HomeHigher EducationHigher Education ResourcesAdtalem revenue grows 1.3% despite Walden University’s falling enrollment

Adtalem revenue grows 1.3% despite Walden University’s falling enrollment

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Dive Brief: 

  • Adtalem Global Education, a for-profit college operator, logged $369.1 million in revenue during fiscal 2023’s third quarter, reversing nearly a year of declines. 
  • The company’s third quarter revenue is 1.3% higher than for the same period last year. Enrollment improvements at Chamberlain University, one of five colleges Adtalem operates, helped drive the increase. 
  • But student headcounts plummeted at Walden University. The large online university has seen enrollment decline year over year in every quarter since Adtalem purchased it in 2021. 

Dive Insight: 

Adtalem’s institutions — which also includes the Ross University School of Medicine — are focused on training professionals to fill worker shortages in the healthcare industry. As part of that strategy, the company acquired Walden nearly two years ago for almost $1.5 billion, though the purchase also spurred executives to reign in costs. 

“To invest at scale in new innovative student learning tools, expand existing programs and create new programs for in-demand professions requires disciplined cost management,” Adtalem CEO Steve Beard said during a call Tuesday with analysts. 

In fiscal 2022, the company spent $25.6 million in restructuring costs, which were largely driven by workforce reductions and office downsizing, according to a filing with the U.S. Securities and Exchange Commission. Restructuring efforts have continued into fiscal 2023, with Adtalem racking up $17.7 million so far in related expenses. 

The company’s efforts appear to be improving its bottom line. Adtalem’s operating costs and expenses declined to $309.7 million in the third quarter, down 6.5% from the year before. It posted a $45.9 million profit in the third quarter.

Rizwan Ahmed
Rizwan Ahmed
AuditStudent.com, founded by Rizwan Ahmed, is an educational platform dedicated to empowering students and professionals in the all fields of life. Discover comprehensive resources and expert guidance to excel in the dynamic education industry.


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