Q4 2026 Covista Inc Earnings Call Transcript
Key Points
- Covista Inc (CVSA) exceeded its fiscal 2026 guidance, with revenue growth of 9.3% to $1.95 billion and adjusted EPS growth of 23.7% to $8.25, both above the high end of raised ranges.
- The company achieved 12 consecutive quarters of total enrollment growth, with record enrollments at Walden and Chamberlain, reaching 100,000 enrolled students, up from 76,000.
- Adjusted EBITDA margin expanded by 100 basis points to 26.7% for the full year, reflecting operational leverage and efficiencies across the platform.
- Free cash flow increased 39% to $393 million, enabling the return of $238 million to shareholders through share repurchases, reducing shares outstanding by 20%.
- New strategic partnerships, such as with Advocate Health, and campus expansions are expected to drive future growth, with six campuses in active development and three fully approved.
- The company is investing in AI credentials with Google Cloud, with over 9,000 learners enrolled, and is testing AI-powered classrooms, positioning itself for future technology shifts.
- Fiscal 2027 guidance implies a slowdown in revenue growth to 5%-7% and adjusted EPS growth to 8%-11%, compared to the stronger growth rates in fiscal 2026.
- The company faces stronger comparables for Walden and MedVet in fiscal 2027, which could limit growth momentum.
- The OB3 loan changes caused a pull-forward of enrollments in the fourth quarter, which may shift demand from future periods, creating uncertainty in enrollment trends.
- Adjusted EBITDA margin expansion is expected to be modest at zero to 50 basis points in fiscal 2027, due to elevated investments in campus expansion and technology.
- The effective tax rate is expected to be higher in fiscal 2027, which could pressure net income and EPS growth.
- The company anticipates a higher capital expenditure run rate in fiscal 2027, which could impact free cash flow generation.
Greetings and welcome to the Covista fourth-quarter 2026 earnings.
(Operator Instructions) As a reminder: This conference is being recorded.
It is now my pleasure to introduce Jeremy Cohen, Vice President, Investor Relations. Thank you. You may begin.
Good afternoon and welcome to Covista's earnings call for the fiscal year 2026 fourth quarter and full year.
On the call with me, today, are Steve Beard, Chairman and Chief Executive Officer of Covista; and Bob Phelan, Chief Financial Officer.
Before I hand you over to Steve, I will take you through the legal Safe Harbor and cautionary declarations:
Certain statements and projections of future results made in this presentation constitute forward-looking statements that are based on our current market, competitive, and regulatory expectations; and are subject to risks and uncertainties that could cause actual results to vary materially.
We undertake no obligation to update, publicly, any
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