Adtalem has achieved structural margin expansion, with gross margins reaching 59.2% in 2026Q2 as the firm successfully scales its specialized healthcare degree offerings.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 1.89B | 1.79B | 1.58B | 1.45B | 1.38B | 899.25M | 866.43M | 1.24B | 1.23B | 1.81B | 1.84B | 1.91B | 1.92B | 1.96B | 2.09B | 2.18B | 1.92B | 1.46B | 1.09B | 933.47M | 843.3M | 781.3M | 784.88M | 679.58M | 647.58M | 568.18M | 505.33M | 419.4M | 351.9M | 307.3M | 258.9M |
| Revenue Growth % | 11.92% | 12.85% | 9.22% | 4.99% | 53.67% | 3.79% | -30.11% | 0.69% | -31.97% | -1.83% | -3.48% | -0.7% | -2.09% | -6% | -4.24% | 13.95% | 31.05% | 33.85% | 16.96% | 10.69% | 7.93% | -0.46% | 15.5% | 4.94% | 13.98% | 12.44% | 20.49% | 19.18% | 14.51% | 18.69% | 13.9% |
| Cost of Goods Sold | 791.41M | 771.43M | 698.55M | 648.49M | 659.78M | 457.9M | 457.17M | 623.54M | 645.6M | 962.19M | 986.78M | 1B | 983.44M | 962.22M | 975.64M | 925.5M | 826.09M | 669.67M | 503.13M | 486.72M | 452.62M | 437.35M | 420.11M | 366.07M | 347.99M | 304.53M | 260.65M | 218.4M | 184.3M | 166.9M | 147.6M |
| COGS % of Revenue | - | 43.14% | 44.08% | 44.7% | 47.75% | 50.92% | 52.76% | 50.3% | 52.44% | 53.17% | 53.53% | 52.36% | 51.13% | 48.98% | 46.69% | 42.41% | 43.13% | 45.82% | 46.08% | 52.14% | 53.67% | 55.98% | 53.52% | 53.87% | 53.74% | 53.6% | 51.58% | 52.07% | 52.37% | 54.31% | 57.01% |
| Gross Profit | 1.1B | 1.02B | 886.1M | 802.34M | 722.07M | 441.34M | 409.26M | 616.15M | 585.61M | 847.61M | 856.76M | 909.89M | 939.93M | 1B | 1.11B | 1.26B | 1.09B | 791.78M | 588.7M | 446.75M | 390.68M | 343.96M | 364.78M | 313.5M | 299.6M | 263.64M | 244.69M | 201M | 167.6M | 140.4M | 111.3M |
| Gross Margin % | 58.1% | 56.86% | 55.92% | 55.3% | 52.25% | 49.08% | 47.24% | 49.7% | 47.56% | 46.83% | 46.47% | 47.64% | 48.87% | 51.02% | 53.31% | 57.59% | 56.87% | 54.18% | 53.92% | 47.86% | 46.33% | 44.02% | 46.48% | 46.13% | 46.26% | 46.4% | 48.42% | 47.93% | 47.63% | 45.69% | 42.99% |
| Gross Profit Growth % | - | 14.76% | 10.44% | 11.12% | 63.61% | 7.84% | -33.58% | 5.22% | -30.91% | -1.07% | -5.84% | -3.2% | -6.21% | -10.05% | -11.36% | 15.4% | 37.55% | 34.5% | 31.77% | 14.35% | 13.58% | -5.71% | 16.35% | 4.64% | 13.64% | 7.75% | 21.73% | 19.93% | 19.37% | 26.15% | 14.98% |
| Operating Expenses | 733.01M | 675.32M | 669.05M | 634.17M | 645.32M | 330.94M | 299.19M | 400.41M | 373.06M | 618.15M | 654.05M | 708.28M | 727.87M | 756.38M | 808.4M | 762.69M | 678.19M | 556.95M | 426.37M | 338.21M | 323.01M | 300.17M | 275.59M | 225.77M | 188.71M | 167.33M | 166.69M | 138.9M | 117.8M | 98.8M | 78.6M |
| OpEx % of Revenue | - | 37.76% | 42.22% | 43.71% | 46.7% | 36.8% | 34.53% | 32.3% | 30.3% | 34.16% | 35.48% | 37.08% | 37.84% | 38.51% | 38.68% | 34.95% | 35.41% | 38.11% | 39.05% | 36.23% | 38.3% | 38.42% | 35.11% | 33.22% | 29.14% | 29.45% | 32.99% | 33.12% | 33.48% | 32.15% | 30.36% |
| Selling, General & Admin | 714.55M | 671.11M | 614.47M | 576.01M | 566.49M | 292.48M | 280.29M | 400.41M | 327.71M | 369.04M | 352.65M | 708.28M | 986.87M | 756.38M | 808.4M | 762.69M | 678.19M | 548.07M | 422.62M | 359.02M | 323.01M | 300.17M | 275.59M | 225.77M | 188.71M | 167.33M | 141.44M | 121.1M | 103.8M | 87.5M | 71M |
