Accounts and Financing Receivables

3 Months Ended

Sep. 30, 2026

Receivables [Abstract]

Accounts and Financing Receivables

9. Accounts and Financing Receivables

Our accounts receivables relate to student balances occurring in the normal course of business. Accounts receivables have a term of less than one year and are included in accounts and financing receivables, net on our Consolidated Balance Sheets. Our financing receivables relate to credit extension programs, which provide students with payment terms in excess of one year and are included in accounts and financing receivables, net and other assets, net on our Consolidated Balance Sheets.

The classification of our accounts and financing receivable balances was as follows (in thousands):

	September 30, 2026
		Gross		Allowance		Net
Accounts receivables, current	$	300,338	$	(61,463)	$	238,875
Financing receivables, current		5,284		(2,690)		2,594
Accounts and financing receivables, current	$	305,622	$	(64,153)	$	241,469
Financing receivables, current	$	5,284	$	(2,690)	$	2,594
Financing receivables, noncurrent		27,921		(6,527)		21,394
Total financing receivables	$	33,205	$	(9,217)	$	23,988

	June 30, 2026
		Gross		Allowance		Net
Accounts receivables, current	$	225,869	$	(59,018)	$	166,851
Financing receivables, current		5,336		(2,626)		2,710
Accounts and financing receivables, current	$	231,205	$	(61,644)	$	169,561
Financing receivables, current	$	5,336	$	(2,626)	$	2,710
Financing receivables, noncurrent		28,710		(7,225)		21,485
Total financing receivables	$	34,046	$	(9,851)	$	24,195

Our financing receivables relate to credit extension programs available to students at Chamberlain, AUC, RUSM, and RUSVM. These credit extension programs are designed to assist students who are unable to completely cover educational costs consisting of tuition, fees, and books, and are available only after all other student financial assistance has been applied toward those purposes. In addition, AUC, RUSM, and RUSVM allow students to finance their living expenses. Repayment plans for financing agreements are developed to address the financial circumstances of the particular student. Interest charges at rates from 3.0% to 12.0% per annum accrue each month on the unpaid balance once a student withdraws or graduates from a program. Most students are required to begin repaying their obligations while they are still in school with a minimum payment level. Payments may increase upon completing or departing school.

Credit Quality

The primary credit quality indicator for our financing receivables is delinquency. Balances are considered delinquent when contractual payments on the loan become past due. We generally write-off financing receivable balances when they are at least 181 days past due. Payments are applied first to outstanding interest and then to the unpaid principal balance.

The credit quality analysis of financing receivables as of September 30, 2026 was as follows (in thousands):

	Amortized Cost Basis by Origination Year
	Prior		2023		2024		2025		2026		2027		Total
1-30 days past due	$	678	$	55	$	350	$	505	$	1,306	$	418	$	3,312
31-60 days past due		210		49		34		22		17		—		332
61-90 days past due		49		365		12		43		578		—		1,047
91-120 days past due		237		38		71		13		8		—		367
121-150 days past due		15		18		10		—		22		—		65
Greater than 150 days past due		3,487		1,012		1,329		1,208		612		—		7,648
Total past due		4,676		1,537		1,806		1,791		2,543		418		12,771
Current		7,164		1,776		2,359		3,177		4,330		1,628		20,434
Financing receivables, gross	$	11,840	$	3,313	$	4,165	$	4,968	$	6,873	$	2,046	$	33,205
Gross write-offs	$	307	$	89	$	120	$	459	$	4	$	—	$	979

The credit quality analysis of financing receivables as of June 30, 2026 was as follows (in thousands):

	Amortized Cost Basis by Origination Year
	Prior		2022		2023		2024		2025		2026		Total
1-30 days past due	$	616	$	85	$	669	$	66	$	178	$	675	$	2,289
31-60 days past due		134		45		19		37		105		52		392
61-90 days past due		18		24		9		60		9		17		137
91-120 days past due		155		—		23		14		330		185		707
121-150 days past due		33		42		25		2		28		78		208
Greater than 150 days past due		2,976		723		1,047		1,553		1,380		376		8,055
Total past due		3,932		919		1,792		1,732		2,030		1,383		11,788
Current		6,114		1,414		2,031		3,712		3,923		5,064		22,258
Financing receivables, gross	$	10,046	$	2,333	$	3,823	$	5,444	$	5,953	$	6,447	$	34,046
Gross write-offs	$	1,154	$	281	$	1,446	$	1,115	$	169	$	10	$	4,175

Allowance for Credit Losses

The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in our accounts and financing receivable balances as of each balance sheet date. In evaluating the collectability of our accounts and financing receivable balances, we utilize historical events, current conditions, and reasonable and supportable forecasts about the future.

For our accounts receivables, we use historical loss rates based on an aging schedule and a student’s status to determine the allowance for credit losses. As these accounts receivables are short-term in nature, management believes a student’s status provides the best credit loss estimate, while also factoring in delinquency. Students still attending classes, recently graduated, or current on payments are more likely to pay than those who are inactive due to being on a leave of absence, withdrawing from school, or not current on payments.

For our financing receivables, we use historical loss rates based on an aging schedule. As these financing receivables are based on long-term financing agreements offered by Covista, management believes that delinquency provides the best credit loss estimate. As the financing receivable balances become further past due, it is less likely we will receive payment, causing our estimate of credit losses to increase.

The following tables provide a roll-forward of the allowance for credit losses (in thousands):

	Three Months Ended September 30, 2026
	Accounts		Financing		Total
Beginning balance	$	59,018	$	9,851	$	68,869
Write-offs		(22,640)		(979)		(23,619)
Recoveries		2,863		165		3,028
Provision for credit losses		22,222		180		22,402
Ending balance	$	61,463	$	9,217	$	70,680

	Three Months Ended September 30, 2025
	Accounts		Financing		Total
Beginning balance	$	46,441	$	11,394	$	57,835
Write-offs		(12,119)		(968)		(13,087)
Recoveries		3,220		285		3,505
Provision for credit losses		14,477		406		14,883
Ending balance	$	52,019	$	11,117	$	63,136