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

CHICAGO--(BUSINESS WIRE)--Adtalem Global Education Inc. (NYSE: ATGE), the leading healthcare educator in the United States, today reported second quarter fiscal year 2025 results (ended Dec. 31, 2024), expanding the Company’s societal and healthcare impact at an industry-leading pace. "Growth with Purpose, our operational excellence strategy, has delivered exceptional results—marked by six straight quarters of enrollment growth—while advancing our mission to develop skilled healthcare professionals," said Steve Beard, chairman and chief executive officer, Adtalem Global Education. "By optimizing the student experience and with a commitment to student outcomes, we're successfully scaling critical care education. These consistent and sustainable results give us confidence to raise our expectations for fiscal 2025." Financial Highlights Selected financial data for the three months ended Dec. 31, 2024: Revenue of $447.7 million increased 13.9% compared with the prior year Operating income of $103.9 million, compared with $58.6 million in the prior year; adjusted operating income of $101.4 million, compared with $75.6 million in the prior year Net income of $75.9 million, compared with $39.9 million in the prior year; adjusted net income of $69.4 million, compared with $50.3 million in the prior year Diluted earnings per share of $1.98, compared with $0.98 in the prior year; adjusted earnings per share of $1.81, compared with $1.23 in the prior year Adjusted EBITDA of $125.0 million, compared with $92.6 million in the prior year; adjusted EBITDA margin of 27.9%, compared with 23.5% in the prior year Business Highlights Adtalem produced more graduates with Psychiatric-Mental Health Nurse Practitioner (MSN-PMHNP) degrees than the top 20 programs combined, according to the most recently published 2023 data from the American Association of Colleges of Nursing. Adtalem is addressing critical U.S. healthcare issues, as The National Institute for Health Care Management estimates that approximately 49% of Americans live in a mental health workforce shortage area. As of Dec. 31, 2024, Chamberlain University enrolled over 3,000 MSN-PMHNP students, with Walden University enrolling over 6,600. Further, Walden University currently has over 21,000 students enrolled in Social and Behavioral Sciences programs. Chamberlain University continues to build a robust pipeline of nurses through programs including its Bachelor of Science in Nursing (BSN) Online Option, which offers flexibility and experiential learning opportunities to students in 36 states. The program boasts over 2,500 current enrollees since launching four years ago and operates 44 clinical hub locations at partner healthcare sites. Walden University launched "Get the W," a new brand campaign that celebrates the wins that drive our students and graduates to make a meaningful impact in healthcare and beyond. Ross University School of Veterinary Medicine (RUSVM) hosted the West Indies Veterinary Conference 2024, a prominent event in the global veterinary community that brings together hundreds of veterinary professionals, including over 300 RUSVM alumni. The event featured continuing education, including lectures and master classes on topics ranging from wound care to business management. Segment Highlights Chamberlain $ in millions Three Months Ended December 31, 2024 2023 % Change Revenue $181.0 $153.6 17.9% Operating Income $42.2 $29.6 42.5% Adj. Operating Income $42.3 $29.6 42.7% Adj. EBITDA $52.6 $36.9 42.5% Total Students (1) 39,691 35,592 11.5% Total student enrollment increased 11.5% compared with the prior year, driven by continued growth in pre-licensure and post-licensure nursing programs. Walden $ in millions Three Months Ended December 31, 2024 2023 % Change Revenue $171.3 $146.8 16.7% Operating Income $48.9 $21.6 126.4% Adj. Operating Income $46.2 $30.2 53.1% Adj. EBITDA $52.1 $34.6 50.2% Total Students (1) 46,399 40,971 13.2% Total student enrollment increased 13.2% compared with the prior year, driven by growth in healthcare and non-healthcare programs. Medical and Veterinary $ in millions Three Months Ended December 31, 2024 2023 % Change Revenue $95.4 $92.9 2.8% Operating Income $21.5 $22.0 (2.5)% Adj. Operating Income $21.5 $22.1 (2.6)% Adj. EBITDA $26.7 $26.4 1.3% Total Students (1) 5,174 5,209 (0.7)% Medical and Veterinary schools do not have a new enrollment period starting in the second quarter fiscal year 2025. Second quarter fiscal year 2025 enrollment period is the same as first quarter fiscal year 2025 enrollment period and corresponding reported enrollment data. Fiscal Year 2025 Outlook Adtalem raises guidance for fiscal year 2025, with revenue in the range of $1,730 million to $1,760 million, approximately 9.0% to 11.0% growth year-over-year. Adjusted earnings per share to be in the range of $6.10 to $6.30, approximately 21.5% to 25.5% growth year-over-year. Conference Call and Webcast Information Adtalem will hold a conference call to discuss its second 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: 13750710. 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: 13750710, 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 Q2 FY 2025 and Q2 FY 2024. Adtalem Global Education Inc. Consolidated Balance Sheets (unaudited) (in thousands) December 31, June 30, 2024 2024 Assets: Current assets: Cash and cash equivalents $ 193,958 $ 219,306 Restricted cash 1,461 1,896 Accounts and financing receivables, net 146,973 126,833 Prepaid expenses and other current assets 64,693 70,050 Total current assets 407,085 418,085 Noncurrent assets: Property and equipment, net 245,878 248,524 Operating lease assets 188,800 176,755 Deferred income taxes 28,413 49,088 Intangible assets, net 771,084 776,694 Goodwill 961,262 961,262 Other assets, net 112,608 103,184 Assets held for sale 7,825 7,825 Total noncurrent assets 2,315,870 2,323,332 Total assets $ 2,722,955 $ 2,741,417 Liabilities and shareholders' equity: Current liabilities: Accounts payable $ 66,920 $ 102,626 Accrued payroll and benefits 50,999 71,373 Accrued liabilities 62,479 96,957 Deferred revenue 171,523 185,272 Current operating lease liabilities 32,633 31,429 Total current liabilities 384,554 487,657 Noncurrent liabilities: Long-term debt 649,924 648,712 Long-term operating lease liabilities 182,051 167,712 Deferred income taxes 32,367 29,526 Other liabilities 35,149 38,675 Total noncurrent liabilities 899,491 884,625 Total liabilities 1,284,045 1,372,282 Commitments and contingencies Total shareholders' equity 1,438,910 1,369,135 Total liabilities and shareholders' equity $ 2,722,955 $ 2,741,417 Adtalem Global Education Inc. Consolidated Statements of Income (unaudited) (in thousands, except per share data) Three Months Ended Six Months Ended December 31, December 31, 2024 2023 2024 2023 Revenue $ 447,729 $ 393,242 $ 865,129 $ 762,087 Operating cost and expense: Cost of educational services 186,636 172,069 372,631 340,687 Student services and administrative expense 156,901 155,584 315,974 321,679 Restructuring expense 322 68 2,416 744 Business integration expense — 6,909 — 12,171 Total operating cost and expense 343,859 334,630 691,021 675,281 Operating income 103,870 58,612 174,108 86,806 Interest expense (13,909 ) (16,693 ) (28,391 ) (32,350 ) Other income, net 2,235 3,563 4,881 5,777 Income from continuing operations before income taxes 92,196 45,482 150,598 60,233 Provision for income taxes (21,020 ) (7,769 ) (33,177 ) (10,561 ) Income from continuing operations 71,176 37,713 117,421 49,672 Discontinued operations: Income from discontinued operations before