Covista (CVSA) investor relations material

Executive summary

• Achieved record total enrollment of 100,585, up 6.8% year-over-year, marking the 11th consecutive quarter of growth, with all major institutions contributing.

• Revenue rose 4.5% year-over-year to $487.0 million in Q3 FY2026, with growth across all segments; adjusted for Walden's academic shift, revenue increased 8.4%.

• Adjusted EPS increased 3.1% year-over-year to $1.98, supported by share repurchases; adjusted EBITDA was $127.9 million, with margin at 26.3%.

• Fiscal year 2026 revenue and adjusted EPS guidance were raised, reflecting strong execution and confidence in future growth.

• Returned $66 million to shareholders via repurchases and refinanced debt, extending maturity to 2033.

Financial highlights

• Q3 FY2026 revenue: $487.0 million (+4.5% YoY); adjusted EBITDA: $127.9 million (+0.1% YoY); adjusted EPS: $1.98 (+3.1% YoY); trailing twelve months free cash flow: $336 million, up 17%.

• Excluding a one-week academic calendar shift, Q3 revenue growth was 8.4% and adjusted EBITDA growth was 14.2%.

• Adjusted operating income was $102.2 million; excluding timing impact, would have increased 14.1% to $120.3 million.

• Net leverage ratio at 0.7x as of March 31, 2026; strong balance sheet supports ongoing investments.

• Diluted EPS: $1.20 vs. $1.59 prior year; adjusted net income: $69.0 million vs. $73.3 million.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $1,930–$1,945 million (8–9% growth year-over-year); adjusted EPS guidance raised to $7.95–$8.15 (19–22% growth year-over-year).

• Expect positive fourth quarter enrollment growth at Chamberlain, similar to Q3.

• Guidance includes elevated strategic growth investments in Q4 and a 100 basis point expansion in adjusted EBITDA margin for FY26.

• Liquidity is considered sufficient for obligations and capital spending over the next several years.