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Introduction & Market Context
Adtalem Global Education Inc (NYSE:ATGE) released its fourth quarter and full fiscal year 2025 earnings presentation on August 7, 2025, showcasing strong financial performance across its portfolio of healthcare-focused educational institutions. The company’s stock closed at $119.23, near its 52-week high of $140.12, reflecting investor confidence in its growth strategy and execution.
Adtalem has positioned itself as a leader in healthcare education in the United States, with approximately 90% of its student enrollment focused on healthcare programs. The company operates five institutions across 27 campuses with robust online delivery capabilities, serving over 91,000 students in approximately 150 programs.
Executive Summary
Adtalem reported impressive results for both Q4 and the full fiscal year 2025, with double-digit growth in revenue and adjusted earnings per share. The company’s "Growth with Purpose" strategy has delivered strong enrollment growth across all segments, with total enrollment increasing by 10.2% year-over-year in Q4 2025.
As shown in the following enterprise performance summary:
For the full fiscal year 2025, Adtalem generated revenue of $1,788.3 million, representing a 12.9% increase compared to fiscal year 2024. Adjusted EBITDA grew by 21.8% to $459.7 million, with margin expansion of 190 basis points to 25.7%. Adjusted EPS increased by 33.1% to $6.67.
The company’s financial strength is further evidenced by its strong cash flow generation, with free cash flow of $283 million for fiscal year 2025, up $44 million from the previous year. Adtalem returned $211 million to shareholders through share repurchases during the fiscal year.
Quarterly Performance Highlights
For the fourth quarter of fiscal year 2025, Adtalem reported revenue of $457.1 million, up 11.5% compared to the same period in fiscal year 2024. Adjusted EBITDA increased by 13.2% to $110.2 million, with a margin of 24.1%, representing a 30 basis point improvement year-over-year. Adjusted EPS grew by 21.2% to $1.66.
The company’s enrollment trends have been consistently positive, as illustrated in the following chart:
Total (EPA:TTEF) enrollment reached 91,780 students in Q4 2025, representing a 10.2% increase compared to Q4 2024. All three segments contributed to this growth, with Chamberlain University achieving its tenth consecutive quarter of year-over-year enrollment growth, Walden University its eighth consecutive quarter, and the Medical (TASE:BLWV) & Veterinary segment its second consecutive quarter.
Detailed Financial Analysis
Breaking down performance by segment, Chamberlain University, which focuses on nursing education, reported revenue of $184.3 million for Q4 2025, up 10.3% year-over-year. For the full fiscal year, Chamberlain’s revenue increased by 14.6% to $725.8 million, with adjusted EBITDA growing by 15.2% to $191.4 million. The segment’s adjusted EBITDA margin expanded by 20 basis points to 26.4% for the full year.
As shown in the Chamberlain performance summary:
Walden University, which offers a range of healthcare and non-healthcare programs, demonstrated the strongest performance among Adtalem’s segments. For Q4 2025, Walden reported revenue of $182.2 million, up 16.6% year-over-year, and adjusted EBITDA of $52.7 million, up 28.0%. For the full fiscal year, Walden’s revenue increased by 16.5% to $693.4 million, with adjusted EBITDA growing by 40.7% to $206.5 million. The segment’s adjusted EBITDA margin expanded significantly by 510 basis points to 29.8%.
The following Walden performance summary illustrates this strong growth:
The Medical & Veterinary segment reported more modest growth, with Q4 2025 revenue of $90.6 million, up 4.7% year-over-year, and adjusted EBITDA of $20.0 million, up 21.7%. For the full fiscal year, the segment’s revenue increased by 3.7% to $369.1 million, while adjusted EBITDA remained essentially flat at $88.8 million.
Strategic Initiatives
Adtalem’s strategic focus on addressing healthcare workforce shortages is exemplified by its partnership between Chamberlain University and SSM Health. This collaboration is creating a sustainable pipeline of nurses directly impacting local communities, with more than 400 new nurses graduating annually in Oklahoma, Missouri, Illinois, and Wisconsin.
The partnership details are illustrated in the following slide:
The company’s "Growth with Purpose" strategy focuses on expanding access to underserved communities while maintaining a commitment to outstanding student outcomes. Adtalem graduated approximately 29,000 students in fiscal year 2025, including 20,000 nursing graduates, 2,600 in social and behavioral sciences, 1,100 in psychology, and 1,100 in medical and veterinary fields.
Adtalem’s disciplined capital allocation strategy prioritizes student growth, financial strength, and returning excess cash to shareholders. The company completed its Board-authorized $300 million share repurchase program on May 5, 2025, and has received authorization for a new $150 million share repurchase program through May 2028.
Forward-Looking Statements
Looking ahead to fiscal year 2026, Adtalem provided optimistic guidance built on its strong fiscal year 2025 performance. The company projects revenue between $1,900 million and $1,940 million, representing growth of approximately 6.0% to 8.5% year-over-year. Adjusted EPS is expected to be between $7.60 and $7.90, an increase of approximately 14.0% to 18.5% year-over-year.
The FY26 guidance is illustrated in the following slide:
Management expects revenue growth to be slightly higher in the first half of fiscal year 2026 compared to the second half. The company also anticipates 100 basis points of adjusted EBITDA margin expansion and strong cash flow generation to support continued capital deployment.
These projections align with the targets set at Adtalem’s June 2023 Investor Day, which called for 5% to 8% revenue growth and 13% to 18% adjusted EPS growth for fiscal year 2026.
The company’s cash flow has shown consistent improvement, as demonstrated in the trailing twelve months data:
With its focus on healthcare education, strong enrollment growth, and disciplined financial management, Adtalem appears well-positioned to continue its growth trajectory in fiscal year 2026 and beyond.
Full presentation:
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