| SG&A % of Revenue | - | 37.53% | 38.78% | 39.7% | 41% | 32.53% | 32.35% | 32.3% | 26.62% | 20.39% | 19.13% | 37.08% | 51.31% | 38.51% | 38.68% | 34.95% | 35.41% | 37.5% | 38.71% | 38.46% | 38.3% | 38.42% | 35.11% | 33.22% | 29.14% | 29.45% | 27.99% | 28.87% | 29.5% | 28.47% | 27.42% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2.82M | 4.21M | 54.59M | 58.16M | 78.83M | 38.46M | 18.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.88M | 3.74M | -20.81M | 0 | 0 | 0 | 0 | 0 | 0 | 25.25M | 17.8M | 14M | 11.3M | 7.6M |
| Operating Income | 364.02M | 341.54M | 217.05M | 168.17M | 76.75M | 110.4M | 110.07M | 185.99M | 207.48M | 138.61M | -12.14M | 156.91M | 181.27M | 166.93M | 204.24M | 494.18M | 410.9M | 234.83M | 162.34M | 102.29M | 67.67M | 43.79M | 89.19M | 87.74M | 110.88M | 96.31M | 77.99M | 62.1M | 49.8M | 41.6M | 32.7M |
| Operating Margin % | 19.27% | 19.1% | 13.7% | 11.59% | 5.55% | 12.28% | 12.7% | 15% | 16.85% | 7.66% | -0.66% | 8.22% | 9.42% | 8.5% | 9.77% | 22.64% | 21.45% | 16.07% | 14.87% | 10.96% | 8.02% | 5.61% | 11.36% | 12.91% | 17.12% | 16.95% | 15.43% | 14.81% | 14.15% | 13.54% | 12.63% |
| Operating Income Growth % | - | 57.35% | 29.07% | 119.13% | -30.48% | 0.3% | -40.82% | -10.36% | 49.68% | 1241.51% | -107.74% | -13.44% | 8.59% | -18.27% | -58.67% | 20.27% | 74.98% | 44.66% | 58.71% | 51.15% | 54.53% | -50.9% | 1.66% | -20.87% | 15.13% | 23.49% | 25.59% | 24.7% | 19.71% | 27.22% | 18.48% |
| EBITDA | 450.07M | 393.46M | 292.37M | 270.79M | 218.59M | 144.29M | 195.13M | 226.69M | 260.3M | 195.59M | 73.41M | 247.47M | 271.08M | 260.18M | 292.93M | 558.75M | 473.12M | 285.28M | 202.21M | 146.29M | 115.78M | 101.36M | 144.77M | 128.07M | 144.42M | 128.35M | 103.24M | 79.9M | 63.8M | 52.9M | 40.3M |
| EBITDA Margin % | 23.83% | 22% | 18.45% | 18.66% | 15.82% | 16.05% | 22.52% | 18.29% | 21.14% | 10.81% | 3.98% | 12.96% | 14.09% | 13.24% | 14.02% | 25.6% | 24.7% | 19.52% | 18.52% | 15.67% | 13.73% | 12.97% | 18.45% | 18.85% | 22.3% | 22.59% | 20.43% | 19.05% | 18.13% | 17.21% | 15.57% |
| EBITDA Growth % | 14.24% | 34.58% | 7.97% | 23.88% | 51.5% | -26.05% | -13.93% | -12.91% | 33.09% | 166.44% | -70.34% | -8.71% | 4.19% | -11.18% | -47.57% | 18.1% | 65.84% | 41.08% | 38.22% | 26.35% | 14.23% | -29.99% | 13.04% | -11.32% | 12.52% | 24.32% | 29.21% | 25.24% | 20.6% | 31.27% | 19.23% |
| D&A (Non-Cash Add-back) | 86.04M | 51.92M | 75.32M | 102.61M | 141.85M | 33.89M | 85.06M | 40.71M | 52.82M | 56.97M | 85.55M | 90.56M | 89.82M | 93.25M | 88.69M | 64.57M | 62.22M | 50.45M | 39.87M | 44.01M | 48.11M | 57.57M | 55.58M | 40.33M | 33.54M | 32.04M | 25.25M | 17.8M | 14M | 11.3M | 7.6M |
| EBIT | 368.05M | 345.75M | 271.64M | 226.33M | 155.57M | 148.86M | 224.5M | 170.22M | 213.3M | 200.62M | 156.76M | 201.6M | 212.06M | 168.58M | 208.75M | 495.71M | 414.21M | 240.13M | 162.34M | 108.54M | 67.67M | 30.14M | 82.4M | 87.74M | 110.88M | 95.14M | 77.99M | 63.41M | 49.8M | 41.7M | 32.7M |
