Covista (CVSA) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 achieved record revenue of $1,788.3 million, up 12.9% year-over-year, with total enrollment up 10.2% in Q4 and strong operational leverage across all segments.

• Adjusted EPS rose 33.1% to $6.67, and $211 million was returned to shareholders via repurchases.

• Strategic partnerships, including with SSM Health and a letter of intent with Sallie Mae, are expanding employment pathways and alternative financing for students.

• Free cash flow reached $283 million, supporting disciplined capital allocation and new investments.

• Chamberlain and Walden received national recognition for access and post-graduation earnings impact.

Financial highlights

• Q4 FY25 revenue was $457.1 million, up 11.5% year-over-year; full-year adjusted EBITDA was $459.7 million, up 21.8%, with margin expanding to 25.7%.

• Adjusted net income for FY25 was $255.6 million; adjusted EPS $6.67, up from $5.01 in the prior year.

• Free cash flow for FY25 was $283 million.

• Interest expense declined due to debt reduction and repricing; $100 million in debt was repaid, and borrowing costs were reduced by 75 basis points.

• Capital expenditures totaled $50 million in FY25, focused on expanding access and enhancing student outcomes.

Outlook and guidance

• Fiscal 2026 guidance: revenue of $1.90–$1.94 billion (6–8.5% growth), adjusted EPS of $7.60–$7.90 (14–18.5% growth), and 100 basis points expected EBITDA margin expansion.

• Revenue and EPS growth expected to be higher in the first half, especially Q2, due to academic calendar shifts.