Slides
Page 1
A D T A L E M : T h i r d Q u a r t e r 2 0 2 5 R e s u l t s / 1 Second Quarter 2026 Earnings January 28, 2026
Page 2
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 2 Safe Harbor CAUTIONARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation 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,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “may,” “will,” “would,” “could,” “can,” “continue,” “preliminary,” “potential,” “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. Important factors that could cause actual results to differ materially from the expectations expressed or implied by our forward-looking statements are disclosed in Item 1A. “Risk Factors,” of our Annual Report on Form 10-K. You should evaluate forward-looking statements in the context of these risks and uncertainties and are cautioned to not place undue reliance on such forward-looking statements. We caution you that these factors may not contain all of the factors that are important to you. We cannot assure you that we will realize the results, performance or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. All 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. NON-GAAP FINANCIAL MEASURES This presentation includes references to certain financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”). 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. Adtalem uses 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. For how we define the non-GAAP financial measures, and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure, please refer to the reconciliation at the end of this presentation. Safe Harbor
Page 3
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 3 Purpose driven organization committed to student & societal outcomes Creating shareholder value Growth with Purpose strategy, delivering long-term growth Systemically important component of the U.S. healthcare system, training care providers
Page 4
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 4 5 like-kind institutions 28 campuses Robust online delivery capabilities All post-secondary higher education >97k students ~150 programs 1 All with a center of gravity in healthcare ~90% of student enrollment healthcare focused ©2025 Adtalem Global Education Inc. All rights reserved As of December 31, 2025 1. Programs = degree and certificate programs
Page 5
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 5 Growth with Purpose Strategy Driving Organic Revenue Growth Marketing Enrollment Retention ProgramsPricing Expanding Access to Underserved Communities Ongoing Commitment to Outstanding Student Outcomes Growth with Purpose
Page 6
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 6 Total enrollment growth YoY: +6.3% Growth with Purpose; durable operational foundation, yielding sustainable growth Revenue +12.4% vs. prior year $503.4 million Adj. EBITDA 1 margin +290 bps vs. prior year 30.8% Adj. EPS 1 +34.3% vs. prior year $2.43 Chamberlain 39.3k students Maintained near record total enrollment; leveraging scale & national footprint with a full breadth of nursing programs & modalities Walden 52.4k students Record total enrollment; scaling offerings, leveraging enhanced digital platform through investments in student experience & brand, flexibility designed for working adults through part-time, self-paced, and Tempo Learning® competency-based programs Medical & Veterinary 5.3k students Vet: operating at near capacity; offering one-of-a-kind experiential learning Med: growth in new and total enrollment; consistent strategic progress Q2 FY26 Performance 1. Reconciliations to Non-GAAP Financial Measures and definitions can be found in the appendix
Page 7
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 7 Growth with Purpose Programs: ▪ Walden: launched 7 new degree programs heading into 2026 academic year, with >1,000 students currently enrolled, led by Masters in Applied Behavioral Analysis & Masters in Clinical Psychology ▪ Chamberlain: BSN Online Option, now offered in 38 states, 79 clinical hub locations in key metropolitan areas, >4,200 students currently enrolled ▪ Chamberlain: expanded its Masters Physician Assistant Studies (MPAS) program to its recently relocated Phoenix campus, and the inaugural cohorts of MPAS students at its Chicago campus achieved overwhelmingly positive outcomes with a 96% Physician Assistant National Certifying Exam pass rate2 Enrollment & Retention: ▪ Chamberlain: streamlined its scholarship offerings with the launch of the Commitment to Completion GrantTM, and RN to BSN Tuition Advantage Grant, reinforcing Chamberlain’s commitment to expanding access to programs that give students the skills, confidence, and credibility to excel and improve patient outcomes ▪ Adtalem: enhancing student enrollment & admissions efficiencies through AI deployment use cases; Chamberlain tripled re-engagement with dormant prospects, driving increased applications, Medical & Veterinary AI deployment accelerating review cycles of prospective students, leading to faster admissions review cycles and decisions Financial strength & capital deployment ▪ Trailing twelve months free cash flow1 of $368 million ▪ Completed $150 million share repurchase authorization, new $750 million Board-authorized share repurchase program through December 2028 ▪ Returned $165 million in capital to shareholders through share repurchases in Q2, $728 million remaining under $750 million authorization ▪ Repaid $50 million of outstanding Term Loan B balance on October 29, 2025 Strong Q2 revenue and adjusted EPS 1 results; raising FY26 adj. EPS guidance range ▪ Tenth straight quarter of total enrollment YoY growth ▪ Operational excellence focus, quality academic outcomes, maintained high persistence Highlights 1. Reconciliations to Non-GAAP Financial Measures and definitions can be found in the appendix 2. Represents percent of candidates from the specified classes (Class of 2024 and 2025) that have passed PANCE as of the date th e report was generated, Dec. 17, 2025.
