Adtalem Global Education Second Quarter Fiscal Year 2026 Results; Raises Fiscal Year 2026 Adjusted Earnings Per Share Guidance

CHICAGO--( BUSINESS WIRE)--Adtalem Global Education Inc. (NYSE: ATGE), the largest healthcare educator in the United States, today reported second quarter fiscal year 2026 results (ended Dec. 31, 2025). The Company continues to execute on its Growth with Purpose strategy, expanding its reach through an operational excellence foundation, leading the transformation of higher education by training the next generation of healthcare professionals at an industry-leading scale.

“As America’s largest healthcare educator, we are uniquely positioned to address the growing healthcare workforce gaps at scale. Our second quarter results – our tenth consecutive quarter of enrollment growth, which was up 6.3% to 97,000 students – demonstrate our ability to meet this challenge head on,” said Steve Beard, chairman and chief executive officer, Adtalem Global Education. “We are at the forefront, creating a future where barriers to education are removed and where students graduate with AI-fluency. We took significant steps forward this quarter further collaborating with health system partners, expanding our reach, and embedding AI within our programs. As we train more healthcare providers than ever before, we are also delivering strong shareholder returns and leveraged our financial strength to return $165 million of capital back to our owners.”

Financial Highlights

Selected financial data for the three months ended Dec. 31, 2025:

Business Highlights

Segment Highlights

Chamberlain

$ in millions

Three Months Ended

December 31,

2025

2024

% Change

Revenue

$183.8

$181.0

1.6%

Operating Income

$32.0

$42.2

(24.2)%

Adj. Operating Income

$33.8

$42.3

(20.0)%

Adj. EBITDA

$45.2

$52.6

(14.0)%

Total Students (1)

39,278

39,691

(1.0)%

Walden

$ in millions

Three Months Ended

December 31,

2025

2024

% Change

Revenue

$217.6

$171.3

27.0%

Operating Income

$75.2

$48.9

53.8%

Adj. Operating Income

$78.5

$46.2

70.0%

Adj. EBITDA

$86.7

$52.1

66.5%

Total Students (1)

52,435

46,399

13.0%

Medical and Veterinary

$ in millions

Three Months Ended

December 31,

2025

2024

% Change

Revenue

$102.0

$95.4

6.9%

Operating Income

$24.6

$21.5

14.6%

Adj. Operating Income

$25.0

$21.5

16.3%

Adj. EBITDA

$31.4

$26.7

17.6%

Total Students (1)

5,297

5,174

2.4%

Fiscal Year 2026 Outlook

Adtalem maintained its revenue guidance for fiscal year 2026, with revenue in the range of $1,900 million to $1,940 million, approximately 6% to 8.5% growth year-over-year. Adtalem raised its adjusted earnings per share from $7.60 to $7.90, or approximately 14% to 18.5% growth year-over-year, to be in the range of $7.80 to $8.00, or approximately 17% to 20% growth year-over-year.

Investor Day 2026

Adtalem announced its upcoming Investor Day, scheduled for Feb. 24, 2026. Additional information can be found at investors.adtalem.com or to register for the event, click here.

Conference Call and Webcast Information

Adtalem will hold a conference call to discuss its second 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:13757746. 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: 13757746, 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 385,000 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.

Adtalem Global Education Inc.

Consolidated Balance Sheets

(unaudited)

(in thousands)

December 31,

June 30,

2025

Assets:

Current assets:

Cash and cash equivalents

56,281

199,601

Restricted cash

2,359

1,563

Accounts and financing receivables, net

162,848

146,189

Prepaid expenses and other current assets

81,494

68,837

Total current assets

302,982

416,190

Noncurrent assets:

Property and equipment, net

266,036

256,131

Operating lease assets

189,483

191,194

Deferred income taxes

—

32,956

Intangible assets, net

759,864

765,474

Goodwill

961,262

Other assets, net

135,086

129,145

Total noncurrent assets

2,311,731

2,336,162

Total assets

2,614,713

2,752,352

Liabilities and shareholders' equity:

Current liabilities:

