Adtalem Global Education Inc

Latest Results (10.01.2026):

Adtalem Global Education Inc — Q1 2026: Adtalem reported a strong start to fiscal 2026 with total enrollment up 8% year‑over‑year to ~97,000 students, revenue of $462.3 million (up ~10.8%), adjusted EBITDA of $112.0 million (up 15.8%) and adjusted EPS of $1.75 (up ~35.7%). Management reiterated full‑year guidance and emphasized continued investment in healthcare education, while calling out execution issues at Chamberlain that are expected to weigh on near‑term enrollment before recovery in the back half of the year.

Key financials

Q1 revenue $462.3M (+10.8% YoY); adjusted EBITDA $112.0M (+15.8% YoY) with a 24.2% adjusted EBITDA margin (+100 bps YoY); adjusted operating income $90.3M; adjusted net income $64.9M; adjusted EPS $1.75 (+35.7% YoY).

Enrollment by institution

Total enrollment ~97,000 (+8% YoY). Walden: record enrollment, +13.6% (~52,000 students). Chamberlain: ~40,000 students, +2.2% (11th consecutive quarter of growth but below expectations). Medical & Veterinary: ~5,300 students, +2.4%.

Segment performance

Chamberlain revenue $179.2M (+6.7% YoY); adjusted EBITDA $35.1M (-5.1% YoY), margin 19.6% (down 240 bps). Walden drove much of the quarter’s growth; adjusted EBITDA $61.9M (+29.5% YoY), margin 32.6% (+300 bps). Medical & Veterinary revenue $93.1M (+5.9% YoY); adjusted EBITDA $21.4M (+11.6% YoY), margin 23% (+120 bps).

Chamberlain execution issues and actions

Management attributed the weaker-than-expected Chamberlain intake to local marketing effectiveness and lower funnel conversion rates (operational execution). Actions: reallocate marketing to higher‑quality channels/geographies, streamline enrollment handoffs to reduce friction, and senior leadership changes. Company expects softness in post‑licensure enrollment through Q2–Q3 with recovery in H2.

Cash, balance sheet and capital allocation

Trailing 12‑month free cash flow $319M; cash & equivalents $265M (as of Sept 30). Revolver increased by $100M to $500M and maturity extended to Aug 2030. >$50M of Term Loan B repaid Oct 29. Repurchased $8M of shares in Q1 (57k shares at avg $134); ~$142M remaining under repurchase authorization.

Guidance and outlook

Full‑year fiscal 2026 guidance maintained: revenue $1.90B–$1.94B (≈ +6% to +8.5% YoY) and adjusted EPS $7.60–$7.90 (≈ +14% to +18.5% YoY). Management expects revenue growth weighted to H1, anticipates ~100 bps of adjusted EBITDA margin expansion for the year, and reiterated investor day on Feb 24, 2026.

Strategic initiatives and partnerships

Continuing investments in healthcare education capacity, AI and credentials: Google Cloud partnership to develop AI fluency and specialized credentials; ongoing partnership with Hippocratic AI; MedPath partnership with ScribeAmerica; international academic pipelines (University of Lancashire, University of Wolverhampton, SAGE in India). Management emphasizes role as essential talent infrastructure for healthcare.