Page 8
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 8 Walden: tenth straight quarter of YoY total enrollment growth Chamberlain: lower YoY total enrollment; strategic actions yielding strong leading indicator results; application volumes up double digits YoY Fourteenth straight quarter of pre-licensure BSN YoY total enrollment growth Adtalem: Continue to deliver quality student outcomes and maintained high persistence levels Chamberlain: +2.2% (1.0)% Walden: +13.6% +13.0% Med/Vet2: +2.4% +2.4% Q1 ‘26 | Q2 ‘26 Year-over-Year % change Q3 ‘25 Q4 ‘25 Q1 ‘26 Q2 ‘26 94.2k Total enrollments1 enterprise Year-over-Year % change enterprise 91.8k 97.4k +9.8% 97.0k Total Enrollment Trends 1. Represents total students attending sessions during each institution’s most recent enrollment period 2. Medical and Veterinary schools do not have a new enrollment period starting in Q2 FY26. Q2 FY26 enrollment is the same as Q1 FY26 enrollment period and the corresponding reported enrollment data. +10.2% +8.0% +6.3%
Page 9
©2025 Adtalem Global Education Inc. All rights reserved ©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 9 Total Enrollment +6.3% • Driven by Walden and Medical & Veterinary Adj. EBITDA 2 margin +290 bps • Revenue growth and operational efficiencies generating leverage, enhanced by one incremental week of Walden revenue contribution; operating leverage partially offset by investments in strategic growth initiatives Adj. EPS 2 +34.3% • Average diluted shares outstanding ~2.2m lower YoY; repurchased ~1.7m shares in Q2 ‘26 • Interest expense lower YoY; reduction of Term Loan B balance $ in Millions, except per share data Revenue Adj. EBITDA 2 % Margin 2 Adj. EPS 2 Total Enrollment 3 Q2 ‘26 ∆ vs. Q2 ‘25 $503.4 +12.4% $154.9 +23.9% 30.8% +290 bps $2.43 +34.3% 97,010 +6.3% Q2 ‘25 $447.7 $125.0 27.9% $1.81 91,264 Growth with Purpose strategy delivering significant value Revenue growth and efficiencies generating operational leverage Revenue & adj. EBITDA growth benefited from one incremental academic week at Walden 1 Investing to expand reach and future growth 1. Walden had one incremental week of revenue contribution in second quarter 2026 results due to the shift of one academic week from the third quarter to the second quarter year-over-year. The one-week academic calendar shift, resulted in $18 million incremental revenue and adj. EBITDA in second quarter 2026 results. 2. Reconciliations to Non-GAAP Financial Measures and definitions can be found in the appendix 3. Represents total students attending sessions during most recent enrollment period Enterprise Performance
Page 10
©2025 Adtalem Global Education Inc. All rights reserved ©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 10 Total Enrollment (1.0)% • Decline in post-licensure nursing programs; partially offset by growth in pre-licensure nursing programs Adj. EBITDA 1 margin (450) bps • Revenue growth offset by strategic investments focused on student experience, enrollment, and academic outcomes $ in Millions Revenue Adj. EBITDA 1 % Margin 1 Total Enrollment 2 Q2 ‘26 ∆ vs. Q2 ‘25 $183.8 +1.6% $45.2 (14.0)% 24.6% (450) bps 39,278 (1.0)% Q2 ‘25 $181.0 $52.6 29.1% 39,691 Strategic actions yielding results Pre- and post-licensure application volumes up double digits YoY High persistence Q2 ‘26 vs. Q2 ‘25: • Pre-licensure up: growth in BSN Online, program offered in 38 states & D.C., >4,200 students enrolled • Post-licensure lower: RN to BSN partially offset by growth in MSN, specifically Psych-Mental Health Chamberlain Performance 1. Reconciliations to Non-GAAP Financial Measures and definitions can be found in the appendix 2. Represents total students attending sessions during most recent enrollment period
