We believe ATGE's model is dependent on billions in taxpayer dollars to schools where outcomes lag far behind national averages, with most students either not graduating on-time or not graduating at all. Investors must consider existential risks around funding restrictions, delays, and the potential for closures.
We dive deeper into Walden University, which Adtalem acquired in 2021. ATGE spends more to acquire students than educate them, and it shows. We present detailed analysis of Walden enrollments and outcomes, using to substantiate our view that Walden's goodwill and intangibles balances should be impaired.
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