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    CVSA
    Earnings call· Mar 2026(Q3 FY26)

    Covista Q3 FY26 earnings call CVSA

    May 7, 2026 Source

    Executive summary

    Covista Q3 FY26 — Chamberlain Returns to Growth, Raised Full-Year Guidance

    Covista reported strong Q3 FY26 results, driven by a successful turnaround at Chamberlain and sustained momentum at Walden, leading to record enrollments. Management raised full-year guidance for both revenue and adjusted EPS, citing operational improvements and robust demand for healthcare education. The company emphasized its strong financial foundation and disciplined capital allocation, including debt refinancing and share repurchases, while investing in strategic growth initiatives like AI and campus expansion.

    Highlights

    5

    • Total enrollment surpassed 100,000 students, marking the 11th consecutive quarter of growth.

    • Chamberlain returned to positive total enrollment growth of 0.5% ahead of expectations.

    • Walden achieved record enrollment of over 54,000 students, growing 12.3% year-over-year.

    • Full-year revenue guidance was raised to a range of $1.93 billion to $1.945 billion.

    • Full-year adjusted EPS guidance was raised to a range of $7.95 to $8.15.

    Concerns

    2

    • Walden's Q3 revenue was impacted by an $18 million shift of one academic week into Q2 due to calendar timing.

    • Post-licensure enrollment at Chamberlain was lower, though sequential improvement was noted.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year Revenue
    $1.93B-$1.945B
    high materiality
    High
    Full-year Adjusted EPS
    $7.95-$8.15
    high materiality
    High
    Full-year Adjusted EBITDA Margin
    100 bps expansion
    medium materiality
    High
    Chamberlain Q4 Enrollment Growth
    Directionally similar to Q3
    medium materiality
    High
    Effective Tax Rate
    Higher than fiscal year 2025
    low materiality
    Medium

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Chamberlain
    Reflects return to positive total enrollment growth, an important milestone as operational improvements gain traction. Driven largely by pre-licensure, with sequential improvement in post-licensure RN to BSN and continued growth in Master's programs.
    Total student enrollment: 40,767Total student enrollment growth: 0.5%Adjusted EBITDA margin: 29.7%Adjusted EBITDA margin expansion: 20 bps
    		$197M2.3%—$58.5M
    Walden
    Revenue impacted by $18M shift of 1 academic week to Q2. Excluding this, revenue increased 14.7% YoY to $204.6M. Enrollment growth was broad-based across health care and non-health care programs and continued strong persistence rates.
    Total student enrollment: 54,474Total student enrollment growth: 12.3%Adjusted EBITDA (ex-timing impact): $67.8MAdjusted EBITDA growth (ex-timing impact): 25.5%Adjusted EBITDA margin (ex-timing impact): 33.1%Adjusted EBITDA margin expansion (ex-timing impact): 280 bps
    		$186.6M4.6%—$49.7M
    Medical and Veterinary
    Growth in both medical and veterinary programs. Focused on operating efficiently while making long-term growth investments and delivering strong academic outcomes.
    Total student enrollment: 5,344Total student enrollment growth: 4.1%Adjusted EBITDA growth: 20.1%Adjusted EBITDA margin: 26.5%Adjusted EBITDA margin expansion: 250 bps
    		$103.5M8.9%—$27.5M

    Operational metrics

    11
    Net Leverage
    0.7x
    Q3 FY26

    As of March 31, 2026.

    Cash and Equivalents
    $147M
    Q3 FY26

    As of March 31, 2026.

    Share Repurchases
    $66M
    Q3 FY26

    Repurchased during the quarter at prices believed to materially understate long-term earnings power.

    Term Loan B Refinancing
    $510M50 bps improvement in rates
    Q3 FY26

    Refinanced long-term debt during the quarter.

    Chamberlain Application Volumes
    improved sharply
    Q3 FY26

    Result of localized marketing and other operational changes.

    Chamberlain Funnel Conversion
    up
    Q3 FY26

    Result of simplified application experience, rebuilt scholarship process, and upgraded talent.

    Walden Student Persistence
    strong persistence rates
    Q3 FY26

    Contributes to sustained momentum and compounds quietly over time.

    Application Review Time
    cut by weeks
    Q3 FY26

    Through process improvements and workflow automation, leading to better applicant experience.

    First-time Residency Attainment Rate
    97%
    most recent cycle

    Academic outcomes remain exceptional.

    AI Credentials Enrollment
    over 4,000
    Q3 FY26

    Enrolled in newly launched AI credentials across nursing, medicine, and foundational AI.

    New Campus Development
    6
    Q3 FY26

    Part of admission pathway expansion for Chamberlain.

