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Adtalem Global Education Inc. (ATGE-6.96%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports a revenue increase of 13.9% to $447.7 million for the second quarter of fiscal year 2025, driven by growth across all segments. Net income rose 90.2% to $75.9 million, attributed to increased revenue and reduced expenses in litigation reserves, amortization, and integration costs.
Chamberlain University reported an 11.5% increase in student enrollment for the November 2024 session, contributing to a 17.9% rise in revenue to $181.0 million. Tuition rates increased by approximately 4% across various programs.
Walden University saw a 13.2% rise in student enrollment as of December 31, 2024, with revenue up 16.7% to $171.3 million. Tuition rates increased by about 2% for most programs.
The Medical and Veterinary segment experienced a 2.8% revenue increase to $95.4 million, despite a slight decline in enrollment at Ross University School of Medicine. Tuition rates rose by 2% to 4.25% across institutions.
Cost of educational services increased by 8.5% to $186.6 million for the quarter, primarily due to higher labor costs and bad debt provisions. Student services and administrative expenses rose slightly by 0.8% to $156.9 million, with marketing and growth initiative investments offsetting reductions in litigation reserves and amortization.
Operating income increased by 77.2% to $103.9 million, attributed to revenue growth and cost efficiencies. Adjusted operating income rose by 34.2% to $101.4 million.
Interest expense decreased to $13.9 million, reflecting lower borrowings and interest rates on the Term Loan B. Other income, net was $2.2 million, down from the previous year due to reduced interest and investment income.
Adtalem repurchased 471,327 shares of its common stock during the quarter, with $140.1 million remaining under the current repurchase program. The company maintains a $400 million revolving credit facility with $301 million available as of December 31, 2024.
The filing details the company's compliance with financial aid regulations, including a $179 million letter of credit to the U.S. Department of Education. Adtalem's institutions are under provisional certification due to a composite score below ED's standards.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Adtalem Global Education Inc. quarterly 10-Q report dated January 30, 2025. To report an error, please email earnings@qz.com.