Covista (CVSA) Q4 2024 earnings summary

Executive summary

• Achieved and exceeded fiscal 2024 financial targets with strong revenue and earnings growth, driven by strategic initiatives and operational excellence.

• Total enrollment grew 10.0% year-over-year in Q4 2024, reaching 83,321, with Chamberlain and Walden universities both posting double-digit enrollment growth.

• Over 27,000 graduates in FY 2024, with approximately 90% entering healthcare fields.

• Expanded access to nursing education, enhanced student experiences through technology, and launched new program offerings.

• Integrated five institutions for greater efficiency, profitability, and operating leverage.

Financial highlights

• Fiscal 2024 revenue was $1.585 billion, up 9.2% year-over-year; Q4 revenue was $409.9 million, up 12.4%.

• Adjusted EBITDA margin reached 23.8%, up 10 bps year-over-year; adjusted EBITDA was $377.5 million, up 9.9%.

• Adjusted EPS was $5.01, up 19% year-over-year; adjusted net income for the year was $201.8 million.

• Free cash flow totaled $239 million, up $70 million from FY 2023.

• $261 million returned to shareholders via share repurchases in FY 2024.

Outlook and guidance

• Fiscal 2025 revenue projected at $1.66–$1.7 billion (5–7.5% growth); adjusted EPS of $5.60–$5.85 (12–17% growth).

• Expecting approximately 100 basis points of adjusted EBITDA margin expansion and continued strong cash flow.

• Revenue growth in 2025 anticipated to outpace investment growth, with higher growth in the first half; investments weighted to Q1.

• Normalized adjusted effective tax rate expected at 22%.