    Industry KPIs

    8
    MetricValueDetails
    EPS$1.98USD
    Revenue$487MUSD
    Net income$69MUSD
    Operating margin28.9%%
    Adjusted EBITDA ebita$127.9MUSD
    Operating income EBIT$102.2MUSD
    Cash investments balance$147MUSD
    Share buyback capital return$66MUSD

    Product announcements

    3
    ProductTypeDetails
    AI Credentialslaunch
    Clinical Psychology and Behavioral Analysis Programslaunch
    Palliative Care and Special Education Programslaunch

    Deals & partnerships

    2
    SSMEmployer partnership for talent acquisition in healthcare

    Relationship continues to thrive, showing increased applications and inquiries around the St. Louis campus. Serves as a proof point for a new and differentiated way of thinking about talent acquisition for healthcare providers.

    Google CloudCo-development of AI-powered classroom and AI credentials

    Working on two fronts: co-developing an AI-powered classroom natively inside the student platform for personalized learning, and launching AI credentials across various healthcare disciplines. Initial pilots for the AI classroom launch later this year.

    What to watch in Q4 FY26

    5

    Chamberlain Enrollment Growth Rate

    Q4 FY26
    Current0.5% (Q3 FY26)
    TargetDirectionally similar to Q3

    Why it matters

    Verifies the sustained effectiveness of Chamberlain's operational improvements and its continued turnaround.

    We expect the rate of growth to be directionally similar.

    Q&A highlights

    8

    Update on the SSM partnership and other employer partnerships, and conversations with care providers.

    The SSM partnership continues to thrive, showing encouraging interest and applications around the St. Louis campus. Several other active conversations are ongoing with hopes to announce new partnerships soon, encouraged by early SSM outcomes.

    “So what I can say about SSM is that the relationship continues to thrive the sort of interest, the increase in applications and inquiries around the St. Louis campus have been really encouraging.”

    asked by Ryan Griffin · answered by Stephen Beard

    2 min read6 chapters

    Detailed Narrative

    01

    Chamberlain's Turnaround and Operational Improvements

    Chamberlain returned to positive total enrollment growth of 0.5% in Q3 FY26, ahead of expectations, reaching its highest enrollment in university history. This turnaround is attributed to operational changes including localized marketing in key metropolitan areas, simplified application processes, rebuilt scholarship programs, and upgraded talent. Management noted sharp improvements in application volumes and funnel conversion rates, which are now consistent with historical levels, signaling stronger momentum for the fall enrollment cycle.

    02

    Walden's Sustained Momentum and Program Expansion

    Walden continued its strong performance, achieving its 11th consecutive quarter of total enrollment growth, reaching a record 54,474 students, up 12.3% year-over-year. This growth was broad-based across healthcare and non-healthcare programs, supported by strong student persistence rates. Walden also launched new programs in clinical psychology and behavioral analysis, enrolling over 1,400 students, with an additional seven programs approved, including palliative care and special education, demonstrating its competitive advantage in bringing high-demand programs to market quickly.

    03

    Medical and Veterinary Segment Performance

    The Medical and Veterinary segment delivered robust results with revenue increasing 8.9% and total student enrollment growing 4.1% to 5,344 students. The segment maintained strong academic outcomes, including a 97% first-time residency attainment rate for AUC graduates and over 98% in the most recent cycle. Operational efficiencies, such as cutting application review time by weeks, contributed to strong financial outcomes and a 20.1% increase in adjusted EBITDA.

    04

    AI and Technology Initiatives

    Covista is advancing its enterprise investments, particularly with Google Cloud, on two fronts. They are co-developing an AI-powered classroom for personalized learning, with initial pilots launching later this year. Additionally, over 4,000 learners have enrolled in newly launched AI credentials across nursing, medicine, and foundational AI, with more certificates planned. The company established the Covista Healthcare Readiness AI Council to ensure clinical grounding for its AI curriculum, which is resonating with health systems.

    05

    Capital Allocation and Financial Strength

    The company demonstrated strong financial health with trailing 12-month free cash flow growing 17% to $336 million and net leverage declining to 0.7x. During the quarter, Covista refinanced its long-term debt, securing a $510 million Term Loan B with a 50 basis point rate improvement and extending maturity to 2033. The company also repurchased $66 million of its stock, highlighting a balanced approach to capital deployment for growth investments and shareholder returns.

    06

    Strategic Vision and Leadership Changes

    Covista is transitioning from its 'Growth of Purpose' strategy to 'Purpose at Scale,' built on operational excellence, platform extension, employer integration, and technology focus. Key leadership appointments include Amelia Manning as the new President of Chamberlain and Michael Betz in an expanded role as Chief Growth and Innovation Officer, aimed at strengthening execution and driving future growth.

    AI-generated summary of the company’s earnings call. Not investment advice.