Adtalem Global Education Q2 2026 Adtalem Global Education Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q2 2026 Adtalem Global Education Inc Earnings Call
Operator: Greetings, and welcome to the Adtalem Global Education Q2 2026 earnings. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jay Spitzer, VP of IR. Thank you, Jay. You may begin.
Speaker #2: Greetings and welcome to the Adtalem Global Education . Second quarter 2026 earnings At this time , in a participants are all only listen A mode .
Speaker #2: answer session will formal follow the question and presentation . If anyone should operator assistance during require conference , please star Zero on your telephone press As a reminder , keypad .
Speaker #2: conference is being recorded . It is now my pleasure to your introduce J host , . Spitzer , VP of IR . Thank you , J .
Jay Spitzer: Good afternoon, and welcome to our earnings call for the Q2 fiscal year 2026 results. On the call with me today are Steve Beard, Chairman and Chief Executive Officer of Adtalem Global Education, and Bob Phelan, Chief Financial Officer. Before I hand you over to Steve, I will, as usual, take you to legal, safe harbor, and cautionary declarations. Certain statements and projections of future results made in this presentation constitute as forward-looking statements that are based on current market, competitive, and regulatory expectations and are subject to risks and uncertainties that could cause actual results to vary materially. We undertake no obligation to update publicly any forward-looking statement after this presentation, whether the result of new information, future events, changes in assumptions, or otherwise. Please see our latest Form 10-K and Form 10-Q for discussions of risk factors as they relate to forward-looking statements.
Jonathan Spitzer: Good afternoon, and welcome to our earnings call for the Q2 fiscal year 2026 results. On the call with me today are Steve Beard, Chairman and Chief Executive Officer of Adtalem Global Education, and Bob Phelan, Chief Financial Officer. Before I hand you over to Steve, I will, as usual, take you to legal, safe harbor, and cautionary declarations. Certain statements and projections of future results made in this presentation constitute as forward-looking statements that are based on current market, competitive, and regulatory expectations and are subject to risks and uncertainties that could cause actual results to vary materially. We undertake no obligation to update publicly any forward-looking statement after this presentation, whether the result of new information, future events, changes in assumptions, or otherwise. Please see our latest Form 10-K and Form 10-Q for discussions of risk factors as they relate to forward-looking statements.
Q2 2026 Adtalem Global Education Inc Earnings Call
Speaker #3: Good welcome to our afternoon and call for the earnings second quarter of fiscal year 2026 results . On the call with me today are Steve Beard , Chairman and Chief officer of executive Adtalem Global Education .
Speaker #3: And Bob Fallon , financial officer chief . Before I hand you over to Steve , you through the I will usual , take , as safe legal and harbor cautionary declarations .
Speaker #3: statements future and projections of results Certain presentation made in this constitute as forward looking on are based current market , competitive statements that and are regulatory expectations , and uncertainties that risks and could cause results to subject to vary materially undertake no actual .
Speaker #3: obligation to update publicly any forward looking statement after this We Or presentation . of new the result information , events future , changing assumptions or otherwise .
Jay Spitzer: In today's presentation, we use certain non-GAAP financial measures, and we refer you to the appendix of the presentation materials available on our investor relations website for reconciliations to the most directly comparable GAAP financial measures and related information. You will find a link to the webcast on our investor relations website at investors.adtalem.com. After this call, the presentation webcast will be archived on the website for thirty days. I will now hand you over to Steve.
In today's presentation, we use certain non-GAAP financial measures, and we refer you to the appendix of the presentation materials available on our investor relations website for reconciliations to the most directly comparable GAAP financial measures and related information. You will find a link to the webcast on our investor relations website at investors.adtalem.com. After this call, the presentation webcast will be archived on the website for thirty days. I will now hand you over to Steve.
Speaker #3: latest Please see our 10-K and form 10-q for form risk relates to forward looking discussions of factors as it in statements today's presentation , we use certain non-GAAP financial measures and we refer you to the appendix of the presentation on our materials website Investor Relations available reconciliations to the for most directly comparable GAAP financial measures related and You information .
Speaker #3: will find a link to the webcast on our Relations Investor at website investors . After this call , the webcast presentation archived on the website for 30 days .
Steve Beard: Thanks, Jay. Good afternoon, everyone, and thank you for joining us. This quarter marks our 10th consecutive quarter of enrollment growth. We remain on track to achieve our full year revenue guidance of 6% to 8.5% growth, and we're raising our adjusted earnings per share guidance to 17% to 20% growth. As we enter 2026, we continue to execute against our strategic roadmap.... Our strong second quarter results reflect that execution. The momentum we've built over the last several years has proven sustainable, demonstrating the power of our differentiated business model. Our consistent performance, strong balance sheet, and robust cash generation power a value-creating capital allocation philosophy. This quarter, we deployed $165 million to share repurchases, and we have approximately $728 million remaining on our current authorization.
Stephen Beard: Thanks, Jay. Good afternoon, everyone, and thank you for joining us. This quarter marks our 10th consecutive quarter of enrollment growth. We remain on track to achieve our full year revenue guidance of 6% to 8.5% growth, and we're raising our adjusted earnings per share guidance to 17% to 20% growth. As we enter 2026, we continue to execute against our strategic roadmap.... Our strong second quarter results reflect that execution. The momentum we've built over the last several years has proven sustainable, demonstrating the power of our differentiated business model. Our consistent performance, strong balance sheet, and robust cash generation power a value-creating capital allocation philosophy. This quarter, we deployed $165 million to share repurchases, and we have approximately $728 million remaining on our current authorization.
Speaker #3: I will now Steve hand you .
Speaker #4: Jay: Over to you. Good afternoon, everyone, and thank you for joining. This quarter marks the 10th consecutive quarter of enrollment growth.
Speaker #4: We our track to achieve our full year revenue of guidance 6% to 8.5% growth . And we're raising our adjusted earnings per share guidance to 17 to 20% growth .
Speaker #4: enter 2026 . We As we execute against continue to strategic our strong roadmap . second quarter results reflect that execution . The momentum we've built over the last several years is proving sustainable , demonstrating power of our the differentiated business model , our performance , consistent strong balance sheet and robust cash generation power .
Speaker #4: Value-creating capital allocation. This quarter, consistent with our philosophy, we deployed $165 million to share repurchases. We have approximately $728 million remaining on our current authorization.
Steve Beard: We'll continue to take a disciplined, returns-focused approach to capital allocation. Our focus on students and investments in modern, innovative learning continue to yield strong academic, operational, and financial outcomes. Walden has achieved record total enrollment. More than 52,000 students now generate industry-leading scale and operating leverage. Chamberlain expanded its reach as the national leader in nursing, growing enrollment by 6,000 students in just 3 years to reach a record of 40,000 students. Ross Vet continues to graduate more veterinarians than any other school, and AUC and Ross Med together graduate twice as many physicians as any MD granting school in the United States. Simply put, we've established the quality and scale to be a trusted leader in healthcare talent development and an essential component in tackling America's healthcare workforce shortage. Now, let me zoom out. We all read the headlines.
We'll continue to take a disciplined, returns-focused approach to capital allocation. Our focus on students and investments in modern, innovative learning continue to yield strong academic, operational, and financial outcomes. Walden has achieved record total enrollment. More than 52,000 students now generate industry-leading scale and operating leverage. Chamberlain expanded its reach as the national leader in nursing, growing enrollment by 6,000 students in just 3 years to reach a record of 40,000 students. Ross Vet continues to graduate more veterinarians than any other school, and AUC and Ross Med together graduate twice as many physicians as any MD granting school in the United States. Simply put, we've established the quality and scale to be a trusted leader in healthcare talent development and an essential component in tackling America's healthcare workforce shortage. Now, let me zoom out. We all read the headlines.
Speaker #4: continue to We'll take a disciplined , returns focused to approach allocation . capital Our focus on students and modern , investments in innovative learning continue to yield strong , operational and academic financial outcomes .
