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This article first appeared on GuruFocus.
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Revenue: Increased by 12.4% to $503.4 million.
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Adjusted EBITDA: Grew to $154.9 million, up 23.9% year-over-year.
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Adjusted EBITDA Margin: Expanded 290 basis points to 30.8%.
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Adjusted Net Income: Increased by 26.7% to $87.9 million.
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Adjusted Earnings Per Share (EPS): Rose by 34.3% to $2.43.
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Share Repurchases: $165 million deployed, with $728 million remaining on authorization.
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Operating Cash Flow: Trailing 12 months operating cash flow of $428 million, up $146 million year-over-year.
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Chamberlain Revenue: Increased by 1.6% to $183.8 million.
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Walden Revenue: Increased by 27% to $217.6 million.
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Medical and Veterinary Segment Revenue: Increased by 6.9% to $102 million.
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Total Enrollment: Grew over 6% to 97,000 students.
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Walden Enrollment: Record total enrollments of 52,400 students, up 13%.
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Chamberlain Enrollment: Declined by 1%.
Release Date: January 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Adtalem Global Education Inc (NYSE:ATGE) reported its tenth consecutive quarter of enrollment growth, with total enrollment increasing by over 6% to 97,000 students.
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The company raised its adjusted earnings per share guidance to 17% to 20% growth, reflecting strong financial performance.
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Revenue grew by 12% to $503 million, driven by strong performance across all segments, particularly Walden and Chamberlain.
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Adtalem Global Education Inc (NYSE:ATGE) deployed $165 million to share repurchases, with approximately $728 million remaining on its current authorization, demonstrating a disciplined capital allocation strategy.
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Walden achieved record total enrollments of 52,400 students, with a 13% increase in the second quarter, showcasing the strength of its digital learning platform and flexible offerings.
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Chamberlain’s total enrollment declined by 1% in the second quarter, with growth in pre-licensure programs offset by declines in post-licensure programs.
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The company expects Chamberlain’s total enrollment to remain flat over the balance of the fiscal year, indicating a temporary pause in growth trajectory.
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Despite improvements, Chamberlain’s adjusted EBITDA decreased by 14% to $45.2 million, with a lower adjusted EBITDA margin compared to the prior year.
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The one-week economic calendar shift resulted in an $18 million revenue recognition in Q2 rather than Q3, impacting quarterly comparisons.
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The company faces challenges in addressing the health care workforce crisis, particularly in rural and underserved urban areas, which requires significant workforce infrastructure.
Q: Even excluding the calendar shift, the Walden numbers continue to impress. What exactly is driving this growth, and are you taking market share from other schools? A: Stephen Beard, CEO: The growth at Walden is consistent across the board, particularly in behavioral sciences and nursing programs. We’re also seeing strong returns in education programs and undergraduate enrollments. This balanced growth across Walden’s program mix is very encouraging.
Q: Can you provide an update on the partnership with Sallie Mae regarding changes in loan caps expected this July? A: Stephen Beard, CEO: We are working with Sallie Mae on finalizing the partnership documentation. Sallie Mae is assembling a syndicate of capital sources for the loans. This partnership is crucial, especially for our medical and veterinary segments, and we are progressing well.
Q: Regarding Chamberlain, what is the typical lead time for the changes you’ve implemented to show results, and how do you expect this to impact the fall cycle? A: Stephen Beard, CEO: We’ve addressed gaps in marketing effectiveness and enrollment funnel conversion, and made personnel changes. While we expect flat enrollment for the rest of the fiscal year, we anticipate positive enrollment growth by the fall cycle, driven by improvements in pre-licensure and post-licensure nursing programs.
Q: What could lead to exceeding the high end of your revenue guidance? A: Stephen Beard, CEO: Exceeding the high end of our guidance could result from a quicker-than-expected recovery at Chamberlain and additional acceleration in the Med Vet segment. Walden is already performing optimally, so the upside would likely come from the other segments.
Q: Can you provide more details on the strategic growth initiatives and their expected impact on financial performance? A: Robert Phelan, CFO: We are focusing on strategic growth investments, including new capacity and student-facing technology. These initiatives are expected to enhance our financial foundation, increase profitability, and support long-term value creation, contributing to our raised adjusted EPS guidance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.