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Summary of Adtalem Global Education Inc. Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: Increased by 12.4% year-over-year to $503.4 million.
• Adjusted EBITDA: Rose 23.9% to $154.9 million, with an adjusted EBITDA margin of 30.8%.
• Adjusted Net Income: Up 26.7% to $87.9 million.
• Adjusted Earnings Per Share (EPS): Increased 34.3% to $2.43.
• Enrollment: Total enrollment grew over 6% to 97,000 students.
• Share Repurchases: $165 million deployed in share buybacks, with $728 million remaining under the current authorization.

2. Strategic Updates and Business Highlights

• Enrollment Growth: Marked the tenth consecutive quarter of enrollment growth, particularly strong at Walden University (up 13% to 52,400 students) and Chamberlain College of Nursing (record enrollment of 40,000 students).
• Innovative Programs: Launched new programs at Walden, including master's degrees in applied behavioral analysis and clinical psychology, contributing to enrollment growth.
• Healthcare Workforce Focus: Emphasized commitment to addressing the healthcare workforce crisis, with plans for capacity expansion and new revenue streams to meet societal needs.
• Operational Improvements: Chamberlain reported a temporary decline in enrollment but showed signs of recovery with improved application volumes.

3. Forward Guidance and Outlook

• Revenue Guidance: Maintained full-year revenue growth expectations of 6% to 8.5%, projecting total revenue between $1.9 billion and $1.94 billion.
• Adjusted EPS Guidance: Raised from $7.60-$7.90 to $7.80-$8.00, reflecting a growth rate of 17% to 20%.
• Margin Expectations: Anticipated fluctuations in adjusted EBITDA margins due to varying investment levels across quarters.

4. Challenges and Points of Concern

• Chamberlain Enrollment: Experienced a 1% decline in total enrollment, particularly in post-licensure programs, raising concerns about short-term growth.
• Market Competition: Questions regarding whether Walden is gaining market share amidst regulatory changes and loan cap adjustments.
• Regulatory Risks: Potential impacts from upcoming changes in loan caps and reliance on partnerships for financing student loans.

5. Notable Q&A Insights

• Walden Growth: Strong growth across behavioral sciences and nursing programs, with expectations of continued enrollment increases.
• Chamberlain Strategy: Recent marketing and enrollment funnel improvements are expected to yield positive results in the fall enrollment cycle, despite current challenges.
• Regulatory Developments: Ongoing partnership with Sallie Mae for student loans, with updates pending on definitive agreements.

Overall, Adtalem Global Education Inc. reported strong financial performance in Q2 2026, with strategic initiatives aimed at addressing healthcare workforce shortages and enhancing student outcomes. However, challenges in enrollment at Chamberlain and potential regulatory impacts remain areas of concern.