Speaker #4: Walden has achieved record total enrollment more than generate industry 52,000 students now scale operating leverage . Chamberlain expanded reach its as the national leader in nursing , growing enrollment by 6000 students in just three years to reach a record of 40,000 students .
Speaker #4: Ross continues to graduate more veterinarians other than any school , and AUC and Ross met together , graduate twice as many physicians as any MD , granting school in the United States Simply .
Speaker #4: and scale to be put , we've a trusted leader in healthcare established the talent and an essential component in tackling America's healthcare workforce shortage .
Steve Beard: The healthcare workforce crisis isn't easing, it's intensifying. America's healthcare system begins 2026 substantially understaffed, with workforce gaps expected to deepen. The challenge exists everywhere, but is particularly acute in rural communities and underserved urban areas, where continuity of care and access are already fragile. The stakes for the entire healthcare system couldn't be higher. Tackling a crisis of this magnitude requires workforce infrastructure that operates at a different scale than traditional academic institutions, and that's precisely where our opportunity lies. At our Investor Day on 24 February, we'll lay out our multi-year growth framework, including capacity expansion plans and new revenue streams that position us to meet these societal needs while delivering sustainable earnings growth. Now, let me walk through our Q2 performance. Total enrollment grew over 6% to 97,000 students. Revenue grew 12% to $503 million.
The healthcare workforce crisis isn't easing, it's intensifying. America's healthcare system begins 2026 substantially understaffed, with workforce gaps expected to deepen. The challenge exists everywhere, but is particularly acute in rural communities and underserved urban areas, where continuity of care and access are already fragile. The stakes for the entire healthcare system couldn't be higher. Tackling a crisis of this magnitude requires workforce infrastructure that operates at a different scale than traditional academic institutions, and that's precisely where our opportunity lies. At our Investor Day on 24 February, we'll lay out our multi-year growth framework, including capacity expansion plans and new revenue streams that position us to meet these societal needs while delivering sustainable earnings growth. Now, let me walk through our Q2 performance. Total enrollment grew over 6% to 97,000 students. Revenue grew 12% to $503 million.
Speaker #4: Now , let me zoom We out . all read the headlines . The healthcare workforce crisis isn't easing . It's intensifying . America's healthcare system 2026 substantially begins understaffed , with workforce gaps expected to deepen challenge exists the everywhere , but is particularly acute in rural communities and underserved urban areas continuity , where of care and access are already fragile .
Speaker #4: The stakes for the entire healthcare system couldn't be higher . Tackling a crisis of this magnitude requires workforce , operates at a different scale than traditional academic institutions , and that's precisely where our opportunity lies Investor Day on lay out .
Speaker #4: we'll February 24th , our At our multi-year framework growth capacity , including expansion and new revenue streams that position us to meet these societal needs while delivering sustainable growth earnings .
Speaker #4: Now , let me walk through our second quarter performance . Total enrollment grew over 6% to 97,000 students . Revenue grew 12% to $503 million .
Steve Beard: We delivered further efficiencies as adjusted EBITDA grew to $155 million. Our solid profitability, together with disciplined capital allocation, has yielded adjusted earnings per share of $2.43, an increase of 34% versus last year. Growth with purpose remains our durable operational framework, yielding clear academic, operational, and financial returns. Our strategy to optimize existing capacity has yielded record or near record enrollments at Walden and Chamberlain and has positioned the Med Vet segment for sustainable growth. More importantly, we believe the success of growth with purpose has earned us the permission to expand our leading position and invest in solutions that address US healthcare workforce shortages, while sustainably growing earnings for years to come. With that context, let me turn to our segment results. At Chamberlain, we're confident in our trajectory.
We delivered further efficiencies as adjusted EBITDA grew to $155 million. Our solid profitability, together with disciplined capital allocation, has yielded adjusted earnings per share of $2.43, an increase of 34% versus last year. Growth with purpose remains our durable operational framework, yielding clear academic, operational, and financial returns. Our strategy to optimize existing capacity has yielded record or near record enrollments at Walden and Chamberlain and has positioned the Med Vet segment for sustainable growth. More importantly, we believe the success of growth with purpose has earned us the permission to expand our leading position and invest in solutions that address US healthcare workforce shortages, while sustainably growing earnings for years to come. With that context, let me turn to our segment results. At Chamberlain, we're confident in our trajectory.
Speaker #4: We delivered further efficiencies as adjusted EBITDA grew to $155 million . Our solid profitability , together with disciplined capital allocation , has yielded adjusted earnings per share $2.43 , an increase of of last year 34% versus .
Speaker #4: Growth with purpose remains our durable operational framework clear academic , operational and , yielding returns . Our strategy to optimize existing capacity has yielded record or near record enrollments at Walden and Chamberlain , and has positioned the segment for sustainable .
Speaker #4: More Medved importantly , we believe the success of purpose growth with has earned us the permission to expand our leading position and invest in solutions that address healthcare US workforce shortages .
Speaker #4: While sustainably growing earnings for years to come . With that context , turn to our let me segment results at Chamberlain . We're confident in our trajectory Q3 total enrollment will remain soft as recent improvements work their way through the student journey .
Steve Beard: Q3 total enrollment will remain soft as recent improvements work their way through the student journey, but the real proof point is the fall enrollment cycle. Let me explain why we like what we're seeing. Chamberlain's fundamentals remain exceptionally strong. Over the past 2 years, Chamberlain added 5,600 new students and grew revenue by $155 million, a 27% increase. We hit record enrollment 9 months ago. This quarter's -1% total enrollment and the relatively flat growth we expect over the balance of the year represents a temporary pause in that trajectory, not a reversal of it. Over the last 3 years, we successfully launched new campuses in Atlanta and Kansas City, we relocated our Phoenix campus, and we've built our national online BSN program to more than 4,200 students across 38 states in just 4 years.
Q3 total enrollment will remain soft as recent improvements work their way through the student journey, but the real proof point is the fall enrollment cycle. Let me explain why we like what we're seeing. Chamberlain's fundamentals remain exceptionally strong. Over the past 2 years, Chamberlain added 5,600 new students and grew revenue by $155 million, a 27% increase. We hit record enrollment 9 months ago. This quarter's -1% total enrollment and the relatively flat growth we expect over the balance of the year represents a temporary pause in that trajectory, not a reversal of it. Over the last 3 years, we successfully launched new campuses in Atlanta and Kansas City, we relocated our Phoenix campus, and we've built our national online BSN program to more than 4,200 students across 38 states in just 4 years.
Speaker #4: But the real proof point is the fall enrollment cycle. Let me explain why we like what we're seeing. Chamberlain's fundamentals remain exceptionally strong over the past two years.
Speaker #4: Chamberlain added . 5600 new grew students and revenue by $155 million , a 27% increase . We record nine months hit ago enrollment .
Speaker #4: This quarter's -1%. Total enrollment and the relatively flat growth we expect over the balance of the year represents a temporary pause in that trajectory, not a reversal of it.
Speaker #4: Over the last three years, we launched new programs in Kansas City. We relocated our Phoenix campus, and we built our national online BSN program to more than 4,200 students across 38 states in just four years.
Steve Beard: Together, these moves have maintained or grown our market-leading positions. We're number 1 in BSN, number 3 in RN to BSN, number 1 in Master's, and number 1 in the doctoral category. This is a testament to the performance and scale foundation that sets Chamberlain apart. Last quarter, I identified 2 execution gaps: marketing effectiveness and enrollment funnel conversion. We moved swiftly to address both, and early indications are encouraging. Application volumes for both pre-licensure and post-licensure nursing programs are up double digits during Q2, running ahead of where we were at this point last year. On marketing, we optimized spend and we improved our website. We streamlined scholarship offerings so students can research programs with a clearer picture of net cost of attendance. Our focus on a more seamless prospective student experience has increased funnel conversion. We're moving forward with precision and operational accountability.
