Adtalem's Q4 2025 Earnings Call: Key Contradictions on Student Loans, Growth Targets, and Marketing Strategies

Student loan and financial aid regulations, 2026 growth and margin expansion targets, student demand and enrollment trends, marketing strategy and expenditure timing, and executive role and responsibilities are the key contradictions discussed in Adtalem Global Education's latest 2025Q4 earnings call.



Strong Financial Performance and Enrollment Growth:
- Adtalem Global Education reported revenue of $1.79 billion for fiscal 2025, up 12.9% year-over-year.
- The growth was driven by a 10% average quarterly enrollment growth across all segments, with Chamberlain University and Walden University contributing significantly.

Improved Operating Leverage and Profitability:
- Adjusted EBITDA margin expanded by 190 basis points to 25.7%.
- This growth was due to strategic investments in marketing and student-facing technologies, leading to higher conversion rates and lower acquisition costs.

Strategic Partnerships and Market Demand:
- The company formed a partnership with SSM Health, providing students with direct employment pathways post-graduation.
- The demand for career-aligned health care programs remains high due to workforce shortages, driving enrollment growth and positive student outcomes.

Segment Performance and Expansion Plans:
- Chamberlain University ended the fourth quarter with 5.8% enrollment growth, reaching approximately 39,000 students.
- Walden University achieved its eighth consecutive quarter of enrollment growth, with fourth-quarter enrollment up 15% to 48,000 students.
- Expansion plans include bringing new capacity to the market and optimizing existing capacity to meet demand.

Regulatory and Financial Management:
- The company successfully navigated external changes, including the One Big Beautiful Bill Act, by establishing alternative financing solutions.
- Adtalem successfully reduced its Term Loan B balance by $100 million and lowered its borrowing costs by 75 basis points, further strengthening its financial position.