Adtalem’s fourth quarter was marked by sustained enrollment gains and operational efficiency, prompting a favorable market response. Management attributed the positive results to strong performances at Walden University and Chamberlain, both of which reached record enrollment levels. CEO Stephen W. Beard emphasized, “This quarter marks our tenth consecutive quarter of enrollment growth.” The company also highlighted successful digital initiatives and targeted marketing improvements, particularly in its nursing and behavioral sciences programs, as critical factors supporting revenue and non-GAAP earnings growth.
Is now the time to buy ATGE? Find out in our full research report (it’s free for active Edge members).
Adtalem (ATGE) Q4 CY2025 Highlights:
- Revenue: $503.4 million vs analyst estimates of $490.6 million (12.4% year-on-year growth, 2.6% beat)
- Adjusted EPS: $2.43 vs analyst estimates of $2.19 (11.1% beat)
- Adjusted EBITDA: $154.9 million vs analyst estimates of $138.3 million (30.8% margin, 12% beat)
- The company reconfirmed its revenue guidance for the full year of $1.92 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $7.90 at the midpoint, a 1.9% increase
- Operating Margin: 22.9%, in line with the same quarter last year
- Market Capitalization: $3.43 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Adtalem’s Q4 Earnings Call
- Jeffrey Marc Silber (BMO Capital Markets) asked if Walden’s enrollment strength reflects market share gains; CEO Stephen W. Beard responded that growth is broad-based but most pronounced in behavioral sciences and nursing, with digital offerings also gaining traction.
- Silber (BMO Capital Markets) questioned Adtalem’s preparedness for upcoming loan cap changes; Beard explained the company is finalizing its partnership with Sallie Mae and expects it to support all segments, especially medical and veterinary.
- Jack Garner Slevin (Jefferies) inquired about the lead time for Chamberlain enrollment improvements; Beard said recent marketing and conversion changes should yield results by the fall enrollment cycle, with flat near-term trends expected before a return to growth.
- Slevin (Jefferies) asked what could drive upside to the high end of revenue guidance; Beard pointed to a quicker-than-expected rebound at Chamberlain and potential acceleration in the medical and veterinary segment.
- No further analyst questions on the call.
Catalysts in Upcoming Quarters
Looking forward, our analysts are monitoring (1) the impact of new program launches and digital platform enhancements on student enrollment growth, (2) operational execution as Chamberlain aims for a return to positive enrollment trends in the fall cycle, and (3) the successful rollout of the Sallie Mae partnership in response to changes in student loan regulations. The company’s Investor Day may also provide greater clarity on long-term growth initiatives.
Adtalem currently trades at $99.41, down from $115.92 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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