Together, these moves have maintained or grown our market-leading positions. We're number 1 in BSN, number 3 in RN to BSN, number 1 in Master's, and number 1 in the doctoral category. This is a testament to the performance and scale foundation that sets Chamberlain apart. Last quarter, I identified 2 execution gaps: marketing effectiveness and enrollment funnel conversion. We moved swiftly to address both, and early indications are encouraging. Application volumes for both pre-licensure and post-licensure nursing programs are up double digits during Q2, running ahead of where we were at this point last year. On marketing, we optimized spend and we improved our website. We streamlined scholarship offerings so students can research programs with a clearer picture of net cost of attendance. Our focus on a more seamless prospective student experience has increased funnel conversion. We're moving forward with precision and operational accountability.
Speaker #4: Together , these moves have maintained or grown our market leading positions . We're number one in BSN , number three in AR and BSN , one in number Masters and number one in the doctoral category .
Speaker #4: This is a testament to the performance and scale foundation that Chamberlain sets apart . Last quarter I identified two execution gaps marketing effectiveness and enrollment .
Speaker #4: Funnel conversion. We moved swiftly to address both, and early indications are encouraging—application volumes for both pre-licensure and post-licensure nursing programs are up double digits during the second quarter, compared to where we were at this point last year, running ahead.
Speaker #4: On marketing, we optimized spend and we improved our website. We streamlined scholarship offerings so research program students can see a clear picture of net cost attendance.
Speaker #4: And focus on a more seamless student prospective experience has increased. Funnel conversion. We're moving forward with precision and operational accountability. But here's what matters.
Steve Beard: But here's what matters: we expect this application momentum will translate into new enrollment growth and position us well heading into the critical fall cycle. At Walden, we delivered our 10th consecutive quarter of enrollment growth of 13% in Q2. As a result, we achieved record total enrollments of 52,400 students. Similar to prior quarters, Walden's digital learning platform and flexible offerings continue to demonstrate strength as we innovate and deliver an increasingly seamless experience for working adults. Building on this momentum, we launched several new programs heading into this academic year.
But here's what matters: we expect this application momentum will translate into new enrollment growth and position us well heading into the critical fall cycle. At Walden, we delivered our 10th consecutive quarter of enrollment growth of 13% in Q2. As a result, we achieved record total enrollments of 52,400 students. Similar to prior quarters, Walden's digital learning platform and flexible offerings continue to demonstrate strength as we innovate and deliver an increasingly seamless experience for working adults. Building on this momentum, we launched several new programs heading into this academic year.
Speaker #4: We expect this application momentum will translate into new enrollment and growth, positioning us well heading into the critical fall cycle. At Walden, we delivered our 10th consecutive quarter of enrollment growth, up 13% in the second quarter.
Speaker #4: As a result , achieved we record total enrollments of 52,400 students . Similar to prior quarters , Walden's digital learning platform and flexible offerings continue to demonstrate strength as we innovate and deliver an increasingly seamless adults working .
Steve Beard: Programs such as the Master in Applied Behavior Analysis and the Master's Degree in Clinical Psychology are attracting working professionals who wanna make meaningful societal contributions. Overall, our new programs have already enrolled more than 1,200 students in less than one year, with additional programs in the development pipeline that we expect to roll out soon. Last quarter, I highlighted that we streamlined our professional doctoral programs, creating a more seamless student experience with a simplified tuition structure. Building on that, we recently launched the Walden University PhD Completion Program, designed for doctoral students who left their original program before finishing their dissertation. We're now providing a channel for them to reach the finish line and earn their degree with us. These enhancements showcase our commitment to drive meaningful impact for thousands of students.
Programs such as the Master in Applied Behavior Analysis and the Master's Degree in Clinical Psychology are attracting working professionals who wanna make meaningful societal contributions. Overall, our new programs have already enrolled more than 1,200 students in less than one year, with additional programs in the development pipeline that we expect to roll out soon. Last quarter, I highlighted that we streamlined our professional doctoral programs, creating a more seamless student experience with a simplified tuition structure. Building on that, we recently launched the Walden University PhD Completion Program, designed for doctoral students who left their original program before finishing their dissertation. We're now providing a channel for them to reach the finish line and earn their degree with us. These enhancements showcase our commitment to drive meaningful impact for thousands of students.
Speaker #4: experience for Building on this momentum , launched several new programs heading into this we year academic as the programs such Master and Applied Behavioral Analysis and the master's degree in Clinical Psychology are working attracting professionals make who want to meaningful societal contributions Overall , our .
Speaker #4: new programs have already enrolled more than 1200 less than students in one year , with additional programs in the pipeline that we development expect to roll out soon .
Speaker #4: Last highlighted that we quarter , I streamline our professional doctoral programs , creating a more student experience seamless with a simplified tuition structure that , .
Speaker #4: we Building on recently launched the Walden University PhD completion Program , designed for doctoral students who original left their program before finishing their dissertation .
Speaker #4: now We're providing a them to channel for reach the line finish and earn their degree with us . These enhancements showcase our commitment to drive meaningful for impact thousands students .
Steve Beard: Turning to our medical and veterinary segment, Q2 isn't an enrollment period, but we're seeing momentum in leading enrollment indicators. At our medical schools, we're executing on two fronts: creating innovative pathways that expand access and remove barriers to the MD program, and driving operational excellence in our enrollment funnel. This sets us on a sustainable trajectory of enrollment growth. Leveraging technology and artificial intelligence in our basic sciences curriculum enables a higher precision learning environment. Combined with our capstone program, this has yielded enhanced student outcomes through increases to our USMLE Step 1 pass rates. Ross Vet continues to operate at near capacity, maintaining its position as a leader in veterinary education with a one-of-a-kind experiential learning model. Ross Vet has also increased its NAVLE pass rate. In closing, let me come back to where I began.
Turning to our medical and veterinary segment, Q2 isn't an enrollment period, but we're seeing momentum in leading enrollment indicators. At our medical schools, we're executing on two fronts: creating innovative pathways that expand access and remove barriers to the MD program, and driving operational excellence in our enrollment funnel. This sets us on a sustainable trajectory of enrollment growth. Leveraging technology and artificial intelligence in our basic sciences curriculum enables a higher precision learning environment. Combined with our capstone program, this has yielded enhanced student outcomes through increases to our USMLE Step 1 pass rates. Ross Vet continues to operate at near capacity, maintaining its position as a leader in veterinary education with a one-of-a-kind experiential learning model. Ross Vet has also increased its NAVLE pass rate. In closing, let me come back to where I began.
Speaker #4: To our medical and veterinary TurninG segment, second quarter isn't an enrollment period, but we're seeing the momentum in leading enrollment indicators at our schools.
Speaker #4: Our medical, two fronts: executing on creating innovative pathways that remove and expand barriers to access to the M.D. program, and driving operational excellence in our enrollment funnel.
Speaker #4: us on a This sets sustainable enrollment trajectory of , leveraging growth technology and artificial our basic intelligence and sciences enables curriculum a higher precision learning environment combined with our capstone program .
Speaker #4: enhanced This has yielded student outcomes through increases to our step one pass rates Usmle . Rassvet continues to operate at near capacity , maintaining its position as a leader in veterinary education with a one of a kind experience learning model , and Ross vet is also increased .
Steve Beard: As America's largest healthcare educator, we're uniquely well-positioned to address substantial and growing healthcare workforce shortages at scale. Our combination of program breadth, geographic reach, and proven outcomes is unparalleled. Finally, I want to acknowledge the unwavering commitment of our 10,000 colleagues, 97,000 students, and 385,000 alumni. They make all of this possible. And with that, I'll turn the call over to Bob Phelan, our CFO.
As America's largest healthcare educator, we're uniquely well-positioned to address substantial and growing healthcare workforce shortages at scale. Our combination of program breadth, geographic reach, and proven outcomes is unparalleled. Finally, I want to acknowledge the unwavering commitment of our 10,000 colleagues, 97,000 students, and 385,000 alumni. They make all of this possible. And with that, I'll turn the call over to Bob Phelan, our CFO.