Accounts payable

103,103

105,017

Accrued payroll and benefits

53,153

76,374

Accrued liabilities

72,283

77,286

Deferred revenue

180,429

214,091

Current operating lease liabilities

33,917

35,159

Total current liabilities

442,885

507,927

Noncurrent liabilities:

Long-term debt

504,282

552,669

Long-term operating lease liabilities

191,353

186,172

Deferred income taxes

56,815

31,856

Other liabilities

40,582

40,103

Total noncurrent liabilities

793,032

810,800

Total liabilities

1,235,917

1,318,727

Commitments and contingencies

Total shareholders' equity

1,378,796

1,433,625

Total liabilities and shareholders' equity

2,614,713

2,752,352

Adtalem Global Education Inc.

Consolidated Statements of Income

(unaudited)

(in thousands, except per share data)

Three Months Ended

Six Months Ended

December 31,

2025

2024

2025

2024

Revenue

503,385

447,729

965,673

865,129

Operating cost and expense:

Cost of educational services

205,425

186,636

406,192

372,631

Student services and administrative expense

182,791

156,901

358,525

315,974

Restructuring expense

4,055

322

4,365

2,416

Total operating cost and expense

392,271

343,859

769,082

691,021

Operating income

111,114

103,870

196,591

174,108

Interest expense

(10,917

)

(13,909

)

(22,007

)

(28,391

)

Other income, net

1,704

2,235

4,190

4,881

Income from continuing operations before income taxes

101,901

92,196

178,774

150,598

Provision for income taxes

(25,730

)

(21,020

)

(41,541

)

(33,177

)

Income from continuing operations

76,171

71,176

137,233

117,421

Discontinued operations:

Income from discontinued operations before income taxes

303

6,271

1,050

6,164

Provision for income taxes

(98

)

(1,591

)

(75

)

(1,564

)

Income from discontinued operations

205

4,680

975

4,600

Net income and comprehensive income

76,376

75,856

138,208

122,021

Earnings per share:

Basic:

Continuing operations

2.13

1.90

3.82

3.12

Discontinued operations

0.01

0.13

0.03

0.12

Total basic earnings per share

2.14

2.03

3.85

3.25

Diluted:

Continuing operations

2.10

1.85

3.75

3.03

Discontinued operations

0.01

0.12

0.03

0.12

Total diluted earnings per share

2.11

1.98

3.77

3.15

Weighted-average shares outstanding:

Basic shares

35,725

37,435

35,918

37,578

Diluted shares

36,230

38,401

36,644

38,755

Adtalem Global Education Inc.

Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

Six Months Ended

December 31,

2025

2024

Operating activities:

Net income

138,208

122,021

Income from discontinued operations

(975

)

(4,600

)

Income from continuing operations

137,233

117,421

Adjustments to reconcile net income to net cash provided by operating activities:

Stock-based compensation

21,532

20,918

Amortization of operating lease assets

14,411

14,092

Depreciation

21,250

19,993

Amortization of acquired intangible assets

5,610

Amortization and write-off of debt discount and issuance costs

2,554

2,226

Provision for bad debts

31,431

28,719

Deferred income taxes

57,915

23,516

Loss on disposals and impairments of property and equipment

114

Gain on investments

(810

)

(442

)

Changes in assets and liabilities:

Accounts and financing receivables

(46,725

)

(46,493

)

Prepaid expenses and other current assets

(3,429

)

6,829

Cloud computing implementation assets

(7,131

)

(14,071

)

Accounts payable

(1,478

)

(34,588

)

Accrued payroll and benefits

(23,130

)

(20,311

)

Accrued liabilities

(7,321

)

(29,066

)

Deferred revenue

(30,918

)

(12,028

)

Operating lease liabilities

(8,761

)

(10,594

)

Other assets and liabilities

(2,124

)

(5,888

)

Net cash provided by operating activities-continuing operations

160,113

65,957

Net cash provided by operating activities-discontinued operations

180

4,340

Net cash provided by operating activities

160,293

70,297

Investing activities:

Capital expenditures

(30,647

)

(21,094

)

