Covista FY2026: Revenue Climbs 9.3% to $1.95B, Diluted EPS Hits $7.04, Walden Enrollment Surges 13.2%

summarizeSummary

Covista's FY2026 10-K reveals revenue of $1.95B (+9.3%) and diluted EPS of $7.04 (+13.9%), fueled by enrollment gains across all segments, most notably Walden's 13.2% surge. The company refinanced debt, repurchased shares, and continues to navigate regulatory scrutiny with provisional Title IV status and pending borrower defense claims.

check_boxKey Events · Earnings and Guidance · CVSA

• Revenue and Earnings Beat Guidance

  Revenue rose 9.3% to $1.95 billion, net income increased 6.1% to $251.6 million, and diluted EPS grew 13.9% to $7.04, exceeding the company's own financial targets.

• Walden Enrollment Surge Drives Growth

  Walden University total student enrollment increased 13.2% year-over-year, with adjusted operating income up 30.6% to $239.7 million, reflecting successful investments in student experience and brand.

• Debt Refinancing Lowers Interest Costs

  Covista entered a new $510 million Term Loan B at SOFR + 2.25% and expanded its Revolver to $500 million, repaying higher-cost Senior Secured Notes due 2028, reducing annual interest expense.

• Aggressive Share Repurchases Continue

  The company repurchased 2.4 million shares for $238.2 million during FY2026, with $661.8 million remaining under its $750 million authorization.

auto_awesomeAnalysis · CVSA · Trade & Services

Fiscal 2026 proved a standout year for Covista, with results surpassing its own guidance. Revenue climbed 9.3% to $1.95 billion, while diluted EPS rose 13.9% to $7.04. The star performer was Walden University, where a 13.2% enrollment surge and a 30.6% jump in adjusted operating income underscored the payoff from investments in student experience and brand. A well-timed debt refinancing further sweetened the picture by lowering interest costs, and the company continued to buy back shares aggressively. Yet regulatory clouds linger: all five institutions operate under provisional Title IV program participation agreements—a consequence of a sub-1.5 financial responsibility composite score—requiring $202.6 million in letters of credit. The 10-K also discloses 16,623 pending Borrower Defense to Repayment claims, though none have been approved. The results cement Covista's standing as America's largest healthcare educator, but the regulatory environment remains a key risk.