Speaker #4: Its pass rate. In closing, let me come back to where I began. As America's largest healthcare educator, we're uniquely well positioned to.
Speaker #4: Address substantial and growing healthcare workforce shortages at scale . Our combination of program breadth , geographic reach , and proven outcomes is unparalleled .
Speaker #4: Finally , I want to acknowledge the unwavering commitment of 10,000 colleagues , our 97,000 students , and 385,000 alumni . They make all of this possible .
Bob Phelan: Thank you, Steve, and hello, everyone. Halfway through fiscal year 2026, we are executing against our growth with purpose strategy, putting us on track to meet our full-year financial goals. Importantly, we continue to enhance our financial foundation and increase our level of profitability by generating efficiencies through scale and operational excellence. This, in turn, is delivering significant cash flow and a more flexible balance sheet. Our robust financial performance is also allowing us to deploy capital in a balanced fashion, whether through share repurchases, debt repayment, or through investments in high ROI additional growth opportunities, including bringing new capacity to market and providing innovative student-facing technology. Taken together, we continue to build strategic momentum that supports long-term value creation. I'll now review the financial results and key drivers for our Q2 performance.
Robert Phelan: Thank you, Steve, and hello, everyone. Halfway through fiscal year 2026, we are executing against our growth with purpose strategy, putting us on track to meet our full-year financial goals. Importantly, we continue to enhance our financial foundation and increase our level of profitability by generating efficiencies through scale and operational excellence. This, in turn, is delivering significant cash flow and a more flexible balance sheet. Our robust financial performance is also allowing us to deploy capital in a balanced fashion, whether through share repurchases, debt repayment, or through investments in high ROI additional growth opportunities, including bringing new capacity to market and providing innovative student-facing technology. Taken together, we continue to build strategic momentum that supports long-term value creation. I'll now review the financial results and key drivers for our Q2 performance.
Speaker #4: And with that , I'll call over to turn the Bob Fallon , our CFO .
Speaker #3: Thank you . Steve .
Speaker #5: And hello , . everyone Halfway through fiscal year 2026 , we are executing against our purpose growth with strategy , putting us on track to meet our full year financial goals .
Speaker #5: Importantly , we continue to enhance our financial foundation and increase our level of profitability by generating efficiencies through scale and operational excellence . This , in turn , is delivering significant cash flow and a more flexible balance sheet .
Speaker #5: Our robust financial performance is also allowing us to deploy capital in a balanced fashion, whether through share repurchases, debt repayment, or through investments in high ROI.
Speaker #5: Additional growth opportunities bringing, including new capacity to market and providing innovative student technology facing. Taken, we continue to build strategic momentum that supports long-term value creation.
Bob Phelan: Later in my remarks, I'll discuss our expectations and assumptions for the remainder of fiscal year 2026. Starting with the top line, revenue in Q2 increased by 12.4% to $503.4 million, driven by all three segments. Walden continues to be a source of strength, and in particular, was aided by a one-week academic calendar shift from Q3 into Q2 this fiscal year, resulting in an incremental $18 million in revenue recognized in Q2 rather than in Q3. Excluding the one-week shift, revenue was up 8.4% versus last year for Adtalem. Consolidated adjusted EBITDA came in at $154.9 million, up 23.9% compared to the prior year.
Later in my remarks, I'll discuss our expectations and assumptions for the remainder of fiscal year 2026. Starting with the top line, revenue in Q2 increased by 12.4% to $503.4 million, driven by all three segments. Walden continues to be a source of strength, and in particular, was aided by a one-week academic calendar shift from Q3 into Q2 this fiscal year, resulting in an incremental $18 million in revenue recognized in Q2 rather than in Q3. Excluding the one-week shift, revenue was up 8.4% versus last year for Adtalem. Consolidated adjusted EBITDA came in at $154.9 million, up 23.9% compared to the prior year.
Speaker #5: I'll now review the financial results and key drivers for our second quarter performance. In my later remarks, I'll discuss our expectations and assumptions for the remainder of fiscal year 2026. Starting from the top line, revenue in the second quarter increased by 12.4% to $503.4 million, driven by all three segments.
Speaker #5: Walden continues to be a source of strength , and in particular was aided by a one week academic calendar shift from the third quarter into the second quarter .
Speaker #5: fiscal year , resulting in an incremental $18 million in revenue recognized in Q2 , rather than in Q3 , the one week shift , revenue was up excluding 8.4% versus last year for Adtalem , consolidated EBITDA adjusted came in at $154.9 million , up 23.9% compared to the prior year .
Bob Phelan: This growth was led by Walden, which again includes the incremental week, with MedVet contributing, partially offset by Chamberlain. Adjusted EBITDA margin of 30.8% expanded 290 basis points from last year. Excluding the incremental one week, consolidated adjusted EBITDA margin was up 30 basis points year-over-year. Adjusted operating income was $126.1 million, up 24.3% compared to the prior year, as revenue growth and efficiencies generated operational leverage, which was partially offset by investments in our strategic growth initiatives. We continue to balance our strategic growth investments with a more efficient, integrated, and scaled operational foundation.
This growth was led by Walden, which again includes the incremental week, with MedVet contributing, partially offset by Chamberlain. Adjusted EBITDA margin of 30.8% expanded 290 basis points from last year. Excluding the incremental one week, consolidated adjusted EBITDA margin was up 30 basis points year-over-year. Adjusted operating income was $126.1 million, up 24.3% compared to the prior year, as revenue growth and efficiencies generated operational leverage, which was partially offset by investments in our strategic growth initiatives. We continue to balance our strategic growth investments with a more efficient, integrated, and scaled operational foundation.
Speaker #5: This growth was led by Walden , which again includes the incremental week with Medvet contributing offset by , partially Chamberlain adjusted EBITDA margin of 30.8% expanded 290 basis points from last year , excluding the incremental one week consolidated adjusted margin was EBITDA up 30 basis points year over year .
Speaker #5: was $126.1 million , up 24.3% compared to the prior year . Adjusted As revenue growth and efficiencies generated operational leverage , which was partially offset by investments in our strategic growth initiatives .
Speaker #5: We continue to balance our strategic growth investments with a more efficient , integrated and scaled operational foundation . Adjusted net income for the quarter was $87.9 million , up last 26.7% compared to year , attributed to adjusted operating income growth .
Bob Phelan: Adjusted net income for the quarter was $87.9 million, up 26.7% compared to last year, attributed to adjusted operating income growth, lower interest expense resulting from our actions to reduce outstanding debt and our borrowing costs, and partially offset by a higher provision for income taxes. Adjusted earnings per share was $2.43, or a 34.3% increase compared with the prior year. We repurchased 1.7 million shares of our common stock at an average price of $95 within the quarter, resulting in an average diluted shares outstanding of 36.2 million, or approximately 2.2 million lower than last year.
Adjusted net income for the quarter was $87.9 million, up 26.7% compared to last year, attributed to adjusted operating income growth, lower interest expense resulting from our actions to reduce outstanding debt and our borrowing costs, and partially offset by a higher provision for income taxes. Adjusted earnings per share was $2.43, or a 34.3% increase compared with the prior year. We repurchased 1.7 million shares of our common stock at an average price of $95 within the quarter, resulting in an average diluted shares outstanding of 36.2 million, or approximately 2.2 million lower than last year.
Speaker #5: Lower interest expense resulting from our actions to reduce outstanding debt and our borrowing costs, and partially offset by a higher provision for income taxes.
Speaker #5: Adjusted earnings per share was $2.43 , or a 34.3% increase compared with prior the year . We repurchased 1.7 million shares of our common stock at an price of average $95 within a quarter , resulting in an average diluted shares outstanding of 36.2 million , or approximately 2.2 million , lower than last year .