| Net Interest Income | -35.91M | -44.1M | -63.66M | -52.52M | -124.97M | -38.74M | -15.82M | -15.93M | -10.98M | -4.24M | -5.27M | -3.25M | -1.9M | -1.96M | -1.79M | 256K | 495K | 2.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 7.16M | 8.22M | 0 | 10.65M | 3.82M | 4.09M | 3.69M | 3.97M | 598K | 4.92M | 666K | 2.06M | 1.73M | 1.65M | 818K | 1.54M | 2.08M | 5.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 43.06M | 52.32M | 63.66M | 63.17M | 129.35M | 42.84M | 19.51M | 19.9M | 11.58M | 9.14M | 5.93M | 5.31M | 3.63M | 3.61M | 2.61M | 1.28M | 1.58M | 2.77M | 0 | 0 | 10.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -37.34M | -43.03M | -53.12M | -56.13M | -128.24M | -34.63M | 94.92M | -16.08M | -8.79M | -4.24M | -173.39M | -3.25M | -1.9M | -1.96M | 1.9M | 257K | 1.72M | 2.52M | 9.94M | 2.65M | -6.41M | -8.4M | -7.83M | -1.28M | -254K | -400K | 83K | 1M | 700K | -1.8M | 0 |
| Pretax Income | 326.69M | 298.51M | 163.94M | 112.03M | -51.49M | 75.77M | 204.99M | 170.18M | 198.68M | 134.39M | -17.3M | 153.66M | 179.37M | 164.97M | 206.14M | 494.43M | 412.62M | 237.35M | 172.28M | 104.94M | 57.48M | 34.75M | 81.36M | 86.46M | 110.63M | 95.92M | 78.07M | 63.1M | 50.5M | 39.9M | 32.7M |
| Pretax Margin % | 17.3% | 16.69% | 10.35% | 7.72% | -3.73% | 8.43% | 23.66% | 13.73% | 16.14% | 7.43% | -0.94% | 8.05% | 9.33% | 8.4% | 9.86% | 22.66% | 21.54% | 16.24% | 15.78% | 11.24% | 6.82% | 4.45% | 10.37% | 12.72% | 17.08% | 16.88% | 15.45% | 15.05% | 14.35% | 12.98% | 12.63% |
| Income Tax | 74.2M | 65.84M | 26.22M | 10.28M | -15.54M | 12.32M | -14.94M | 34.16M | 84.1M | 10.42M | -14.54M | 18.54M | 27.7M | 39.23M | 63.76M | 163.6M | 132.64M | 71.7M | 46.74M | 28.75M | 14.43M | 8.01M | 23.3M | 25.31M | 43.57M | 38.14M | 30.29M | 24.3M | 19.8M | 15.7M | 13.5M |
| Effective Tax Rate % | 22.71% | 22.05% | 16% | 9.18% | 30.18% | 16.26% | -7.29% | 20.07% | 42.33% | 7.75% | 84.07% | 12.06% | 15.44% | 23.78% | 30.93% | 33.09% | 32.15% | 30.21% | 27.13% | 27.4% | 25.1% | 23.06% | 28.63% | 29.27% | 39.39% | 39.76% | 38.8% | 38.51% | 39.21% | 39.35% | 41.28% |
| Net Income | 253.25M | 237.06M | 136.78M | 93.36M | 310.99M | 70.03M | -85.33M | 128.77M | 33.77M | 122.28M | -3.17M | 139.9M | 134.03M | 106.79M | 141.56M | 330.4M | 279.91M | 165.61M | 125.53M | 76.19M | 43.05M | 28.54M | 52.36M | 61.15M | 67.06M | 57.78M | 47.78M | 38.83M | 30.7M | 24.2M | 19.2M |
| Net Margin % | 13.41% | 13.26% | 8.63% | 6.43% | 22.51% | 7.79% | -9.85% | 10.39% | 2.74% | 6.76% | -0.17% | 7.32% | 6.97% | 5.44% | 6.77% | 15.14% | 14.62% | 11.33% | 11.5% | 8.16% | 5.11% | 3.65% | 6.67% | 9% | 10.35% | 10.17% | 9.46% | 9.26% | 8.72% | 7.88% | 7.42% |
| Net Income Growth % | 21.6% | 73.32% | 46.51% | -69.98% | 344.1% | 182.06% | -166.27% | 281.33% | -72.38% | 3962.38% | -102.26% | 4.38% | 25.51% | -24.57% | -57.15% | 18.04% | 69.01% | 31.93% | 64.77% | 76.96% | 50.83% | -45.48% | -14.38% | -8.81% | 16.06% | 20.92% | 23.05% | 26.48% | 26.86% | 26.04% | 28.86% |
