Covista (CVSA) Q4 2026 earnings summary

Executive summary

• Achieved 12 consecutive quarters of total enrollment growth, reaching 99,472 students in Q4 FY26, up 8.4% year-over-year, and a community of 400,000 alumni nationwide.

• Exceeded annual and long-term financial guidance, closing out the 'Growth with Purpose' strategy and launching the new 'Purpose at Scale' strategy focused on platform extension, employer integration, and technology.

• Free cash flow for FY26 was $393 million, up 38.7% from the prior year, with $238 million returned to shareholders via share repurchases.

• Launched new partnerships, including with Advocate Health, and introduced nine new AI credentials with Google Cloud.

• Structural demand for healthcare workforce education remains robust due to an aging population and persistent staffing shortages.

Financial highlights

• FY26 revenue grew 9.3% year-over-year to $1,954.1 million, surpassing guidance.

• Adjusted EBITDA for FY26 was $521.7 million, up 13.5%, with a margin of 26.7%.

• Adjusted EPS for FY26 was $8.25, up 23.7%; Q4 adjusted EPS was $2.09, up 25.9%.

• Free cash flow for FY26 was $393 million; operating cash flow was $471 million, up 41%.

• Net leverage improved to 0.5x as of June 30, 2026.

Outlook and guidance

• FY27 revenue guidance: $2,050–$2,090 million (5–7% growth); adjusted EPS: $8.90–$9.15 (8–11% growth).

• Expect 0–50 basis points of adjusted EBITDA margin expansion, with more improvement in the back half of the year.

• Chamberlain's total enrollment growth rate expected to accelerate in Q1 2027, with continued growth throughout the year.

• Capital expenditures to rise slightly as new capacity is brought to market; effective tax rate expected to be higher.

• Expect higher revenue growth in 2H FY27 due to academic calendar shifts; continued strong cash flow and disciplined capital deployment anticipated.