025 results (ended Mar. 31, 2025). The Company continues to transform higher education by training the next generation of professionals at an industry-leading scale.
"Our focus on delivering flexible, personalized, tech enabled and career relevant programs for today's modern student has driven seven consecutive quarters of enrollment growth," said Steve Beard, chairman and chief executive officer, Adtalem Global Education. "Rooted in operational excellence, our Growth with Purpose strategy continues to fuel sustainable returns. As a trusted pathway for aspiring healthcare professionals, we're investing in innovative programs to meet rising demand, ensuring a skilled workforce that meets the needs of communities across the U.S."
Financial Highlights
Selected financial data for the three months ended Mar. 31, 2025:
-- Revenue of $466.1 million increased 12.9% compared with the prior year
-- Operating income of $90.5 million, compared with $61.7 million in the
prior year; adjusted operating income of $105.4 million, compared with
$89.8 million in the prior year
-- Net income of $60.8 million, compared with $36.8 million in the prior
year; adjusted net income of $73.3 million, compared with $59.4 million
in the prior year
-- Diluted earnings per share of $1.59, compared with $0.93 in the prior
year; adjusted earnings per share of $1.92, compared with $1.50 in the
prior year
-- Adjusted EBITDA of $127.8 million, compared with $107.1 million in the
prior year; adjusted EBITDA margin of 27.4%, compared with 25.9% in the
prior year
Business Highlights
-- American University of the Caribbean School of Medicine $(AUC.AU)$ and Ross University School of Medicine (RUSM) achieved a combined 95% first-time residency attainment rate for 2024-2025 graduates1, at least 95% attainment for the fourth consecutive year, placing more than 615 students and graduates into over 325 unique healthcare facilities with more than 130 students and graduates matching into partner clinical hospitals. The U.S. is projected to face a shortage of 187,000 physicians in 20372, exacerbating healthcare gaps, particularly in existing shortage areas. This year, more than 40% of AUC and RUSM residency placements will train in federally designated Medically Underserved Areas / Populations3, expanding access to care in underserved urban and rural communities nationwide. More than 450 students and graduates matched into primary care residencies, with over 55% training in primary care Health Professional Shortage Areas3. -- Ross University School of Veterinary Medicine (RUSVM) ranked first among all universities in total graduates matched into highly competitive internships and residencies in 2025 through the Veterinary Internship and Residency Matching Program. For the last five years, RUSVM has been among the top schools for matching graduates into postgraduate opportunities, providing invaluable clinical experience in specialized fields such as surgery, cardiology, internal medicine and emergency care. -- Walden University celebrated approximately 6,000 graduates at its 72nd commencement. Nursing, social, behavioral and other health degrees accounted for approximately 80% of the degrees awarded, further showcasing Adtalem's commitment to delivering qualified professionals at scale to the U.S. healthcare system. -- Chamberlain University launched "You've Got This, We've Got You," a new brand campaign that focuses on the culture of caring and support at the No. 1 largest nursing school in the U.S.
Segment Highlights
Chamberlain
Three Months Ended
$ in millions March 31,
------------------------
2025 2024 % Change
------ ------ --------
Revenue $192.6 $170.3 13.1%
Operating Income $47.5 $43.3 9.6%
Adj. Operating Income $47.5 $43.3 9.6%
Adj. EBITDA $56.8 $50.5 12.6%
Total Students(4) 40,564 37,985 6.8%
-- Total student enrollment increased 6.8% compared with the prior year,
driven by growth in pre-licensure and post-licensure nursing programs.
Walden
Three Months Ended
$ in millions March 31,
------------------------
2025 2024 % Change
------ ------ --------
Revenue $178.4 $150.6 18.5%
Operating Income $45.2 $23.6 91.6%
Adj. Operating Income $48.0 $31.9 50.6%
Adj. EBITDA $54.0 $35.9 50.6%
Total Students(4) 48,526 42,751 13.5%
-- Total student enrollment increased 13.5% compared with the prior year,
driven by growth in healthcare and non-healthcare programs.
