Total enrollment up 9.8% YoY

Revenue up 12.9% YoY

Diluted earnings per share $1.59; Adjusted EPS $1.92, growth of 28.0% YoY

Third quarter highlights

Total student enrollment 94,223, up 9.8% year-over-year
Revenue $466.1 million, up 12.9% year-over-year
Chamberlain University achieved ninth straight quarter of total enrollment growth, up 6.8% year-over-year, highest total enrollment in university history
Walden University achieved seventh straight quarter of total enrollment growth, up 13.5% year-over-year
Medical & Veterinary segment achieved total enrollment growth, up 1.2% year-over-year
Robust momentum, GAAP net income $60.8 million; adjusted EBITDA $127.8 million, up 19.3% year-over-year
Growth with Purpose strategy generating significant returns

Capital allocation

Completed $300 million January 2024 Board-authorized share repurchase program on May 5, 2025, representing a substantial return for shareholders
New $150 million Board-authorized share repurchase program through May 2028
Net leverage 0.8x as of Mar. 31, 2025

Fiscal year 2025 guidance

Revenue $1,760 million to $1,775 million
Adjusted earnings per share $6.40 to $6.60

Adtalem Global Education Inc. (NYSE:ATGE), the leading healthcare educator in the United States, today reported third quarter fiscal year 2025 results (ended Mar. 31, 2025). The Company continues to transform higher education by training the next generation of professionals at an industry-leading scale.

"Our focus on delivering flexible, personalized, tech enabled and career relevant programs for today's modern student has driven seven consecutive quarters of enrollment growth," said Steve Beard, chairman and chief executive officer, Adtalem Global Education. "Rooted in operational excellence, our Growth with Purpose strategy continues to fuel sustainable returns. As a trusted pathway for aspiring healthcare professionals, we're investing in innovative programs to meet rising demand, ensuring a skilled workforce that meets the needs of communities across the U.S."

Financial Highlights

Selected financial data for the three months ended Mar. 31, 2025:

Revenue of $466.1 million increased 12.9% compared with the prior year
Operating income of $90.5 million, compared with $61.7 million in the prior year; adjusted operating income of $105.4 million, compared with $89.8 million in the prior year
Net income of $60.8 million, compared with $36.8 million in the prior year; adjusted net income of $73.3 million, compared with $59.4 million in the prior year
Diluted earnings per share of $1.59, compared with $0.93 in the prior year; adjusted earnings per share of $1.92, compared with $1.50 in the prior year
Adjusted EBITDA of $127.8 million, compared with $107.1 million in the prior year; adjusted EBITDA margin of 27.4%, compared with 25.9% in the prior year

Business Highlights

American University of the Caribbean School of Medicine (AUC) and Ross University School of Medicine (RUSM) achieved a combined 95% first-time residency attainment rate for 2024-2025 graduates¹, at least 95% attainment for the fourth consecutive year, placing more than 615 students and graduates into over 325 unique healthcare facilities with more than 130 students and graduates matching into partner clinical hospitals. The U.S. is projected to face a shortage of 187,000 physicians in 2037², exacerbating healthcare gaps, particularly in existing shortage areas. This year, more than 40% of AUC and RUSM residency placements will train in federally designated Medically Underserved Areas / Populations³, expanding access to care in underserved urban and rural communities nationwide. More than 450 students and graduates matched into primary care residencies, with over 55% training in primary care Health Professional Shortage Areas³.
Ross University School of Veterinary Medicine (RUSVM) ranked first among all universities in total graduates matched into highly competitive internships and residencies in 2025 through the Veterinary Internship and Residency Matching Program. For the last five years, RUSVM has been among the top schools for matching graduates into postgraduate opportunities, providing invaluable clinical experience in specialized fields such as surgery, cardiology, internal medicine and emergency care.
Walden University celebrated approximately 6,000 graduates at its 72nd commencement. Nursing, social, behavioral and other health degrees accounted for approximately 80% of the degrees awarded, further showcasing Adtalem's commitment to delivering qualified professionals at scale to the U.S. healthcare system.
Chamberlain University launched "You've Got This, We've Got You," a new brand campaign that focuses on the culture of caring and support at the No. 1 largest nursing school in the U.S.

