Covista Inc.

What they do

Covista operates five accredited institutions: Chamberlain University (nursing and health professions), Walden University (nursing, education, counseling, business, IT, psychology, public health, social work, public administration and criminal justice), and the medical and veterinary schools AUC, RUSM and RUSVM. It delivers programs at multiple campuses and online. The company reports three segments: Chamberlain, Walden, and Medical and Veterinary, with a Home Office category for unallocated activities.

Revenue drivers

• Chamberlain — Nursing and health professions programs including pre-licensure BSN, RN-BSN completion, MSN with nurse practitioner tracks, DNP, MPH, MSW and MPAS, delivered through 24 campuses and online.
• Walden — Online degree and certificate programs spanning 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 — AUC, RUSM and RUSVM offer degree and certificate programs in medical and veterinary postsecondary education; the segment enrolled approximately 5,250 students on average in fiscal 2026, up 4.5% year-over-year.

Recent performance

Fiscal year 2026 revenue was $1,954.1 million, up 9.3% year-over-year, with GAAP net income of $251.6 million and diluted EPS of $7.04. Fourth quarter revenue was $501.4 million, up 9.7%, on net income of $71.7 million and diluted EPS of $2.06. Total Q4 student enrollment was 99,472, up 8.4% year-over-year, the 12th straight quarter of growth; Walden total enrollment rose 14.0% and Medical and Veterinary enrollment grew 7.3%. Third quarter fiscal 2026 revenue was $487.0 million, up 4.5%, but net income fell 31.6% to $41.6 million, partly due to a shift of one academic week that moved $18.0 million of Walden revenue into the second quarter.

Strategy

Covista completed its three-year "Growth with Purpose" strategy and has moved to a new strategy called "Purpose at Scale." The strategy centers on expanding access to healthcare education and addressing the U.S. healthcare workforce shortage, built on four principles: operational excellence, platform extension, employer integration, and technology focus. In fiscal 2026 the company repurchased $238 million of shares and repaid $50 million of Term Loan B debt, and it refinanced outstanding debt and increased revolving credit capacity. Net leverage was 0.5x as of June 30, 2026.

Risks

• Regulatory and compliance exposure — The company faces audits, investigations, lawsuits and claims of non-compliance by federal and state agencies, accreditors, students, employees and shareholders, which could result in fines, repayment of Title IV funds, loss of program eligibility or accreditation.
• Title IV financial responsibility — ED regulations provide that if any Title IV institution cannot pay obligations under its Program Participation Agreement due to operational issues, consequences could follow for the institution.
• Enrollment-dependent operating costs — Third quarter fiscal 2026 net income fell 31.6% on increases in labor and other costs to support increased enrollment, marketing expense, and growth investments, showing profitability is sensitive to cost growth.
• Academic calendar timing — A shift of one academic week moved $18.0 million of Walden revenue from the third quarter into the second quarter of fiscal 2026, illustrating quarter-to-quarter revenue variability.

Outlook

Management initiated fiscal year 2027 guidance for revenue of $2,050 million to $2,090 million, or approximately 5% to 7% growth year-over-year. Adjusted earnings per share guidance is $8.90 to $9.15, or approximately 8% to 11% growth. The company enters fiscal 2027 under the "Purpose at Scale" strategy.