Bob Phelan: This completed our prior $150 million authorization, and we subsequently announced a new $750 million board authorization through December 2028, which has $728 million available as of December 31. Our strong operational and financial discipline, coupled with our high cash conversion rate, resulted in a trailing twelve months operating cash flow generation of $428 million, up $146 million from the comparable year-over-year last twelve-month period. Our strong cash flow and healthy balance sheet is affording us the ability to deploy capital, to invest in the long-term profitable growth of our business, as well as return capital back to our owners. We believe these actions have and will continue to increase long-term intrinsic value for the benefit of our shareholders. Next, I'll discuss the Q2 financial highlights by segment.
This completed our prior $150 million authorization, and we subsequently announced a new $750 million board authorization through December 2028, which has $728 million available as of December 31. Our strong operational and financial discipline, coupled with our high cash conversion rate, resulted in a trailing twelve months operating cash flow generation of $428 million, up $146 million from the comparable year-over-year last twelve-month period. Our strong cash flow and healthy balance sheet is affording us the ability to deploy capital, to invest in the long-term profitable growth of our business, as well as return capital back to our owners. We believe these actions have and will continue to increase long-term intrinsic value for the benefit of our shareholders. Next, I'll discuss the Q2 financial highlights by segment.
Speaker #5: This completed our prior $150 million authorization , and we subsequently announced a new $750 million board authorization through December 20th , 28 , which has $728 million available as of December 31st .
Speaker #5: Our strong operational and financial discipline , coupled with our high cash conversion rate , resulted in a trailing 12 month cash operating flow generation of $428 million , up $146 million from the comparable year over year .
Speaker #5: Last 12 month period . Our strong cash flow and healthy balance sheet affording us the is ability to deploy capital to invest in a long term , profitable growth of our business , as well as return capital back to our owners .
Speaker #5: believe these We have actions and will continue to long increase term intrinsic value for the benefit of our shareholders . I'll Next , discuss the second quarter financial highlights by segment .
Bob Phelan: Chamberlain reported Q2 revenue of $183.8 million, an increase of 1.6% compared with the prior year, driven by pricing optimization. Total student enrollment during the quarter declined by 1%, as growth in pre-licensure programs was offset by declines in post-licensure programs. Our pre-licensure BSN programs have grown for 14 consecutive quarters, as investments to grow our BSN online offering are yielding promising returns. Post-licensure nursing was lower from declines in the RN to BSN program, partially offset by growth in our master's programs. As Steve noted, Chamberlain applications during the quarter improved significantly, an encouraging trend that we expect to position us well for future enrollment. Adjusted EBITDA for Chamberlain decreased by 14% to $45.2 million for the quarter.
Chamberlain reported Q2 revenue of $183.8 million, an increase of 1.6% compared with the prior year, driven by pricing optimization. Total student enrollment during the quarter declined by 1%, as growth in pre-licensure programs was offset by declines in post-licensure programs. Our pre-licensure BSN programs have grown for 14 consecutive quarters, as investments to grow our BSN online offering are yielding promising returns. Post-licensure nursing was lower from declines in the RN to BSN program, partially offset by growth in our master's programs. As Steve noted, Chamberlain applications during the quarter improved significantly, an encouraging trend that we expect to position us well for future enrollment. Adjusted EBITDA for Chamberlain decreased by 14% to $45.2 million for the quarter.
Speaker #5: Chamberlain reported second quarter revenue of $183.8 million, an increase of 1.6% compared with the prior year, driven by pricing optimization and student enrollment during the quarter.
Speaker #5: Declined quarter total by 1% as growth in Pre-licensure programs was offset by declines in Post-licensure programs. Our BSN programs have grown for 14 consecutive quarters as investments to grow our BSN online offering are yielding promising results.
Speaker #5: Post-licensure nursing was returns declines in lower from RN to BSN the program , partially offset in our by growth master's programs . As Steve noted , Chamberlain applications quarter during the improved significantly and trend that encouraging we expect .
Speaker #5: position The us well for future enrollment . Adjusted EBITDA for Chamberlain decreased by 14% to $45.2 million for the quarter . Adjusted EBITDA margin of 24.6% was lower compared to the prior year , as we make investments focusing bringing on new capacity to market and continue to invest in our students to support enrollment growth and academic outcomes .
Bob Phelan: Adjusted EBITDA margin of 24.6% was lower compared to the prior year, as we make investments focusing on bringing new capacity to market and continue to invest in our students to support enrollment growth and academic outcomes. Turning to Walden, Q2 revenue of $217.6 million, an increase of 27% versus the prior year, was driven primarily by strong growth in enrollments, aided by the aforementioned one additional week of revenue during the Q2. Excluding the additional $18 million from the one-week shift, Walden revenue was up 16.5% versus last year. Total student enrollment was up 13% compared to the prior year, the 10th consecutive quarter of growth. This was driven by robust enrollment growth across all degree levels, particularly in master's and undergraduate, and continued high persistence rates.
Adjusted EBITDA margin of 24.6% was lower compared to the prior year, as we make investments focusing on bringing new capacity to market and continue to invest in our students to support enrollment growth and academic outcomes. Turning to Walden, Q2 revenue of $217.6 million, an increase of 27% versus the prior year, was driven primarily by strong growth in enrollments, aided by the aforementioned one additional week of revenue during the Q2. Excluding the additional $18 million from the one-week shift, Walden revenue was up 16.5% versus last year. Total student enrollment was up 13% compared to the prior year, the 10th consecutive quarter of growth. This was driven by robust enrollment growth across all degree levels, particularly in master's and undergraduate, and continued high persistence rates.
Speaker #5: Turning to Walden , second quarter revenue of $217.6 million , an increase of 27% versus the prior year , was driven primarily by strong growth in enrollments , aided by aforementioned one additional the revenue week of the during second quarter .
Speaker #5: Excluding the additional $18 million from the one-week shift, Walden revenue was up 16.5% versus last year. Total student enrollment was up 13% compared to the prior year.
Speaker #5: The 10th consecutive quarter of growth . This was driven by robust enrollment growth across all degree levels , particularly in Masters and , and continued undergraduate high persistence rates .
Bob Phelan: Growth in our healthcare programs was led by both social and behavioral health and nursing. Our non-healthcare programs also grew in the quarter. Adjusted EBITDA increased by 66.5% to $86.7 million. Adjusted EBITDA margin expanded by 940 basis points versus the prior year to 39.8%. Excluding the one-week revenue shift, Walden's adjusted EBITDA margin expanded approximately 400 basis points as our operational excellence generated efficiencies and leverage that outpaced increased brand and student-facing digital investments and additional student support commensurate with the high level of new enrollment. For the medical and veterinary segment, Q2 revenue was $102 million, an increase of 6.9% versus prior year. As Steve mentioned, there's no change in the student enrollment for the Q2 compared with the Q1, given term starts.
Growth in our healthcare programs was led by both social and behavioral health and nursing. Our non-healthcare programs also grew in the quarter. Adjusted EBITDA increased by 66.5% to $86.7 million. Adjusted EBITDA margin expanded by 940 basis points versus the prior year to 39.8%. Excluding the one-week revenue shift, Walden's adjusted EBITDA margin expanded approximately 400 basis points as our operational excellence generated efficiencies and leverage that outpaced increased brand and student-facing digital investments and additional student support commensurate with the high level of new enrollment. For the medical and veterinary segment, Q2 revenue was $102 million, an increase of 6.9% versus prior year. As Steve mentioned, there's no change in the student enrollment for the Q2 compared with the Q1, given term starts.
Speaker #5: Growth in our healthcare programs was led by both social and health behavioral nursing. Our non-healthcare programs also grew in the quarter. Adjusted EBITDA increased by 66.5% to $86.7 million.
Speaker #5: Adjusted EBITDA margin expanded by 940 basis points prior year to versus the 39.8% , excluding the one week revenue shift , Walden's adjusted expanded EBITDA approximately 400 basis as our points operational excellence generated efficiencies and leverage that outpaced increased brand and facing digital student investments additional and student support commensurate with the high level of new enrollment for the and medical segment .
