Covista (CVSA) Q2 2025 earnings summary

Executive summary

• Revenue grew 13.9% year-over-year to $447.7 million in Q2 2025, with total enrollment up 11.6% to 91,264 students, marking the sixth consecutive quarter of growth, driven by Chamberlain and Walden universities.

• Adjusted EBITDA increased 35.1% to $125.0 million, with margin expanding by 440 basis points to 27.9%.

• Adjusted EPS rose 47.2% to $1.81, while diluted EPS reached $1.98, reflecting higher revenue and lower share count.

• The company raised fiscal 2025 guidance, expecting revenue of $1.73B–$1.76B and adjusted EPS of $6.10–$6.30.

• Operational excellence, digital transformation, and the "Growth with Purpose" strategy are driving record enrollments and margin expansion.

Financial highlights

• Q2 revenue was $447.7 million, up 13.9% year-over-year, with growth across all segments.

• Adjusted EBITDA was $125.0 million, up 35.1% year-over-year, with a margin of 27.9%.

• Adjusted operating income rose 34.2% to $101.4 million; adjusted net income was $69.4 million, up 38.1%.

• Free cash flow (TTM) was $232 million; cash and equivalents were $194 million as of Dec. 31, 2024.

• 471,327 shares repurchased in Q2, with $140 million remaining on the share repurchase authorization.

Outlook and guidance

• Fiscal 2025 revenue guidance raised to $1.73B–$1.76B, representing 9–11% year-over-year growth.

• Adjusted EPS guidance increased to $6.10–$6.30, up 21.5–25.5% year-over-year.

• Expecting over 100 basis points of adjusted EBITDA margin expansion in fiscal 2025.

• Revenue growth anticipated to be higher in 1H 2025 than 2H 2025.

• Adjusted effective tax rate anticipated at approximately 23% for the year.