Page 11
©2025 Adtalem Global Education Inc. All rights reserved ©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 11 Total Enrollment +13.0% • Growth in healthcare & non-healthcare programs Adj. EBITDA 2 margin +940 bps • Revenue growth and operational efficiencies generating leverage, enhanced by one incremental week of Walden revenue contribution; operational leverage outpaced investments to support student enrollment, academic outcomes, and other expenses $ in Millions Revenue Adj. EBITDA 2 % Margin 2 Total Enrollment 3 Q2 ‘26 ∆ vs. Q2 ‘25 $217.6 +27.0% $86.7 +66.5% 39.8% +940 bps 52,435 +13.0% Q2 ‘25 $171.3 $52.1 30.4% 46,399 Growth driven by healthcare & non-healthcare programs One-week academic calendar shift; $18 million revenue & adj. EBITDA benefit in Q2 ‘26 High persistence Q2 ‘26 vs. Q2 ‘25: • Total enrollment growth across programs & degree levels • Healthcare: led by social behavioral health and nursing programs Walden Performance 1. Walden had one incremental week of revenue contribution in second quarter 2026 results due to the shift of one academic week from the third quarter to the second quarter year-over-year. The one-week academic calendar shift, resulted in $18 million incremental revenue and adj. EBITDA in second quarter 2026 results. 2. Reconciliations to Non-GAAP Financial Measures and definitions can be found in the appendix 3. Represents total students attending sessions during most recent enrollment period Excluding one-week academic calendar shift 1 from Q3 ‘26 to Q2 ‘26: Q2 ‘26 year-over-year: • Revenue growth: +16.5% • Adj. EBITDA growth: +31.9% • Adj. EBITDA margin growth: +400 bps
Page 12
©2025 Adtalem Global Education Inc. All rights reserved ©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 12 Total Enrollment +2.4% • Q2 ‘26 doesn’t include a new enrollment period; total enrollment and YoY growth is same as Q1 ‘26 reported results Adj. EBITDA 1 margin +280 bps • Revenue growth; partially offset by investments focused on student enrollment and academic outcomes $ in Millions Revenue Adj. EBITDA 1 % Margin 1 Total Enrollment 2,3 Q2 ‘26 ∆ vs. Q2 ‘25 $102.0 +6.9% $31.4 +17.6% 30.8% +280 bps 5,297 +2.4% Q2 ‘25 $95.4 $26.7 28.0% 5,174 Vet maintaining leading position Med strengthening foundation, leading indicators for sustainable growth Medical Schools’: • Strategic and operational focus generating demand with core prospective student • Creating new pathways, expanding access and long-term growth Medical & Veterinary Performance 1. Reconciliations to Non-GAAP Financial Measures and definitions can be found in the appendix 2. Represents total students attending sessions during most recent enrollment period 3. Medical and Veterinary schools do not have a new enrollment period starting in Q2 FY26. Q2 FY26 enrollment period is the same as Q1 FY26 enrollment period and the corresponding reported enrollment data
Page 13
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 13 Free Cash Flow Trailing Twelve Months Operating Cash Flow1 Capital Expenditures Free Cash Flow2 1. Operating cash flow defined as net cash provided by operating activities – continuing operations (GAAP) 2. Reconciliations to Non-GAAP Financial Measures and definitions can be found in the appendix $ in Millions Q2 ‘25 Q3 ‘25 Q4 ‘25 Q1 ‘26 $282 ($50) $232 $335 ($48) $287 $333 ($50) $283 $375 ($56) $319 Q2 ‘26 $428 ($60) $368 $319$283$287 $232 $368 Continued healthy cash generation and disciplined capital allocation Cash Flow
