Covista Q4 FY26 earnings call CVSA

Covista successfully completed its 3-year "Growth with Purpose" strategy, exceeding long-term targets set at its outset. This included growing revenue from less than $1.5 billion to $1.95 billion, expanding EBITDA margins by 300 basis points, nearly doubling adjusted EPS, and more than doubling free cash flow. The strategy focused on building infrastructure for durable, profitable growth while maintaining focus on student outcomes, culminating in 12 consecutive quarters of total enrollment growth.

The company is now launching its next 3-year strategy, "Purpose at Scale," which carries forward operating discipline and adds three pillars: platform extension, employer integration, and technology. This strategy is underpinned by a structural demand backdrop in healthcare, with over 70% of clinicians and executives reporting staffing shortages affecting care quality. Covista aims to solve this problem by converting demand into qualified clinicians.

Platform extension involves placing programs in more locations, formats, and markets. At Chamberlain, 6 new campuses are in active development, with 3 having full regulatory approval, and Cincinnati and Salt Lake scheduled to open in H1 FY27. Each campus requires $9 million to $12 million in capital, with an expected EBITDA breakeven within 24 months. Walden achieved its highest total enrollment ever, with broad-based growth across all degree levels, including undergraduate growth exceeding 20%, supported by new programs and persistence analytics.

Covista is expanding its employer partnerships, building on strong early results with SSM, which led to increased enrollment targets. A new collaboration with Advocate Health, the third-largest nonprofit integrated health system, will fund nursing education through Chamberlain. This program is expected to serve hundreds of students annually, creating a more durable enrollment model with lower acquisition costs, as employer commitment leads to higher enrollment rates and persistence.

The company is investing in enterprise technology, having launched AI credentials with Google Cloud in Q3, adding 9 more certifications in Q4, and enrolling over 9,000 learners. Prototypes of an AI-powered classroom are currently being tested, with first live deployments expected in H2 FY27. Covista is adapting its marketing strategies for the shift from search optimization to AI answer optimization, leveraging trusted brands and strong student outcomes.

Covista strengthened its leadership with the addition of two new Board members, Emily Chiu and Leslie Storms, bringing relevant operating experience. Rick Sinkfield joined as VP of Expansion, overseeing campus growth, and Scott Liles became Chief Strategy and Performance Officer. The company emphasizes its strong foundation, proven operating model, and balance sheet to fund its growth plans, aiming to extend its leading position in healthcare workforce education and generate durable earnings.