Medical and Veterinary
Three Months Ended
$ in millions March 31,
----------------------
2025 2024 % Change
----- ----- --------
Revenue $95.0 $91.7 3.6%
Operating Income $17.8 $22.8 (21.8)%
Adj. Operating Income $17.9 $23.0 (21.9)%
Adj. EBITDA $22.9 $27.0 (15.3)%
Total Students(4) 5,133 5,073 1.2%
-- Total student enrollment increased 1.2% compared to the prior year,
driven by growth in veterinary.
Fiscal Year 2025 Outlook
Adtalem raises guidance for fiscal year 2025, with revenue in the range of $1,760 million to $1,775 million, approximately 11% to 12% growth year-over-year. Adjusted earnings per share to be in the range of $6.40 to $6.60, approximately 28% to 32% growth year-over-year.
Conference Call and Webcast Information
Adtalem will hold a conference call to discuss its third quarter fiscal year 2025 results today at 4:00 p.m. CT (5:00 p.m. ET).
The call can be accessed by dialing +1 877-407-6184 (U.S. participants) or +1 201-389-0877 (international participants) and stating "Adtalem earnings call" or by using conference ID:13752889. The call will be simulcast through the Adtalem investor relations website at: https://investors.adtalem.com.
Adtalem will archive a replay of the call for 30 days. To access the replay, dial +1 877-660-6853 (U.S.) or +1 201-612-7415 (international), conference ID: 13752889, or visit the Adtalem investor relations website.
About Adtalem Global Education
Adtalem Global Education is the leading provider of healthcare education in the U.S., shaping the future of healthcare by preparing a practice-ready workforce with high-quality academic programs. We innovate education pathways, align with industry needs and empower individuals to reach their full potential. Our commitment to excellence and access is reflected in our expansive network of institutions, serving over 90,000 students and supported by a strong community of approximately 350,000 alumni and nearly 10,000 dedicated employees. Visit Adtalem.com for more information and follow us on LinkedIn, Instagram and Facebook.
Cautionary Disclosure Regarding Forward-Looking Statements
Certain statements contained in this release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact, which includes statements regarding Adtalem's future growth. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "future," "believe," "expect," "anticipate," "estimate," "plan," "intend," "may," "will," "would," "could," "can," "continue," "preliminary," "range," and similar terms. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include the risk factors described in Item 1A. "Risk Factors" of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission $(SEC.UK)$ and our
other filings with the SEC. These forward-looking statements are based on information available to us as of the date any such statements are made, and Adtalem assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized, except as required by law.
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of special items that may be incurred in the future, although these special items could be material to Adtalem's results in accordance with GAAP.
(1) First-time residency attainment rate is the percent of students attaining
a 2025-26 residency position out of all graduates or expected graduates in
2024-25 who were active applicants in the 2025 NRMP match or who attained a
residency position outside the NRMP match.
(2) Health Resources & Services Administration (HRSA):
https://bhw.hrsa.gov/data-research/projecting-health-workforce-supply-demand
(3) Medically Underserved Areas and Health Professional Shortage Areas as
defined by the U.S. Health Resources & Services Administration: What Is
Shortage Designation? | Bureau of Health Workforce
(4) Represents total students attending sessions during each institution's
most recent enrollment period in Q3 FY 2025 and Q3 FY 2024.
