5 Insightful Analyst Questions From Adtalem's Q2 Earnings Call

Adtalem’s second quarter performance was driven by robust enrollment gains across its Chamberlain and Walden University segments, reflecting both program flexibility and enhanced brand awareness. Management credited the company’s strategy of integrating AI-powered student-facing tools and targeted marketing for improved student persistence and lower acquisition costs. CEO Stephen Beard highlighted that “the momentum we’re seeing is real, and it’s the result of deliberate action,” specifically citing partnerships with health care employers and a unified operating model that improved profitability.

Is now the time to buy ATGE? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Adtalem’s Q2 Earnings Call

• Jeffrey Marc Silber (BMO Capital Markets) asked what is driving share gains at Chamberlain and Walden. CEO Stephen Beard attributed it to program flexibility, strong student support, and clear employer pathways.
• Silber (BMO Capital Markets) also asked whether regulatory changes and loan limits are affecting student demand, especially for longer programs. Beard responded there is no dampening in demand and alternative financing options are in development.
• Jack Garner Slevin (Jefferies) inquired about maintaining above-trend growth over multiple years and whether new programs or partnerships would be necessary. Beard pointed to robust secular demand and ongoing conversations with providers about expanding into allied health and other fields.
• Slevin (Jefferies) followed up on the pacing of Chamberlain and Walden investments and the approach to share buybacks. Beard and CFO Robert Phelan explained investments are timed for optimal results, and buybacks will continue under the new authorization.
• Steven Pawlak (Baird) questioned the drivers behind recent marketing success. Beard said improved brand campaigns and localized marketing, along with employer partnerships, have increased inquiries and enrollments.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be watching (1) the impact of new health care partnerships on enrollment and employment outcomes, (2) the rollout and effectiveness of AI-powered student support technologies, and (3) the company’s ability to expand program capacity while managing regulatory and financing changes. Additional attention will be paid to the execution of new program launches and alternative lending arrangements.

Adtalem currently trades at $129.19, up from $119.26 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

The Best Stocks for High-Quality Investors

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.