| Net Income (Continuing) | 252.49M | 232.68M | 137.71M | 101.75M | -35.95M | 63.45M | 219.93M | 106.87M | 114.58M | 120.97M | 125.5M | 135.12M | 151.67M | 125.74M | 169.92M | 335.22M | 279.98M | 165.65M | 125.53M | 76.19M | 43.05M | 16.2M | 52.36M | 61.15M | 67.06M | 57.78M | 47.78M | 38.83M | 30.7M | 24.2M | 19.2M |
| Discontinued Operations | 763K | 4.39M | -936K | -8.39M | 346.95M | 6.58M | -305.7M | 21.52M | -80.15M | 2.31M | 0 | 5.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 2.85M | 9.54M | 9.11M | 6.29M | 5.11M | 9.62M | 6.39M | 854K | 8.24M | 6.75M | 5.01M | 3.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.99 | 6.07 | 3.39 | 2.05 | -3.36 | 1.49 | 4.50 | 2.29 | 0.54 | 1.91 | -0.05 | 2.14 | 2.07 | 1.65 | 2.09 | 4.68 | 3.87 | 2.28 | 1.73 | 1.07 | 0.61 | 0.41 | 0.74 | 0.87 | 0.95 | 0.82 | 0.68 | 0.55 | 0.44 | 0.36 | 0.28 |
| EPS Growth % | 25.51% | 79.06% | 65.37% | 161.01% | -325.5% | -66.89% | 96.51% | 324.07% | -71.73% | 3982.11% | -102.3% | 3.38% | 25.45% | -21.05% | -55.34% | 20.93% | 69.74% | 31.79% | 61.68% | 75.41% | 48.78% | -44.59% | -14.94% | -8.42% | 15.85% | 20.59% | 23.64% | 25% | 22.22% | 28.57% | 21.74% |
| EPS (Basic) | - | 6.27 | 3.47 | 2.08 | -3.36 | 1.50 | 4.54 | 2.32 | 0.55 | 1.93 | -0.05 | 2.17 | 2.09 | 1.66 | 2.11 | 4.73 | 3.92 | 2.32 | 1.76 | 1.07 | 0.61 | 0.41 | 0.74 | 0.87 | 0.96 | 0.83 | 0.69 | 0.56 | 0.44 | 0.36 | 0.28 |
| Diluted Shares Outstanding | 36.23M | 38.33M | 40.31M | 45.6M | 48.39M | 51.65M | 54.09M | 59.33M | 62.28M | 64.02M | 64.37M | 65.28M | 64.85M | 64.61M | 67.7M | 70.6M | 72.27M | 72.64M | 72.41M | 71.4M | 70.58M | 69.27M | 70.76M | 70.29M | 70.58M | 70.46M | 70.27M | 70.6M | 69.77M | 67.22M | 67.37M |
| Basic Shares Outstanding | 35.73M | 37.09M | 39.41M | 44.78M | 48.39M | 51.32M | 53.66M | 58.54M | 61.46M | 63.36M | 64.04M | 64.47M | 64.13M | 64.33M | 67.18M | 69.85M | 71.41M | 71.38M | 71.28M | 70.91M | 70.58M | 69.27M | 70.61M | 70.29M | 69.85M | 69.72M | 69.22M | 70M | 69.77M | 67.22M | 67.37M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 9.33% | - | 16.6% | 16.34% | 29.53% | 12.98% | 4.7% | 4.59% | 6.05% | 6.25% | 4.65% | - | - | - | - | - | - | - | - | - | - | - |
Regulatory and clinical capacity
As reported in recent financial statements, Adtalem has sustained a robust growth trajectory, with year-over-year revenue increasing by 12.4% to $503.4 million in 2026Q2, reflecting the successful scaling of its specialized healthcare education programs and consistent student enrollment demand across its core nursing and medical segments.
The acceleration in revenue growth suggests that the company's strategic focus on high-demand healthcare fields is effectively capturing market share. Investors should monitor whether this momentum can be maintained as the company approaches physical capacity limits in its clinical placement networks.
Based on the company's reported figures, gross margins have demonstrated a clear upward trend, reaching 59.2% in 2026Q2, which indicates that the shift toward higher-margin, specialized healthcare degrees is successfully offsetting the inherent fixed-cost burdens associated with maintaining physical medical and veterinary campus infrastructure.
