"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
03Detailed Report
ATGE
Adtalem Global Education Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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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
Financial Highlights
Financial and operating metrics highlights (QQ2 2025):
- Revenue: $447.73 million; YoY +13.86%; QoQ +7.27% (fourQuarters data supports sustaining mid-teens growth trajectory).
- Gross Profit: $273.287 million; gross margin 61.04% (GM rose ~23.56% YoY; QoQ +18.10%).
- Operating Income: $103.87 million; operating margin ~23.20% (ratio 0.23199). Adjusted operating income: $101.40 million; YoY +34.2%.
- EBITDA: Adjusted EBITDA $125.0 million; margin 27.9% (up 440 bps YoY).
- Net Income: $75.856 million; net margin ~16.94%; YoY net income +90.16%; QoQ +64.31%.
- Earnings per Share (diluted): $1.98; GAAP EPS $2.03; Weighted avg shares (diluted) ~38.4 million.
- Free Cash Flow ( trailing 12 months): $232 million; FCF for the quarter: -$29.699 million; Operating cash flow: -$19.019 million; Capex: $10.68 million; Free cash flow per share negative due to seasonality and investment cadence.
- Balance sheet and liquidity: Cash and cash equivalents $193.958 million; total debt $864.608 million; net debt $670.65 million; adjusted EBITDA net leverage 1.1x; cash balance of $194 million; letters of credit outstanding at $179 million (10% of Title IV funding).
- Enrollments by segment: Chamberlain up 11.5% YoY; Walden up 13.2% YoY; Medical & Veterinary enrollment flat quarter-over-quarter; January enrollment demand cited as positive by management.
- Segment performance:
• Chamberlain: Revenue $181.0 million (+17.9% YoY); Adjusted EBITDA $52.6 million (+42.5% YoY); Adjusted EBITDA margin 29.1% (up ~510 bps).
• Walden: Revenue $171.3 million (+16.7% YoY); Adjusted EBITDA $52.1 million (+50.2%); Adjusted EBITDA margin 30.4% (up ~680 bps).
• Medical & Veterinary: Revenue $95.4 million (+2.8% YoY); Adjusted EBITDA $26.7 million (+1.3%); Margin 28% (down ~40 bps).
- Guidance and outlook: Revenue guidance raised to $1.73–$1.76 billion; Adjusted EPS guidance $6.10–$6.30; anticipated >100 bps of annual adjusted EBITDA margin expansion in FY2025; adjusted effective tax rate guided to ~23%.
- Key strategic shifts: AI integration in healthcare education; digital transformation led by Michael Betz (Chief Digital Officer); marketing efficiency improvements; continued investment in capacity and student outcomes; ongoing share repurchases (471k shares in Q2).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
447.73M
13.86%
7.27%
Gross Profit
273.29M
23.56%
18.10%
Operating Income
103.87M
77.22%
47.88%
Net Income
75.86M
90.16%
64.31%
EPS
2.03
103.00%
66.39%
Key Financial Ratios
Gross Profit Margin
Excellent
61.00%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
23.20%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
16.90%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.79%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.27%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.06
Current ratio meets minimum requirements but limited cushion
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