Segment Highlights

Chamberlain

$ in millions	Three Months Ended March 31,
	2025	2024	% Change
Revenue	$192.6	$170.3	13.1%
Operating Income	$47.5	$43.3	9.6%
Adj. Operating Income	$47.5	$43.3	9.6%
Adj. EBITDA	$56.8	$50.5	12.6%
Total Students⁴	40,564	37,985	6.8%

Total student enrollment increased 6.8% compared with the prior year, driven by growth in pre-licensure and post-licensure nursing programs.

Walden

$ in millions	Three Months Ended March 31,
	2025	2024	% Change
Revenue	$178.4	$150.6	18.5%
Operating Income	$45.2	$23.6	91.6%
Adj. Operating Income	$48.0	$31.9	50.6%
Adj. EBITDA	$54.0	$35.9	50.6%
Total Students⁴	48,526	42,751	13.5%

Total student enrollment increased 13.5% compared with the prior year, driven by growth in healthcare and non-healthcare programs.

Medical and Veterinary

$ in millions	Three Months Ended March 31,
	2025	2024	% Change
Revenue	$95.0	$91.7	3.6%
Operating Income	$17.8	$22.8	(21.8)%
Adj. Operating Income	$17.9	$23.0	(21.9)%
Adj. EBITDA	$22.9	$27.0	(15.3)%
Total Students⁴	5,133	5,073	1.2%

Total student enrollment increased 1.2% compared to the prior year, driven by growth in veterinary.

Fiscal Year 2025 Outlook

Adtalem raises guidance for fiscal year 2025, with revenue in the range of $1,760 million to $1,775 million, approximately 11% to 12% growth year-over-year. Adjusted earnings per share to be in the range of $6.40 to $6.60, approximately 28% to 32% growth year-over-year.

Conference Call and Webcast Information

Adtalem will hold a conference call to discuss its third quarter fiscal year 2025 results today at 4:00 p.m. CT (5:00 p.m. ET).

The call can be accessed by dialing +1 877-407-6184 (U.S. participants) or +1 201-389-0877 (international participants) and stating "Adtalem earnings call" or by using conference ID:13752889. The call will be simulcast through the Adtalem investor relations website at: https://investors.adtalem.com.

Adtalem will archive a replay of the call for 30 days. To access the replay, dial +1 877-660-6853 (U.S.) or +1 201-612-7415 (international), conference ID: 13752889, or visit the Adtalem investor relations website.

About Adtalem Global Education

Adtalem Global Education is the leading provider of healthcare education in the U.S., shaping the future of healthcare by preparing a practice-ready workforce with high-quality academic programs. We innovate education pathways, align with industry needs and empower individuals to reach their full potential. Our commitment to excellence and access is reflected in our expansive network of institutions, serving over 90,000 students and supported by a strong community of approximately 350,000 alumni and nearly 10,000 dedicated employees. Visit Adtalem.com for more information and follow us on LinkedIn, Instagram and Facebook.

Cautionary Disclosure Regarding Forward-Looking Statements

Certain statements contained in this release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact, which includes statements regarding Adtalem's future growth. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "future," "believe," "expect," "anticipate," "estimate," "plan," "intend," "may," "will," "would," "could," "can," "continue," "preliminary," "range," and similar terms. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include the risk factors described in Item 1A. "Risk Factors" of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) and our other filings with the SEC. These forward-looking statements are based on information available to us as of the date any such statements are made, and Adtalem assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized, except as required by law.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of special items that may be incurred in the future, although these special items could be material to Adtalem's results in accordance with GAAP.

¹First-time residency attainment rate is the percent of students attaining a 2025-26 residency position out of all graduates or expected graduates in 2024-25 who were active applicants in the 2025 NRMP match or who attained a residency position outside the NRMP match.

²Health Resources & Services Administration (HRSA): https://bhw.hrsa.gov/data-research/projecting-health-workforce-supply-demand

³ Medically Underserved Areas and Health Professional Shortage Areas as defined by the U.S. Health Resources & Services Administration: What Is Shortage Designation? | Bureau of Health Workforce

⁴Represents total students attending sessions during each institution's most recent enrollment period in Q3 FY 2025 and Q3 FY 2024.

