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--(BUSINESS WIRE)-- 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 Students4		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 Students4		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 Students4		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

 

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Source: Adtalem Global Education Inc.