Speaker #5: Second quarter revenue was $102 million , an increase of 6.9% versus prior year . As Steve mentioned , there is no change in the student enrollment for the second quarter compared with the first quarter given term starts .
Bob Phelan: Adjusted EBITDA increased by 17.6% versus the prior year to $31.4 million. Adjusted EBITDA margin increased 280 basis points versus the prior year to 30.8%, as we remain focused on operating our institutions efficiently while making long-term growth investments that leverage our existing capacity, creating new enrollment pathways, and delivering academic outcomes. Based on the year-to-date performance and our expectations for the balance of the year, we are maintaining our annual revenue guidance as we continue to grow our business on top of strong enrollment levels. Revenue is expected in the range of $1.9 to 1.94 billion, or approximately 6% to 8.5% growth year-over-year.
Adjusted EBITDA increased by 17.6% versus the prior year to $31.4 million. Adjusted EBITDA margin increased 280 basis points versus the prior year to 30.8%, as we remain focused on operating our institutions efficiently while making long-term growth investments that leverage our existing capacity, creating new enrollment pathways, and delivering academic outcomes. Based on the year-to-date performance and our expectations for the balance of the year, we are maintaining our annual revenue guidance as we continue to grow our business on top of strong enrollment levels. Revenue is expected in the range of $1.9 to 1.94 billion, or approximately 6% to 8.5% growth year-over-year.
Speaker #5: Adjusted EBITDA increased by 17.6% versus the prior year to $31.4 million . Adjusted EBITDA margin increased 280 basis points versus the prior year to 30.8% .
Speaker #5: we remain focused on operating our institutions efficiently while making long term growth investments that leverage our existing capacity new enrollment , creating pathways and delivering academic outcomes based on a year to date performance .
Speaker #5: And our expectations for the balance of the year . We are maintaining our annual revenue guidance continue as we to grow business on top of our strong enrollment levels .
Speaker #5: Revenue is expected in range of the 1.9 to $1.94 billion , or approximately 6 to 8.5% growth year over year . As I earlier in my mentioned remarks , we had a one week shift in the academic calendar , resulting in Walden additional week of recording one the second quarter revenue in and one less week in the third quarter .
Bob Phelan: As I mentioned earlier in my remarks, we had a one-week shift in the academic calendar, resulting in Walden recording one additional week of revenue in Q2 and one less week in Q3. The $18 million shift between the quarters benefited Q2, while it will reduce Q3, but overall, has no net impact on our annual performance. In addition, the revenue guidance also continues to reflect our prior comments related to enrollment and revenue growth being higher in the first half of the year as we lap double-digit comps from last year, particularly the strong comps from last Q3. Our reiterated revenue guidance contemplates Chamberlain's top-line impact, and while operational improvements are resulting in application volumes growing year over year in Q2 at Chamberlain, the financial impact is not immediate.
As I mentioned earlier in my remarks, we had a one-week shift in the academic calendar, resulting in Walden recording one additional week of revenue in Q2 and one less week in Q3. The $18 million shift between the quarters benefited Q2, while it will reduce Q3, but overall, has no net impact on our annual performance. In addition, the revenue guidance also continues to reflect our prior comments related to enrollment and revenue growth being higher in the first half of the year as we lap double-digit comps from last year, particularly the strong comps from last Q3. Our reiterated revenue guidance contemplates Chamberlain's top-line impact, and while operational improvements are resulting in application volumes growing year over year in Q2 at Chamberlain, the financial impact is not immediate.
Speaker #5: The $18 million shift between the quarters benefited the second quarter , while it will reduce the third quarter , but overall has no net impact on our annual performance .
Speaker #5: addition , the In revenue guidance also continues to reflect our prior comments related to enrollment and growth being higher first half of the year lap double comps from last digit year , particularly the strong comps from last Our reiterated revenue third quarter .
Speaker #5: contemplates Chamberlain's top line impact . And while operational improvements are resulting in application volumes year growing over year , in the Chamberlain , the second quarter at financial impact is not immediate .
Bob Phelan: But we do expect application growth to translate to future quarters' new enrollment growth. And finally, strength in Walden's top line is anticipated to continue to deliver robust growth. We are raising our adjusted EPS guidance from the previous range of $7.60 to $7.90, or growth of 14% to 18.5%, to a range of $7.80 to $8, or growth of 17% to 20%. At the midpoint, our adjusted EPS range is increasing by $0.15. The increase in adjusted EPS guidance contemplates our continued commitment to expanding our fiscal year 2026 adjusted EBITDA margin by approximately 100 basis points.
But we do expect application growth to translate to future quarters' new enrollment growth. And finally, strength in Walden's top line is anticipated to continue to deliver robust growth. We are raising our adjusted EPS guidance from the previous range of $7.60 to $7.90, or growth of 14% to 18.5%, to a range of $7.80 to $8, or growth of 17% to 20%. At the midpoint, our adjusted EPS range is increasing by $0.15. The increase in adjusted EPS guidance contemplates our continued commitment to expanding our fiscal year 2026 adjusted EBITDA margin by approximately 100 basis points.
Speaker #5: But we do expect application growth to translate into future quarters. New enrollment growth. And finally, strengthen Walden's top line as anticipated to continue to deliver robust growth.
Speaker #5: We are raising our adjusted EPS guidance from the previous range of $7.60 to $7.90, or growth of 14% to 18.5%, to a range of $7.80 to $8.00, or growth of 17% to 20%.
Speaker #5: At the midpoint . Our EPs range is increasing by $0.15 . The increase in adjusted EPs guidance contemplates our continued commitment to expanding our fiscal year 2026 adjusted EBITDA margin by approximately 100 basis points .
Bob Phelan: We expect quarter-to-quarter margins will fluctuate, with a higher level of targeted investments being made in Q3 and less investment in Q4. Further, the 1-week Walden revenue shift into Q2 will have a pronounced impact on our Q3 margin profile. The raised adjusted EPS guidance also incorporates our capital allocation actions and continued strong cash flow generation, and we continue to anticipate an effective tax rate to be higher than fiscal year 2025. Overall, we will continue to execute on expanding access and delivering positive student outcomes, deploying capital to meet the healthcare education market's growing demand, maximizing long-term value, and ultimately generating high returns for all stakeholders. As Steve noted, I look forward to discussing our longer-term targets at our upcoming Investor Day. With that, I'll now turn the call over to the operator for Q&A.
We expect quarter-to-quarter margins will fluctuate, with a higher level of targeted investments being made in Q3 and less investment in Q4. Further, the 1-week Walden revenue shift into Q2 will have a pronounced impact on our Q3 margin profile. The raised adjusted EPS guidance also incorporates our capital allocation actions and continued strong cash flow generation, and we continue to anticipate an effective tax rate to be higher than fiscal year 2025. Overall, we will continue to execute on expanding access and delivering positive student outcomes, deploying capital to meet the healthcare education market's growing demand, maximizing long-term value, and ultimately generating high returns for all stakeholders. As Steve noted, I look forward to discussing our longer-term targets at our upcoming Investor Day. With that, I'll now turn the call over to the operator for Q&A.
Speaker #5: We expect Q2 quarter margins will be impacted by a higher level of targeted investments being made in the third quarter and less investment in the fourth quarter.
Speaker #5: Further , the one week Walden revenue shift into the will have a pronounced second quarter impact on our third quarter margin profile . The raised adjusted EPs guidance also incorporates our capital allocation actions and continued strong cash flow generation , and continue to we anticipate an effective tax rate to be higher than year 2025 .
Speaker #5: Overall , we will continue to execute fiscal on access and delivering positive student outcomes , deploying capital to meet the healthcare education market's growing demand , maximizing long term value , and ultimately generating high returns for all stakeholders .
Speaker #5: As Steve noted , I look forward to discussing our longer term targets at our upcoming Investor that , I'll . Day And now turn the to the operator call over for Q&A .
Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment, please, while we poll for questions. Thank you. Our first question comes to the line of Jeff Silber with BMO Capital Markets. Please proceed.
Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment, please, while we poll for questions. Thank you. Our first question comes to the line of Jeff Silber with BMO Capital Markets. Please proceed.
Speaker #2: Thank you. We will now be in a question-and-answer session. If you would like to ask a question, please press one on your telephone keypad.
Speaker #2: A will indicate your confirmation tone line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants' speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker #2: One moment, please, while we pull for questions. Thank you. Our first question comes from the line of Jeff Seiber with BMO Capital Markets.
Jeff Silber: Thank you so much. I'm actually gonna start with Walden. I'll let some other folks focus on Chamberlain. Even excluding the calendar shift, the Walden numbers continue to impress. Can we just double-click on that? You know, what exactly is going on? Where are you seeing the growth? Do you think you're taking share from other schools in this market?
Jeffrey Silber: Thank you so much. I'm actually gonna start with Walden. I'll let some other folks focus on Chamberlain. Even excluding the calendar shift, the Walden numbers continue to impress. Can we just double-click on that? You know, what exactly is going on? Where are you seeing the growth? Do you think you're taking share from other schools in this market?
Speaker #2: Please proceed .
Speaker #6: Thank you so much . I'm actually going to start with Walden . I'll let folks some other focus on Chamberlain excluding , even calendar shift , the Walden numbers continue to Can impress .
Speaker #6: just we double click on What exactly is going on ? Where are you seeing the growth ? Do you think you're taking share from other schools in this market ?
Steve Beard: Yeah. So, the Walden growth is consistent across the board, but, we see it, most pronounced in the areas that, we've consistently been most excited about. That's in the behavioral sciences programs, and also in the nursing program, in the MSN credential. To a lesser extent, you know, we're seeing, great, returns on our investments in the education programs at Walden. And as we increasingly look to, expand that institution's presence in undergraduate enrollments, we're having great traction there as well. So really pleased with the balanced growth across the program mix at Walden.
Stephen Beard: Yeah. So, the Walden growth is consistent across the board, but, we see it, most pronounced in the areas that, we've consistently been most excited about. That's in the behavioral sciences programs, and also in the nursing program, in the MSN credential. To a lesser extent, you know, we're seeing, great, returns on our investments in the education programs at Walden. And as we increasingly look to, expand that institution's presence in undergraduate enrollments, we're having great traction there as well. So really pleased with the balanced growth across the program mix at Walden.
Speaker #3: Yeah .
Speaker #4: So the Walden growth is consistent across the board . But we see it most pronounced in the areas that we've consistently about . That's in the behavioral sciences programs .
Speaker #4: Also in the nursing and the MSN credential, to a lesser extent, we're seeing great returns on our investments in the education programs at Walden.
Speaker #4: And as we increasingly look to expand that institution's presence , in undergraduate enrollments , we're having great traction there as well . So really pleased with the balanced growth across the program mix at Walden .
Jeff Silber: Okay. And then maybe shifting to one of the regulatory issues. We're expecting some changes in the loan caps this July. I know you had announced an earlier partnership with Sallie Mae. Can we get an update in terms of what's going on there?
Jeffrey Silber: Okay. And then maybe shifting to one of the regulatory issues. We're expecting some changes in the loan caps this July. I know you had announced an earlier partnership with Sallie Mae. Can we get an update in terms of what's going on there?
Speaker #6: Okay . And then maybe shifting to to one of the regulatory issues , we're expecting some changes in July . this I know you had caps announced an the loan earlier partnership with Sallie Mae .
Steve Beard: Yeah, we're working with Sallie Mae on definitive documentation for that partnership. Sallie Mae has also been working to pull together the syndicate of capital sources that will actually provide the loan dollars. But we continue to be excited about that partnership and what it means for the entire portfolio, including the medical and veterinary segment, where obviously we expect to have to utilize supplemental lending sources the most. So more to come on that, but we continue to move at pace with them, and we'll be excited to announce definitive documentation once it's complete.
Stephen Beard: Yeah, we're working with Sallie Mae on definitive documentation for that partnership. Sallie Mae has also been working to pull together the syndicate of capital sources that will actually provide the loan dollars. But we continue to be excited about that partnership and what it means for the entire portfolio, including the medical and veterinary segment, where obviously we expect to have to utilize supplemental lending sources the most. So more to come on that, but we continue to move at pace with them, and we'll be excited to announce definitive documentation once it's complete.
Speaker #6: Can we get an update in terms of what's going on there?
Speaker #4: Yeah , we're we're working with Sallie Mae and definitive documentation for that partnership . Sallie Mae is also been working to pull together the the Syndicate of capital sources that will actually provide the loan dollars .
Speaker #4: But we continue to be excited about that partnership and what it means for the entire portfolio , including the medical , veterinary segment where obviously we expect to have to utilize supplemental lending sources the most .
Speaker #4: So more to come on that . But we continue to move at pace with them and we'll be excited to announce definitive documentation once it's complete .
Jeff Silber: Okay, great. I'll jump back in the queue. Thanks.
Jeffrey Silber: Okay, great. I'll jump back in the queue. Thanks.
Operator: Thank you. Our next question comes to the line of Jack Slevin with Jefferies. Please proceed.
Operator: Thank you. Our next question comes to the line of Jack Slevin with Jefferies. Please proceed.
Speaker #6: great . Okay , back in the queue . Thanks .
Speaker #2: you . Thank Our next question comes from the line of Jack Steven with Jefferies . Please proceed
Jack Slevin: Hey, guys. Congrats on the quarter, and thanks for taking the question. I am gonna decide to dig in on Chamberlain a little bit. So if we just looked at a really encouraging sign on the double-digit growth, I guess the immediate question becomes, sort of, if you could remind us of what that typical lead time is, and I'm hearing the emphasis from the fall cycle, but maybe just walking through a little more detail on sort of, you know, what exactly is going right as you're, you know, you've enacted some of those changes you called out last quarter. And then whether or not that sort of, you know, lags through the second half and then see the rebound or, you know, sort of an inflection around the fall cycle tracks to what you typically would expect. Thanks.
Jack Slevin: Hey, guys. Congrats on the quarter, and thanks for taking the question. I am gonna decide to dig in on Chamberlain a little bit. So if we just looked at a really encouraging sign on the double-digit growth, I guess the immediate question becomes, sort of, if you could remind us of what that typical lead time is, and I'm hearing the emphasis from the fall cycle, but maybe just walking through a little more detail on sort of, you know, what exactly is going right as you're, you know, you've enacted some of those changes you called out last quarter. And then whether or not that sort of, you know, lags through the second half and then see the rebound or, you know, sort of an inflection around the fall cycle tracks to what you typically would expect. Thanks.
Speaker #2: .
Speaker #7: congrats on guys , the quarter and thanks for taking the questions Hey . I am going decide to to dig in on chamber a little a little bit .
Speaker #7: So, if we just really look at it, an encouraging sign on the double-digit growth—I guess the immediate question becomes, sort of, if you could remind us what that typical lead time is.
Speaker #7: And I'm hearing the emphasis a fall cycle . But maybe just walking through a little more detail on sort of what is going right as you're you've enacted some of those changes you called out last quarter and then and then whether or not that sort of , you know , lagged through the second half and then see the rebound or sort of an inflection around the fall cycle tracks to what you typically would expect .
Steve Beard: Yeah, happy to speak to it. As we said before, we identified a couple of gaps, marketing effectiveness, and enrollment funnel conversion. We took a number of steps to address processes on both dimensions, and as you'll note, we also took a number of steps to make changes in personnel across the Chamberlain organization. We feel really good about the implications of those moves. As I said in the prepared remarks, some of the leading indicators of enrollment have been really positive. Application volume's up for both pre-licensure and post-licensure nursing programs. You have to remember that fall cycle is the biggest cycle of the Chamberlain fiscal year, and it creates a big hole to dig out of, but we are confident in the trajectory of the recovery.
