Adtalem Global Education Second Quarter Fiscal Year 2026 Results; Raises Fiscal Year 2026 Adjusted Earnings Per Share Guidance

Total enrollment up 6.3% YoY

Revenue up 12.4% YoY

Diluted earnings per share $2.11; Adjusted EPS $2.43, growth of 34.3% YoY

Second quarter highlights

• Total student enrollment 97,010, up 6.3% year-over-year, achieved tenth straight quarter of growth
• Revenue $503.4 million, up 12.4% year-over-year
• Walden University achieved tenth straight quarter of total enrollment growth, up 13.0% year-over-year, highest total enrollment in university history
• Chamberlain University achieved fourteenth straight quarter of pre-licensure BSN total enrollment growth
• Sustaining momentum, GAAP net income $76.4 million; adjusted EBITDA $154.9 million, up 23.9% year-over-year

Capital allocation

• Completed $150 million May 2025 Board-authorized share repurchase program on December 15, 2025
• New $750 million Board-authorized share repurchase program through December 2028
• Repurchased $165 million of shares in the second quarter
• Net leverage 0.9x as of Dec. 31, 2025

Fiscal Year 2026 Guidance

• Revenue $1,900 million to $1,940 million
• Adjusted earnings per share $7.80 to $8.00

Investor Day 2026

• Company to host an Investor Day on Tues., Feb. 24, 2026

Adtalem Global Education Inc. (NYSE:ATGE), the largest healthcare educator in the United States, today reported second quarter fiscal year 2026 results (ended Dec. 31, 2025). The Company continues to execute on its Growth with Purpose strategy, expanding its reach through an operational excellence foundation, leading the transformation of higher education by training the next generation of healthcare professionals at an industry-leading scale.

"As America's largest healthcare educator, we are uniquely positioned to address the growing healthcare workforce gaps at scale. Our second quarter results – our tenth consecutive quarter of enrollment growth, which was up 6.3% to 97,000 students – demonstrate our ability to meet this challenge head on," said Steve Beard, chairman and chief executive officer, Adtalem Global Education. "We are at the forefront, creating a future where barriers to education are removed and where students graduate with AI-fluency. We took significant steps forward this quarter further collaborating with health system partners, expanding our reach, and embedding AI within our programs. As we train more healthcare providers than ever before, we are also delivering strong shareholder returns and leveraged our financial strength to return $165 million of capital back to our owners."

Financial Highlights

Selected financial data for the three months ended Dec. 31, 2025:

• Revenue of $503.4 million increased 12.4% compared with the prior year
• Operating income of $111.1 million, compared with $103.9 million in the prior year; adjusted operating income of $126.1 million, compared with $101.4 million in the prior year
• Net income of $76.4 million, compared with $75.9 million in the prior year; adjusted net income of $87.9 million, compared with $69.4 million in the prior year
• Diluted earnings per share of $2.11, compared with $1.98 in the prior year; adjusted earnings per share of $2.43, compared with $1.81 in the prior year
• Adjusted EBITDA of $154.9 million, compared with $125.0 million in the prior year; adjusted EBITDA margin of 30.8%, compared with 27.9% in the prior year

Business Highlights

• Chamberlain University streamlined its scholarship offering with the launch of the Commitment to Completion Grant^TM, and the RN to BSN Tuition Advantage Grant, reinforcing its commitment to expanding access to programs that offer students the skills, confidence, and credibility to excel and ultimately improve patient outcomes.
• Chamberlain University is addressing the country's critical nursing shortage through its Bachelor of Science in Nursing (BSN) Online Option, which provides flexible, experiential learning to students in 38 states. Since launching four years ago, the program has grown to more than 4,200 currently enrolled students and partners with 79 clinical sites nationwide.
• Chamberlain University expanded its Masters Physician Assistant Studies (MPAS) program to its recently relocated Phoenix, Arizona campus. The inaugural cohort of MPAS students at its Chicago campus achieved overwhelmingly positive outcomes with a 96% Physician Assistant National Certifying Exam pass rate², marking Chamberlain's ongoing commitment to address local community healthcare practitioner shortages.
• Walden University is empowering students by launching seven new degree programs heading into the 2026 academic year; with >1,000 students currently enrolled, led by Masters in Applied Behavioral Analysis and Masters in Clinical Psychology.
• Adtalem is rolling out a new integrated alumni-focused CRM, further enhancing our ability to build a connected community with our approximately 385,000 alumni who are making an impact around the country.

