Adtalem Global Education Inc.

Greetings and welcome to the Ad Telum Global Education Second Quarter 2026 Earnings. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jay Spitzer, VP of IR. Thank you, Jay. You may be doing.

Good afternoon and welcome to our earnings call for the second quarter fiscal year 2026 results. On the call with me today are Steve Beard, Chairman and Chief Executive Officer of Ad Town Global Education, and Bob Phelan, Chief Financial Officer. Before I hand you over to Steve, I will, as usual, take you through 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 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 as a result of new information, future events, changes in assumptions, or otherwise. Please see our latest Form 10-K and Form 10-Q for discussions of risk factors as they relate to forward-looking statements. In today's presentation, we have certain non-GAAP financial measures, and we refer you to the appendix of the presentation materials available on our Investor Relations website for reconciliations to the 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. This quarter marks our 10th consecutive quarter of enrollment growth. We remain on track to achieve our full-year revenue guidance of 6% to 8.5% growth, and we're raising our adjusted earnings per share guidance to 17% to 20% growth. As we enter 2026, we continue to execute against our strategic roadmap. Our strong second quarter results reflect that execution. The momentum we've built over the last several years is proving sustainable demonstrating the power of our differentiated business model. Our consistent performance, strong balance sheet, and robust cash generation power a value-creating capital allocation philosophy. This quarter, we deployed $165 million to share repurchases, and we have approximately $728 million remaining on our current authorization. We'll continue to take a disciplined, returns-focused approach to capital allocation. Our focus on students and investments in modern, innovative learning continue to yield strong academic, operational, and financial outcomes. Walden has achieved record total enrollment. More than 52,000 students now generate industry-leading scale and operating leverage. Chamberlain expanded its reach as the national leader in nursing, growing enrollment by 6,000 students in just three years to reach a record of 40,000 students. Ross Vet continues to graduate more veterinarians than any other school. And AUC and Ross Met together graduate twice as many physicians as any MD-granting school in the United States. Simply put, we've established the quality and scale to be a trusted leader in healthcare talent development and an essential component in tackling America's healthcare workforce shortage. Now, let me zoom out. We all read the headlines. The healthcare workforce crisis isn't easing. It's intensifying. America's health care system begins 2026 substantially understaffed, with workforce gaps expected to deepen. The challenge exists everywhere, but is particularly acute in rural communities and underserved urban areas where continuity of care and access are already fragile. The stakes for the entire health care system couldn't be higher. Tackling a crisis of this magnitude requires workforce infrastructure that operates at a different scale than traditional academic institutions. And that's precisely where our opportunity lies. At our Investor Day on February 24th, we'll lay out our multi-year growth framework, including capacity expansion plans and new revenue streams that position us to meet these societal needs while delivering sustainable earnings growth. Now let me walk through our second quarter performance. Total enrollment grew over 6% to 97,000 students. Revenue grew 12% to $503 million. We delivered further efficiencies as adjusted EBITDA grew to $155 million. Our solid profitability, together with disciplined capital allocation, has yielded adjusted earnings per share of $2.43, an increase of 34% versus last year. Growth with purpose remains our durable operational framework yielding clear academic, operational, and financial returns. Our strategy to optimize existing capacity has yielded record or near-record enrollments at Walden and Chamberlain and has positioned the MedVet segment for sustainable growth. More importantly, we believe the success of Growth with Purpose has earned us the permission to expand our leading position and invest in solutions that address U.S. healthcare workforce shortages while sustainably growing earnings for years to come. With that context, let me turn to our segment result. At Chamberlain, we're confident in our trajectory. Q3 total enrollment will remain soft as recent improvements work their way through the student journey. But the real proof point is the fall enrollment cycle. Let me explain why we like what we're seeing. Chamberlain's fundamentals remain exceptionally strong. Over the past two years, Chamberlain added 5,600 new students and grew revenue by $155 million, a 27% increase. We hit record enrollment nine months ago. This quarter's negative 1% total enrollment and the relatively flat growth we expect over the balance of the year represents a temporary pause in that trajectory, not a reversal of it. Over the last three years, we successfully launched new campuses in Atlanta and Kansas City. We relocated our Phoenix campus. and we built our national online BSN program to more than 4,200 students across 38 states in just four years. Together, these moves have maintained or grown our market-leading positions. We're number one in BSN, number three in our BSN, number one in master's, and number one in the doctoral category. This is a testament to the performance and scale foundation that sets Chamberlain apart. Last quarter, I identified two execution gaps, marketing effectiveness and enrollment funnel conversion. We moved swiftly to address both, and early indications are encouraging. Application volumes for both pre-licensure and post-licensure nursing programs are up double digits during the second quarter, running ahead of where we were at this point last year. On marketing, we optimized spend and we improved our website. We streamline scholarship offerings so students can research programs with a clearer picture of net cost of attendance. And our focus on a more seamless prospective student experience has increased funnel conversion. We're moving forward with precision and operational accountability. But here's what matters. We expect this application momentum will translate into new enrollment growth and position us well heading into the critical fall cycle. At Walden, we delivered our 10th consecutive quarter of enrollment growth of 13% in the second quarter. As a result, we achieved record total enrollments of 52,400 students. Similar to prior quarters, Walden's digital learning platform and flexible offerings continue to demonstrate strength as we innovate and deliver an increasingly seamless experience for working adults. Building on this momentum, we launched several new programs heading into this academic year. Programs such as the Master in Applied Behavioral Analysis and the Master's Degree in Clinical Psychology are attracting working professionals who want to make meaningful societal contributions. Overall, our new programs have already enrolled more than 1,200 students in less than one year, with additional programs in the development pipeline that we expect to roll out soon. Last quarter, I highlighted that we streamline our professional doctoral programs creating a more seamless student experience with a simplified tuition structure. Building on that, we recently launched the Walden University PhD Completion Program, designed for doctoral students who left their original program before finishing their dissertation. We're now providing a channel for them to reach the finish line and earn their degree with us. These enhancements showcase our commitment to drive meaningful impact for thousands of students. Turning to our medical and veterinary segment, The second quarter isn't an enrollment period, but we're seeing momentum in leading enrollment indicators. At our medical schools, we're executing on two fronts, creating innovative pathways that expand access and remove barriers to the MD program, and driving operational excellence in our enrollment funnel. This sets us on a sustainable trajectory of enrollment growth. Leveraging technology and artificial intelligence in our basic sciences curriculum enables a higher precision learning environment. Combined with our capstone program, this has yielded enhanced student outcomes through increases to our USMLE Step 1 pass rates. Ross Vet continues to operate at near capacity, maintaining its position as a leader in veterinary education with a one-of-a-kind experiential learning model. And Ross Vet has also increased its NAVLE pass rate. In closing, let me come back to where I began. As America's largest healthcare educator, we're uniquely well-positioned to address substantial and growing healthcare workforce shortages at scale. Our combination of program breadth, geographic reach, and proven outcomes is unparalleled. Finally, I want to acknowledge the unwavering commitment of our 10,000 colleagues, 97,000 students, and 385,000 alumni. They make all of this possible. And with that, I'll turn the call over to Bob Phelan, our CFO.