Covista (CVSA) Q1 2026 earnings summary

Executive summary

• Achieved ninth consecutive quarter of enrollment growth, with total enrollment up 8% year-over-year to 97,359 students across 28 campuses and online platforms.

• Revenue rose 10.8% year-over-year to $462.3 million in Q1 FY2026, driven by growth across all segments.

• Adjusted EPS grew 35.7% year-over-year to $1.75; GAAP diluted EPS was $1.67.

• Strong performance attributed to operational excellence, focused growth strategy, and robust segment results, despite execution challenges at Chamberlain.

• Maintained a systemically important role in U.S. healthcare education, with 90% of enrollment healthcare-focused.

Financial highlights

• Revenue: $462.3 million, up 10.8% year-over-year; adjusted EBITDA: $112.0 million, up 15.8% with a margin of 24.2%.

• Adjusted operating income grew 19% to $90.3 million; adjusted net income up 28.5% to $64.9 million.

• Net income increased 33.9% to $61.8 million; diluted shares outstanding decreased by 2.1 million year-over-year.

• Free cash flow (TTM): $319 million; cash and equivalents: $265 million as of September 30, 2025.

• Repurchased $8 million of shares in Q1; $142 million remains under the $150 million repurchase program through May 2028.

Outlook and guidance

• Fiscal 2026 revenue guidance: $1,900–$1,940 million (6.0–8.5% growth); adjusted EPS: $7.60–$7.90 (14.0–18.5% growth).

• Expect revenue growth to be higher in the first half of the year; anticipate softness in Chamberlain's top line in Q2 and Q3.

• Committed to expanding adjusted EBITDA margin by ~100 bps for FY26; effective tax rate expected to be higher than FY25.

• Management expects continued growth, supported by increased enrollment and investments in student experience and brand.

• Forward-looking statements are subject to risks and uncertainties as detailed in the company's annual report.