"We've commenced year two of our three-year Growth with Purpose strategy, which is driving strong momentum through our programmatic focus on operational excellence."
— Steve Beard
03Detailed Report
ATGE
Adtalem Global Education Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 18, 2026
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Executive Summary
Adtalem Global Education (ATGE) delivered a solid start to fiscal 2025 (QQ1), led by robust enrollment momentum and continued execution of the Growth with Purpose strategy. Revenue rose 13.2% year over year to $417.4 million, with consolidated adjusted EBITDA up 20.1% and an expanded EBITDA margin of 23.2%. Enrollment across the three segments improved meaningfully: Chamberlain up 11.7%, Walden up 12.2%, and total enrollment exceeding 90,000 students for the 10th straight quarter. Management raised full-year guidance, projecting revenue of $1.69–$1.73 billion and adjusted EPS of $5.75–$5.95, signaling confidence in sustained growth and operating leverage. The quarter also showcased disciplined capital allocation (share repurchases, debt refi, and a cash-rich balance sheet) and strategic investments in marketing, student support, AI-enabled learning, and partnerships to sustain higher-level growth. Near-term headwinds include marketing mix timing and ongoing remediation within the Medical & Veterinary segment, but the overall health of the business remains favorable as demand for healthcare education persists and the company invests to expand capacity and outcomes.
Key Performance Indicators
Revenue
Increasing
417.40M
QoQ: 1.83% | YoY: 13.16%
Gross Profit
Increasing
231.41M
55.44% margin
QoQ: -2.55% | YoY: 15.57%
Operating Income
Increasing
70.24M
QoQ: -3.48% | YoY: 149.12%
Net Income
Increasing
46.17M
QoQ: -6.58% | YoY: 333.64%
EPS
Increasing
1.22
QoQ: -6.87% | YoY: 369.23%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $417.4 million, up 13.2% YoY; Gross margin: 55.44%; Operating margin: 16.83%; EBITDA: $92.44 million; EBITDA margin: 23.12%; Net income: $46.17 million; Net margin: 11.06%; Diluted EPS: $1.18; GAAP EPS: $1.22; Weighted average shares (diluted): 39.09 million; Free cash flow (TTM): $243 million; Free cash flow (quarter): $78.9 million; Cash and equivalents: $265 million; Net debt: $578.5 million; Net debt/Adjusted EBITDA: 1.0x; Total enrollments: >90,000; Chamberlain revenue: $167.9 million (+17.8% YoY); Walden revenue: $161.5 million (+14.1% YoY); Medical & Veterinary revenue: $88.0 million (+3.9% YoY); Capex: ~$10.4 million; Shares repurchased: 462k in QQ1; Guidance: FY2025 revenue $1.69–$1.73 billion; Adj. EPS $5.75–$5.95; Tax rate: ~23% (normalized).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
417.40M
13.16%
1.83%
Gross Profit
231.41M
15.57%
-2.55%
Operating Income
70.24M
149.12%
-3.48%
Net Income
46.17M
333.64%
-6.58%
EPS
1.22
369.23%
-6.87%
Key Financial Ratios
Gross Profit Margin
Good
55.40%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Good
16.80%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
11.10%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.64%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.32%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.94
Current ratio below safe levels, potential liquidity risk
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