Adtalem Global Education First Quarter Fiscal Year 2026 Results; Maintains Fiscal Year 2026 Guidance
CHICAGO--( BUSINESS WIRE)--Adtalem Global Education Inc. (NYSE: ATGE), the largest healthcare educator in the United States, today reported first quarter fiscal year 2026 results (ended Sept. 30, 2025). The Company continues to transform higher education by training the next generation of professionals at an industry-leading scale.
“We delivered an outstanding start to Fiscal Year 2026 – adjusted EPS up 35.7% and revenue up 10.8% - marking our ninth consecutive quarter or enrollment growth. With net leverage at 0.6x and strong free cash flow, we’re executing a disciplined capital allocation strategy that balance growth investment with shareholder returns,” said Steve Beard, chairman and chief executive officer, Adtalem Global Education. “We look forward to sharing our strategic vision and capital allocation framework at our Investor Day in February. Our focus remains singular: creating sustainable, long-term shareholder value by serving as essential talent infrastructure for America’s healthcare workforce.”
Financial Highlights
Selected financial data for the three months ended Sept. 30, 2025:
Business Highlights
Segment Highlights
Chamberlain
$ in millions
Three Months Ended
September 30,
2025
2024
% Change
Revenue
$179.2
$167.9
6.7%
Operating Income
$25.6
$26.0
(1.4)%
Adj. Operating Income
$25.6
$27.8
(8.0)%
Adj. EBITDA
$35.1
$37.0
(5.1)%
Total Students (1)
39,846
38,987
2.2%
Walden
$ in millions
Three Months Ended
September 30,
2025
2024
% Change
Revenue
$190.0
$161.5
17.6%
Operating Income
$53.3
$39.8
33.7%
Adj. Operating Income
$56.1
$42.6
31.5%
Adj. EBITDA
$61.9
$47.8
29.5%
Total Students (1)
52,216
45,979
13.6%
Medical and Veterinary
$ in millions
Three Months Ended
September 30,
2025
2024
% Change
Revenue
$93.1
$88.0
5.9%
Operating Income
$16.7
$14.7
14.0%
Adj. Operating Income
$16.8
$14.7
13.9%
Adj. EBITDA
$21.4
$19.2
11.6%
Total Students (1)
5,297
5,174
2.4%
Fiscal Year 2026 Outlook
Adtalem maintains guidance for fiscal year 2026, with revenue in the range of $1,900 million to $1,940 million, approximately 6.0% to 8.5% growth year-over-year. Adjusted earnings per share to be in the range of $7.60 to $7.90, approximately 14.0% to 18.5% growth year-over-year.
Investor Day 2026
Adtalem is announcing our upcoming Investor Day, scheduled for Feb. 24, 2026. Additional information can be found at investors.adtalem.com.
Conference Call and Webcast Information
Adtalem will hold a conference call to discuss its first quarter fiscal year 2026 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:13756230. 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: 13756230, or visit the Adtalem investor relations website.
About Adtalem Global Education
Adtalem Global Education is the largest provider of healthcare education in the U.S., shaping the future of healthcare by preparing a dynamic 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 97,000 students and supported by a strong community of approximately 365,000 alumni and over 10,000 dedicated employees.
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,” “potential,” “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. Important factors that could cause actual results to differ materially from the expectations expressed or implied by our forward-looking statements are disclosed in Item 1A. “Risk Factors,” of our Annual Report on Form 10-K. You should evaluate forward-looking statements in the context of these risks and uncertainties and are cautioned to not place undue reliance on such forward-looking statements. We caution you that these factors, performance or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. All forward-looking statements are based on information available to use 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 Represents total students attending sessions during each institution’s most recent enrollment period in Q1 FY 2026 and Q1 FY 2025.