Adtalem Global Education Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands)
March 31, June 30,
2025 2024
---------- ----------
Assets:
Current assets:
Cash and cash equivalents $ 219,017 $ 219,306
Restricted cash 2,164 1,896
Accounts and financing receivables, net 162,972 126,833
Prepaid expenses and other current
assets 66,190 70,050
--------- ---------
Total current assets 450,343 418,085
--------- ---------
Noncurrent assets:
Property and equipment, net 250,764 248,524
Operating lease assets 198,465 176,755
Deferred income taxes 33,157 49,088
Intangible assets, net 768,279 776,694
Goodwill 961,262 961,262
Other assets, net 119,664 103,184
Assets held for sale 7,825 7,825
--------- ---------
Total noncurrent assets 2,339,416 2,323,332
--------- ---------
Total assets $2,789,759 $2,741,417
========= =========
Liabilities and shareholders' equity:
Current liabilities:
Accounts payable $ 98,709 $ 102,626
Accrued payroll and benefits 72,676 71,373
Accrued liabilities 86,491 96,957
Deferred revenue 247,811 185,272
Current operating lease liabilities 34,882 31,429
--------- ---------
Total current liabilities 540,569 487,657
--------- ---------
Noncurrent liabilities:
Long-term debt 552,186 648,712
Long-term operating lease liabilities 193,460 167,712
Deferred income taxes 33,589 29,526
Other liabilities 37,242 38,675
--------- ---------
Total noncurrent liabilities 816,477 884,625
--------- ---------
Total liabilities 1,357,046 1,372,282
--------- ---------
Commitments and contingencies
Total shareholders' equity 1,432,713 1,369,135
--------- ---------
Total liabilities and shareholders' equity $2,789,759 $2,741,417
========= =========
Adtalem Global Education Inc.
Consolidated Statements of Income
(unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
-------------------- ----------------------
2025 2024 2025 2024
--------- --------- ---------- ----------
Revenue $ 466,055 $ 412,658 $1,331,184 $1,174,745
Operating cost and
expense:
Cost of
educational
services 199,869 175,321 572,500 516,008
Student services
and
administrative
expense 175,167 156,689 491,141 478,368
Restructuring
expense 510 473 2,926 1,217
Business
integration
expense -- 18,450 -- 30,621
-------- -------- --------- ---------
Total
operating
cost and
expense 375,546 350,933 1,066,567 1,026,214
-------- -------- --------- ---------
Operating income 90,509 61,725 264,617 148,531
Interest expense (13,074) (16,560) (41,465) (48,910)
Other income, net 1,898 2,871 6,779 8,648
-------- -------- --------- ---------
Income from
continuing
operations before
income taxes 79,333 48,036 229,931 108,269
Provision for income
taxes (18,539) (10,595) (51,716) (21,156)
-------- -------- --------- ---------
Income from
continuing
operations 60,794 37,441 178,215 87,113
-------- -------- --------- ---------
Discontinued
operations:
Income (loss)
from
discontinued
operations
before income
taxes 52 (832) 6,216 329
(Provision for)
benefit from
income taxes (14) 212 (1,578) (84)
-------- -------- --------- ---------
Income (loss)
from
discontinued
operations 38 (620) 4,638 245
-------- -------- --------- ---------
Net income and
comprehensive
income $ 60,832 $ 36,821 $ 182,853 $ 87,358
======== ======== ========= =========
Earnings (loss) per
share:
Basic:
Continuing
operations $ 1.64 $ 0.97 $ 4.76 $ 2.18
Discontinued
operations $ 0.00 $ (0.02) $ 0.12 $ 0.01
Total basic
earnings per
share $ 1.64 $ 0.95 $ 4.88 $ 2.18
Diluted:
Continuing
operations $ 1.59 $ 0.94 $ 4.62 $ 2.13
Discontinued
operations $ 0.00 $ (0.02) $ 0.12 $ 0.01
Total diluted
earnings per
share $ 1.59 $ 0.93 $ 4.74 $ 2.14
Weighted-average
shares
outstanding:
Basic shares 37,140 38,713 37,434 40,000
Diluted shares 38,233 39,636 38,583 40,874
Adtalem Global Education Inc.