Adtalem Global Education Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands)

	March 31,		June 30,
	2025		2024
Assets:
Current assets:
Cash and cash equivalents	$	219,017	$	219,306
Restricted cash		2,164		1,896
Accounts and financing receivables, net		162,972		126,833
Prepaid expenses and other current assets		66,190		70,050
Total current assets		450,343		418,085
Noncurrent assets:
Property and equipment, net		250,764		248,524
Operating lease assets		198,465		176,755
Deferred income taxes		33,157		49,088
Intangible assets, net		768,279		776,694
Goodwill		961,262		961,262
Other assets, net		119,664		103,184
Assets held for sale		7,825		7,825
Total noncurrent assets		2,339,416		2,323,332
Total assets	$	2,789,759	$	2,741,417
Liabilities and shareholders' equity:
Current liabilities:
Accounts payable	$	98,709	$	102,626
Accrued payroll and benefits		72,676		71,373
Accrued liabilities		86,491		96,957
Deferred revenue		247,811		185,272
Current operating lease liabilities		34,882		31,429
Total current liabilities		540,569		487,657
Noncurrent liabilities:
Long-term debt		552,186		648,712
Long-term operating lease liabilities		193,460		167,712
Deferred income taxes		33,589		29,526
Other liabilities		37,242		38,675
Total noncurrent liabilities		816,477		884,625
Total liabilities		1,357,046		1,372,282
Commitments and contingencies
Total shareholders' equity		1,432,713		1,369,135
Total liabilities and shareholders' equity	$	2,789,759	$	2,741,417

Adtalem Global Education Inc.
Consolidated Statements of Income
(unaudited)
(in thousands, except per share data)

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2025		2024		2025		2024
Revenue	$	466,055	$	412,658	$	1,331,184	$	1,174,745
Operating cost and expense:
Cost of educational services		199,869		175,321		572,500		516,008
Student services and administrative expense		175,167		156,689		491,141		478,368
Restructuring expense		510		473		2,926		1,217
Business integration expense		—		18,450		—		30,621
Total operating cost and expense		375,546		350,933		1,066,567		1,026,214
Operating income		90,509		61,725		264,617		148,531
Interest expense		(13,074)		(16,560)		(41,465)		(48,910)
Other income, net		1,898		2,871		6,779		8,648
Income from continuing operations before income taxes		79,333		48,036		229,931		108,269
Provision for income taxes		(18,539)		(10,595)		(51,716)		(21,156)
Income from continuing operations		60,794		37,441		178,215		87,113
Discontinued operations:
Income (loss) from discontinued operations before income taxes		52		(832)		6,216		329
(Provision for) benefit from income taxes		(14)		212		(1,578)		(84)
Income (loss) from discontinued operations		38		(620)		4,638		245
Net income and comprehensive income	$	60,832	$	36,821	$	182,853	$	87,358

Earnings (loss) per share:
Basic:
Continuing operations	$	1.64	$	0.97	$	4.76	$	2.18
Discontinued operations	$	0.00	$	(0.02)	$	0.12	$	0.01
Total basic earnings per share	$	1.64	$	0.95	$	4.88	$	2.18
Diluted:
Continuing operations	$	1.59	$	0.94	$	4.62	$	2.13
Discontinued operations	$	0.00	$	(0.02)	$	0.12	$	0.01
Total diluted earnings per share	$	1.59	$	0.93	$	4.74	$	2.14

Weighted-average shares outstanding:
Basic shares		37,140		38,713		37,434		40,000
Diluted shares		38,233		39,636		38,583		40,874

Adtalem Global Education Inc.
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)

