Covista (CVSA) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue rose 13.2% to $417.4 million, with Adjusted EBITDA up 20.1% to $96.7 million and Adjusted EPS up 38.7% to $1.29.

• Total enrollment increased 11.2% year-over-year to over 90,000, marking the 10th consecutive quarter of growth.

• Chamberlain and Walden universities posted strong enrollment and revenue growth, while Medical and Veterinary enrollment declined 0.7%.

• The company is in year two of its three-year Growth with Purpose strategy, focusing on operational excellence and programmatic growth.

• Continued investment in technology, student experience, and partnerships, including AI-enabled tools and curriculum enhancements.

Financial highlights

• Q1 revenue was $417.4 million, up 13.2% year-over-year, with growth across all segments.

• Adjusted EBITDA reached $96.7 million (23.2% margin), up 20.1% year-over-year.

• Adjusted net income was $50.5 million, up 28.3%; Adjusted EPS was $1.29, up 38.7%.

• Free cash flow for Q1 was $79.2 million; trailing 12-month free cash flow was $243 million.

• Repurchased $34 million in shares in Q1; $178 million remains under the $300 million repurchase program through January 2027.

Outlook and guidance

• FY25 revenue guidance raised to $1.69–$1.73 billion (6.5%–9% growth year-over-year).

• Adjusted EPS guidance increased to $5.75–$5.95 (14.5%–18.5% growth year-over-year).

• Anticipates approximately 100 basis points of Adjusted EBITDA margin expansion for the year.

• Full-year 2025 capital spending expected between $55–$75 million, funded by operations or credit facility.

• Normalized Adjusted Effective Tax Rate expected at approximately 23%.