Stephen Beard: Yeah, happy to speak to it. As we said before, we identified a couple of gaps, marketing effectiveness, and enrollment funnel conversion. We took a number of steps to address processes on both dimensions, and as you'll note, we also took a number of steps to make changes in personnel across the Chamberlain organization. We feel really good about the implications of those moves. As I said in the prepared remarks, some of the leading indicators of enrollment have been really positive. Application volume's up for both pre-licensure and post-licensure nursing programs. You have to remember that fall cycle is the biggest cycle of the Chamberlain fiscal year, and it creates a big hole to dig out of, but we are confident in the trajectory of the recovery.
Speaker #7: Thanks .
Speaker #4: Yeah . Happy , happy to speak to it . As we said before , we identified a couple of gaps marketing effectiveness and enrollment funnel conversion .
Speaker #4: We took a number of steps to address processes on both dimensions. And as you'll note, we also took a number of steps to make changes in personnel across the Chamberlain organization.
Speaker #4: We feel really good about the implications of those moves . As I said prepared remarks , some of the leading indicators of enrollment have been really positive .
Speaker #4: Application volumes up for both Pre-licensure and Post-licensure nursing programs . You have to remember that fall cycle biggest cycle is the of the Chamberlain fiscal year , and it creates a big hole to dig out of .
Steve Beard: So while we expect the total enrollment story on a quarter-over-quarter basis to be flat, over the balance of the fiscal year, we do expect, as we approach that fall enrollment cycle, to be in a position, to go back to a positive total enrollment year-over-year and get back to a total enrollment trajectory consistent with what we've enjoyed in the last few cycles. So we think we have the situation well in hand. We feel good about the early signals we're seeing, and we're confident that we exit the fiscal year moving towards a positive total enrollment growth, in Chamberlain, with the benefit of a robust trajectory, in pre-licensure and a return to form in post-licensure nursing.
So while we expect the total enrollment story on a quarter-over-quarter basis to be flat, over the balance of the fiscal year, we do expect, as we approach that fall enrollment cycle, to be in a position, to go back to a positive total enrollment year-over-year and get back to a total enrollment trajectory consistent with what we've enjoyed in the last few cycles. So we think we have the situation well in hand. We feel good about the early signals we're seeing, and we're confident that we exit the fiscal year moving towards a positive total enrollment growth, in Chamberlain, with the benefit of a robust trajectory, in pre-licensure and a return to form in post-licensure nursing.
Speaker #4: But we are confident in the trajectory of the recovery . So while we expect the total enrollment story on a quarter over quarter basis to be flat over the balance of the fiscal year , we do expect as we approach that fall enrollment cycle , to be in a position to go back to positive total enrollment year year and get back to a total enrollment trajectory , consistent with what we've last enjoyed in the few So cycles .
Speaker #4: think we have the well in situation hand . We feel good about the signals early we're seeing , and we're confident that we exit fiscal year .
Speaker #4: The 'A' towards moving positive total enrollment growth in with Chamberlain, the benefit of a robust trajectory in return to pre-licensure, and a form in post-licensure nursing.
Jack Slevin: Got it. Okay. Really helpful, Steve. One more for me here. You know, I guess running some quick numbers, the last few years, you've seen, you know, roughly $60 million of improvement in revenues, second half versus first half. Obviously, you have the Walden call out, right, on the timing of that one-week impact. But even adjusting for that, it looks like the high end of the guide's at about $45 million. I guess I'd just be curious to sort of describe what the scenario would play out that would see you sort of meet or exceed the high end of that guide. Is it simply Chamberlain coming in a little ahead, or really, you know, where you could envision that upside potentially coming from if it were to materialize? Thanks.
Jack Slevin: Got it. Okay. Really helpful, Steve. One more for me here. You know, I guess running some quick numbers, the last few years, you've seen, you know, roughly $60 million of improvement in revenues, second half versus first half. Obviously, you have the Walden call out, right, on the timing of that one-week impact. But even adjusting for that, it looks like the high end of the guide's at about $45 million. I guess I'd just be curious to sort of describe what the scenario would play out that would see you sort of meet or exceed the high end of that guide. Is it simply Chamberlain coming in a little ahead, or really, you know, where you could envision that upside potentially coming from if it were to materialize? Thanks.
Speaker #7: Got it . Okay . Really helpful . Steve . One more for me here . I guess running some quick numbers the last few years you've seen roughly 60 million of improvement in revenues .
Speaker #7: Second versus half first half . Obviously you have the Walden call out right on the timing of that . one week impact . That But even adjusting for that , it looks like the high end of the guide is at about 45 million .
Speaker #7: I guess I’d just be curious to sort of describe what the scenario would look like, see you, that sort of meet or exceed the high end of that guide.
Speaker #7: Is it simply in a little Chamberlain coming, or ahead, really, where you could envision that upside potentially coming from if it were to materialize?
Steve Beard: Yeah, I think it would come from a quicker than anticipated return to form at Chamberlain and potentially some additional acceleration in the trajectory of the Med + Vet segment. We think we're moving at sort of an optimal clip at Walden, and so it would come from the other two segments.
Stephen Beard: Yeah, I think it would come from a quicker than anticipated return to form at Chamberlain and potentially some additional acceleration in the trajectory of the Med + Vet segment. We think we're moving at sort of an optimal clip at Walden, and so it would come from the other two segments.
Speaker #7: Thanks .
Speaker #4: Yeah , I think it would would come from a quicker than return form at anticipated to . And Chamberlain potentially some additional acceleration in the trajectory of the segment .
Speaker #4: We think we're moving at sort of an optimal clip at Walden. And so it would come from the other two segments.
Jack Slevin: Okay, got it. Super helpful. Congrats again on the quarter, and, and looking forward to seeing you at Investor Day.
Jack Slevin: Okay, got it. Super helpful. Congrats again on the quarter, and, and looking forward to seeing you at Investor Day.
Steve Beard: Thank you. I appreciate it.
Stephen Beard: Thank you. I appreciate it.
Speaker #7: Okay. Got it. Super helpful. Congrats again on the quarter, and looking forward to seeing you at Investor Day.
Operator: Thank you. There are no further questions at this time. I'd like to pass the call back over to Steve for any closing remarks.
Operator: Thank you. There are no further questions at this time. I'd like to pass the call back over to Steve for any closing remarks.
Speaker #4: Thank you . I
Speaker #4: appreciate it looking forward .
Speaker #2: Thank you. There are no further questions at this time. I'd like to pass the call back over to Steve for any closing remarks.
Steve Beard: Yeah, I wanna do two things. First, thank all of our colleagues across the Adtalem portfolio for all of their incredible work over the course of the last quarter. We've come back from the break in the calendar year to hit the ground running aggressively. I also just wanna put out a plug for our upcoming Investor Day on 24 February. We've got a lot of news that we're prepared to share. We're really excited about it, and we look forward to having you all participate virtually or in person. Thank you so much.
Stephen Beard: Yeah, I wanna do two things. First, thank all of our colleagues across the Adtalem portfolio for all of their incredible work over the course of the last quarter. We've come back from the break in the calendar year to hit the ground running aggressively. I also just wanna put out a plug for our upcoming Investor Day on 24 February. We've got a lot of news that we're prepared to share. We're really excited about it, and we look forward to having you all participate virtually or in person. Thank you so much.
Speaker #4: Yeah , I want to do two things . First , thank all of our colleagues across the talent portfolio for all of their incredible work over the course of the last quarter .
Speaker #4: We've come back from the break in the calendar year to hit the ground running aggressively. I also just want to put out a plug for our upcoming Investor Day on February 24th.
Speaker #4: We've got a lot of news that we're prepared to share . We're really excited about it , and we look forward to having participate you all person in virtually or so .
Operator: Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Operator: Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