	Nine Months Ended
	March 31,
	2025			2024
Operating activities:
Net income	$	182,853		$	87,358
Income from discontinued operations		(4,638	)		(245	)
Income from continuing operations		178,215			87,113
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation		31,181			19,405
Amortization and impairments to operating lease assets		25,330			24,705
Depreciation		30,267			29,879
Amortization of acquired intangible assets		8,415			28,296
Amortization of debt discount and issuance costs		4,995			4,550
Provision for bad debts		46,854			35,741
Deferred income taxes		19,994			(4,650	)
Loss on disposals and impairments of property and equipment		2,522			50
Gain on investments		(268	)		(1,281	)
Unrealized loss on assets held for sale		—			647
Changes in assets and liabilities:
Accounts and financing receivables		(80,613	)		(73,661	)
Prepaid expenses and other current assets		5,727			(2,484	)
Cloud computing implementation assets		(21,959	)		(19,262	)
Accounts payable		(9,978	)		12,632
Accrued payroll and benefits		1,406			15,671
Accrued liabilities		(10,449	)		39,748
Deferred revenue		66,081			60,935
Operating lease liabilities		(17,839	)		(28,448	)
Other assets and liabilities		(6,068	)		(2,475	)
Net cash provided by operating activities-continuing operations		273,813			227,111
Net cash provided by operating activities-discontinued operations		4,394			8,396
Net cash provided by operating activities		278,207			235,507
Investing activities:
Capital expenditures		(31,337	)		(32,316	)
Proceeds from sales of marketable securities		3,120			626
Purchases of marketable securities		(2,048	)		(498	)
Net cash used in investing activities		(30,265	)		(32,188	)
Financing activities:
Proceeds from exercise of stock options		10,008			15,412
Employee taxes paid on withholding shares		(12,457	)		(6,600	)
Proceeds from stock issued under Colleague Stock Purchase Plan		922			581
Repurchases of common stock for treasury		(146,436	)		(250,463	)
Proceeds from issuance of long-term debt		9,873			1,896
Repayments of long-term debt		(109,873	)		(51,896	)
Net cash used in financing activities		(247,963	)		(291,070	)
Net decrease in cash, cash equivalents and restricted cash		(21	)		(87,751	)
Cash, cash equivalents and restricted cash at beginning of period		221,202			275,075
Cash, cash equivalents and restricted cash at end of period	$	221,181		$	187,324
Non-cash investing and financing activities:
Accrued capital expenditures	$	12,410		$	6,217
Accrued liability for repurchases of common stock	$	4,879		$	2,995
Accrued excise tax on share repurchases	$	1,055		$	3,257

Adtalem Global Education Inc.
Segment Information
(unaudited)
(in thousands)

	Three Months Ended											Nine Months Ended
	March 31,											March 31,
							Increase/(Decrease)											Increase/(Decrease)
	2025			2024			$			%		2025			2024			$			%
Revenue:
Chamberlain	$	192,592		$	170,338		$	22,254		13.1	%	$	541,508		$	466,487		$	75,021		16.1	%
Walden		178,418			150,607			27,811		18.5	%		511,237			439,023			72,214		16.4	%
Medical and Veterinary		95,045			91,713			3,332		3.6	%		278,439			269,235			9,204		3.4	%
Total consolidated revenue	$	466,055		$	412,658		$	53,397		12.9	%	$	1,331,184		$	1,174,745		$	156,439		13.3	%
Operating income (loss):
Chamberlain	$	47,516		$	43,349		$	4,167		9.6	%	$	115,716		$	97,313		$	18,403		18.9	%
Walden		45,194			23,585			21,609		91.6	%		133,929			47,121			86,808		184.2	%
Medical and Veterinary		17,800			22,759			(4,959	)	(21.8	)%		53,934			59,142			(5,208	)	(8.8	)%
Home Office		(20,001	)		(27,968	)		7,967		28.5	%		(38,962	)		(55,045	)		16,083		29.2	%
Total consolidated operating income	$	90,509		$	61,725		$	28,784		46.6	%	$	264,617		$	148,531		$	116,086		78.2	%

Non-GAAP Financial Measures and Reconciliations

We believe that certain non-GAAP financial measures provide investors with useful supplemental information regarding the underlying business trends and performance of Adtalem's ongoing operations as seen through the eyes of management and are useful for period-over-period comparisons. We use these supplemental non-GAAP financial measures internally in our assessment of performance and budgeting process. However, these non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The following are non-GAAP financial measures used in the subsequent GAAP to non-GAAP reconciliation tables:

Adjusted net income (most comparable GAAP measure: net income) – Measure of Adtalem's net income adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, write-off of debt discount and issuance costs, litigation reserve, asset impairments, loss on assets held for sale, debt modification costs, strategic advisory costs, and (income) loss from discontinued operations.