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Nine Months Ended
March 31,
------------------------
2025 2024
---------- ------------
Operating activities:
Net income $ 182,853 $ 87,358
Income from discontinued operations (4,638) (245)
-------- --------
Income from continuing operations 178,215 87,113
Adjustments to reconcile net income to
net cash provided by operating
activities:
Stock-based compensation 31,181 19,405
Amortization and impairments to
operating lease assets 25,330 24,705
Depreciation 30,267 29,879
Amortization of acquired intangible
assets 8,415 28,296
Amortization of debt discount and
issuance costs 4,995 4,550
Provision for bad debts 46,854 35,741
Deferred income taxes 19,994 (4,650)
Loss on disposals and impairments of
property and equipment 2,522 50
Gain on investments (268) (1,281)
Unrealized loss on assets held for
sale -- 647
Changes in assets and liabilities:
Accounts and financing receivables (80,613) (73,661)
Prepaid expenses and other current
assets 5,727 (2,484)
Cloud computing implementation
assets (21,959) (19,262)
Accounts payable (9,978) 12,632
Accrued payroll and benefits 1,406 15,671
Accrued liabilities (10,449) 39,748
Deferred revenue 66,081 60,935
Operating lease liabilities (17,839) (28,448)
Other assets and liabilities (6,068) (2,475)
-------- --------
Net cash provided by operating
activities-continuing operations 273,813 227,111
Net cash provided by operating
activities-discontinued operations 4,394 8,396
-------- --------
Net cash provided by operating
activities 278,207 235,507
-------- --------
Investing activities:
Capital expenditures (31,337) (32,316)
Proceeds from sales of marketable
securities 3,120 626
Purchases of marketable securities (2,048) (498)
-------- --------
Net cash used in investing activities (30,265) (32,188)
-------- --------
Financing activities:
Proceeds from exercise of stock options 10,008 15,412
Employee taxes paid on withholding
shares (12,457) (6,600)
Proceeds from stock issued under
Colleague Stock Purchase Plan 922 581
Repurchases of common stock for
treasury (146,436) (250,463)
Proceeds from issuance of long-term
debt 9,873 1,896
Repayments of long-term debt (109,873) (51,896)
-------- --------
Net cash used in financing activities (247,963) (291,070)
-------- --------
Net decrease in cash, cash equivalents
and restricted cash (21) (87,751)
Cash, cash equivalents and restricted cash
at beginning of period 221,202 275,075
-------- --------
Cash, cash equivalents and restricted cash
at end of period $ 221,181 $ 187,324
======== ========
Non-cash investing and financing
activities:
Accrued capital expenditures $ 12,410 $ 6,217
Accrued liability for repurchases of
common stock $ 4,879 $ 2,995
Accrued excise tax on share repurchases $ 1,055 $ 3,257
Adtalem Global Education Inc.
Segment Information
(unaudited)
(in thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------------------------------- -----------------------------------------------------
Increase/(Decrease) Increase/(Decrease)
--------------------------- ---------------------------
2025 2024 $ % 2025 2024 $ %
-------- -------- --------------- ---------- ---------- ---------- ---------------- ---------
Revenue:
Chamberlain $192,592 $170,338 $ 22,254 13.1% $ 541,508 $ 466,487 $ 75,021 16.1%
Walden 178,418 150,607 27,811 18.5% 511,237 439,023 72,214 16.4%
Medical and
Veterinary 95,045 91,713 3,332 3.6% 278,439 269,235 9,204 3.4%
------- ------- ------- --------- --------- --------
Total
consolidated
revenue $466,055 $412,658 $ 53,397 12.9% $1,331,184 $1,174,745 $ 156,439 13.3%
======= ======= ======= ========= ========= ========
Operating income
(loss):
Chamberlain $ 47,516 $ 43,349 $ 4,167 9.6% $ 115,716 $ 97,313 $ 18,403 18.9%
Walden 45,194 23,585 21,609 91.6% 133,929 47,121 86,808 184.2%
Medical and
Veterinary 17,800 22,759 (4,959) (21.8)% 53,934 59,142 (5,208) (8.8)%
Home Office (20,001) (27,968) 7,967 28.5% (38,962) (55,045) 16,083 29.2%
------- ------- ------- --------- --------- --------
Total
consolidated
operating
income $ 90,509 $ 61,725 $ 28,784 46.6% $ 264,617 $ 148,531 $ 116,086 78.2%
======= ======= ======= ========= ========= ========
Non-GAAP Financial Measures and Reconciliations
We believe that certain non-GAAP financial measures provide investors with useful supplemental information regarding the underlying business trends and performance of Adtalem's ongoing operations as seen through the eyes of management and are useful for period-over-period comparisons. We use these supplemental non-GAAP financial measures internally in our assessment of performance and budgeting process. However, these non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The following are non-GAAP financial measures used in the subsequent GAAP to non-GAAP reconciliation tables:
Adjusted net income (most comparable GAAP measure: net income) -- Measure of Adtalem's net income adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, write-off of debt discount and issuance costs, litigation reserve, asset impairments, loss on assets held for sale, debt modification costs, strategic advisory costs, and (income) loss from discontinued operations.