Adtalem Global Education Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands)
September 30,
June 30,
2025
2025
Assets:
Current assets:
Cash and cash equivalents
$
264,691
$
199,601
Restricted cash
1,494
1,563
Accounts and financing receivables, net
194,837
146,189
Prepaid expenses and other current assets
106,195
68,837
Total current assets
567,217
416,190
Noncurrent assets:
Property and equipment, net
257,357
256,131
Operating lease assets
189,762
191,194
Deferred income taxes
—
32,956
Intangible assets, net
762,669
765,474
Goodwill
961,262
961,262
Other assets, net
129,196
129,145
Total noncurrent assets
2,300,246
2,336,162
Total assets
$
2,867,463
$
2,752,352
Liabilities and shareholders' equity:
Current liabilities:
Accounts payable
$
104,576
$
105,017
Accrued payroll and benefits
51,969
76,374
Accrued liabilities
62,812
77,286
Deferred revenue
322,867
214,091
Current operating lease liabilities
34,392
35,159
Total current liabilities
576,616
507,927
Noncurrent liabilities:
Long-term debt
553,152
552,669
Long-term operating lease liabilities
188,406
186,172
Deferred income taxes
53,313
31,856
Other liabilities
38,352
40,103
Total noncurrent liabilities
833,223
810,800
Total liabilities
1,409,839
1,318,727
Commitments and contingencies
Total shareholders' equity
1,457,624
1,433,625
Total liabilities and shareholders' equity
$
2,867,463
$
2,752,352
Adtalem Global Education Inc.
Consolidated Statements of Income
(unaudited)
(in thousands, except per share data)
Three Months Ended
September 30,
2025
2024
Revenue
$
462,288
$
417,400
Operating cost and expense:
Cost of educational services
200,767
185,995
Student services and administrative expense
175,734
159,073
Restructuring expense
310
2,094
Total operating cost and expense
376,811
347,162
Operating income
85,477
70,238
Interest expense
(11,090
)
(14,482
)
Other income, net
2,486
2,646
Income from continuing operations before income taxes
76,873
58,402
Provision for income taxes
(15,811
)
(12,157
)
Income from continuing operations
61,062
46,245
Discontinued operations:
Income (loss) from discontinued operations before income taxes
747
(107
)
Benefit from income taxes
23
27
Income (loss) from discontinued operations
770
(80
)
Net income and comprehensive income
$
61,832
$
46,165
Earnings (loss) per share:
Basic:
Continuing operations
$
1.69
$
1.23
Discontinued operations
$
0.02
$
(0.00
)
Total basic earnings per share
$
1.71
$
1.22
Diluted:
Continuing operations
$
1.65
$
1.18
Discontinued operations
$
0.02
$
(0.00
)
Total diluted earnings per share
$
1.67
$
1.18
Weighted-average shares outstanding:
Basic shares
36,111
37,721
Diluted shares
37,057
39,109
Adtalem Global Education Inc.
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Three Months Ended
September 30,
2025
2024
Operating activities:
Net income
$
61,832
$
46,165
(Income) loss from discontinued operations
(770
)
80
Income from continuing operations
61,062
46,245
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation
8,293
9,451
Amortization of operating lease assets
7,216
6,948
Depreciation
10,296
9,803
Amortization of acquired intangible assets
2,805
2,805
Amortization and write-off of debt discount and issuance costs
1,145
1,113
Provision for bad debts
14,883
13,720
Deferred income taxes
54,413
16,456
Loss on disposals and impairments of property and equipment
2
107
Gain on investments
(680
)
(613
)
Changes in assets and liabilities:
Accounts and financing receivables
(62,690
)
(56,803
)
Prepaid expenses and other current assets
(29,841
)
(7,389
)
Cloud computing implementation assets
(4,812
)
(7,888
)
Accounts payable
1,378
(8,508
)
Accrued payroll and benefits
(24,359
)
(21,501
)
Accrued liabilities
(12,287
)
(8,467
)
Deferred revenue
109,082
106,156
Operating lease liabilities
(4,317
)
(7,232
)
Other assets and liabilities
(960
)
(4,836
)
Net cash provided by operating activities-continuing operations
130,629
89,567
Net cash used in operating activities-discontinued operations
(80
)
(251
)
Net cash provided by operating activities
130,549
89,316
Investing activities:
Capital expenditures
(16,023
)
(10,414
)
Proceeds from sales of marketable securities
100
2,187
Purchases of marketable securities
(100
)
(1,308
)
Net cash used in investing activities
(16,023
)
(9,535
)
Financing activities:
Proceeds from exercise of stock options
131
9,498
Employee taxes paid on withholding shares
(39,119
)
(10,717
)
Proceeds from stock issued under Colleague Stock Purchase Plan
411
298
Repurchases of common stock for treasury
(7,595
)
(33,190
)
Proceeds from issuance of long-term debt
—
9,873
Repayments of long-term debt
—
(9,873
)
Payment of debt issuance costs
(3,333
)
—
Net cash used in financing activities
(49,505
)
(34,111
)
Net increase in cash, cash equivalents and restricted cash
65,021
45,670
Cash, cash equivalents and restricted cash at beginning of period
201,164
221,202
Cash, cash equivalents and restricted cash at end of period
$
266,185
$
266,872
Adtalem Global Education Inc.