Adjusted earnings per share (most comparable GAAP measure: diluted earnings per share) – Measure of Adtalem's diluted earnings per share adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, write-off of debt discount and issuance costs, litigation reserve, asset impairments, loss on assets held for sale, debt modification costs, strategic advisory costs, and (income) loss from discontinued operations.

Adjusted operating income (most comparable GAAP measure: operating income) – Measure of Adtalem's operating income adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, asset impairments, strategic advisory costs, loss on assets held for sale, and debt modification costs. This measure is applied on a consolidated and segment basis, depending on the context of the discussion.

Adjusted EBITDA (most comparable GAAP measure: net income) – Measure of Adtalem's net income adjusted for (income) loss from discontinued operations, interest expense, other income, net, provision for income taxes, depreciation, amortization of acquired intangible assets, amortization of cloud computing implementation assets, stock-based compensation, restructuring expense, business integration expense, litigation reserve, asset impairments, strategic advisory costs, loss on assets held for sale, and debt modification costs. This measure is applied on a consolidated and segment basis, depending on the context of the discussion. Provision for income taxes, interest expense, and other income, net is not recorded at the reportable segments, and therefore, the segment adjusted EBITDA reconciliations begin with operating income.

Free cash flow (most comparable GAAP measure: net cash provided by operating activities-continuing operations) – Defined as net cash provided by operating activities-continuing operations less capital expenditures.

Net debt – Defined as long-term debt less cash and cash equivalents.

Net leverage – Defined as net debt divided by adjusted EBITDA.

A description of special items in our non-GAAP financial measures described above are as follows:

Restructuring expense primarily related to workforce reductions, costs to exit certain course offerings, and prior real estate consolidations at Adtalem's home office. We do not include normal, recurring, cash operating expenses in our restructuring expense.
Business integration expense include expenses related to the Walden acquisition and certain costs related to growth transformation initiatives. We do not include normal, recurring, cash operating expenses in our business integration expense.
Amortization of acquired intangible assets.
Amortization of cloud computing implementation assets.
Write-off of debt discount and issuance costs related to prepayments of debt, reserves related to significant litigation, asset impairments related to adjusting certain operating lease assets and property and equipment as a result of adjusting carrying values to fair values, loss on assets held for sale related to adjusting those assets to estimated fair value less costs to sell, and debt modification costs related to refinancing our Term Loan B loan.
Strategic advisory costs related to expanding capabilities and bringing new capacities to market to further enhance our strategic position. We do not include normal, recurring, cash operating expenses in our strategic advisory costs.
(Income) loss from discontinued operations includes expense from ongoing litigation costs and settlements related to divestitures and the earn-outs we received.

Adtalem Global Education Inc.
Non-GAAP Operating Income by Segment
(unaudited)
(in thousands)

	Three Months Ended											Nine Months Ended
	March 31,											March 31,
							Increase/(Decrease)											Increase/(Decrease)
	2025			2024			$			%		2025			2024			$			%
Chamberlain:
Operating income (GAAP)	$	47,516		$	43,349		$	4,167		9.6	%	$	115,716		$	97,313		$	18,403		18.9	%
Restructuring expense		(23	)		—			(23	)				1,912			—			1,912
Adjusted operating income (non-GAAP)	$	47,493		$	43,349		$	4,144		9.6	%	$	117,628		$	97,313		$	20,315		20.9	%
Operating margin (GAAP)		24.7	%		25.4	%							21.4	%		20.9	%
Operating margin (non-GAAP)		24.7	%		25.4	%							21.7	%		20.9	%

