Executive Summary
Adtalem Global Education (ATGE) reported a solid QQ4 2024, underscoring sustained enrollment momentum and margin discipline across its three segments: Chamberlain, Walden, and Medical & Veterinary. For the fourth quarter, revenue rose 12.4% year over year to $409.9 million, with adjusted EBITDA of $97.4 million and an EBITDA margin of 23.8%. Full-year 2024 results reflect revenue of $1.58 billion (+9.2% YoY) and adjusted EBITDA of $377.5 million (margin 23.8%), with adjusted net income of $201.8 million and adjusted EPS of $5.01, up 19% YoY. Management highlighted capex discipline and aggressive enrollment growth, culminating in free cash flow of $239 million and $261 million of capital returned to shareholders. Management’s Growth with Purpose strategy is driving top-line gains and operating leverage, as total enrollment rose 10% YoY in Q4 and the company expanded capacity and access across its three segments. For FY2025, ATGE issued guidance of $1.66–$1.70 billion in revenue and $5.60–$5.85 per share in adjusted earnings, with an expected ~100 bps uplift in adjusted EBITDA margin driven by operating leverage and ongoing investments in student-facing technology and marketing. The company also signaled selective pricing optimization to balance affordability and pricing power, and outlined strategic moves, including new Chamberlain locations and partnerships (e.g., AACN) to sustain enrollment momentum.
Key Performance Indicators
QoQ: 34.21% | YoY:122.17%
QoQ: 37.89% | YoY:156.86%
Key Insights
Revenue (Q4 2024): $409.9M, up 12.4% YoY; Full-year 2024 Revenue: $1.58B, up 9.2% YoY; Gross margin: 57.9% (Q4 2024); Operating margin: 17.8% (Q4 2024); EBITDA: $95.6M (Q4 2024) / $377.5M (FY2024); Adj. EBITDA margin: 23.8% (FY2024); Net income (GAAP) Q4 2024: $49.4M; Diluted EPS (GAAP) Q4 2024: $1.31; Adjusted EPS (Q4 2024): $1.37; Adjusted EPS (FY2024): $5.01; Free cash flow (FY2024): $239M; Cash and cash equivalents (FY2024 end): ~$219M; Net debt to adjusted EBITDA: 1.2x; Enrollment: Q4 total...
Financial Highlights
Revenue (Q4 2024): $409.9M, up 12.4% YoY; Full-year 2024 Revenue: $1.58B, up 9.2% YoY; Gross margin: 57.9% (Q4 2024); Operating margin: 17.8% (Q4 2024); EBITDA: $95.6M (Q4 2024) / $377.5M (FY2024); Adj. EBITDA margin: 23.8% (FY2024); Net income (GAAP) Q4 2024: $49.4M; Diluted EPS (GAAP) Q4 2024: $1.31; Adjusted EPS (Q4 2024): $1.37; Adjusted EPS (FY2024): $5.01; Free cash flow (FY2024): $239M; Cash and cash equivalents (FY2024 end): ~$219M; Net debt to adjusted EBITDA: 1.2x; Enrollment: Q4 total enrollment up 10.0% YoY; Chamberlain revenue: $167.0M (+15.6%), Walden revenue: $156.3M (+13.3%), Medical & Vet revenue: $86.6M (+5.4%), with differing enrollment trajectories across the segments.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
409.91M |
12.41% |
-0.67% |
| Gross Profit |
237.45M |
18.18% |
-1.78% |
| Operating Income |
72.77M |
83.96% |
-9.77% |
| Net Income |
49.42M |
122.17% |
34.21% |
| EPS |
1.31 |
156.86% |
37.89% |
Key Financial Ratios
operatingProfitMargin
17.8%
operatingCashFlowPerShare
$1.08
freeCashFlowPerShare
$1.16
Management Commentary
Management conveyed confidence in continued enrollment momentum and the efficacy of Growth with Purpose. Highlights include: (1) Enrollment strength and strategic investments: ‘Total enrollment returned to growth in the first quarter and consistently improved throughout the year, ending the year with a 10% YoY increase for the fourth quarter’ (Steve Beard). (2) Margin discipline and reallocation: ‘utilize economies of scale to boost student-facing investments while maintaining an attractive adjusted EBITDA operating margin profile’ (Steve Beard). (3) Pricing and market positioning: ‘price optimization is one of the core disciplines we’ve begun to adhere to as part of our Growth with Purpose strategy... price where we have pricing power’ (Steve Beard). (4) 2025 outlook and capital allocation: management reaffirmed that FY2025 guidance implies revenue growth ~5–7.5% with adj EPS 12–17% higher YoY and ~100 bps of adjusted EBITDA margin expansion; management also highlighted continued share repurchases and strong cash generation.
Total enrollment returned to growth in the first quarter and consistently improved throughout the year, returning to pre-pandemic levels and ending the year with a 10% year-over-year increase for the fourth quarter.
— Steve Beard
Price optimization is one of the core disciplines we’ve begun to adhere to as part of our Growth with Purpose strategy. And by optimization, that can mean taking price where we have pricing power.
— Steve Beard
Forward Guidance
Guidance for FY2025 anticipates revenue between $1.66B and $1.70B (approx. 5%–7.5% YoY growth) and adjusted EPS between $5.60 and $5.85 (approx. 12%–17% YoY growth). The company expects about 100 basis points of adjusted EBITDA margin expansion, driven by operating leverage from the integrated platform and targeted investments in student-facing technology and marketing. Management signaled higher marketing spend in Q1 2025 to capture current market opportunities, with revenue growth expected to be more back-ended relative to 2024. The normalized adjusted effective tax rate is guided to ~22%. Key monitorables include enrollment velocity in September (beginning of the academic year), the pace of capacity expansion (Chamberlain), and the success of Walden’s digital transformation. Potential risk factors include a sustained normalization of demand post-COVID, competitive dynamics in online and blended programs, regulatory or accreditation changes, and higher personnel/benefits costs.