Adtalem Global Education Inc. (ATGE) completed an accelerated share‑repurchase program worth $150 million, buying back approximately 1.6 million shares at an average price of $93.75 per share. The buyback reduced the company’s diluted share count and reinforced its commitment to returning capital to shareholders.
The board simultaneously approved a new $750 million share‑repurchase authorization that will remain in effect through December 2028. The authorization gives the company flexibility to continue repurchasing shares as market conditions and capital needs evolve, while preserving liquidity for strategic initiatives and potential future investments.
The combined $900 million in share‑repurchase activity underscores Adtalem’s disciplined capital‑allocation strategy and confidence in the long‑term value of its healthcare‑focused education platform. The move is expected to enhance earnings per share and support the company’s valuation, signaling management’s belief in the sustainability of its business model.
Adtalem’s financial position has strengthened markedly in the past year. Debt has been reduced by $1.1 billion since the Walden University acquisition, leaving $508.4 million in debt as of October 31 2025. The company’s common shares outstanding were 34.9 million on December 10 2025, and the average repurchase price for the completed program ($93.75) is higher than the company’s historical average of $52.95, reflecting a period of stronger share price performance.
The announcement was well received by the market, with the stock rising 6.5 % to $98.92 on the day of the announcement. The price increase was driven by the sizable new authorization and the completion of the prior program, which together demonstrate robust cash flow generation and a strong balance sheet.
Adtalem’s recent earnings reinforce the rationale for the buyback. In Q3 FY2025, revenue rose 12.9 % year‑over‑year to $466.1 million, and adjusted EPS beat estimates by $0.11, driven by disciplined cost control and a favorable mix of high‑margin programs. The company’s enrollment growth of 9.8 % and a 27.4 % adjusted EBITDA margin—up from 25.9 % a year earlier—highlight operational leverage and pricing power in its core segments.
CEO Steve Beard emphasized that the company’s “operational execution continues to generate strong cash flow, giving us the flexibility to invest in significant growth opportunities while returning capital to shareholders in a tax‑efficient manner.” He added that the demand for healthcare‑focused education remains strong, providing a tailwind for future growth and supporting the company’s confidence in its capital‑allocation strategy.
The share‑repurchase program, backed by solid financial performance and a disciplined capital‑allocation framework, signals Adtalem’s confidence in its long‑term prospects and provides shareholders with a tangible return on investment while preserving flexibility for future strategic initiatives.
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