Adjusted earnings per share (most comparable GAAP measure: diluted earnings per share) -- Measure of Adtalem's diluted earnings per share adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, write-off of debt discount and issuance costs, litigation reserve, asset impairments, loss on assets held for sale, debt modification costs, strategic advisory costs, and (income) loss from discontinued operations.
Adjusted operating income (most comparable GAAP measure: operating income) -- Measure of Adtalem's operating income adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, asset impairments, strategic advisory costs, loss on assets held for sale, and debt modification costs. This measure is applied on a consolidated and segment basis, depending on the context of the discussion.
Adjusted EBITDA (most comparable GAAP measure: net income) -- Measure of Adtalem's net income adjusted for (income) loss from discontinued operations, interest expense, other income, net, provision for income taxes, depreciation, amortization of acquired intangible assets, amortization of cloud computing implementation assets, stock-based compensation, restructuring expense, business integration expense, litigation reserve, asset impairments, strategic advisory costs, loss on assets held for sale, and debt modification costs. This measure is applied on a consolidated and segment basis, depending on the context of the discussion. Provision for income taxes, interest expense, and other income, net is not recorded at the reportable segments, and therefore, the segment adjusted EBITDA reconciliations begin with operating income.
Free cash flow (most comparable GAAP measure: net cash provided by operating activities-continuing operations) -- Defined as net cash provided by operating activities-continuing operations less capital expenditures.
Net debt -- Defined as long-term debt less cash and cash equivalents.
Net leverage -- Defined as net debt divided by adjusted EBITDA.
A description of special items in our non-GAAP financial measures described above are as follows:
-- Restructuring expense primarily related to workforce reductions, costs to
exit certain course offerings, and prior real estate consolidations at
Adtalem's home office. We do not include normal, recurring, cash
operating expenses in our restructuring expense.
-- Business integration expense include expenses related to the Walden
acquisition and certain costs related to growth transformation
initiatives. We do not include normal, recurring, cash operating expenses
in our business integration expense.
-- Amortization of acquired intangible assets.
-- Amortization of cloud computing implementation assets.
-- Write-off of debt discount and issuance costs related to prepayments of
debt, reserves related to significant litigation, asset impairments
related to adjusting certain operating lease assets and property and
equipment as a result of adjusting carrying values to fair values, loss
on assets held for sale related to adjusting those assets to estimated
fair value less costs to sell, and debt modification costs related to
refinancing our Term Loan B loan.
-- Strategic advisory costs related to expanding capabilities and bringing
new capacities to market to further enhance our strategic position. We do
not include normal, recurring, cash operating expenses in our strategic
advisory costs.
-- (Income) loss from discontinued operations includes expense from ongoing
litigation costs and settlements related to divestitures and the
earn-outs we received.
