Covista reported a strong start to fiscal 2027, with first-quarter enrollment and revenue growth, higher earnings and wider adjusted EBITDA margins. The healthcare-focused education company also raised its full-year revenue and adjusted earnings-per-share outlook, citing continued enrollment momentum and its new three-year growth strategy.
The quarter ended Sept. 30, 2026. Covista also said Chief Financial Officer Robert Phelan plans to retire, but will remain in the role until a successor is named.
First-quarter results
- Total enrollment reached 104,713, up 7.6% year over year—the company’s 13th consecutive quarter of enrollment growth.
- Revenue rose 10.7% to $511.5 million.
- Net income increased to $67.4 million from $61.8 million a year earlier. Diluted earnings per share were $1.95, compared with $1.67.
- On an adjusted basis, net income was $75.8 million, up from $64.9 million, and earnings per share were $2.19, versus $1.75.
- Adjusted EBITDA rose 17.1% to $131.2 million. Its margin increased to 25.6% from 24.2%.
- Operating income was $98.0 million, compared with $85.5 million a year earlier; adjusted operating income was $106.6 million, up from $90.3 million.
Updated full-year outlook
- Covista now expects fiscal 2027 revenue of $2.06 billion to $2.095 billion, representing approximately 5.5% to 7% growth. Its previous range was $2.05 billion to $2.09 billion.
- The company raised its adjusted EPS outlook to $9.00 to $9.20, or approximately 9% to 11.5% growth. The previous range was $8.90 to $9.15.
Enrollment and business developments
- Walden University posted its 13th consecutive quarter of total enrollment growth. Enrollment rose 12.8% to a record high for the university.
- Chamberlain University recorded its third consecutive quarter of total enrollment growth and its 17th consecutive quarter of growth in pre-licensure Bachelor of Science in Nursing enrollment.
- Covista’s medical and veterinary programs together grew total enrollment 3.5% year over year.
- A nursing collaboration with Advocate Health began enrolling students through Chamberlain in Wisconsin and is expanding to Chamberlain’s three Chicago-area campuses.
- Chamberlain opened campuses in Cincinnati and Salt Lake City. Covista also plans to open a 27th campus, in Nashville, with classes expected to begin in January 2027.
- Walden launched four programs during the quarter. Programs introduced ahead of the 2026 academic year have enrolled more than 2,000 students, the company said.
Strategy, capital allocation and leadership
- Covista launched Purpose at Scale, a three-year strategy focused on operational excellence, extending its platform, closer employer integration and technology.
- The company repurchased $84 million of shares during the quarter. Net leverage stood at 0.5 times as of Sept. 30.
- Covista repriced its $510 million Term Loan B, lowering the interest-rate margin by 25 basis points to SOFR plus 2.00%.
- Phelan’s planned retirement creates a coming finance leadership transition. He will continue serving as CFO until a successor is named.
The quarter’s reported results show growth in enrollment, revenue and adjusted earnings, alongside an expansion in adjusted EBITDA margin. The higher full-year ranges reflect Covista’s raised expectations for revenue and adjusted EPS; the company’s new strategy is intended to support its healthcare education growth plans.