Covista (CVSA) Q1 2027 earnings summary

Executive summary

• Q1 FY27 enrollment rose 7.6% to 104,713, revenue increased 10.7% to $511.5M, and adjusted EPS grew 25.1% to $2.19; FY27 revenue and adjusted EPS guidance increased.

• Results reflected enrollment and tuition growth across all three segments, with adjusted EBITDA margin expanding 140 bps to 25.6%.

• Purpose at Scale is a three-year strategy focused on operational excellence, platform extension, employer integration, and technology.

Financial highlights

• Revenue was $511.5M versus $462.3M; adjusted EBITDA rose 17.1% to $131.2M from $112.0M.

• Adjusted net income increased to $75.8M from $64.9M; adjusted EPS was $2.19 versus $1.75. GAAP net income was $67.4M versus $61.8M, and diluted EPS was $1.95 versus $1.67.

• Operating income was $98.0M versus $85.5M; adjusted operating income rose 18.1% to $106.6M from $90.3M.

• Operating cash flow from continuing operations was $114.3M versus $130.6M; quarterly capital expenditures were $37.6M versus $16.0M.

Outlook and guidance

• FY27 revenue guidance increased to $2.060B–$2.095B from $2.050B–$2.090B, with expected YoY growth of 5.5%–7%.

• FY27 adjusted EPS guidance increased to $9.00–$9.20 from $8.90–$9.15, with expected YoY growth of 9%–11.5%.

• Full-year adjusted EBITDA margin expansion remains guided at 0–50 bps; Q1's 140 bps expansion is not a run-rate expectation. Capex is expected above FY26 levels, weighted toward H1.

• A Walden academic week shifts revenue and adjusted EBITDA from Q2 to Q3, with no full-year impact; the shift is $18M.