Adtalem Global Education Inc.
Non-GAAP Operating Income by Segment
(unaudited)
(in thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------------------------------------- -------------------------------------------------------
Increase/(Decrease) Increase/(Decrease)
--------------------------- ---------------------------
2025 2024 $ % 2025 2024 $ %
-------- -------- ---------------- --------- -------- -------- ---------------- ---------
Chamberlain:
Operating
income (GAAP) $ 47,516 $ 43,349 $ 4,167 9.6% $115,716 $ 97,313 $ 18,403 18.9%
Restructuring
expense (23) -- (23) 1,912 -- 1,912
------- ------- -------- ------- ------- --------
Adjusted
operating
income
(non-GAAP) $ 47,493 $ 43,349 $ 4,144 9.6% $117,628 $ 97,313 $ 20,315 20.9%
======= ======= ======== ======= ======= ========
Operating
margin (GAAP) 24.7% 25.4% 21.4% 20.9%
Operating
margin
(non-GAAP) 24.7% 25.4% 21.7% 20.9%
Walden:
Operating
income (GAAP) $ 45,194 $ 23,585 $ 21,609 91.6% $133,929 $ 47,121 $ 86,808 184.2%
Restructuring
expense -- -- -- -- (776) 776
Amortization of
acquired
intangible
assets 2,805 8,286 (5,481) 8,415 28,296 (19,881)
Litigation
reserve -- -- -- (5,550) 18,500 (24,050)
------- ------- -------- ------- ------- --------
Adjusted
operating
income
(non-GAAP) $ 47,999 $ 31,871 $ 16,128 50.6% $136,794 $ 93,141 $ 43,653 46.9%
======= ======= ======== ======= ======= ========
Operating
margin (GAAP) 25.3% 15.7% 26.2% 10.7%
Operating
margin
(non-GAAP) 26.9% 21.2% 26.8% 21.2%
Medical and
Veterinary:
Operating
income (GAAP) $ 17,800 $ 22,759 $ (4,959) (21.8)% $ 53,934 $ 59,142 $ (5,208) (8.8)%
Restructuring
expense 121 194 (73) 236 379 (143)
------- ------- -------- ------- ------- --------
Adjusted
operating
income
(non-GAAP) $ 17,921 $ 22,953 $ (5,032) (21.9)% $ 54,170 $ 59,521 $ (5,351) (9.0)%
======= ======= ======== ======= ======= ========
Operating
margin (GAAP) 18.7% 24.8% 19.4% 22.0%
Operating
margin
(non-GAAP) 18.9% 25.0% 19.5% 22.1%
Home Office:
Operating loss
(GAAP) $(20,001) $(27,968) $ 7,967 28.5% $(38,962) $(55,045) $ 16,083 29.2%
Restructuring
expense 412 279 133 778 1,614 (836)
Business
integration
expense -- 18,450 (18,450) -- 30,621 (30,621)
Asset
impairments 6,442 -- 6,442 6,442 -- 6,442
Strategic
advisory
costs 5,100 -- 5,100 5,100 -- 5,100
Loss on assets
held for sale -- -- -- -- 647 (647)
Debt
modification
costs -- 848 (848) 712 848 (136)
------- ------- -------- ------- ------- --------
Adjusted
operating loss
(non-GAAP) $ (8,047) $ (8,391) $ 344 4.1% $(25,930) $(21,315) $ (4,615) (21.7)%
======= ======= ======== ======= ======= ========
Adtalem Global
Education:
Operating
income (GAAP) $ 90,509 $ 61,725 $ 28,784 46.6% $264,617 $148,531 $ 116,086 78.2%
Restructuring
expense 510 473 37 2,926 1,217 1,709
Business
integration
expense -- 18,450 (18,450) -- 30,621 (30,621)
Amortization of
acquired
intangible
assets 2,805 8,286 (5,481) 8,415 28,296 (19,881)
Litigation
reserve -- -- -- (5,550) 18,500 (24,050)
Asset
impairments 6,442 -- 6,442 6,442 -- 6,442
Strategic
advisory
costs 5,100 -- 5,100 5,100 -- 5,100
Loss on assets
held for sale -- -- -- -- 647 (647)
Debt
modification
costs -- 848 (848) 712 848 (136)
------- ------- -------- ------- ------- --------
Adjusted
operating
income
(non-GAAP) $105,366 $ 89,782 $ 15,584 17.4% $282,662 $228,660 $ 54,002 23.6%
======= ======= ======== ======= ======= ========
Operating
margin (GAAP) 19.4% 15.0% 19.9% 12.6%
Operating
margin
(non-GAAP) 22.6% 21.8% 21.2% 19.5%
Adtalem Global Education Inc.
