Adtalem Global Education Inc.

Third-quarter revenue increased 4.5% year over year to $487 million. Consolidated adjusted EBITDA was $127.9 million, adjusted operating income was $102.2 million, adjusted net income was $69 million, and adjusted EPS was $1.98. Excluding a 1-week Walden academic calendar shift, consolidated revenue would have increased 8.4% year over year, adjusted EBITDA would have been $145.9 million, and adjusted EBITDA margin would have been 28.9%, up 150 basis points. Full-year guidance was raised to revenue of $1.93 billion to $1.945 billion and adjusted EPS of $7.95 to $8.15; management also said it still expects fiscal 2026 adjusted EBITDA margin expansion of 100 basis points and positive fourth-quarter enrollment growth at Chamberlain that should be directionally similar to Q3.

Steve Beard framed the quarter as validation of Covista’s strategy of building a national health care workforce platform, emphasizing durable demand, employer partnerships, and the company’s scale in producing health care graduates. He said Chamberlain’s remediation efforts are working, Walden is compounding, Med/Vet is converting growth into strong financial outcomes, and the company is extending its model through AI, campus expansion, and employer-integrated pathways. His tone was confident and forward-looking, but he avoided declaring victory too early on Chamberlain’s recovery.

Bob Phelan emphasized that the quarter showed continued execution, scale leverage, and disciplined capital deployment. He cited revenue of $487 million, adjusted EBITDA of $127.9 million, adjusted EPS of $1.98, TTM free cash flow of $336 million, cash and equivalents of $147 million, and net leverage of 0.7x as of March 31, 2026. He also noted the debt refinancing into a $510 million Term Loan B with a 50 basis point rate improvement and maturity extended to 2033, alongside $66 million of share repurchases in the quarter.

Analysts focused on Chamberlain’s turnaround, especially the drivers behind the return to positive enrollment growth, the rebound in application conversion, and the outlook for the fall enrollment cycle. Management said the prior issues were execution-related and that marketing localization, application simplification, scholarship-process changes, and staffing improvements had restored conversion rates closer to historical levels. Questions also touched on employer partnerships like SSM and the step-up in CapEx; management said SSM remains a strong proof point, more partnerships are in discussion, and CapEx should ramp further in Q4 and next year.