Income Taxes (Tables)

12 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income before Income Tax

Income from continuing operations before income taxes, classified by source of income, was as follows (in thousands):

	Year Ended June 30,
	2025		2024		2023
Domestic	$	221,225	$	89,752	$	51,422
Foreign		77,289		74,185		60,613
Total	$	298,514	$	163,937	$	112,035

Income Tax Provisions (Benefits)

The components of the provision for income taxes were as follows (in thousands):

	Year Ended June 30,
	2025		2024		2023
Current tax provision (benefit):
U.S. federal	$	40,742	$	11,243	$	13,761
State and local		7,070		3,489		824
Foreign		(388)		419		614
Total current		47,424		15,151		15,199
Deferred tax provision (benefit):
U.S. federal		9,296		4,870		(1,099)
State and local		6,786		2,745		(4,347)
Foreign		2,331		3,458		530
Total deferred		18,413		11,073		(4,916)
Provision for income taxes	$	65,837	$	26,224	$	10,283

Income Tax Provisions Computed using Statutory U.S. Federal Rate

The effective tax rate differs from the statutory tax rates as follows (in thousands):

	Year Ended June 30,
	2025				2024				2023
Income tax at statutory rate	$	62,688	21.0	%	$	34,427	21.0	%	$	23,527	21.0	%
Lower rates on foreign operations		(10,999)	(3.7)	%		(11,419)	(7.0)	%		(11,668)	(10.4)	%
State income taxes		10,263	3.4	%		4,767	2.9	%		2,656	2.4	%
Research and development tax credits		(1,908)	(0.6)	%		(1,589)	(1.0)	%		(1,862)	(1.7)	%
Change in valuation allowance		—	—	%		(621)	(0.4)	%		(9,769)	(8.7)	%
Reduction in state loss carryforwards		—	—	%		—	—	%		2,340	2.1	%
Permanent (taxable) non-deductible items		(2,286)	(0.8)	%		(904)	(0.6)	%		785	0.7	%
Limitations on executive compensation		5,812	1.9	%		2,987	1.8	%		908	0.8	%
Foreign tax provisions under GILTI		6,110	2.0	%		4,908	3.0	%		3,569	3.2	%
Change in unrecognized tax benefits		(490)	(0.2)	%		(6,849)	(4.2)	%		791	0.7	%
Other		(3,353)	(1.1)	%		517	0.3	%		(994)	(0.9)	%
Provision for income taxes	$	65,837	22.1	%	$	26,224	16.0	%	$	10,283	9.2	%

Deferred Tax Assets (Liabilities)

The components of the deferred income tax assets and liabilities were as follows (in thousands):

	June 30,
	2025		2024
Employee benefits	$	16,428	$	15,866
Stock-based compensation		8,990		7,664
Receivable reserve		10,756		9,028
Capitalized research and experimental costs		17,738		9,322
Operating lease liabilities		50,201		42,526
Other reserves		7,399		12,439
Loss and credit carryforwards, net		10,303		15,426
Gross deferred tax assets		121,815		112,271
Depreciation		(8,054)		(8,298)
Deferred taxes on unremitted foreign earnings		(307)		(210)
Amortization of intangible assets		(72,487)		(50,035)
Operating lease assets		(39,867)		(34,166)
Gross deferred tax liability		(120,715)		(92,709)
Net deferred tax asset	$	1,100	$	19,562

Net Operating Loss and Credit Carryforwards

Adtalem has the following tax net operating loss (tax effected), interest (tax effected), and credit carryforwards as of June 30, 2025 (in thousands):

	June 30,		Years of Expiration
	2025		Beginning	Ending
U.S. credit carryforwards	$	672	2027	2030
State net operating loss carryforwards		7,089	2026	2043
State interest expense carryforwards		439	no expiration
Foreign net operating loss carryforwards		2,103	2032	2033
Total loss and credit carryforwards, net	$	10,303

Changes in Valuation Allowance

The changes in our valuation allowances were as follows (in thousands):

	Year Ended June 30,
	2025		2024		2023
Balance at beginning of period	$	—	$	621	$	10,390
Charged to costs and expenses		—		—		(2,677)
Deductions		—		(621)		(7,092)
Balance at end of period	$	—	$	—	$	621

Changes in Unrecognized Tax Benefits

The changes in our unrecognized tax benefits were as follows (in thousands):

	Year Ended June 30,
	2025		2024		2023
Balance at beginning of period	$	6,723	$	13,128	$	11,645
Increases from positions taken during prior periods		235		953		1,299
Decreases from positions taken during prior periods		—		(1,248)		—
Increases from positions taken during the current period		656		554		665
Reductions due to lapse of statute		(764)		(6,664)		(481)
Balance at end of period	$	6,850	$	6,723	$	13,128