Non-GAAP Adjusted EBITDA by Segment
(unaudited)
(in thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------------------------------------- -------------------------------------------------------
Increase/(Decrease) Increase/(Decrease)
--------------------------- ---------------------------
2025 2024 $ % 2025 2024 $ %
-------- -------- ---------------- --------- -------- -------- ---------------- ---------
Chamberlain:
Operating income
(GAAP) $ 47,516 $ 43,349 $ 4,167 9.6% $115,716 $ 97,313 $ 18,403 18.9%
Restructuring
expense (23) -- (23) 1,912 -- 1,912
Depreciation 5,350 4,938 412 16,184 13,840 2,344
Amortization of
cloud computing
implementation
assets 786 374 412 2,253 950 1,303
Stock-based
compensation 3,178 1,795 1,383 10,290 6,791 3,499
------- ------- -------- ------- ------- --------
Adjusted EBITDA
(non-GAAP) $ 56,807 $ 50,456 $ 6,351 12.6% $146,355 $118,894 $ 27,461 23.1%
======= ======= ======== ======= ======= ========
Adjusted EBITDA
margin
(non-GAAP) 29.5% 29.6% 27.0% 25.5%
Walden:
Operating income
(GAAP) $ 45,194 $ 23,585 $ 21,609 91.6% $133,929 $ 47,121 $ 86,808 184.2%
Restructuring
expense -- -- -- -- (776) 776
Amortization of
acquired
intangible
assets 2,805 8,286 (5,481) 8,415 28,296 (19,881)
Litigation
reserve -- -- -- (5,550) 18,500 (24,050)
Depreciation 1,951 1,835 116 5,428 5,735 (307)
Amortization of
cloud computing
implementation
assets 763 379 384 2,242 946 1,296
Stock-based
compensation 3,288 1,770 1,518 9,354 5,822 3,532
------- ------- -------- ------- ------- --------
Adjusted EBITDA
(non-GAAP) $ 54,001 $ 35,855 $ 18,146 50.6% $153,818 $105,644 $ 48,174 45.6%
======= ======= ======== ======= ======= ========
Adjusted EBITDA
margin
(non-GAAP) 30.3% 23.8% 30.1% 24.1%
Medical and
Veterinary:
Operating income
(GAAP) $ 17,800 $ 22,759 $ (4,959) (21.8)% $ 53,934 $ 59,142 $ (5,208) (8.8)%
Restructuring
expense 121 194 (73) 236 379 (143)
Depreciation 2,785 3,033 (248) 8,098 8,897 (799)
Amortization of
cloud computing
implementation
assets 304 141 163 902 331 571
Stock-based
compensation 1,848 851 997 5,613 3,687 1,926
------- ------- -------- ------- ------- --------
Adjusted EBITDA
(non-GAAP) $ 22,858 $ 26,978 $ (4,120) (15.3)% $ 68,783 $ 72,436 $ (3,653) (5.0)%
======= ======= ======== ======= ======= ========
Adjusted EBITDA
margin
(non-GAAP) 24.0% 29.4% 24.7% 26.9%
Home Office:
Operating loss
(GAAP) $(20,001) $(27,968) $ 7,967 28.5% $(38,962) $(55,045) $ 16,083 29.2%
Restructuring
expense 412 279 133 778 1,614 (836)
Business
integration
expense -- 18,450 (18,450) -- 30,621 (30,621)
Asset
impairments 6,442 -- 6,442 6,442 -- 6,442
Strategic
advisory costs 5,100 -- 5,100 5,100 -- 5,100
Loss on assets
held for sale -- -- -- -- 647 (647)
Debt