income taxes 6,271 2,926 6,164 1,161 Provision for income taxes (1,591 ) (748 ) (1,564 ) (296 ) Income from discontinued operations 4,680 2,178 4,600 865 Net income and comprehensive income $ 75,856 $ 39,891 $ 122,021 $ 50,537 Earnings per share: Basic: Continuing operations $ 1.90 $ 0.95 $ 3.12 $ 1.22 Discontinued operations $ 0.13 $ 0.05 $ 0.12 $ 0.02 Total basic earnings per share $ 2.03 $ 1.00 $ 3.25 $ 1.24 Diluted: Continuing operations $ 1.85 $ 0.92 $ 3.03 $ 1.20 Discontinued operations $ 0.12 $ 0.05 $ 0.12 $ 0.02 Total diluted earnings per share $ 1.98 $ 0.98 $ 3.15 $ 1.22 Weighted-average shares outstanding: Basic shares 37,435 39,872 37,578 40,636 Diluted shares 38,401 40,787 38,755 41,486 Adtalem Global Education Inc. Consolidated Statements of Cash Flows (unaudited) (in thousands) Six Months Ended December 31, 2024 2023 Operating activities: Net income $ 122,021 $ 50,537 Income from discontinued operations (4,600 ) (865 ) Income from continuing operations 117,421 49,672 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation 20,918 13,505 Amortization and impairments to operating lease assets 14,092 17,340 Depreciation 19,993 19,381 Amortization of acquired intangible assets 5,610 20,010 Amortization of debt discount and issuance costs 2,226 2,310 Provision for bad debts 28,719 23,024 Deferred income taxes 23,516 (343 ) Loss on disposals of property and equipment 114 38 Gain on investments (442 ) (575 ) Unrealized loss on assets held for sale — 647 Changes in assets and liabilities: Accounts and financing receivables (46,493 ) (52,716 ) Prepaid expenses and other current assets 6,829 (2,143 ) Cloud computing implementation assets (14,071 ) (11,314 ) Accounts payable (34,588 ) 9,755 Accrued payroll and benefits (20,311 ) (6,073 ) Accrued liabilities (29,066 ) 25,130 Deferred revenue (12,028 ) (13,540 ) Operating lease liabilities (10,594 ) (20,441 ) Other assets and liabilities (5,888 ) (1,314 ) Net cash provided by operating activities-continuing operations 65,957 72,353 Net cash provided by operating activities-discontinued operations 4,340 9,515 Net cash provided by operating activities 70,297 81,868 Investing activities: Capital expenditures (21,094 ) (19,612 ) Proceeds from sales of marketable securities 2,426 626 Purchases of marketable securities (1,548 ) (498 ) Net cash used in investing activities (20,216 ) (19,484 ) Financing activities: Proceeds from exercise of stock options 9,833 15,313 Employee taxes paid on withholding shares (12,198 ) (6,505 ) Proceeds from stock issued under Colleague Stock Purchase Plan 567 359 Repurchases of common stock for treasury (74,066 ) (160,549 ) Proceeds from issuance of long-term debt 9,873 — Repayments of long-term debt (9,873 ) — Net cash used in financing activities (75,864 ) (151,382 ) Net decrease in cash, cash equivalents and restricted cash (25,783 ) (88,998 ) Cash, cash equivalents and restricted cash at beginning of period 221,202 275,075 Cash, cash equivalents and restricted cash at end of period $ 195,419 $ 186,077 Non-cash investing and financing activities: Accrued capital expenditures $ 5,085 $ 4,053 Accrued liability for repurchases of common stock $ 400 $ 2,400 Accrued excise tax on share repurchases $ 301 $ 2,358 Adtalem Global Education Inc. Segment Information (unaudited) (in thousands) Three Months Ended Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2024 2023 $ % 2024 2023 $ % Revenue: Chamberlain $ 180,986 $ 153,553 $ 27,433 17.9 % $ 348,916 $ 296,149 $ 52,767 17.8 % Walden 171,306 146,808 24,498 16.7 % 332,819 288,416 44,403 15.4 % Medical and Veterinary 95,437 92,881 2,556 2.8 % 183,394 177,522 5,872 3.3 % Total consolidated revenue $ 447,729 $ 393,242 $ 54,487 13.9 % $ 865,129 $ 762,087 $ 103,042 13.5 % Operating income (loss): Chamberlain $ 42,226 $ 29,640 $ 12,586 42.5 % $ 