This margin profile appears superior to broader education peers, suggesting that the scarcity of clinical placement slots provides a meaningful moat against pricing pressure. The ability to consistently expand gross margins while scaling enrollment implies strong operational discipline and effective management of instructional costs.
According to the latest income statement data, operating income has scaled significantly to $111.1 million in 2026Q2, demonstrating that Adtalem is successfully leveraging its fixed cost base as revenue grows, with operating margins expanding to 22.1% from 7.6% in the 2024Q1 period.
The improvement in operating leverage suggests that the company has successfully integrated its recent acquisitions and is benefiting from economies of scale in its administrative and marketing functions. This trend warrants further investigation into whether future SG&A efficiencies can continue to drive bottom-line growth without compromising student retention.
As indicated by the provided financial data, net income has reached $76.4 million in 2026Q2, with stock-based compensation remaining relatively contained at $13.2 million, suggesting that the reported earnings are primarily driven by core operational performance rather than significant non-cash accounting adjustments or excessive equity-based dilution.
The consistent growth in EPS, which reached $2.10 in the most recent quarter, appears to reflect a high-quality earnings stream derived from tuition-based revenue. Investors should remain cautious regarding potential future tax rate anomalies or regulatory adjustments that could impact the net income conversion rate.
While current performance is strong, the company's reliance on federal funding, as noted in industry filings, creates a potential vulnerability to shifting 'Gainful Employment' and 'Financial Responsibility' regulatory frameworks that could force program closures or necessitate increased compliance spending, thereby threatening current margin expansion trends.
Short-term margin gains may be masking long-term risks associated with the regulatory environment governing for-profit education providers. If the Department of Education tightens debt-to-earnings requirements, the company may face significant headwinds that are not currently reflected in the historical income statement trajectory.
Quick answers to the most common questions about buying ATGE stock.
For fiscal year 2025, Adtalem Global Education Inc. (ATGE) reported total revenue of $1.79B. This represents a 590.7% increase compared to $258.9M in 1996.
Adtalem Global Education Inc. (ATGE) is profitable, generating $237.1M in net income for the fiscal year ending 2025 with a net profit margin of 13.3%.
Adtalem Global Education Inc. (ATGE) reported an operating income of $341.5M, resulting in an operating profit margin of 19.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Adtalem Global Education Inc. (ATGE) generated $1.02B in gross profit for the year, representing a gross profit margin of 56.9%. This demonstrates the company's core pricing power and production efficiency.