modification
costs -- 848 (848) 712 848 (136)
Depreciation 188 692 $(504.SI)$ 557 1,407 (850)
Stock-based
compensation 1,949 1,484 465 5,924 3,105 2,819
------- ------- -------- ------- ------- --------
Adjusted EBITDA
(non-GAAP) $ (5,910) $ (6,215) $ 305 4.9% $(19,449) $(16,803) $ (2,646) (15.7)%
======= ======= ======== ======= ======= ========
Adtalem Global
Education:
Net income
(GAAP) $ 60,832 $ 36,821 $ 24,011 65.2% $182,853 $ 87,358 $ 95,495 109.3%
(Income) loss
from
discontinued
operations (38) 620 (658) (4,638) (245) (4,393)
Interest expense 13,074 16,560 (3,486) 41,465 48,910 (7,445)
Other income,
net (1,898) (2,871) 973 (6,779) (8,648) 1,869
Provision for
income taxes 18,539 10,595 7,944 51,716 21,156 30,560
------- ------- -------- ------- ------- --------
Operating income
(GAAP) 90,509 61,725 28,784 264,617 148,531 116,086
Depreciation and
amortization 14,932 19,678 (4,746) 44,079 60,402 (16,323)
Stock-based
compensation 10,263 5,900 4,363 31,181 19,405 11,776
Restructuring
expense 510 473 37 2,926 1,217 1,709
Business
integration
expense -- 18,450 (18,450) -- 30,621 (30,621)
Litigation
reserve -- -- -- (5,550) 18,500 (24,050)
Asset
impairments 6,442 -- 6,442 6,442 -- 6,442
Strategic
advisory costs 5,100 -- 5,100 5,100 -- 5,100
Loss on assets
held for sale -- -- -- -- 647 (647)
Debt
modification
costs -- 848 (848) 712 848 (136)
------- ------- -------- ------- ------- --------
Adjusted EBITDA
(non-GAAP) $127,756 $107,074 $ 20,682 19.3% $349,507 $280,171 $ 69,336 24.7%
======= ======= ======== ======= ======= ========
Adjusted EBITDA
margin
(non-GAAP) 27.4% 25.9% 26.3% 23.8%
Adtalem Global Education Inc.
Non-GAAP Earnings Disclosure
(unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
--------------------- ----------------------
2025 2024 2025 2024
---------- ------- -------- --------
Net income
(GAAP) $ 60,832 $36,821 $182,853 $ 87,358
Restructuring
expense 510 473 2,926 1,217
Business
integration
expense -- 18,450 -- 30,621
Amortization of
acquired
intangible
assets 2,805 8,286 8,415 28,296
Write-off of
debt discount
and issuance
costs,
litigation
reserve, asset
impairments,
loss on assets
held for sale,
and debt
modification
costs 8,180 1,961 3,342 21,108
Strategic
advisory
costs 5,100 -- 5,100 --
Income tax
impact on
non-GAAP
adjustments
(1) (4,134) (7,260) (4,821) (19,355)
(Income) loss
from
discontinued
operations (38) 620 (4,638) (245)
--------- ------ ------- -------
Adjusted net
income
(non-GAAP) $ 73,255 $59,351 $193,177 $149,000
========= ====== ======= =======
(1) Represents the income tax impact of non-GAAP continuing operations
adjustments that is recognized in our GAAP financial statements.
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