Walden:
Operating income (GAAP)	$	45,194		$	23,585		$	21,609		91.6	%	$	133,929		$	47,121		$	86,808		184.2	%
Restructuring expense		—			—			—					—			(776	)		776
Amortization of acquired intangible assets		2,805			8,286			(5,481	)				8,415			28,296			(19,881	)
Litigation reserve		—			—			—					(5,550	)		18,500			(24,050	)
Adjusted operating income (non-GAAP)	$	47,999		$	31,871		$	16,128		50.6	%	$	136,794		$	93,141		$	43,653		46.9	%
Operating margin (GAAP)		25.3	%		15.7	%							26.2	%		10.7	%
Operating margin (non-GAAP)		26.9	%		21.2	%							26.8	%		21.2	%

Medical and Veterinary:
Operating income (GAAP)	$	17,800		$	22,759		$	(4,959	)	(21.8	)%	$	53,934		$	59,142		$	(5,208	)	(8.8	)%
Restructuring expense		121			194			(73	)				236			379			(143	)
Adjusted operating income (non-GAAP)	$	17,921		$	22,953		$	(5,032	)	(21.9	)%	$	54,170		$	59,521		$	(5,351	)	(9.0	)%
Operating margin (GAAP)		18.7	%		24.8	%							19.4	%		22.0	%
Operating margin (non-GAAP)		18.9	%		25.0	%							19.5	%		22.1	%

Home Office:
Operating loss (GAAP)	$	(20,001	)	$	(27,968	)	$	7,967		28.5	%	$	(38,962	)	$	(55,045	)	$	16,083		29.2	%
Restructuring expense		412			279			133					778			1,614			(836	)
Business integration expense		—			18,450			(18,450	)				—			30,621			(30,621	)
Asset impairments		6,442			—			6,442					6,442			—			6,442
Strategic advisory costs		5,100			—			5,100					5,100			—			5,100
Loss on assets held for sale		—			—			—					—			647			(647	)
Debt modification costs		—			848			(848	)				712			848			(136	)
Adjusted operating loss (non-GAAP)	$	(8,047	)	$	(8,391	)	$	344		4.1	%	$	(25,930	)	$	(21,315	)	$	(4,615	)	(21.7	)%

Adtalem Global Education:
Operating income (GAAP)	$	90,509		$	61,725		$	28,784		46.6	%	$	264,617		$	148,531		$	116,086		78.2	%
Restructuring expense		510			473			37					2,926			1,217			1,709
Business integration expense		—			18,450			(18,450	)				—			30,621			(30,621	)
Amortization of acquired intangible assets		2,805			8,286			(5,481	)				8,415			28,296			(19,881	)
Litigation reserve		—			—			—					(5,550	)		18,500			(24,050	)
Asset impairments		6,442			—			6,442					6,442			—			6,442
Strategic advisory costs		5,100			—			5,100					5,100			—			5,100
Loss on assets held for sale		—			—			—					—			647			(647	)
Debt modification costs		—			848			(848	)				712			848			(136	)
Adjusted operating income (non-GAAP)	$	105,366		$	89,782		$	15,584		17.4	%	$	282,662		$	228,660		$	54,002		23.6	%
Operating margin (GAAP)		19.4	%		15.0	%							19.9	%		12.6	%
Operating margin (non-GAAP)		22.6	%		21.8	%							21.2	%		19.5	%

Adtalem Global Education Inc.
Non-GAAP Adjusted EBITDA by Segment
(unaudited)
(in thousands)

