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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 by 23.9% to $154.9 million, with an adjusted EBITDA margin of 30.8%, up 290 basis points from the prior year.
• Adjusted Earnings Per Share (EPS): Increased by 34.3% to $2.43.
• Enrollment: Total enrollment grew over 6% to 97,000 students.
• Share Repurchases: $165 million spent on share repurchases, with $728 million remaining under the current authorization.

2. Strategic Updates and Business Highlights

• Enrollment Growth: Marked the tenth consecutive quarter of enrollment growth, with Walden achieving a record total enrollment of 52,400 students.
• Chamberlain's Performance: Although total enrollment declined by 1%, the company remains optimistic about future growth due to improved application volumes and strong fundamentals.
• MedVet Segment: Continued to show momentum with operational excellence and innovative pathways for enrollment growth.
• Healthcare Workforce Crisis: The company is positioning itself to address the intensifying healthcare workforce shortages, emphasizing its role as a leading healthcare educator.

3. Forward Guidance and Outlook

• Revenue Guidance: Maintained at $1.9 to $1.94 billion, reflecting 6% to 8.5% growth year-over-year.
• Adjusted EPS Guidance: Raised to a range of $7.80 to $8.00, indicating growth of 17% to 20%.
• Operational Expectations: Anticipates continued enrollment growth, particularly in the fall cycle, with a focus on improving Chamberlain's performance.

4. Bad News, Challenges, or Points of Concern

• Chamberlain Enrollment: Experienced a temporary decline in total enrollment, with expectations for Q3 to remain soft. The company faces challenges in post-licensure programs.
• Regulatory Risks: Potential changes in loan caps could impact student financing and enrollment.
• Market Competition: While Walden is performing well, there is concern about maintaining competitive positioning in a crowded educational market.

5. Notable Q&A Insights

• Walden Growth: The growth is broad-based, particularly in behavioral sciences and nursing programs, indicating potential market share gains.
• Chamberlain's Recovery: Management is optimistic about a rebound in enrollment due to improved application volumes and marketing effectiveness.
• Regulatory Partnerships: The company is working with Sallie Mae on a partnership to address financing needs, particularly in the medical and veterinary segments.

Overall, Adtalem Global Education Inc. demonstrated strong financial performance and strategic positioning, although it faces challenges in specific segments and regulatory environments. The outlook remains positive with expectations for continued growth and proactive measures to address market demands.