Exhibit 99.1
News Release
Investor Contact
Jay Spitzer
+1 312-906-6600
Media Contact
Britt Mitchell
+1 872-270-0301
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 – May 8, 2025 – Adtalem Global Education Inc. (NYSE: 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) 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
$ in millions | | Three Months Ended 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
$ in millions | | Three Months Ended 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
$ in millions | | Three Months Ended 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) 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) | | | | | | 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. |
| | Three Months Ended | | Nine Months Ended | ||||||||
| | March 31, | | March 31, | ||||||||
| | 2025 | | 2024 | | 2025 | | 2024 | ||||
Diluted earnings per share (GAAP) | | $ | 1.59 | | $ | 0.93 | | $ | 4.74 | | $ | 2.14 |
Effect on diluted earnings per share: | | | | | | | | | | | | |
Restructuring expense | | | 0.01 | | | 0.01 | | | 0.08 | | | 0.03 |
Business integration expense | | | - | | | 0.47 | | | - | | | 0.75 |
Amortization of acquired intangible assets | | | 0.07 | | | 0.21 | | | 0.22 | | | 0.69 |
Write-off of debt discount and issuance costs, litigation reserve, asset impairments, loss on assets held for sale, and debt modification costs | | | 0.21 | | | 0.05 | | | 0.09 | | | 0.52 |
Strategic advisory costs | | | 0.13 | | | - | | | 0.13 | | | - |
Income tax impact on non-GAAP adjustments (1) | | | (0.11) | | | (0.18) | | | (0.12) | | | (0.47) |
(Income) loss from discontinued operations | | | (0.00) | | | 0.02 | | | (0.12) | | | (0.01) |
Adjusted earnings per share (non-GAAP) | | $ | 1.92 | | $ | 1.50 | | $ | 5.01 | | $ | 3.65 |
Diluted shares used in non-GAAP EPS calculation | | | 38,233 | | | 39,636 | | | 38,583 | | | 40,874 |
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.
Non-GAAP Free Cash Flow Disclosure
(unaudited)
(in thousands)
| | Twelve Months Ended | |||||||||||||
| | FY24 | | FY24 | | FY25 | | FY25 | | FY25 | |||||
|
| Q3 | | Q4 | | Q1 | | Q2 | | Q3 | |||||
Net cash provided by operating activities-continuing operations (GAAP) | | $ | 276,843 | | $ | 288,367 | | $ | 291,820 | | $ | 281,971 | | $ | 335,069 |
Capital expenditures | | | (44,137) | | | (48,893) | | | (48,873) | | | (50,375) | | | (47,914) |
Free cash flow (non-GAAP) | | $ | 232,706 | | $ | 239,474 | | $ | 242,947 | | $ | 231,596 | | $ | 287,155 |
Adtalem Global Education Inc.
Non-GAAP Net Leverage Disclosure
(unaudited)
(in thousands)
| | Twelve Months Ended | |
| | March 31, 2025 | |
Adtalem Global Education: | | | |
Net income (GAAP) | | $ | 232,272 |
Income from discontinued operations | | | (3,457) |
Interest expense | | | 56,214 |
Other income, net | | | (8,673) |
Provision for income taxes | | | 56,784 |
Depreciation and amortization | | | 62,129 |
Stock-based compensation | | | 37,723 |
Restructuring expense | | | 3,579 |
Business integration expense | | | 3,594 |
Litigation reserve | | | (5,550) |
Asset impairments | | | 6,442 |
Strategic advisory costs | | | 5,100 |
Debt modification costs | | | 712 |
Adjusted EBITDA (non-GAAP) | | $ | 446,869 |
| | | |
| | March 31, 2025 | |
Long-term debt | | $ | 558,283 |
Less: Cash and cash equivalents | | | (219,017) |
Net debt (non-GAAP) | | $ | 339,266 |
| | | |
Net leverage (non-GAAP) | | | 0.8 x |