Segment Highlights

Chamberlain

• Total student enrollment decreased (1.0)% compared with the prior year, declines in post-licensure nursing partially offset by growth in pre-licensure nursing.

Walden

• Total student enrollment increased 13.0% compared with the prior year, driven by growth in healthcare and non-healthcare programs.

Medical and Veterinary

• Medical and Veterinary schools do not have a new enrollment period starting in the second quarter fiscal year 2026. Second quarter fiscal year 2026 enrollment period is the same as the first quarter fiscal year 2026 enrollment period and corresponding reported enrollment data.

Fiscal Year 2026 Outlook

Adtalem maintained its revenue guidance for fiscal year 2026, with revenue in the range of $1,900 million to $1,940 million, approximately 6% to 8.5% growth year-over-year. Adtalem raised its adjusted earnings per share from $7.60 to $7.90, or approximately 14% to 18.5% growth year-over-year, to be in the range of $7.80 to $8.00, or approximately 17% to 20% growth year-over-year.

Investor Day 2026

Adtalem announced its upcoming Investor Day, scheduled for Feb. 24, 2026. Additional information can be found at investors.adtalem.com or to register for the event, click here.

Conference Call and Webcast Information

Adtalem will hold a conference call to discuss its second quarter fiscal year 2026 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:13757746. 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: 13757746, or visit the Adtalem investor relations website.

About Adtalem Global Education

Adtalem Global Education is the largest provider of healthcare education in the U.S., shaping the future of healthcare by preparing a dynamic 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 97,000 students and supported by a strong community of approximately 385,000 alumni and over 10,000 dedicated employees.

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," "potential," "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. Important factors that could cause actual results to differ materially from the expectations expressed or implied by our forward-looking statements are disclosed in Item 1A. "Risk Factors," of our Annual Report on Form 10-K. You should evaluate forward-looking statements in the context of these risks and uncertainties and are cautioned to not place undue reliance on such forward-looking statements. We caution you that these factors, performance or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. All forward-looking statements are based on information available to use 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. Represents total students attending sessions during each institution's most recent enrollment period in Q2 FY 2026 and Q2 FY 2025.
2. Represents percent of candidates from the specified classes (Class of 2024 and 2025) that have passed PANCE as of the date the report was generated, Dec. 17, 2025.

Adtalem Global Education Inc.

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, amortization of acquired intangible assets, strategic advisory costs, write-off of debt discount and issuance costs, litigation reserve, debt modification costs, and income 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, amortization of acquired intangible assets, strategic advisory costs, write-off of debt discount and issuance costs, litigation reserve, debt modification costs, and income from discontinued operations.

Adjusted operating income (most comparable GAAP measure: operating income) – Measure of Adtalem's operating income adjusted for restructuring expense, amortization of acquired intangible assets, litigation reserve, strategic advisory costs, and debt modification costs.

Adjusted EBITDA (most comparable GAAP measure: net income) – Measure of Adtalem's net income adjusted for income 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, litigation reserve, strategic advisory costs, and debt modification costs. 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 adjusted 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.
• Amortization of acquired intangible assets.
• Amortization of cloud computing implementation assets.
• 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.
• Reserves related to significant litigation.
• Write-off of debt discount and issuance costs related to prepayments of debt and the amendment of the revolving loan facility.
• Debt modification costs related to refinancing our Term Loan B loan.
• Income from discontinued operations includes expense from ongoing litigation costs and settlements related to divestitures and the earn-outs we received.