Covista Inc. Segments Disclosure
19. Segment Information
We present three reportable segments as follows:
Chamberlain – This segment includes the operations of Chamberlain, which offers degree and certificate programs in the nursing and health professions postsecondary education industry.
Walden – This segment includes the operations of Walden, which offers degree and certificate programs, including those in nursing, education, counseling, business, information technology, psychology, public health, social work and human services, public administration and public policy, and criminal justice.
Medical and Veterinary – This segment includes the operations of AUC, RUSM, and RUSVM, collectively referred to as the “medical and veterinary schools,” which offers degree and certificate programs in the medical and veterinary postsecondary education industry.
These segments are consistent with the method by which Adtalem’s Chief Operating Decision Maker (“CODM”) evaluates performance and allocates resources. Adtalem’s CODM is our Chief Executive Officer. Our measure of segment profitability utilized by our CODM is adjusted operating income. Our CODM uses this measure to assess the operating results and performance of our segments, perform analytical comparisons to budget, and allocate resources to each segment during monthly operating reviews and annual budget process. Adjusted operating income excludes Home Office expense, restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, asset impairments, strategic advisory costs, loss on assets held for sale, debt modification costs, and gain on sale of assets because these are not associated with the ongoing operations of the segments. “Home Office” includes activities not allocated to a reportable segment and is included to reconcile segment results to the Consolidated Financial Statements. Total assets by segment is not presented as our CODM does not review or allocate resources based on segment assets. The
accounting policies of the segments are the same as those described in Note 2 “Summary of Significant Accounting Policies.”
Summary financial information by reportable segment is as follows (in thousands):
Year Ended June 30, | |||||||||
2025 | 2024 | 2023 | |||||||
Revenue: |
| ||||||||
Chamberlain | $ | 725,774 | $ | 633,522 | $ | 571,034 | |||
Walden | 693,430 | 595,332 | 533,725 | ||||||
Medical and Veterinary | 369,086 | 355,798 | 346,067 | ||||||
Total consolidated revenue | $ | 1,788,290 | $ | 1,584,652 | $ | 1,450,826 | |||
Cost of educational services: | |||||||||
Chamberlain | $ | 321,769 | $ | 277,215 | $ | 248,727 | |||
Walden | 240,084 | 221,110 | 199,625 | ||||||
Medical and Veterinary | 209,577 | 200,223 | 200,134 | ||||||
Other segment expenses(1): | |||||||||
Chamberlain | $ | 250,638 | $ | 218,507 | $ | 186,804 | |||
Walden | 269,765 | 243,675 | 223,736 | ||||||
Medical and Veterinary | 90,257 | 84,068 | 78,597 | ||||||
Adjusted operating income: | |||||||||
Chamberlain | $ | 153,367 | $ | 137,800 | $ | 135,503 | |||
Walden | 183,581 | 130,547 | 110,364 | ||||||
Medical and Veterinary | 69,252 | 71,507 | 67,336 | ||||||
Total segment adjusted operating income | 406,200 | 339,854 | 313,203 | ||||||
Reconciliation to Consolidated Financial Statements: | |||||||||
Home Office expense |
| (36,030) |
| (31,076) |
| (25,633) | |||
Restructuring expense |
| (3,314) |
| (1,870) |
| (18,817) | |||
Business integration expense | — |
| (34,215) |
| (42,661) | ||||
Amortization of acquired intangible assets: | (11,220) |
| (35,644) |
| (61,239) | ||||
Litigation reserve | 5,550 |
| (18,500) |
| (10,000) | ||||
Asset impairments | (6,442) |
| — |
| — | ||||
Strategic advisory costs | (12,000) |
| — |
| — | ||||
Loss on assets held for sale | (490) |
| (647) |
| — | ||||
Debt modification costs | (712) |
| (848) |
| — | ||||
Gain on sale of assets | — |
| — |
| 13,317 | ||||
Total consolidated operating income | 341,542 | 217,054 | 168,170 | ||||||
Interest expense |
| (52,318) |
| (63,659) |
| (63,100) | |||
Other income, net |
| 9,290 |
| 10,542 |
| 6,965 | |||
Total consolidated income from continuing operations before income taxes | $ | 298,514 | $ | 163,937 | $ | 112,035 | |||
Depreciation: | |||||||||
Chamberlain | $ | 21,687 | $ | 18,752 | $ | 17,175 | |||
Walden | 7,421 | 7,389 | 9,419 | ||||||
Medical and Veterinary | 10,853 | 11,983 | 12,438 | ||||||
Home Office |
| 741 |
| 1,552 |
| 2,344 | |||
Total consolidated depreciation | $ | 40,702 | $ | 39,676 | $ | 41,376 | |||
Amortization of acquired intangible assets: | |||||||||
Walden | $ | 11,220 | $ | 35,644 | $ | 61,239 | |||
Total consolidated amortization of acquired intangible assets | $ | 11,220 | $ | 35,644 | $ | 61,239 | |||
| (1) | Other segment expenses for each reportable segment include student services and administrative related expenses. |
Adtalem conducts its educational operations in the U.S., Barbados, St. Kitts, and St. Maarten. Revenue and long-lived assets by geographic area are as follows (in thousands):
Year Ended June 30, | |||||||||
2025 | 2024 | 2023 | |||||||
Revenue by geographic area: |
| ||||||||
Domestic operations | $ | 1,419,204 | $ | 1,228,854 | $ | 1,104,759 | |||
Barbados, St. Kitts, and St. Maarten |
| 369,086 |
| 355,798 |
| 346,067 | |||
Total consolidated revenue | $ | 1,788,290 | $ | 1,584,652 | $ | 1,450,826 | |||
June 30, | ||||||
2025 | 2024 | |||||
Long-lived assets by geographic area: | ||||||
Domestic operations | $ | 308,190 | $ | 283,597 | ||
Barbados, St. Kitts, and St. Maarten |
| 139,135 |
| 149,507 | ||
Total consolidated long-lived assets | $ | 447,325 | $ | 433,104 | ||
No one customer accounted for more than 10% of Adtalem’s consolidated revenue for all periods presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 7, 2025 | Showing above |
| 2024 | Aug 6, 2024 | |
| 2023 | Aug 10, 2023 | |
| 2022 | Aug 11, 2022 | |
| 2021 | Aug 19, 2021 | |
| 2020 | Aug 18, 2020 | |
| 2019 | Aug 28, 2019 | |
| 2018 | Aug 24, 2018 | |
| 2017 | Aug 24, 2017 | |
| 2016 | Aug 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.