Segment Information

3 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

18. 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, 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 the Chief Operating Decision Maker (Adtalem’s President and Chief Executive Officer) evaluates performance and allocates resources. Performance evaluations are based on each segment’s adjusted operating income. Adjusted operating income excludes special items, which consists of restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, and debt modification

costs. Adtalem’s management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. “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 are 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):

	Three Months Ended
	September 30,
	2024		2023
Revenue:
Chamberlain	$	167,930	$	142,596
Walden		161,513		141,608
Medical and Veterinary		87,957		84,641
Total consolidated revenue	$	417,400	$	368,845
Adjusted operating income:
Chamberlain	$	27,832	$	24,324
Walden		42,642		31,115
Medical and Veterinary		14,730		14,477
Home Office		(9,355)		(6,607)
Total consolidated adjusted operating income		75,849		63,309
Reconciliation to Consolidated Financial Statements:
Restructuring expense		(2,094)		(676)
Business integration expense		—		(5,262)
Amortization of acquired intangible assets		(2,805)		(10,677)
Litigation reserve		—		(18,500)
Debt modification costs		(712)		—
Total consolidated operating income		70,238		28,194
Interest expense		(14,482)		(15,657)
Other income, net		2,646		2,214
Total consolidated income from continuing operations before income taxes	$	58,402	$	14,751
Depreciation:
Chamberlain	$	5,368	$	4,116
Walden		1,682		1,974
Medical and Veterinary		2,569		2,892
Home Office		184		356
Total consolidated depreciation	$	9,803	$	9,338
Amortization of acquired intangible assets:
Walden	$	2,805	$	10,677
Total consolidated amortization of acquired intangible assets	$	2,805	$	10,677

Adtalem conducts its educational operations in the U.S., Barbados, St. Kitts, and St. Maarten. Revenue by geographic area is as follows (in thousands):

	Three Months Ended
	September 30,
	2024		2023
Revenue by geographic area:
Domestic operations	$	329,443	$	284,204
Barbados, St. Kitts, and St. Maarten		87,957		84,641
Total consolidated revenue	$	417,400	$	368,845

No one customer accounted for more than 10% of Adtalem’s consolidated revenue for all periods presented.