Segment Revenue
(unaudited)
(in thousands)
Three Months Ended
September 30,
Increase/(Decrease)
2025
2024
$
%
Revenue:
Chamberlain
$
179,201
$
167,930
$
11,271
6.7
%
Walden
189,960
161,513
28,447
17.6
%
Medical and Veterinary
93,127
87,957
5,170
5.9
%
Total consolidated revenue
$
462,288
$
417,400
$
44,888
10.8
%
Adtalem Global Education Inc.
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, amortization of acquired intangible assets, strategic advisory costs, write-off of debt issuance costs, debt modification 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, amortization of acquired intangible assets, strategic advisory costs, write-off of debt issuance costs, debt modification 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, amortization of acquired intangible assets, strategic advisory costs, and debt modification costs.
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, strategic advisory costs, and debt modification costs. 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 adjusted 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:
Adtalem Global Education Inc.
Adjusted Operating Income
(unaudited)
(in thousands)
Three Months Ended
September 30,
Increase/(Decrease)
2025
2024
$
%
Chamberlain:
Operating income
$
25,608
$
25,974
$
(366
)
(1.4
)%
Restructuring expense
—
1,858
(1,858
)
Adjusted operating income
$
25,608
$
27,832
$
(2,224
)
(8.0
)%
Operating margin
14.3
%
15.5
%
Adjusted operating margin
14.3
%
16.6
%
Walden:
Operating income
$
53,269
$
39,837
$
13,432
33.7
%
Amortization of acquired intangible assets
2,805
2,805
—
Adjusted operating income
$
56,074
$
42,642
$
13,432
31.5
%
Operating margin
28.0
%
24.7
%
Adjusted operating margin
29.5
%
26.4
%
Medical and Veterinary:
Operating income
$
16,728
$
14,671
$
2,057
14.0
%
Restructuring expense
44
59
(15
)
Adjusted operating income
$
16,772
$
14,730
$
2,042
13.9
%
Operating margin
18.0
%
16.7
%
Adjusted operating margin
18.0
%
16.7
%
Home Office:
Operating loss
$
(10,128
)
$
(10,244
)
$
116
1.1
%
Restructuring expense
266
177
89
Strategic advisory costs
1,684
—
1,684
Debt modification costs
—
712
(712
)
Adjusted operating loss
$
(8,178
)
$
(9,355
)
$
1,177
12.6
%
Adtalem Global Education:
Operating income (GAAP)
$
85,477
$
70,238
$
15,239
21.7
%
Restructuring expense
310
2,094
(1,784
)
Amortization of acquired intangible assets
2,805
2,805
—
Strategic advisory costs
1,684
—
1,684
Debt modification costs
—
712
(712
)
Adjusted operating income (non-GAAP)
$
90,276
$
75,849
$
14,427
19.0
%
Operating margin (GAAP)
18.5
%
16.8
%
Adjusted operating margin (non-GAAP)
19.5
%
18.2
%
Adtalem Global Education Inc.