	Three Months Ended											Nine Months Ended
	March 31,											March 31,
							Increase/(Decrease)											Increase/(Decrease)
	2025			2024			$			%		2025			2024			$			%
Chamberlain:
Operating income (GAAP)	$	47,516		$	43,349		$	4,167		9.6	%	$	115,716		$	97,313		$	18,403		18.9	%
Restructuring expense		(23	)		—			(23	)				1,912			—			1,912
Depreciation		5,350			4,938			412					16,184			13,840			2,344
Amortization of cloud computing implementation assets		786			374			412					2,253			950			1,303
Stock-based compensation		3,178			1,795			1,383					10,290			6,791			3,499
Adjusted EBITDA (non-GAAP)	$	56,807		$	50,456		$	6,351		12.6	%	$	146,355		$	118,894		$	27,461		23.1	%
Adjusted EBITDA margin (non-GAAP)		29.5	%		29.6	%							27.0	%		25.5	%
Walden:
Operating income (GAAP)	$	45,194		$	23,585		$	21,609		91.6	%	$	133,929		$	47,121		$	86,808		184.2	%
Restructuring expense		—			—			—					—			(776	)		776
Amortization of acquired intangible assets		2,805			8,286			(5,481	)				8,415			28,296			(19,881	)
Litigation reserve		—			—			—					(5,550	)		18,500			(24,050	)
Depreciation		1,951			1,835			116					5,428			5,735			(307	)
Amortization of cloud computing implementation assets		763			379			384					2,242			946			1,296
Stock-based compensation		3,288			1,770			1,518					9,354			5,822			3,532
Adjusted EBITDA (non-GAAP)	$	54,001		$	35,855		$	18,146		50.6	%	$	153,818		$	105,644		$	48,174		45.6	%
Adjusted EBITDA margin (non-GAAP)		30.3	%		23.8	%							30.1	%		24.1	%
Medical and Veterinary:
Operating income (GAAP)	$	17,800		$	22,759		$	(4,959	)	(21.8	)%	$	53,934		$	59,142		$	(5,208	)	(8.8	)%
Restructuring expense		121			194			(73	)				236			379			(143	)
Depreciation		2,785			3,033			(248	)				8,098			8,897			(799	)
Amortization of cloud computing implementation assets		304			141			163					902			331			571
Stock-based compensation		1,848			851			997					5,613			3,687			1,926
Adjusted EBITDA (non-GAAP)	$	22,858		$	26,978		$	(4,120	)	(15.3	)%	$	68,783		$	72,436		$	(3,653	)	(5.0	)%
Adjusted EBITDA margin (non-GAAP)		24.0	%		29.4	%							24.7	%		26.9	%
Home Office:
Operating loss (GAAP)	$	(20,001	)	$	(27,968	)	$	7,967		28.5	%	$	(38,962	)	$	(55,045	)	$	16,083		29.2	%
Restructuring expense		412			279			133					778			1,614			(836	)
Business integration expense		—			18,450			(18,450	)				—			30,621			(30,621	)
Asset impairments		6,442			—			6,442					6,442			—			6,442
Strategic advisory costs		5,100			—			5,100					5,100			—			5,100
Loss on assets held for sale		—			—			—					—			647			(647	)
Debt modification costs		—			848			(848	)				712			848			(136	)
Depreciation		188			692			(504	)				557			1,407			(850	)
Stock-based compensation		1,949			1,484			465					5,924			3,105			2,819
Adjusted EBITDA (non-GAAP)	$	(5,910	)	$	(6,215	)	$	305		4.9	%	$	(19,449	)	$	(16,803	)	$	(2,646	)	(15.7	)%
Adtalem Global Education:
Net income (GAAP)	$	60,832		$	36,821		$	24,011		65.2	%	$	182,853		$	87,358		$	95,495		109.3	%
(Income) loss from discontinued operations		(38	)		620			(658	)				(4,638	)		(245	)		(4,393	)
Interest expense		13,074			16,560			(3,486	)				41,465			48,910			(7,445	)
Other income, net		(1,898	)		(2,871	)		973					(6,779	)		(8,648	)		1,869
Provision for income taxes		18,539			10,595			7,944					51,716			21,156			30,560
Operating income (GAAP)		90,509			61,725			28,784					264,617			148,531			116,086
Depreciation and amortization		14,932			19,678			(4,746	)				44,079			60,402			(16,323	)
Stock-based compensation		10,263			5,900			4,363					31,181			19,405			11,776
Restructuring expense		510			473			37					2,926			1,217			1,709
Business integration expense		—			18,450			(18,450	)				—			30,621			(30,621	)
Litigation reserve		—			—			—					(5,550	)		18,500			(24,050	)
Asset impairments		6,442			—			6,442					6,442			—			6,442
Strategic advisory costs		5,100			—			5,100					5,100			—			5,100
Loss on assets held for sale		—			—			—					—			647			(647	)
Debt modification costs		—			848			(848	)				712			848			(136	)
Adjusted EBITDA (non-GAAP)	$	127,756		$	107,074		$	20,682		19.3	%	$	349,507		$	280,171		$	69,336		24.7	%
Adjusted EBITDA margin (non-GAAP)		27.4	%		25.9	%							26.3	%		23.8	%