Page 14
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 14 Maintaining strong momentum; increasing adjusted EPS guidance FY 2026 Guidance Underlying Themes Revenue Adj. EPS 1 $1,900m – $1,940m $7.80 – $8.00 YoY approx. growth 6% 8.5% YoY approx. growth 17% 20% Revenue growth higher in 1H ‘26 vs. 2H ‘26 100 bps adj. EBITDA 1 margin expansion; operational excellence delivering efficiencies Increased level of investments in Q3 ‘26 compared to Q4 ‘26 Continued strong cash flow & capital deployment 1. Reconciliations to Non-GAAP Financial Measures and definitions can be found in the appendix
Page 15
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 15 A systemically important component of the U.S. healthcare system, with a clear growth roadmap and meaningful shareholder value creation opportunities Transformed Portfolio, Positioned Well as the Largest Healthcare Educator In a growing, structurally attractive industry with durable demand trends Creating Long-Term Value with Growth with Purpose Strategy Focused on accelerating organic total enrollment growth and efficiency Executing with Operational Excellence Creating the ability to sustainably invest in accretive growth opportunities while delivering long-term margin expansion Strong and Stable Financial Profile With a healthy balance sheet, cash generative model, and an attractive capital allocation philosophy Greater Scale Driving a Greater Purpose Committed to student and societal outcomes
Page 16
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 16 1. Timing and amount of any repurchase will be determined based on evaluation of market conditions and other factors Student Growth Growth with Purpose to invest back into our institutions and capabilities to reach optimal capacity Investing to expand access to in-demand healthcare education Return Excess Cash Completed $150 million Board-authorized share repurchase program; announced new $750 million Board-authorized share repurchase program through December 20281 Repurchased $165 million of shares in the second quarter Financial Strength Thoughtfully reduce long-term financial obligations to maximize flexibility and balance sheet strength Repaid $50 million of outstanding Term Loan B balance on October 29, 2025 Opportunistic M&A Opportunities to enhance our student outcomes through capabilities and technology Focused on tuck-ins to horizontally expand into in-demand healthcare education markets Disciplined Capital Allocation Philosophy
Page 17
Appendix
Page 18
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 18 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, amortization of acquired intangible assets, strategic advisory costs, write-off of debt discount and issuance costs, litigation reserve, debt modification costs, 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, amortization of acquired intangible assets, strategic advisory costs, write-off of debt discount and issuance costs, litigation reserve, debt modification costs, and income from discontinued operations. Adjusted operating income (most comparable GAAP measure: operating income) – Measure of Adtalem’s operating income adjusted for restructuring expense, amortization of acquired intangible assets, litigation reserve, strategic advisory costs, and debt modification costs. 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, litigation reserve, strategic advisory costs, and debt modification costs. 