Total enrollment up 11.2% YoY

Revenue up 13.2% YoY

Diluted earnings per share $1.18; Adjusted EPS $1.29, growth of 38.7% YoY

First quarter highlights

• Total student enrollment 90,140, up 11.2% year-over-year
• Revenue $417.4 million, up 13.2% year-over-year
• Chamberlain University seventh straight quarter of total enrollment growth, up 11.7% year-over-year, highest total enrollment in university history
• Walden University fifth straight quarter of total enrollment growth, up 12.2% year-over-year
• Medical and Veterinary segment fourth straight enrollment period of sequentially improved year-over-year total enrollment trends
• Strong momentum starting second year of three-year Growth with Purpose strategy, GAAP net income $46.2 million and adjusted EBITDA $96.7 million, up 20.1% year-over-year

Capital allocation

• Repurchased $34 million of shares, $178 million remaining under $300 million Board authorized share repurchase program through January 2027
• Repriced $253 million Term Loan B on Aug. 21, 2024, reducing interest rate by 75 bps
• Net leverage 1.0x as of Sept. 30, 2024

Fiscal year 2025 guidance

• Revenue $1,690 million to $1,730 million
• Adjusted earnings per share $5.75 to $5.95

Adtalem Global Education Inc. (NYSE: ATGE), the leading healthcare educator in the United States, today reported first quarter fiscal year 2025 results (ended Sept. 30, 2024) delivering accelerated total enrollment growth and operational excellence, fueling the Company’s expanded societal reach.

“We entered year two of our three-year Growth with Purpose strategy with strong momentum, further integrating our tech-enabled platform and expanding our impact through innovative partnerships,” said Steve Beard, president and chief executive officer, Adtalem Global Education. “Our reimagined education model creates a more versatile learning experience that adapts to students' needs, driving 11.2% growth in total enrollment. These results give us the confidence to raise our expectations for fiscal year 2025.”

Financial Highlights

Selected financial data for the three months ended Sept. 30, 2024:

• Revenue of $417.4 million increased 13.2% compared with the prior year.
• Operating income of $70.2 million, compared with $28.2 million in the prior year; adjusted operating income of $75.8 million, compared with $63.3 million in the prior year.
• Net income of $46.2 million, compared with $10.6 million in the prior year; adjusted net income of $50.5 million, compared with $39.4 million in the prior year.
• Diluted earnings per share of $1.18, compared with $0.25 in the prior year; adjusted earnings per share of $1.29, compared with $0.93 in the prior year.
• Adjusted EBITDA of $96.7 million, compared with $80.5 million in the prior year; adjusted EBITDA margin of 23.2%, compared with 21.8% in the prior year.

Business Highlights

• Chamberlain University expanded its specialized nursing education Practice Ready. Specialty Focused.™ (PRSF) model through a partnership with the Oncology Nursing Society (ONS), offering an introduction to caring for cancer patients and their families. The ONS offering joins other specializations in the PRSF model, including critical care, emergency nursing, nephrology, home healthcare and perioperative nursing.
• Adtalem announced a partnership with Hippocratic AI to develop a new curriculum focused on training healthcare professionals in the use of AI technologies. The initiative includes the first-ever AI certification, designed for both Chamberlain University and Walden University students, as well as practicing clinicians, focused on essential skills to effectively evaluate, navigate and ethically utilize AI tools in patient care.
• Ross University School of Veterinary Medicine ranked third for most graduates placed into the highly sought after Veterinary Internship and Residency Matching Program™ (VIRMP) for 2024. Our students matched into specialties including anesthesia, large animal surgery, medical oncology, veterinary dermatology and radiology.
• Chamberlain University's Bachelor of Science in Nursing and Master of Science in Nursing degree programs received continuing accreditation by the Commission on Collegiate Nursing Education (CCNE) for the maximum accreditation period of 10 years. Chamberlain's Doctor of Nursing Practice degree program also recently received continuing accreditation by the National League for Nursing Commission for Nursing Education Accreditation (NLN CNEA) for the accreditation period of 10 years.
• Adtalem recently released its 2024 Sustainability Report, which highlights the Company’s collective efforts to address critical workforce shortages in the U.S. healthcare system by strengthening pathways to high-quality education and promoting health equity.

Segment Highlights

Chamberlain

• Total student enrollment increased 11.7% compared with the prior year, driven by continued growth in pre-licensure and post-licensure nursing programs.

Walden

• Total student enrollment increased 12.2% compared with the prior year, driven by growth in healthcare and non-healthcare programs.

Medical and Veterinary

• Total student enrollment decreased 0.7% compared with the prior year, driven by declines at medical.

Fiscal Year 2025 Outlook

Adtalem raises guidance for fiscal year 2025, with revenue in the range of $1,690 million to $1,730 million, approximately 6.5% to 9.0% growth year-over-year. Adjusted earnings per share to be in the range of $5.75 to $5.95, approximately 14.5% to 18.5% growth year-over-year.

Conference Call and Webcast Information

Adtalem will hold a conference call to discuss its first 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: 13749198. 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: 13749198, 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 diverse 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 inclusivity 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.

¹ Represents total students attending sessions during each institution’s most recent enrollment period in Q1 FY 2025 and Q1 FY 2024.

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, litigation reserve, debt modification costs, and 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, litigation reserve, debt modification costs, and 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, 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 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, 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.
• Reserves related to significant litigation and debt modification costs related to refinancing our Term Loan B loan.
• Loss from discontinued operations includes expense from ongoing litigation costs and settlements related to the DeVry University and Carrington College divestitures.

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