Adtalem Global Education (ATGE 0.02%), a major provider of healthcare-focused education, released its earnings for the fiscal fourth quarter of 2025 on August 7, 2025. Key highlights include a revenue figure of $457.1 million (GAAP), topping analyst expectations of $440.93 million, and an adjusted, non-GAAP earnings per share (EPS) of $1.66 versus a $1.53 estimate. Both revenue (GAAP) and profit (non-GAAP EPS) metrics exceeded consensus by 3.7% and 8.5%, respectively. Momentum in student enrollment, increased efficiency, and outperformance across the Walden and Chamberlain University segments powered this result. The quarter ended with a positive outlook, although margin compression at Chamberlain and capacity constraints in the Medical and Veterinary segment merit close attention as Adtalem moves forward.
| Metric | Q4 2025 | Q4 2025 Estimate | Q4 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Adjusted, Non-GAAP) | $1.66 | $1.53 | $1.37 | 21.2% |
| Revenue (GAAP) | $457.1 million | $440.93 million | $409.9 million | 11.5% |
| Adjusted EBITDA (Non-GAAP) | $110.2 million | $97.4 million | 13.2% | |
| Adjusted Net Income (Non-GAAP) | $62.4 million | $52.8 million | 18.3% | |
| Free Cash Flow (Non-GAAP) | $283.4 million | $239.5 million | 18.3% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q3 2025 earnings report.
Adtalem Global Education is a leading U.S.-based provider of postsecondary education, specializing in healthcare through institutions such as Chamberlain University (nursing and health sciences), Walden University (graduate and doctoral programs with a large healthcare component), and its Medical and Veterinary segment. Its core strategy is to meet the growing national demand for educated healthcare professionals, while maintaining strict regulatory compliance and financial stability.
Key areas of focus for the company include regulatory compliance (due to reliance on federal student aid programs), maintaining a leadership position in healthcare education, sustaining financial strength, investing in digital innovation and new program launches, and upholding accreditations that allow its students access to federal aid. These factors underpin the company's stability and are critical to its long-term success.
Total enrollment reached 91,780, up 10.2% from the prior year. Walden University led with a 15.0% rise in enrollment to 48,116 students, spurred by both healthcare and non-healthcare program expansion and supported by digital tools aimed at retention. Walden also generated the fastest adjusted EBITDA margin improvement among segments, as Predictive analytics platforms enhanced student engagement and improved persistence.
Chamberlain University reported an enrollment increase of 5.8%, reaching 38,891 students as growth in pre-licensure and post-licensure nursing programs continued. While revenue moved 10.3% higher, Adjusted operating margin for the segment dropped from 24.2% to 19.4%. Management had earlier signaled such investments heading into the quarter.
The Medical and Veterinary segment grew enrollment by 1.0% year-over-year, with revenue (GAAP) up 4.7%. This segment continued to operate near capacity, particularly in the Ross Veterinary branch, limiting the pace of possible expansion. However, Adjusted EBITDA improved 21.7% from the prior year’s quarter. Elsewhere in the segment, new programs and partnerships were launched -- for example, a Master's program in Healthcare Data Analytics at the American University of the Caribbean, addressing the growing need for digitally skilled healthcare workers.
Across the group, consolidated adjusted EBITDA margin was 24.1% compared to 23.8% for Q4 FY2024, on the back of cost discipline and the benefits of a higher revenue base. The adjusted EBITDA margin reached 25.7% for FY2025. Performance in free cash flow was robust, with $283.4 million (non-GAAP) generated and improved net leverage (non-GAAP) to 0.8x.
On the operational front, Adtalem continued to invest in its technology offering and programming. Walden University’s predictive analytics tools and digital platform expansion were singled out for increasing student engagement, as well as improving retention and academic outcomes. Chamberlain University launched a new brand campaign and expanded its partnership with SSM Health, creating the Aspiring Nurse Program to graduate more than 400 new nurses annually via employer-linked pathways.
Capital allocation remained disciplined. The company completed $211 million of share repurchases during FY2025, accompanied by a fresh $150 million authorization through May 2028. Management also paid down $100 million on its term loan, and repriced remaining debt at a lower interest rate, reducing financial costs. Cash and cash equivalents (GAAP) stood at $199.6 million as of June 30, 2025.
There were no quarterly or consecutive dividend increases, as Adtalem does not currently pay a dividend. Aside from normal operating investment and innovation outlays, Two notable one-time expenses appeared: an asset impairment related to the company’s relocation of its headquarters, and strategic advisory fees to support planning for capacity and program expansion.
Regulatory compliance remained a central focus. Management described its interactions with the U.S. Department of Education as “constructive,” with no flagged concerns regarding student aid funding. This quarter, Walden’s Doctor of Social Work program won accreditation from the Council on Social Work Education -- only the fourth program in the country to earn this designation -- and both Walden and Chamberlain earned Carnegie “Opportunity College” status, which acknowledges broad, high-quality student access.
Adtalem issued guidance for fiscal 2026, projecting revenue of $1.90 billion to $1.94 billion and adjusted EPS of $7.60 to $7.90. This represents growth of 6.0% to 8.5% in revenue and 14.0% to 18.5% in adjusted EPS over fiscal 2025. Management suggested the pace of top-line growth would moderate against the backdrop of very strong prior-year gains, and that investments in technology and program development would continue through the coming year.
Chief among investor considerations are the sustainability of enrollment growth (especially as capacity constraints emerge in Medical and Veterinary), the effects of ongoing investments on operating margins (particularly within Chamberlain University), and any regulatory changes that could affect access to federal student aid. Management did not provide further updates to long-term targets beyond fiscal 2026 guidance, but signaled that operating leverage -- cost efficiency relative to growth -- remains an ongoing priority.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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