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 adjusted 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. • Amortization of acquired intangible assets. • Amortization of cloud computing implementation costs. • Strategic advisory costs related to expanding capabilities and bringing new capacities to market to further enhance our strategic position. We do not include normal, recurring, cash operating expenses in our strategic advisory costs. • Reserves related to significant litigation • Write-off of debt discount and issuance costs related to prepayments of debt and the amendment of the revolving loan facility. • Debt modification costs related to refinancing our Term Loan B loan. • Income from discontinued operations includes expenses from ongoing litigation costs and settlements related to divestitures and the earn-outs we received
Page 19
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 19 Adjusted Operating Income Disclosure (1/2) (unaudited) (in thousands) Three Months Ended Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2025 2024 $ % 2025 2024 $ % Chamberlain: Operating income $ 31,998 $ 42,226 $ (10,228) (24.2) % $ 57,606 $ 68,200 $ (10,594) (15.5) % Restructuring expense 1,825 77 1,748 1,825 1,935 (110) Adjusted operating income $ 33,823 $ 42,303 $ (8,480) (20.0) % $ 59,431 $ 70,135 $ (10,704) (15.3) % Operating margin 17.4 % 23.3 % 15.9 % 19.5 % Adjusted operating margin 18.4 % 23.4 % 16.4 % 20.1 % Walden: Operating income $ 75,226 $ 48,898 $ 26,328 53.8 % $ 128,495 $ 88,735 $ 39,760 44.8 % Restructuring expense 429 — 429 429 — 429 Amortization of acquired intangible assets 2,805 2,805 — 5,610 5,610 — Litigation reserve — (5,550) 5,550 — (5,550) 5,550 Adjusted operating income $ 78,460 $ 46,153 $ 32,307 70.0 % $ 134,534 $ 88,795 $ 45,739 51.5 % Operating margin 34.6 % 28.5 % 31.5 % 26.7 % Adjusted operating margin 36.1 % 26.9 % 33.0 % 26.7 % Medical and Veterinary: Operating income $ 24,599 $ 21,463 $ 3,136 14.6 % $ 41,327 $ 36,134 $ 5,193 14.4 % Restructuring expense 436 56 380 480 115 365 Adjusted operating income $ 25,035 $ 21,519 $ 3,516 16.3 % $ 41,807 $ 36,249 $ 5,558 15.3 % Operating margin 24.1 % 22.5 % 21.2 % 19.7 % Adjusted operating margin 24.5 % 22.5 % 21.4 % 19.8 %
Page 20
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 20 Adjusted Operating Income Disclosure (2/2) (unaudited) (in thousands) Three Months Ended Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2025 2024 $ % 2025 2024 $ % Home Office: Operating loss $ (20,709) $ (8,717) $ (11,992) (137.6) % $ (30,837) $ (18,961) $ (11,876) (62.6) % Restructuring expense 1,365 189 1,176 1,631 366 1,265 Strategic advisory costs 8,110 — 8,110 9,794 — 9,794 Debt modification costs — — — — 712 (712) Adjusted operating loss $ (11,234) $ (8,528) $ (2,706) (31.7) % $ (19,412) $ (17,883) $ (1,529) (8.6) % Adtalem Global Education: Operating income (GAAP) $ 111,114 $ 103,870 $ 7,244 7.0 % $ 196,591 $ 174,108 $ 22,483 12.9 % Restructuring expense 4,055 322 3,733 4,365 2,416 1,949 Amortization of acquired intangible assets 2,805 2,805 — 5,610 5,610 — Litigation reserve — (5,550) 5,550 — (5,550) 5,550 Strategic advisory costs 8,110 — 8,110 9,794 — 9,794 Debt modification costs — — — — 712 (712) Adjusted operating income (non-GAAP) $ 126,084 $ 101,447 $ 24,637 24.3 % $ 216,360 $ 177,296 $ 39,064 22.0 % Operating margin (GAAP) 22.1 % 23.2 % 20.4 % 20.1 % Adjusted operating margin (non-GAAP) 25.0 % 22.7 % 22.4 % 20.5 %
Page 21