68,200 $ 53,964 $ 14,236 26.4 % Walden 48,898 21,598 27,300 126.4 % 88,735 23,536 65,199 277.0 % Medical and Veterinary 21,463 22,020 (557 ) (2.5 )% 36,134 36,383 (249 ) (0.7 )% Home Office (8,717 ) (14,646 ) 5,929 40.5 % (18,961 ) (27,077 ) 8,116 30.0 % Total consolidated operating income $ 103,870 $ 58,612 $ 45,258 77.2 % $ 174,108 $ 86,806 $ 87,302 100.6 % 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, loss on assets held for sale, and income 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, loss on assets held for sale, and income 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, debt modification costs, and loss on assets held for sale. This measure is applied on a consolidated and segment basis, depending on the context of the discussion. Adjusted EBITDA (most comparable GAAP measure: net income) – Measure of Adtalem’s net income adjusted for income 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, loss on assets held for sale, and debt modification costs. This measure is applied on a consolidated and segment basis, depending on the context of the discussion. Provision for income taxes, interest expense, and other income, net is not recorded at the reportable segments, and therefore, the segment adjusted EBITDA reconciliations begin with operating income. Free cash flow (most comparable GAAP measure: net cash provided by operating activities-continuing operations) – Defined as net cash provided by operating activities-continuing operations less capital expenditures. Net debt – Defined as long-term debt less cash and cash equivalents. Net leverage – Defined as net debt divided by adjusted EBITDA. A description of special items in our non-GAAP financial measures described above are as follows: Restructuring expense primarily related to workforce reductions, costs to exit certain course offerings, and prior real estate consolidations at Adtalem’s home office. We do not include normal, recurring, cash operating expenses in our restructuring expense. Business integration expense include expenses related to the Walden acquisition and certain costs related to growth transformation initiatives. We do not include normal, recurring, cash operating expenses in our business integration expense. Amortization of acquired intangible assets. Amortization of cloud computing implementation assets. Reserves related to significant litigation, debt modification costs related to refinancing our Term Loan B loan, and loss on assets held for sale related to a fair value write-down on assets. Income from discontinued operations includes expense from ongoing litigation costs and settlements related to the DeVry University divestiture and the earn-outs we received. Adtalem Global Education Inc. Non-GAAP Operating Income by Segment (unaudited) (in thousands) Three Months Ended Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2024 2023 $ % 2024 2023 $ % Chamberlain: Operating income (GAAP) $ 42,226 $ 29,640 $ 12,586 42.5 % $ 68,200 $ 53,964 $ 14,236 26.4 % Restructuring expense 77 — 77 1,935 — 1,935 Adjusted operating income (non-GAAP) $ 42,303 $ 29,640 $ 12,663 42.7 % $ 70,135 $ 53,964 $ 16,171 30.0 % Operating margin (GAAP) 23.3 % 19.3 % 19.5 % 18.2 % Operating margin (non-GAAP) 23.4 % 19.3 % 20.1 % 18.2 % Walden: Operating income (GAAP) $ 48,898 $ 21,598 $ 27,300 126.4 % $ 88,735 $ 23,536 $ 65,199 277.0 % Restructuring expense — (776 ) 776 — (776 ) 776 Amortization of acquired intangible assets 2,805 9,333 (6,528 ) 5,610 20,010 (14,400 ) Litigation reserve (5,550 ) — (5,550 ) (5,550 ) 18,500 (24,050 ) Adjusted operating income (non-GAAP) $ 46,153 $ 30,155 $ 15,998 53.1 % $ 88,795 $ 61,270 $ 27,525 44.9 % Operating margin (GAAP) 28.5 % 14.7 % 26.7 % 8.2 % Operating margin (non-GAAP) 26.9 % 20.5 % 26.7 % 21.2 % Medical and Veterinary: Operating income (GAAP) $ 21,463 $ 22,020 $ (557 ) (2.5 )% $ 36,134 $ 36,383 $ (249 ) (0.7 )% Restructuring expense 56 71 (15 ) 115 185 (70 ) Adjusted operating income (non-GAAP) $ 21,519 $ 22,091 $ (572 ) (2.6 )% $ 36,249 $ 36,568 $ (319 ) (0.9 )% Operating margin (GAAP) 22.5 % 23.7 % 19.7 % 20.5 % Operating margin (non-GAAP) 22.5 % 23.8 % 19.8 % 20.6 % Home Office: Operating loss (GAAP) $ (8,717 ) $ (14,646 ) $ 5,929 40.5 % $ (18,961 ) $ (27,077 ) $ 8,116 30.0 % Restructuring expense 189 773 (584 ) 366 1,335 (969 ) Business integration expense — 6,909 (6,909 ) — 12,171 (12,171 ) Loss on assets held for sale — 647 (647 ) — 647 (647 ) Debt modification costs — — — 712 — 712 Adjusted operating loss (non-GAAP) $ (8,528 ) $ (6,317 ) $ (2,211 ) (35.0 )% $ (17,883 ) $ (12,924 ) $ (4,959 ) (38.4 )% Adtalem Global Education: Operating income (GAAP) $ 103,870 $ 58,612 $ 45,258 77.2 % $ 174,108 $ 86,806 $ 87,302 100.6 % Restructuring expense 322 68 254 2,416 744 1,672 Business integration expense — 6,909 (6,909 ) — 12,171 (12,171 ) Amortization of acquired intangible assets 2,805 9,333 (6,528 ) 5,610 20,010 (14,400 ) Litigation reserve (5,550 ) — (5,550 ) (5,550 ) 18,500 (24,050 ) Loss on assets held for sale — 647 (647 ) — 647 (647 ) Debt modification costs — — — 712 — 712 Adjusted operating income (non-GAAP) $ 101,447 $ 75,569 $ 25,878 34.2 % $ 177,296 $ 138,878 $ 38,418 27.7 % Operating margin (GAAP) 23.2 % 14.9 % 20.1 % 11.4 % Operating margin (non-GAAP) 22.7 % 19.2 % 20.5 % 18.2 % Adtalem Global Education Inc. Non-GAAP Adjusted EBITDA by Segment (unaudited) (in thousands) Three Months Ended Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2024 2023 $ % 2024 2023 $ % Chamberlain: Operating income (GAAP) $ 42,226 $ 29,640 $ 12,586 42.5 % $ 68,200 $ 53,964 $ 14,236 26.4 % Restructuring expense 77 — 77 1,935 — 1,935 Depreciation 5,466 4,786 680 10,834 8,902 1,932 Amortization of cloud computing implementation assets 815 376 439 1,467 576 891 Stock-based compensation 3,993 2,089 1,904 7,112 4,996 2,116 Adjusted EBITDA (non-GAAP) $ 52,577 $ 36,891 $ 15,686 42.5 % $ 89,548 $ 68,438 $ 21,110 30.8 % Adjusted EBITDA margin (non-GAAP) 29.1 % 24.0 % 25.7 % 23.1 % Walden: Operating income (GAAP) $ 48,898 $ 21,598 $ 27,300 126.4 % $ 88,735 $ 23,536 $ 65,199 277.0 % Restructuring expense — (776 ) 776 — (776 ) 776 Amortization of acquired intangible assets 2,805 9,333 (6,528 ) 5,610 20,010 (14,400 ) Litigation reserve (5,550 ) — (5,550 ) (5,550 ) 18,500 (24,050 ) Depreciation 1,795 1,926 (131 ) 3,477 3,900 (423 ) Amortization of cloud computing implementation assets 778 379 399 1,479 567 912 Stock-based compensation 3,326 2,188 1,138 6,066 4,052 2,014 Adjusted EBITDA (non-GAAP) $ 52,052 $ 34,648 $ 17,404 50.2 % $ 99,817 $ 69,789 $ 30,028 43.0 % Adjusted EBITDA margin (non-GAAP) 30.4 % 23.6 % 30.0 % 24.2 % Medical and Veterinary: Operating income (GAAP) $ 21,463 $ 22,020 $ (557 ) (2.5 )% $ 36,134 $ 36,383 $ (249 ) (0.7 )% Restructuring expense 56 71 (15 ) 115 185 (70 ) Depreciation 2,744 2,972 (228 ) 5,313 5,864 (551 ) Amortization of cloud computing implementation assets 315 138 177 598 190 408 Stock-based compensation 2,158 1,196 962 3,765 2,836 929 Adjusted EBITDA (non-GAAP) $ 26,736 $ 26,397 $ 339 1.3 % $ 45,925 $ 45,458 $ 467 1.0 % Adjusted EBITDA margin (non-GAAP) 28.0 % 28.4 % 25.0 % 25.6 % Home Office: Operating loss (GAAP) $ (8,717 ) $ (14,646 ) $ 5,929 40.5 % $ (18,961 ) $ (27,077 ) $ 8,116 30.0 % Restructuring expense 189 773 (584 ) 366 1,335 (969 ) Business integration expense — 6,909 (6,909 ) — 12,171 (12,171 ) Loss on assets held for sale — 647 (647 ) — 647 (647 ) Debt modification costs — — — 712 — 712 Depreciation 185 359 (174 ) 369 715 (346 ) Stock-based compensation 1,990 577 1,413 3,975 1,621 2,354 Adjusted EBITDA (non-GAAP) $ (6,353 ) $ (5,381 ) $ (972 ) (18.1 )% $ (13,539 ) $ (10,588 ) $ (2,951 ) (27.9 )% Adtalem Global Education: Net income (GAAP) $ 75,856 $ 39,891 $ 35,965 90.2 % $ 122,021 $ 50,537 $ 71,484 141.4 % Income from discontinued operations (4,680 ) (2,178 ) (2,502 ) (4,600 ) (865 ) (3,735 ) Interest expense 13,909 16,693 (2,784 ) 28,391 32,350 (3,959 ) Other income, net (2,235 ) (3,563 ) 1,328 (4,881 ) (5,777 ) 896 Provision for income taxes 21,020 7,769 13,251 33,177 10,561 22,616 Operating income (GAAP) 103,870 58,612 45,258 174,108 86,806 87,302 Depreciation and amortization 14,903 20,269 (5,366 ) 29,147 40,724 (11,577 ) Stock-based compensation 11,467 6,050 5,417 20,918 13,505 7,413 Restructuring expense 322 68 254 2,416 744 1,672 Business integration expense — 6,909 (6,909 ) — 12,171 (12,171 ) Litigation reserve (5,550 ) — (5,550 ) (5,550 ) 18,500 (24,050 ) Loss on assets held for sale — 647 (647 ) — 647 (647 ) Debt modification costs — — — 712 — 712 Adjusted EBITDA (non-GAAP) $ 125,012 $ 92,555 $ 32,457 35.1 % $ 221,751 $ 173,097 $ 48,654 28.1 % Adjusted EBITDA margin (non-GAAP) 27.9 % 23.5 % 25.6 % 22.7 % Adtalem Global Education Inc. Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data) Three Months Ended Six Months Ended December 31, December 31, 2024 2023 2024 2023 Net income (GAAP) $ 75,856 $ 39,891 $ 122,021 $ 50,537 Restructuring expense 322 68 2,416 744 Business integration expense — 6,909 — 12,171 Amortization of acquired intangible assets 2,805 9,333 5,610 20,010 Litigation reserve, debt modification costs, and loss on assets held for sale (5,550 ) 647 (4,838 ) 19,147 Income tax impact on non-GAAP adjustments (1) 645 (4,402 ) (687 ) (12,095 ) Income from discontinued operations (4,680 ) (2,178 ) (4,600 ) (865 ) Adjusted net income (non-GAAP) $ 69,398 $ 50,268 $ 119,922 $ 89,649 (1) Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements. Three Months Ended Six Months Ended December 31, December 31, 2024 2023 2024 2023 Diluted earnings per share (GAAP) $ 1.98 $ 0.98 $ 3.15 $ 1.22 Effect on diluted earnings per share: Restructuring expense 0.01 0.00 0.06 0.02 Business integration expense - 0.17 - 0.29 Amortization of acquired intangible assets 0.07 0.23 0.14 0.48 Litigation reserve, debt modification costs, and loss on assets held for sale (0.14 ) 0.02 (0.12 ) 0.46 Income tax impact on non-GAAP adjustments (1) 0.02 (0.11 ) (0.02 ) (0.29 ) Income from discontinued operations (0.12 ) (0.05 ) (0.12 ) (0.02 ) Adjusted earnings per share (non-GAAP) $ 1.81 $ 1.23 $ 3.09 $ 2.16 Diluted shares used in non-GAAP EPS calculation 38,401 40,787 38,755 41,486 Note: May not sum due to rounding. (1) Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements. Adtalem Global Education Inc. Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) Twelve Months Ended FY24 FY24 FY24 FY25 FY25 Q2 Q3 Q4 Q1 Q2 Net cash provided by (used in) operating activities-continuing operations (GAAP) $ 227,600 $ 276,843 $ 288,367 $ 291,820 $ 281,971 Capital expenditures (38,713 ) (44,137 ) (48,893 ) (48,873 ) (50,375 ) Free cash flow (non-GAAP) $ 188,887 $ 232,706 $ 239,474 $ 242,947 $ 231,596 Adtalem Global Education Inc. Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Twelve Months Ended December 31, 2024 Adtalem Global Education: Net income (GAAP) $ 208,261 Income from discontinued operations (2,799 ) Interest expense 59,700 Other income, net (9,646 ) Provision for income taxes 48,840 Depreciation and amortization 66,875 Stock-based compensation 33,360 Restructuring expense 3,542 Business integration expense 22,044 Litigation reserve (5,550 ) Debt modification costs 1,560 Adjusted EBITDA (non-GAAP) $ 426,187 December 31, 2024 Long-term debt $ 658,283 Less: Cash and cash equivalents (193,958 ) Net debt (non-GAAP) $ 464,325 Net leverage (non-GAAP) 1.1 x

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

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