Adjusted EBITDA
(unaudited)
(in thousands)
Three Months Ended
September 30,
Increase/(Decrease)
2025
2024
$
%
Chamberlain:
Adjusted operating income (GAAP)
$
25,608
$
27,832
$
(2,224
)
(8.0
)%
Depreciation
5,375
5,368
7
Amortization of cloud computing implementation assets
1,527
652
875
Stock-based compensation
2,570
3,119
(549
)
Adjusted EBITDA (non-GAAP)
$
35,080
$
36,971
$
(1,891
)
(5.1
)%
Adjusted EBITDA margin (non-GAAP)
19.6
%
22.0
%
Walden:
Adjusted operating income (GAAP)
$
56,074
$
42,642
$
13,432
31.5
%
Depreciation
1,940
1,682
258
Amortization of cloud computing implementation assets
1,204
701
503
Stock-based compensation
2,653
2,740
(87
)
Adjusted EBITDA (non-GAAP)
$
61,871
$
47,765
$
14,106
29.5
%
Adjusted EBITDA margin (non-GAAP)
32.6
%
29.6
%
Medical and Veterinary:
Adjusted operating income (GAAP)
$
16,772
$
14,730
$
2,042
13.9
%
Depreciation
2,820
2,569
251
Amortization of cloud computing implementation assets
411
283
128
Stock-based compensation
1,410
1,607
(197
)
Adjusted EBITDA (non-GAAP)
$
21,413
$
19,189
$
2,224
11.6
%
Adjusted EBITDA margin (non-GAAP)
23.0
%
21.8
%
Home Office:
Adjusted operating loss
$
(8,178
)
$
(9,355
)
$
1,177
12.6
%
Depreciation
161
184
(23
)
Stock-based compensation
1,660
1,985
(325
)
Adjusted EBITDA
$
(6,357
)
$
(7,186
)
$
829
11.5
%
Adtalem Global Education:
Net income (GAAP)
$
61,832
$
46,165
$
15,667
33.9
%
(Income) loss from discontinued operations
(770
)
80
(850
)
Interest expense
11,090
14,482
(3,392
)
Other income, net
(2,486
)
(2,646
)
160
Provision for income taxes
15,811
12,157
3,654
Depreciation and amortization
16,243
14,244
1,999
Stock-based compensation
8,293
9,451
(1,158
)
Restructuring expense
310
2,094
(1,784
)
Strategic advisory costs
1,684
—
1,684
Debt modification costs
—
712
(712
)
Adjusted EBITDA (non-GAAP)
$
112,007
$
96,739
$
15,268
15.8
%
Adjusted EBITDA margin (non-GAAP)
24.2
%
23.2
%
Adtalem Global Education Inc.
Adjusted Earnings
(unaudited)
(in thousands, except per share data)
Three Months Ended
September 30,
2025
2024
Net income (GAAP)
$
61,832
$
46,165
Restructuring expense
310
2,094
Amortization of acquired intangible assets
2,805
2,805
Strategic advisory costs
1,684
—
Write-off of debt issuance costs and debt modification costs
295
712
Income tax impact on non-GAAP adjustments (1)
(1,224
)
(1,332
)
(Income) loss from discontinued operations
(770
)
80
Adjusted net income (non-GAAP)
$
64,932
$
50,524
(1)
Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements.
Three Months Ended
September 30,
2025
2024
Diluted earnings per share (GAAP)
$
1.67
$
1.18
Effect on diluted earnings per share:
Restructuring expense
0.01
0.05
Amortization of acquired intangible assets
0.08
0.07
Strategic advisory costs
0.05
-
Write-off of debt issuance costs and debt modification costs
0.01
0.02
Income tax impact on non-GAAP adjustments (1)
(0.03
)
(0.03
)
(Income) loss from discontinued operations
(0.02
)
0.00
Adjusted earnings per share (non-GAAP)
$
1.75
$
1.29
Diluted shares
37,057
39,109
Note: May not sum due to rounding.
(1)
Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements.
Adtalem Global Education Inc.
Free Cash Flow
(unaudited)
(in thousands)
Twelve Months Ended
FY25
FY25
FY25
FY25
FY26
Q1
Q2
Q3
Q4
Q1
Net cash provided by operating activities-continuing operations (GAAP)
$
291,820
$
281,971
$
335,069
$
333,734
$
374,796
Capital expenditures
(48,873
)
(50,375
)
(47,914
)
(50,327
)
(55,936
)
Free cash flow (non-GAAP)
$
242,947
$
231,596
$
287,155
$
283,407
$
318,860
Adtalem Global Education Inc.
Net Leverage
(unaudited)
(in thousands)
Twelve Months Ended
September 30, 2025
Adtalem Global Education:
Net income (GAAP)
$
252,732
Income from discontinued operations
(5,238
)
Interest expense
48,926
Other income, net
(9,130
)
Provision for income taxes
69,491
Depreciation and amortization
61,164
Stock-based compensation
40,432
Restructuring expense
1,530
Litigation reserve
(5,550
)
Asset impairments
6,442
Strategic advisory costs
13,684
Loss on assets held for sale
490
Adjusted EBITDA (non-GAAP)
$
474,973
September 30, 2025
Long-term debt
$
558,283
Less: Cash and cash equivalents
(264,691
)
Net debt (non-GAAP)
$
293,592
Net leverage (non-GAAP)
0.6 x