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 21 Adjusted EBITDA Disclosure (1/2) (unaudited) (in thousands) Three Months Ended Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2025 2024 $ % 2025 2024 $ % Chamberlain: Adjusted operating income (GAAP) $ 33,823 $ 42,303 $ (8,480) (20.0) % $ 59,431 $ 70,135 $ (10,704) (15.3) % Depreciation 5,706 5,466 240 11,081 10,834 247 Amortization of cloud computing implementation assets 2,020 815 1,205 3,547 1,467 2,080 Stock-based compensation 3,674 3,993 (319) 6,244 7,112 (868) Adjusted EBITDA (non-GAAP) $ 45,223 $ 52,577 $ (7,354) (14.0) % $ 80,303 $ 89,548 $ (9,245) (10.3) % Adjusted EBITDA margin (non-GAAP) 24.6 % 29.1 % 22.1 % 25.7 % Walden: Adjusted operating income (GAAP) $ 78,460 $ 46,153 $ 32,307 70.0 % $ 134,534 $ 88,795 $ 45,739 51.5 % Depreciation 2,074 1,795 279 4,014 3,477 537 Amortization of cloud computing implementation assets 1,901 778 1,123 3,105 1,479 1,626 Stock-based compensation 4,237 3,326 911 6,890 6,066 824 Adjusted EBITDA (non-GAAP) (1) $ 86,672 $ 52,052 $ 34,620 66.5 % $ 148,543 $ 99,817 $ 48,726 48.8 % Adjusted EBITDA margin (non-GAAP) (1) 39.8 % 30.4 % 36.5 % 30.0 % Medical and Veterinary: Adjusted operating income (GAAP) $ 25,035 $ 21,519 $ 3,516 16.3 % $ 41,807 $ 36,249 $ 5,558 15.3 % Depreciation 3,007 2,744 263 5,827 5,313 514 Amortization of cloud computing implementation assets 705 315 390 1,116 598 518 Stock-based compensation 2,682 2,158 524 4,092 3,765 327 Adjusted EBITDA (non-GAAP) $ 31,429 $ 26,736 $ 4,693 17.6 % $ 52,842 $ 45,925 $ 6,917 15.1 % Adjusted EBITDA margin (non-GAAP) 30.8 % 28.0 % 27.1 % 25.0 %
Page 22
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 22 Adjusted EBITDA Disclosure (2/2) (unaudited) (in thousands) Three Months Ended Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2025 2024 $ % 2025 2024 $ % Home Office: Adjusted operating loss $ (11,234) $ (8,528) $ (2,706) (31.7) % $ (19,412) $ (17,883) $ (1,529) (8.6) % Depreciation 167 185 (18) 328 369 (41) Stock-based compensation 2,646 1,990 656 4,306 3,975 331 Adjusted EBITDA $ (8,421) $ (6,353) $ (2,068) (32.6) % $ (14,778) $ (13,539) $ (1,239) (9.2) % Adtalem Global Education: Net income (GAAP) $ 76,376 $ 75,856 $ 520 0.7 % $ 138,208 $ 122,021 $ 16,187 13.3 % Income from discontinued operations (205) (4,680) 4,475 (975) (4,600) 3,625 Interest expense 10,917 13,909 (2,992) 22,007 28,391 (6,384) Other income, net (1,704) (2,235) 531 (4,190) (4,881) 691 Provision for income taxes 25,730 21,020 4,710 41,541 33,177 8,364 Depreciation and amortization 18,385 14,903 3,482 34,628 29,147 5,481 Stock-based compensation 13,239 11,467 1,772 21,532 20,918 614 Restructuring expense 4,055 322 3,733 4,365 2,416 1,949 Litigation reserve — (5,550) 5,550 — (5,550) 5,550 Strategic advisory costs 8,110 — 8,110 9,794 — 9,794 Debt modification costs — — — — 712 (712) Adjusted EBITDA (non-GAAP) (1) $ 154,903 $ 125,012 $ 29,891 23.9 % $ 266,910 $ 221,751 $ 45,159 20.4 % Adjusted EBITDA margin (non-GAAP) (1) 30.8 % 27.9 % 27.6 % 25.6 % (1) Walden had $18.0 million of incremental revenue in the second quarter of fiscal year 2026 compared to the prior year period due to the shift of one academic week from the third quarter to the second quarter. Excluding the incremental revenue, Walden adjusted EBITDA would have increased 31.9%, or $16.6 million, to $68.7 million, and total consolidated adjusted EBITDA would have increased 9.5%, or $11.9 million, to $136.9 million for the second quarter of fiscal year 2026. Excluding the incremental revenue, Walden adj usted EBITDA margi n and consolidated adjusted EBITDA margin would have been 34.4% and 28.2%, respectively, for the second quarter of fiscal year 2026.
