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Segment Information
 6 Months Ended
Dec. 31, 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, loss on assets held for sale, 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

​

Six Months Ended

​

​

December 31,

​

December 31,

​

​

2024

​

2023

​

2024

​

2023

Revenue:

 

​

​

 

​

​

 

​

​

 

​

​

Chamberlain

​

$

180,986

​

$

153,553

​

$

348,916

​

$

296,149

Walden

​

​

171,306

​

​

146,808

​

​

332,819

​

​

288,416

Medical and Veterinary

​

​

95,437

​

​

92,881

​

​

183,394

​

​

177,522

Total consolidated revenue

​

$

447,729

​

$

393,242

​

$

865,129

​

$

762,087

Adjusted operating income:

​

 

​

​

 

​

​

 

​

​

​

​

Chamberlain

​

$

42,303

​

$

29,640

​

$

70,135

​

$

53,964

Walden

​

​

46,153

​

​

30,155

​

​

88,795

​

​

61,270

Medical and Veterinary

​

​

21,519

​

​

22,091

​

​

36,249

​

​

36,568

Home Office

​

 

(8,528)

​

 

(6,317)

​

 

(17,883)

​

 

(12,924)

Total consolidated adjusted operating income

​

​

101,447

​

​

75,569

​

​

177,296

​

​

138,878

Reconciliation to Consolidated Financial Statements:

​

​

​

​

​

​

​

​

​

​

​

​

Restructuring expense

​

 

(322)

​

 

(68)

​

 

(2,416)

​

 

(744)

Business integration expense

​

​

—

​

 

(6,909)

​

​

—

​

 

(12,171)

Amortization of acquired intangible assets

​

​

(2,805)

​

 

(9,333)

​

​

(5,610)

​

 

(20,010)

Litigation reserve

​

​

5,550

​

 

—

​

​

5,550

​

 

(18,500)

Loss on assets held for sale

​

​

—

​

 

(647)

​

​

—

​

 

(647)

Debt modification costs

​

​

—

​

 

—

​

​

(712)

​

 

—

Total consolidated operating income

​

​

103,870

​

​

58,612

​

​

174,108

​

​

86,806

Interest expense

​

 

(13,909)

​

 

(16,693)

​

 

(28,391)

​

 

(32,350)

Other income, net

​

 

2,235

​

 

3,563

​

 

4,881

​

 

5,777

Total consolidated income from continuing operations before income taxes

​

$

92,196

​

$

45,482

​

$

150,598

​

$

60,233

Depreciation:

​

 

​

​

​

​

​

 

​

​

​

​

Chamberlain

​

$

5,466

​

$

4,786

​

$

10,834

​

$

8,902

Walden

​

​

1,795

​

​

1,926

​

​

3,477

​

​

3,900

Medical and Veterinary

​

​

2,744

​

​

2,972

​

​

5,313

​

​

5,864

Home Office

​

 

185

​

 

359

​

 

369

​

 

715

Total consolidated depreciation

​

$

10,190

​

$

10,043

​

$

19,993

​

$

19,381

Amortization of acquired intangible assets:

​

 

​

​

​

​

​

 

​

​

​

​

Walden

​

$

2,805

​

$

9,333

​

$

5,610

​

$

20,010

Total consolidated amortization of acquired intangible assets

​

$

2,805

​

$

9,333

​

$

5,610

​

$

20,010

​

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

​

Six Months Ended

​

​

December 31,

​

December 31,

​

​

2024

​

2023

​

2024

​

2023

Revenue by geographic area:

 

​

​

 

​

​

​

​

​

​

​

​

Domestic operations

​

$

352,292

​

$

300,361

​

$

681,735

​

$

584,565

Barbados, St. Kitts, and St. Maarten

​

 

95,437

​

 

92,881

​

 

183,394

​

 

177,522

Total consolidated revenue

​

$

447,729

​

$

393,242

​

$

865,129

​

$

762,087

​

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