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Aug 6, 2026, 4:19 PM ETConsumer Defensive

Covista Inc. — Fiscal Year 2026 Earnings Summary

CVSACOVISTA INC
Source

Financial Performance

  • Q4 2026 revenue was $501.4 million, up 9.7% year-over-year; Fiscal Year 2026 revenue was $1,954.1 million, up 9.3% year-over-year.
  • Q4 2026 GAAP diluted earnings per share (EPS) were $2.06 (up from $1.44); Adjusted EPS were $2.09 (up 25.9% year-over-year).
  • Fiscal Year 2026 GAAP diluted EPS were $7.04 (up from $6.18); Adjusted EPS were $8.25 (up 23.7% year-over-year).
  • Q4 2026 GAAP net income was $71.7 million; Fiscal Year 2026 GAAP net income was $251.6 million.
  • Q4 2026 Adjusted EBITDA was $126.9 million (up 15.2% year-over-year) with a margin of 25.3%; Fiscal Year 2026 Adjusted EBITDA was $521.7 million (up 13.5% year-over-year) with a margin of 26.7%.
  • Q4 2026 operating income was $95.4 million; Fiscal Year 2026 operating income was $383.4 million.
  • Net leverage was 0.5x as of June 30, 2026.
  • Cash and cash equivalents were $406.3 million as of June 30, 2026, compared to $199.6 million in the prior year.
  • Deferred revenue was $259.1 million as of June 30, 2026, compared to $214.1 million in the prior year.
  • Total long-term debt principal was $673.0 million as of June 30, 2026.

Guidance and Future Outlook

  • Fiscal Year 2027 revenue guidance is $2,050 million to $2,090 million, representing approximately 5% to 7% year-over-year growth.
  • Fiscal Year 2027 Adjusted EPS guidance is $8.90 to $9.15, representing approximately 8% to 11% year-over-year growth.
  • The company has completed its "Growth with Purpose" strategy and is embarking on a "Purpose at Scale" strategy.
  • Management stated the company is tracking ahead of its long-term targets.

Business Segments and Product Lines

  • Chamberlain University: Q4 2026 revenue was $190.2 million (up 3.2%); Fiscal Year 2026 revenue was $750.2 million (up 3.4%). Total student enrollment was 39,501 (up 1.6%). Achieved 16th straight quarter of pre-licensure BSN enrollment growth. Announced two major employer collaborations with leading health systems. Plans to open two new campuses in Cincinnati and Salt Lake City in the first half of fiscal year 2027.
  • Walden University: Q4 2026 revenue was $210.8 million (up 15.7%); Fiscal Year 2026 revenue was $804.9 million (up 16.1%). Total student enrollment was 54,851 (up 14.0%), the highest in university history. Programs launched heading into the 2026 academic year enrolled over 1,700 students. Enrolled students in four new programs and submitted two behavioral health programs for regulatory approval subsequent to the quarter.
  • Medical and Veterinary: Q4 2026 revenue was $100.3 million (up 10.7%); Fiscal Year 2026 revenue was $398.9 million (up 8.1%). Total student enrollment was 5,120 (up 7.3%). Graduated over 1,100 students in fiscal year 2026.
  • Strategic Partnerships: Launched a strategic nursing collaboration with Advocate Health to create a pathway into the nursing profession.
  • AI Credentials: Added nine new AI professional certificates in partnership with Google Cloud during Q4, bringing the total to 12 credentials available to students and professionals, with over 9,000 learners enrolled to date.

Market and Competitive Landscape

  • Covista is identified as America's largest healthcare educator, serving 100,000 students across five accredited institutions.
  • The company aims to address the U.S. healthcare workforce shortage at scale.
  • Walden University achieved double-digit enrollment growth every quarter in fiscal year 2026.
  • Chamberlain University resumed total enrollment growth in the second half of fiscal year 2026.

Risks and Challenges

  • The press release includes a standard cautionary disclosure regarding forward-looking statements, noting that actual results could differ materially due to risks and uncertainties disclosed in Item 1A of the Annual Report on Form 10-K.
  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of special items.

Management Commentary and Tone

  • Steve Beard, Chairman and CEO, stated the company completed its "Growth with Purpose" strategy in a position of strength, exceeding both fiscal 2026 and long-term financial targets.
  • Management emphasized a shift to a "Purpose at Scale" strategy powered by an operating model that converts durable healthcare demand into sustainable, profitable growth.
  • The tone reflects confidence in the company's ability to create value for stakeholders and help close the healthcare workforce shortage.

Other Key Points

  • Capital allocation in fiscal year 2026 included repurchasing $238 million of shares and repaying $50 million of outstanding Term Loan B debt.
  • The company successfully refinanced outstanding debt, increasing revolving credit capacity with extended maturities and attractive rates.
  • Covista received multiple national awards, including the Forbes list of America's Best Employers for New Grads 2026 and the 2026-2027 Best Company to Work For - Midwest by U.S. News & World Report.
  • Free cash flow for the fourth quarter of fiscal year 2026 was $393.1 million.
  • The company will hold a conference call to discuss results at 4:00 p.m. CT on August 6, 2026.