Page 23
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 23 Adjusted Earnings Disclosure (unaudited) (in thousands, except per share data) Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 Net income (GAAP) $ 76,376 $ 75,856 $ 138,208 $ 122,021 Restructuring expense 4,055 322 4,365 2,416 Amortization of acquired intangible assets 2,805 2,805 5,610 5,610 Strategic advisory costs 8,110 — 9,794 — Write-off of debt discount and issuance costs, litigation reserve, and debt modification costs 687 (5,550) 982 (4,838) Income tax impact on non-GAAP adjustments (1) (3,922) 645 (5,146) (687) Income from discontinued operations (205) (4,680) (975) (4,600) Adjusted net income (non-GAAP) $ 87,906 $ 69,398 $ 152,838 $ 119,922 (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, 2025 2024 2025 2024 Diluted earnings per share (GAAP) $ 2.11 $ 1.98 $ 3.77 $ 3.15 Effect on diluted earnings per share: Restructuring expense 0.11 0.01 0.12 0.06 Amortization of acquired intangible assets 0.08 0.07 0.15 0.14 Strategic advisory costs 0.22 - 0.27 - Write-off of debt discount and issuance costs, litigation reserve, and debt modification costs 0.02 (0.14) 0.03 (0.12) Income tax impact on non-GAAP adjustments (1) (0.11) 0.02 (0.14) (0.02) Income from discontinued operations (0.01) (0.12) (0.03) (0.12) Adjusted earnings per share (non-GAAP) $ 2.43 $ 1.81 $ 4.17 $ 3.09 Diluted shares 36,230 38,401 36,644 38,755 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.
Page 24
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 24 Free Cash Flow Disclosure (unaudited) (in thousands) Twelve Months Ended FY25 FY25 FY25 FY26 FY26 Q2 Q3 Q4 Q1 Q2 Net cash provided by operating activities- continuing operations (GAAP) $ 281,971 $ 335,069 $ 333,734 $ 374,796 $ 427,890 Capital expenditures (50,375) (47,914) (50,327) (55,936) (59,880) Free cash flow (non-GAAP) $ 231,596 $ 287,155 $ 283,407 $ 318,860 $ 368,010
Page 25
©2026 Adtalem Global Education Inc. All rights reserved ADTALEM: Second Quarter 2026 Results / 25 Net Leverage Disclosure (unaudited) (in thousands) Twelve Months Ended December 31, 2025 Adtalem Global Education: Net income (GAAP) $ 253,252 Income from discontinued operations (763) Interest expense 45,934 Other income, net (8,599) Provision for income taxes 74,201 Depreciation and amortization 64,646 Stock-based compensation 42,204 Restructuring expense 5,263 Asset impairments 6,442 Strategic advisory costs 21,794 Loss on assets held for sale 490 Adjusted EBITDA (non-GAAP) $ 504,864 December 31, 2025 Long-term debt $ 508,283 Less: Cash and cash equivalents (56,281) Net debt (non-GAAP) $ 452,002 Net leverage (non-GAAP) 0.9 x