Proceeds from sales of marketable securities

2,105

2,426

Purchases of marketable securities

(2,104

)

(1,548

)

Payment for investment in business

(5,000

)

—

Net cash used in investing activities

(35,646

)

(20,216

)

Financing activities:

Proceeds from exercise of stock options

131

9,833

Employee taxes paid on withholding shares

(41,985

)

(12,198

)

Proceeds from stock issued under Colleague Stock Purchase Plan

815

567

Repurchases of common stock for treasury

(172,362

)

(74,066

)

Borrowings under long-term debt obligations

227,000

9,873

Repayments under long-term debt obligations

(277,000

)

(9,873

)

Payment of debt issuance costs

(3,770

)

—

Net cash used in financing activities

(267,171

)

(75,864

)

Net decrease in cash, cash equivalents and restricted cash

(142,524

)

(25,783

)

Cash, cash equivalents and restricted cash at beginning of period

201,164

221,202

Cash, cash equivalents and restricted cash at end of period

58,640

195,419

Adtalem Global Education Inc.

Segment Revenue

(unaudited)

(in thousands)

Three Months Ended

Six Months Ended

December 31,

Increase/(Decrease)

2025

2024

2025

2024

Revenue:

Chamberlain

183,832

180,986

2,846

1.6

363,033

348,916

14,117

4.0

Walden (1)

217,562

171,306

46,256

27.0

407,522

332,819

74,703

22.4

Medical and Veterinary

101,991

95,437

6,554

6.9

195,118

183,394

11,724

6.4

Total consolidated revenue (1)

503,385

447,729

55,656

12.4

965,673

865,129

100,544

11.6

(1) Walden had $18.0 million of incremental revenue in the second quarter of fiscal year 2026 compared to the prior year period due to the shift of one academic week from the third quarter to the second quarter. Excluding the incremental revenue, Walden segment revenue would have increased 16.5%, or $28.2 million, to $199.5 million, and total consolidated revenue would have increased 8.4%, or $37.6 million, to $485.4 million in the second quarter of fiscal year 2026 compared to the prior year period.

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 discount and issuance costs, litigation reserve, debt modification costs, and income 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 discount and issuance costs, litigation reserve, debt modification costs, and income 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, litigation reserve, strategic advisory costs, and debt modification costs.

Adjusted EBITDA (most comparable GAAP measure: net income) – Measure of Adtalem’s net income adjusted for income 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, litigation reserve, 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

Six Months Ended

December 31,

Increase/(Decrease)

2025

2024

2025

2024

Chamberlain:

Operating income

31,998

42,226

(10,228)

(24.2)

57,606

68,200

(10,594)

(15.5)

Restructuring expense

1,825

1,748

1,825

1,935

(110)

Adjusted operating income

33,823

42,303

(8,480)

(20.0)

59,431

70,135

(10,704)

(15.3)

Operating margin

17.4

23.3

15.9

19.5

Adjusted operating margin

18.4

23.4

16.4

20.1

Walden:

Operating income

75,226

48,898

26,328

53.8

128,495

88,735

39,760

44.8

Restructuring expense

429

—

429

—

429

Amortization of acquired intangible assets

2,805

—

5,610

—

Litigation reserve

—

(5,550)

5,550

—

(5,550)

5,550

Adjusted operating income

78,460

46,153

32,307

70.0

134,534

88,795

45,739

51.5

Operating margin

34.6

28.5

31.5

26.7

Adjusted operating margin

36.1

26.9

33.0

26.7

Medical and Veterinary:

Operating income

24,599

21,463

3,136

14.6

41,327

36,134

5,193

14.4

Restructuring expense

436

380

480

115

365

Adjusted operating income

25,035

21,519

3,516

16.3

41,807

36,249

5,558

15.3

Operating margin

24.1

22.5

21.2

19.7

Adjusted operating margin

24.5

22.5

21.4

19.8

Home Office:

Operating loss

(20,709)

(8,717)

(11,992)

(137.6)

(30,837)

(18,961)

(11,876)

(62.6)

