Covista delivered a positive first quarter, surpassing Wall Street’s expectations for both revenue and non-GAAP earnings. Management highlighted that robust enrollment growth across all segments, particularly at Chamberlain and Walden universities, was the primary driver of performance. CEO Stephen Beard cited a return to positive total enrollment at Chamberlain, noting, “The operating changes that we committed to are, in fact, working.” Operational improvements in marketing and application processes also contributed to these results, reinforcing the company’s ability to execute its strategy.
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Covista (CVSA) Q1 CY2026 Highlights:
- Revenue: $487 million vs analyst estimates of $474 million (4.5% year-on-year growth, 2.7% beat)
- Adjusted EPS: $1.98 vs analyst estimates of $1.72 (14.9% beat)
- Adjusted EBITDA: $127.9 million vs analyst estimates of $117.7 million (26.3% margin, 8.6% beat)
- The company slightly lifted its revenue guidance for the full year to $1.94 billion at the midpoint from $1.92 billion
- Management raised its full-year Adjusted EPS guidance to $8.05 at the midpoint, a 1.9% increase
- Operating Margin: 18.8%, in line with the same quarter last year
- Market Capitalization: $4.38 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are 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 Q1 Earnings Call
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Ryan Griffin (BMO Capital Markets) asked for an update on employer partnerships like SSM. CEO Stephen Beard replied that SSM continues to thrive and that new partnership discussions are underway, though no specifics were disclosed.
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Ryan Griffin (BMO Capital Markets) questioned whether fourth quarter investments were shifted from Q3. CFO Robert Phelan clarified that incremental investments were planned for Q4, not timing shifts from the previous quarter.
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Jasper Bibb (Truist Securities) inquired about the drivers behind Chamberlain’s enrollment reversal and RN to BSN demand. Beard explained that marketing and process improvements drove the turnaround, with renewed momentum in post-licensure programs.
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Jasper Bibb (Truist Securities) sought clarification on application conversions at Chamberlain. Beard confirmed that conversion rates have normalized to historical levels due to personnel and process enhancements.
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Jack Slevin (Jefferies) asked about CapEx trends as new campuses roll out. Phelan responded that capital expenditures will ramp up in the fourth quarter and serve as a proxy for future run rates as expansion continues.
Catalysts in Upcoming Quarters
In upcoming quarters, our team will watch closely for (1) continued enrollment momentum at Chamberlain and Walden, especially as new campuses come online; (2) adoption rates and student outcomes from AI-powered learning initiatives and credential programs; and (3) progress on employer partnerships that could enhance student placement and institutional relevance. Execution on campus buildouts and integration of new leadership will also be critical markers.
Covista currently trades at $128.79, up from $117 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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