Adtalem Global Education Inc.
Non-GAAP Earnings Disclosure
(unaudited)
(in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2025			2024			2025			2024
Net income (GAAP)	$	60,832		$	36,821		$	182,853		$	87,358
Restructuring expense		510			473			2,926			1,217
Business integration expense		—			18,450			—			30,621
Amortization of acquired intangible assets		2,805			8,286			8,415			28,296
Write-off of debt discount and issuance costs, litigation reserve, asset impairments, loss on assets held for sale, and debt modification costs		8,180			1,961			3,342			21,108
Strategic advisory costs		5,100			—			5,100			—
Income tax impact on non-GAAP adjustments ⁽¹⁾		(4,134	)		(7,260	)		(4,821	)		(19,355	)
(Income) loss from discontinued operations		(38	)		620			(4,638	)		(245	)
Adjusted net income (non-GAAP)	$	73,255		$	59,351		$	193,177		$	149,000

(1)	Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements.


	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2025			2024			2025			2024
Diluted earnings per share (GAAP)	$	1.59		$	0.93		$	4.74		$	2.14
Effect on diluted earnings per share:
Restructuring expense		0.01			0.01			0.08			0.03
Business integration expense		-			0.47			-			0.75
Amortization of acquired intangible assets		0.07			0.21			0.22			0.69
Write-off of debt discount and issuance costs, litigation reserve, asset impairments, loss on assets held for sale, and debt modification costs		0.21			0.05			0.09			0.52
Strategic advisory costs		0.13			-			0.13			-
Income tax impact on non-GAAP adjustments ⁽¹⁾		(0.11	)		(0.18	)		(0.12	)		(0.47	)
(Income) loss from discontinued operations		(0.00	)		0.02			(0.12	)		(0.01	)
Adjusted earnings per share (non-GAAP)	$	1.92		$	1.50		$	5.01		$	3.65
Diluted shares used in non-GAAP EPS calculation		38,233			39,636			38,583			40,874

Note: May not sum due to rounding.
(1)	Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements.

Adtalem Global Education Inc.
Non-GAAP Free Cash Flow Disclosure
(unaudited)
(in thousands)

	Twelve Months Ended
	FY24			FY24			FY25			FY25			FY25
	Q3			Q4			Q1			Q2			Q3
Net cash provided by operating activities-continuing operations (GAAP)	$	276,843		$	288,367		$	291,820		$	281,971		$	335,069
Capital expenditures		(44,137	)		(48,893	)		(48,873	)		(50,375	)		(47,914	)
Free cash flow (non-GAAP)	$	232,706		$	239,474		$	242,947		$	231,596		$	287,155

Adtalem Global Education Inc.
Non-GAAP Net Leverage Disclosure
(unaudited)
(in thousands)

	Twelve Months Ended
	March 31, 2025
Adtalem Global Education:
Net income (GAAP)	$	232,272
Income from discontinued operations		(3,457	)
Interest expense		56,214
Other income, net		(8,673	)
Provision for income taxes		56,784
Depreciation and amortization		62,129
Stock-based compensation		37,723
Restructuring expense		3,579
Business integration expense		3,594
Litigation reserve		(5,550	)
Asset impairments		6,442
Strategic advisory costs		5,100
Debt modification costs		712
Adjusted EBITDA (non-GAAP)	$	446,869

	March 31, 2025
Long-term debt	$	558,283
Less: Cash and cash equivalents		(219,017	)
Net debt (non-GAAP)	$	339,266

Net leverage (non-GAAP)		0.8 x

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Investor Contact

Jay Spitzer

Investor.Relations@Adtalem.com

+1 312-906-6600

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+1 872-270-0301

Adtalem Global Education Third Quarter Fiscal Year 2025 Results; Guidance Raised