Restructuring expense

1,365

189

1,176

1,631

366

1,265

Strategic advisory costs

8,110

—

8,110

9,794

—

9,794

Debt modification costs

—

712

(712)

Adjusted operating loss

(11,234)

(8,528)

(2,706)

(31.7)

(19,412)

(17,883)

(1,529)

(8.6)

Adtalem Global Education:

Operating income (GAAP)

111,114

103,870

7,244

7.0

196,591

174,108

22,483

12.9

Restructuring expense

4,055

322

3,733

4,365

2,416

1,949

Amortization of acquired intangible assets

2,805

—

5,610

—

Litigation reserve

—

(5,550)

5,550

—

(5,550)

5,550

Strategic advisory costs

8,110

—

8,110

9,794

—

9,794

Debt modification costs

—

712

(712)

Adjusted operating income (non-GAAP)

126,084

101,447

24,637

24.3

216,360

177,296

39,064

22.0

Operating margin (GAAP)

22.1

23.2

20.4

20.1

Adjusted operating margin (non-GAAP)

25.0

22.7

22.4

20.5

Adtalem Global Education Inc.

Adjusted EBITDA

(unaudited)

(in thousands)

Three Months Ended

Six Months Ended

December 31,

Increase/(Decrease)

2025

2024

2025

2024

Chamberlain:

Adjusted operating income (GAAP)

33,823

42,303

(8,480)

(20.0)

59,431

70,135

(10,704)

(15.3)

Depreciation

5,706

5,466

240

11,081

10,834

247

Amortization of cloud computing implementation assets

2,020

815

1,205

3,547

1,467

2,080

Stock-based compensation

3,674

3,993

(319)

6,244

7,112

(868)

Adjusted EBITDA (non-GAAP)

45,223

52,577

(7,354)

(14.0)

80,303

89,548

(9,245)

(10.3)

Adjusted EBITDA margin (non-GAAP)

24.6

29.1

22.1

25.7

Walden:

Adjusted operating income (GAAP)

78,460

46,153

32,307

70.0

134,534

88,795

45,739

51.5

Depreciation

2,074

1,795

279

4,014

3,477

537

Amortization of cloud computing implementation assets

1,901

778

1,123

3,105

1,479

1,626

Stock-based compensation

4,237

3,326

911

6,890

6,066

824

Adjusted EBITDA (non-GAAP) (1)

86,672

52,052

34,620

66.5

148,543

99,817

48,726

48.8

Adjusted EBITDA margin (non-GAAP) (1)

39.8

30.4

36.5

30.0

Medical and Veterinary:

Adjusted operating income (GAAP)

25,035

21,519

3,516

16.3

41,807

36,249

5,558

15.3

Depreciation

3,007

2,744

263

5,827

5,313

514

Amortization of cloud computing implementation assets

705

315

390

1,116

598

518

Stock-based compensation

2,682

2,158

524

4,092

3,765

327

Adjusted EBITDA (non-GAAP)

31,429

26,736

4,693

17.6

52,842

45,925

6,917

15.1

Adjusted EBITDA margin (non-GAAP)

30.8

28.0

27.1

25.0

Home Office:

Adjusted operating loss

(11,234)

(8,528)

(2,706)

(31.7)

(19,412)

(17,883)

(1,529)

(8.6)

Depreciation

167

185

(18)

328

369

(41)

Stock-based compensation

2,646

1,990

656

4,306

3,975

331

Adjusted EBITDA

(8,421)

(6,353)

(2,068)

(32.6)

(14,778)

(13,539)

(1,239)

(9.2)

Adtalem Global Education:

Net income (GAAP)

76,376

75,856

520

0.7

138,208

122,021

16,187

13.3

Income from discontinued operations

(205)

(4,680)

4,475

(975)

(4,600)

3,625

Interest expense

10,917

13,909

(2,992)

22,007

28,391

(6,384)

Other income, net

(1,704)

(2,235)

531

(4,190)

(4,881)

691

Provision for income taxes

25,730

21,020

4,710

41,541

33,177

8,364

Depreciation and amortization

18,385

14,903

3,482

34,628

29,147

5,481

Stock-based compensation

13,239

11,467

1,772

21,532

20,918

614

Restructuring expense

4,055

322

3,733

4,365

2,416

1,949

Litigation reserve

—

(5,550)

