Adtalem Global Education (ATGE) Q3 2025 Earnings Report

Adtalem Global Education delivered a solid third quarter in FY2025, with revenue of $466.1 million, up 12.9% year over year, driven by broad-based enrollment strength across all segments. Chamberlain University and Walden University contributed the majority of the growth, while the Medical and Veterinary segment returned to growth but faced near-term margin compression due to strategic investments. Adjusted EBITDA rose 19.3% to $127.8 million, driving an adjusted EBITDA margin of 27.4%, and adjusted earnings per share (EPS) increased 28% to $1.92. The company reiterated a constructive long-term outlook, raised full-year revenue guidance to $1.76–$1.775 billion and kept adjusted EPS guidance at $6.40–$6.60, signaling confidence in sustained operating leverage and the ability to fund expansion initiatives.

Management emphasized Growth with Purpose, highlighting capacity expansion, AI-driven curricula partnerships, and investments in student outcomes as key pillars for the next stage of growth. The quarter also featured a disciplined capital return program, with a $300 million share repurchase completed and a new $150 million authorization through May 2028, underscoring confidence in the business model and long-term value creation. Despite near-term margin headwinds in the Medical & Veterinary segment (adjusted EBITDA margin at 24% vs 29%+ in other segments), management remains focused on achieving greater-than-150bp full-year adjusted EBITDA margin expansion in 2025, supported by operating leverage and ongoing efficiency initiatives. Investors should monitor: (i) enrollment momentum in Chamberlain and Walden, (ii) margin trajectory in Medical & Veterinary as growth investments scale, (iii) the pace of Q4 investments, and (iv) regulatory and policy developments in DC that could influence student affordability and program outcomes.