Adtalem Global Education Inc (ATGE)

Pretax margin

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	298,514	285,599	254,302	207,588	163,937	136,196	137,112	119,494	111,643	109,840	58,612	30,414	-27,732	-37,401	1,923	41,068	126,850	157,219	280,539	250,601
Revenue (ttm)	US$ in thousands	1,788,290	1,741,091	1,687,694	1,633,207	1,584,652	1,539,386	1,495,810	1,465,870	1,451,584	1,448,174	1,444,715	1,452,611	1,446,379	1,365,522	1,280,553	1,192,466	1,112,380	1,091,735	1,082,568	1,065,629
Pretax margin		16.69%	16.40%	15.07%	12.71%	10.35%	8.85%	9.17%	8.15%	7.69%	7.58%	4.06%	2.09%	-1.92%	-2.74%	0.15%	3.44%	11.40%	14.40%	25.91%	23.52%

June 30, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $298,514K ÷ $1,788,290K
= 16.69%

The pretax margin of Adtalem Global Education Inc. has demonstrated notable fluctuations over the period from September 2020 through June 2025. In the fiscal year ending September 2020, the pretax margin was robust at 23.52%. This margin increased further in the subsequent quarter, reaching a peak of 25.91% by the end of December 2020. However, starting in March 2021, a downward trend commenced, with the margin declining sharply to 14.40%, and further decreasing to 11.40% by June 2021. The decline persisted with a significant drop to 3.44% at the end of September 2021 and an even more pronounced negative margin of -2.74% by March 2022, indicating operational challenges or increased costs impacting profitability.

The negative trend continued into June 2022 with a marginal loss at -1.92%, but there was a reversal in the subsequent quarters, as the margin returned to positive territory reaching 2.09% in September 2022 and improving further to 4.06% by December 2022. Throughout 2023, the pretax margin showed substantial recovery and growth, increasing to 7.58% in March and 7.69% in June, then continuing upward to 8.15%, and reaching 9.17% by the end of December 2023.

The upward trajectory persisted into the first half of 2024, with margins of 8.85% in March and 10.35% in June, followed by a continued increase to 12.71% in September 2024, and a projected margin of 15.07% by December 2024. This positive momentum extended into 2025, with the margin climbing to 16.40% in March and further to 16.69% in June.

Overall, from September 2020 through June 2025, Adtalem's pretax margin experienced periods of significant decline and recovery, with notable losses in early 2022 possibly reflecting temporary operational or market challenges. The consistent improvement in the latter part of the period indicates a trend towards enhanced profitability and operational stability.