5,550

—

(5,550)

5,550

Strategic advisory costs

8,110

—

8,110

9,794

—

9,794

Debt modification costs

—

712

(712)

Adjusted EBITDA (non-GAAP) (1)

154,903

125,012

29,891

23.9

266,910

221,751

45,159

20.4

Adjusted EBITDA margin (non-GAAP) (1)

30.8

27.9

27.6

25.6

(1) Walden had $18.0 million of incremental revenue in the second quarter of fiscal year 2026 compared to the prior year period due to the shift of one academic week from the third quarter to the second quarter. Excluding the incremental revenue, Walden adjusted EBITDA would have increased 31.9%, or $16.6 million, to $68.7 million, and total consolidated adjusted EBITDA would have increased 9.5%, or $11.9 million, to $136.9 million for the second quarter of fiscal year 2026. Excluding the incremental revenue, Walden adjusted EBITDA margin and consolidated adjusted EBITDA margin would have been 34.4% and 28.2%, respectively, for the second quarter of fiscal year 2026.

Adtalem Global Education Inc.

Adjusted Earnings

(unaudited)

(in thousands, except per share data)

Three Months Ended

Six Months Ended

December 31,

2025

2024

2025

2024

Net income (GAAP)

76,376

75,856

138,208

122,021

Restructuring expense

4,055

322

4,365

2,416

Amortization of acquired intangible assets

2,805

5,610

Strategic advisory costs

8,110

—

9,794

—

Write-off of debt discount and issuance costs, litigation reserve, and debt modification costs

687

(5,550

)

982

(4,838

)

Income tax impact on non-GAAP adjustments (1)

(3,922

)

645

(5,146

)

(687

)

Income from discontinued operations

(205

)

(4,680

)

(975

)

(4,600

)

Adjusted net income (non-GAAP)

87,906

69,398

152,838

119,922

(1) Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements.

Three Months Ended

Six Months Ended

December 31,

2025

2024

2025

2024

Diluted earnings per share (GAAP)

2.11

1.98

3.77

3.15

Effect on diluted earnings per share:

Restructuring expense

0.11

0.01

0.12

0.06

Amortization of acquired intangible assets

0.08

0.07

0.15

0.14

Strategic advisory costs

0.22

0.27

Write-off of debt discount and issuance costs, litigation reserve, and debt modification costs

0.02

(0.14

)

0.03

(0.12

)

Income tax impact on non-GAAP adjustments (1)

(0.11

)

0.02

(0.14

)

(0.02

)

Income from discontinued operations

(0.01

)

(0.12

)

(0.03

)

(0.12

)

Adjusted earnings per share (non-GAAP)

2.43

1.81

4.17

3.09

Diluted shares

36,230

38,401

36,644

38,755

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.

Free Cash Flow

(unaudited)

(in thousands)

Twelve Months Ended

FY25

FY26

Net cash provided by operating activities-continuing operations (GAAP)

281,971

335,069

333,734

374,796

427,890

Capital expenditures

(50,375)

(47,914)

(50,327)

(55,936)

(59,880)

Free cash flow (non-GAAP)

231,596

287,155

283,407

318,860

368,010

Adtalem Global Education Inc.

Net Leverage

(unaudited)

(in thousands)

Twelve Months Ended

December 31, 2025

Adtalem Global Education:

Net income (GAAP)

253,252

Income from discontinued operations

(763

)

Interest expense

45,934

Other income, net

(8,599

)

Provision for income taxes

74,201

Depreciation and amortization

64,646

Stock-based compensation

42,204

Restructuring expense

5,263

Asset impairments

6,442

Strategic advisory costs

21,794

Loss on assets held for sale

490

Adjusted EBITDA (non-GAAP)

504,864

December 31, 2025

Long-term debt

508,283

Less: Cash and cash equivalents

(56,281

)

Net debt (non-GAAP)

452,002

Net leverage (non-GAAP)

0.9 x