Covista’s third-quarter performance outpaced Wall Street’s expectations, reflecting strong enrollment trends in its healthcare-focused educational programs and disciplined execution across its three core segments. Management attributed the results to robust demand for nursing and medical degrees as well as continued momentum at Walden University, which achieved its tenth consecutive quarter of double-digit enrollment growth. CEO Steve Beard noted, “We are attracting and developing more future clinicians and partnering with leading health systems to keep them,” underscoring the company’s focus on addressing the nationwide healthcare worker shortage.
Is now the time to buy CVSA? Find out in our full research report (it’s free for active Edge members).
Covista (CVSA) Q3 CY2026 highlights:
- Revenue $511.5 million vs S&P analysts’ estimates of $489.4 million (10.7% year-on-year growth, 4.5% beat)
- Adjusted EPS $2.19 vs S&P analysts’ estimates of $1.83 (19.5% beat)
- Adjusted EBITDA $131.2 million vs analyst estimates of $118.8 million (25.6% margin, 10.5% beat)
- Revenue guidance The company slightly lifted its revenue guidance for the full year to $2.08 billion at the midpoint from $2.07 billion
- Adjusted EPS guidance Management slightly raised its full-year adjusted EPS guidance to $9.10 at the midpoint
- Operating margin 19.2%, in line with the same quarter last year
- Market capitalization $4.23 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Covista’s Q3 earnings call
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Jeff Silber (BMO Capital Markets) questioned the impact of federal loan program changes on MedVet and nursing enrollments. CEO Steve Beard clarified that while some students enrolled early to get ahead of loan changes, there is no expected long-term enrollment impact.
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Alex Paris (Barrington Research) asked about slower-than-expected Chamberlain enrollment growth and prospects for acceleration. Beard acknowledged a shortfall in continuing students and post-licensure programs but expects improvement through targeted persistence and pricing strategies.
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Alex Paris (Barrington Research) also probed why full-year guidance was raised modestly despite first-quarter outperformance. Beard explained the company is taking a prudent approach, considering investments, academic calendar shifts, and anticipated higher tax rates.
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Jack Slevin (Jefferies) inquired about margin progression and the effect of Chamberlain investments. CFO Bob Phelan noted that campus startup costs will be more pronounced in later quarters, but overall margin improvement is expected for the year.
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Jasper Bibb (Truist Securities) asked how the shift to AI-powered search is affecting student acquisition costs. Beard replied that Covista’s proactive brand management has mitigated potential headwinds and that LLM search strategies are supporting strong enrollment trends.
Catalysts in upcoming quarters
In the coming quarters, the StockStory team will be watching (1) the pace of enrollment growth at newly opened and planned campuses, (2) progress on expanding health system partnerships and their impact on employer-sponsored student pipelines, and (3) the effectiveness of AI and digital initiatives in enhancing student recruitment and engagement. Execution on these priorities will be essential for sustaining Covista’s growth trajectory.
Covista currently trades at $115.70, down from $128.82 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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