Adtalem Global Education Inc.

Greetings and welcome to the Ad Talem Global Education Fourth Quarter Fiscal Year 2025 Results Call. At this time, all participants are in a listen-only mode. A question and answer session will follow a formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to your hosts Jonathan Spitzer, Vice President of Investor Relations. Thank you. You may begin.

Good afternoon, and welcome to our earnings call for the fourth quarter fiscal year 2025 results. On the call with me today are Steve Beard, Chairman and Chief Executive Officer of AdTalent Global Education, and Bob Phelan, Chief Financial Officer. Before I hand you over to Steve, I will usually take you through the legal safe harbor and cautionary declarations. Certain statements and projections of future results made in this presentation constitute as forward-looking statements that are based on our current market competitive and regulatory expectations and are subject to risks and uncertainties that could cause actual results to vary materially. We undertake no obligation to update publicly any forward-looking statement after this presentation, whether a result of new information, future events, changes in assumptions, or otherwise. Please see our latest Form 10-K, Form 10-Q for discussion of risk factors as it relates to forward-looking statements. In today's presentation, we'll use certain non-GAAP financial measures. We'll refer you to the appendix in the presentation materials available on our Investor Relations website for reconciliations to most directly comparable GAAP financial measures and related information. You will find a link to the webcast on our Investor Relations website at investors.adtalent.com. After this call, the presentation webcast will be archived on the website for 30 days. I will now hand you over to Steve.

Thanks, Jay. Good afternoon, everyone, and thank you for joining us today. Fiscal 2025 was a defining year for AdTalent. Our growth with purpose strategy delivered outstanding financial results and meaningful student outcomes, exceeding our plan and marking a clear inflection point in our growth trajectory. Now just beyond the midpoint of our three-year roadmap, we've established a credible, repeatable methodology for sustainable growth. Growth that delivers value to shareholders, opportunity to students, and impact to communities. The momentum we're seeing is real and it's the result of deliberate action. We've re-engineered our institutional footprint around a unified model that unlocks operating leverage and accelerates profitability. We're leading the industry in marketing innovation, driving higher conversion at lower acquisition cost. And we're deploying student-facing technologies and AI-powered learning tools grounded in our proprietary data, improving student persistence across the board. This is growth with purpose in action. And here's what that translated into for fiscal 2025. Total enrollment grew every quarter, averaging over 10% for the year, with all three segments contributing. Revenue reached $1.79 billion, up 12.9% year-over-year. Adjusted EBITDA margin expanded 190 basis points to 25.7%. Adjusted earnings per share grew 33% to $6.67. We generated $283 million in free cash flow, And we further strengthened our financial position by reducing our term loan B balance by $100 million and lowered our borrowing costs by 75 basis points. Finally, we returned $211 million in excess capital to our shareholders through shareholder purchases. At the same time, the urgency of America's healthcare workforce crisis is intensified. Our education to employment model is meeting this challenge at an unmatched scale, creating direct impact in local communities and healthcare systems across the country. And at a time when the value proposition of traditional higher education is under increased scrutiny from students and families, the data strongly affirms our differentiated approach. A recent study by Lightcast underscores the vital role that proprietary institutions play in healthcare workforce development. For example, proprietary institutions supply 17% of registered nurses entering the workforce. More telling, Graduates from for-profit bachelor degree programs have lower unemployment rates and are one and a half times more likely to secure full-time employment than their peers from public and not-for-profit institutions. These aren't abstract figures. They represent real nurses filling critical roles in real communities. This year alone, we served over 94,000 students and graduated 29,000 professionals. Just as importantly, we believe that transformative partnerships between educators and employers are the key to closing workforce gaps. Our newly announced partnership with SSM Health is a powerful example of that. This model provides a direct employment pathway for students and reflects what healthcare education must become, accessible, outcome-oriented, and directly aligned with employer needs. This model is replicable and scalable with other health systems. and it exemplifies our vision to expand access to healthcare education, to connect education to employment outcomes, to build durable, purpose-driven career pathways, and to establish Atalem as the central hub between talent and healthcare employers across the entire continuum from nurses to physicians and beyond. Our segment performance this year reflects that vision. Chamberlain University, the nation's largest nursing school, ended the fourth quarter with 5.8% enrollment growth, reaching approximately 39,000 students. Walden University achieved its eighth consecutive quarter of accelerating performance, with fourth quarter enrollment of 15% to 48,000 students. Both Chamberlain and Walden were recognized as opportunity colleges and universities in the 2025 Student Access and Earnings Classification by the Carnegie Foundation, recognition that affirms not only our access mission, but also our impact on post-graduation earnings and community health outcomes. Our medical and veterinary segment grew fourth quarter enrollment by 1%. AUC and Ross Med are delivering encouraging signals for long-term growth, while Ross Vet continues to operate near capacity. These results show that our strategy drives sustained cross-institutional performance academically, operationally, and financially. We're also proactively navigating external changes. The One Big Beautiful Bill Act was recently signed into law, and with it came a number of important education provisions, all of which we believe we're well positioned to manage. As a leader in healthcare education, we have the ability to provide solutions to ensure students continue to have access to the resources they need to pursue their academic goals. One example is our newly announced letter of intent with Sally Mae, a longstanding leader and innovator in student lending. Together, we're exploring solutions for Ad Talem students with the intention to establish alternative financing designed specifically for our student population. This LOI reflects the strength of our academic offerings, the caliber of our student body, and the strong employment outcomes that our graduates achieve. Importantly, the legislation also helps reduce our long-term regulatory risk by establishing a more level playing field across all higher education institutions. And we remain constructively engaged with the Department of Education which continues to demonstrate openness to collaborative, mission-aligned solutions that reflect the needs of students and the public good. Looking ahead, the fundamentals of our business remain strong. Demand for our career-aligned healthcare programs continues to grow as the national workforce shortage deepens. We're investing strategically to expand capacity and reduce barriers to access. And we have the scale, strategy, and execution capability to drive long-term sustainable growth. As a result, we enter the fiscal 2026 period with confidence. Our full year guidance reflects continued momentum. We expect revenue of $1.90 to $1.94 billion and adjusted EPS of $7.60 to $7.90. Before I hand the call over to Bob for a detailed financial overview, I want to thank our 10,000 colleagues who show up every day committed to transforming healthcare education. And I want to thank our dedicated students. Your exceptional outcomes are creating positive impact across communities nationwide. Every nurse, doctor, and healthcare professional we graduate represents our collective commitment and action. Thank you. Now, I'll turn it over to Bob.