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Accounts and Financing Receivables

3 Months Ended

Sep. 30, 2025

9. Accounts and Financing Receivables

Our accounts receivables relate to student balances occurring in the normal course of business. Accounts receivables have a term of less than one year and are included in accounts and financing receivables, net on our Consolidated Balance Sheets. Our financing receivables relate to credit extension programs, which provide students with payment terms in excess of one year and are included in accounts and financing receivables, net and other assets, net on our Consolidated Balance Sheets.

The classification of our accounts and financing receivable balances was as follows (in thousands):


	September 30, 2025
		Gross		Allowance		Net
Accounts receivables, current	$	244,126	$	(52,019)	$	192,107
Financing receivables, current		5,332		(2,602)		2,730
Accounts and financing receivables, current	$	249,458	$	(54,621)	$	194,837

Financing receivables, current	$	5,332	$	(2,602)	$	2,730
Financing receivables, noncurrent		32,033		(8,515)		23,518
Total financing receivables	$	37,365	$	(11,117)	$	26,248


	June 30, 2025
		Gross		Allowance		Net
Accounts receivables, current	$	189,874	$	(46,441)	$	143,433
Financing receivables, current		5,393		(2,637)		2,756
Accounts and financing receivables, current	$	195,267	$	(49,078)	$	146,189

Financing receivables, current	$	5,393	$	(2,637)	$	2,756
Financing receivables, noncurrent		33,116		(8,757)		24,359
Total financing receivables	$	38,509	$	(11,394)	$	27,115

Our financing receivables relate to credit extension programs available to students at Chamberlain, AUC, RUSM, and RUSVM. These credit extension programs are designed to assist students who are unable to completely cover educational costs consisting of tuition, fees, and books, and are available only after all other student financial assistance has been applied toward those purposes. In addition, AUC, RUSM, and RUSVM allow students to finance their living expenses. Repayment plans for financing agreements are developed to address the financial circumstances of the particular student. Interest charges at rates from 3.0% to 12.0% per annum accrue each month on the unpaid balance once a student withdraws or graduates from a program. Most students are required to begin repaying their obligations while they are still in school with a minimum payment level. Payments may increase upon completing or departing school.

Credit Quality

The primary credit quality indicator for our financing receivables is delinquency. Balances are considered delinquent when contractual payments on the loan become past due. We generally write-off financing receivable balances when they are at least 181 days past due. Payments are applied first to outstanding interest and then to the unpaid principal balance.

The credit quality analysis of financing receivables as of September 30, 2025 was as follows (in thousands):


	Amortized Cost Basis by Origination Year
	Prior		2022		2023		2024		2025		2026		Total
1-30 days past due	$	704	$	80	$	349	$	216	$	104	$	195	$	1,648
31-60 days past due		302		96		39		521		353		14		1,325
61-90 days past due		91		13		58		28		703		—		893
91-120 days past due		44		—		263		3		659		—		969
121-150 days past due		36		2		21		41		335		—		435
Greater than 150 days past due		3,611		938		1,426		1,920		447		—		8,342
Total past due		4,788		1,129		2,156		2,729		2,601		209		13,612
Current		7,528		1,556		2,982		4,210		5,614		1,863		23,753
Financing receivables, gross	$	12,316	$	2,685	$	5,138	$	6,939	$	8,215	$	2,072	$	37,365
Gross write-offs	$	143	$	60	$	611	$	131	$	23	$	—	$	968

The credit quality analysis of financing receivables as of June 30, 2025 was as follows (in thousands):


	Amortized Cost Basis by Origination Year
	Prior		2021		2022		2023		2024		2025		Total
1-30 days past due	$	319	$	303	$	116	$	37	$	1,099	$	1,623	$	3,497
31-60 days past due		67		122		42		68		377		378		1,054
61-90 days past due		21		28		—		255		27		72		403
91-120 days past due		30		—		—		11		42		17		100
121-150 days past due		44		10		—		45		52		103		254
Greater than 150 days past due		2,261		1,291		1,171		2,058		1,935		293		9,009
Total past due		2,742		1,754		1,329		2,474		3,532		2,486		14,317
Current		5,858		2,609		1,819		3,323		4,440		6,143		24,192
Financing receivables, gross	$	8,600	$	4,363	$	3,148	$	5,797	$	7,972	$	8,629	$	38,509
Gross write-offs	$	1,158	$	642	$	478	$	1,014	$	876	$	13	$	4,181

Allowance for Credit Losses

The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in our accounts and financing receivable balances as of each balance sheet date. In evaluating the collectability of our accounts and financing receivable balances, we utilize historical events, current conditions, and reasonable and supportable forecasts about the future.

For our accounts receivables, we use historical loss rates based on an aging schedule and a student’s status to determine the allowance for credit losses. As these accounts receivables are short-term in nature, management believes a student’s status provides the best credit loss estimate, while also factoring in delinquency. Students still attending classes, recently graduated, or current on payments are more likely to pay than those who are inactive due to being on a leave of absence, withdrawing from school, or not current on payments.

For our financing receivables, we use historical loss rates based on an aging schedule. As these financing receivables are based on long-term financing agreements offered by Adtalem, management believes that delinquency provides the best credit loss estimate. As the financing receivable balances become further past due, it is less likely we will receive payment, causing our estimate of credit losses to increase.

The following tables provide a roll-forward of the allowance for credit losses (in thousands):


	Three Months Ended September 30, 2025
	Accounts		Financing		Total
Beginning balance	$	46,441	$	11,394	$	57,835
Write-offs		(12,119)		(968)		(13,087)
Recoveries		3,220		285		3,505
Provision for credit losses		14,477		406		14,883
Ending balance	$	52,019	$	11,117	$	63,136


	Three Months Ended September 30, 2024
	Accounts		Financing		Total
Beginning balance	$	35,336	$	12,558	$	47,894
Write-offs		(13,111)		(1,098)		(14,209)
Recoveries		2,577		176		2,753
Provision for credit losses		11,889		1,831		13,720
Ending balance	$	36,691	$	13,467	$	50,158