Adtalem Global Education
ATGE
$94.54 -1.63%
Exchange: NYSE | Sector: Consumer Defensive | Industry: Education Training Services
Q2 2025
Published: Jan 30, 2025

Earnings Highlights

  • Revenue of $447.73M up 13.9% year-over-year
  • EPS of $1.98 increased by 103% from previous year
  • Gross margin of 61.0%
  • Net income of 75.86M
  • ""Revenue grew by 14% to $448 million. Total enrollment was up 11.6% year-over-year and proving for the 11th consecutive quarter. We now serve over 91,000 students and our adjusted EBITDA margin expanded by 440 basis points, driving a 47% increase in adjusted earnings per share to $1.81 per share."" - Steve Beard
ATGE
Adtalem Global Education Inc

Executive Summary

Adtalem Global Education delivered a solid QQ2 2025 with revenue of $447.7 million, up 13.9% year over year, driven by broad-based growth across Chamberlain, Walden, and the Medical & Veterinary segment. The quarter featured meaningful operating leverage: adjusted EBITDA rose 35.1% to $125.0 million and adjusted EBITDA margin expanded by 440 basis points to 27.9%, supported by enrollment gains and ongoing efficiency initiatives. Net income grew ~90% YoY, and diluted EPS rose ~47% to $1.81 on a 38.4 million weighted-average share base. Management highlighted a strong enrollment trajectory at Chamberlain and Walden (Chamberlain up 11.5% YoY; Walden up 13.2%), with January enrollment demand in Medical & Veterinary showing encouraging signs. The company raised full-year revenue guidance to $1.73–$1.76 billion and adjusted EPS guidance to $6.10–$6.30, signaling confidence in continued operating leverage and a resilient demand environment for healthcare education. On the balance sheet, Adtalem ended Q2 with $194 million in cash and a levered but healthy net debt position (~$670.7 million net debt, ~1.1x adjusted EBITDA net leverage). The business remains committed to its Growth With Purpose strategy, investing in digital transformation, AI-enabled education initiatives, and capacity expansion while returning capital to shareholders via buybacks. Near-term risks include tougher second-half comps and regulatory/regulatory-adjacent uncertainties, though management signaled a positive longer-term outlook with margin expansion and earnings growth supported by improved marketing efficiency and higher enrollment persistence.

Key Performance Indicators

Revenue
Increasing
447.73M
QoQ: 7.27% | YoY: 13.86%
Gross Profit
Increasing
273.29M
61.04% margin
QoQ: 18.10% | YoY: 23.56%
Operating Income
Increasing
103.87M
QoQ: 47.88% | YoY: 77.22%
Net Income
Increasing
75.86M
QoQ: 64.31% | YoY: 90.16%
EPS
Increasing
2.03
QoQ: 66.39% | YoY: 103.00%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q3 2025 466.06 1.59 +12.9% View
Q2 2025 447.73 1.98 +13.9% View
Q1 2025 417.40 1.18 +13.2% View
Q4 2024 409.91 1.28 +12.4% View
Q3 2024 412.66 0.93 +11.8% View