CVSA - From The Road: Remain Confident In Chamberlain Acceleration Thesis

Research evidence excerpt

CVSA - From The Road: Remain Confident In Chamberlain Acceleration Thesis

in a while ahead of the important fall

Total Debt ($M) $496 enrollment cycle. LT, we see the potential for new B2B partnerships (similar to SSM Health)

to stimulate faster application growth and potentially lower CAC.

5 Page Document We continue to think CVSA could have another corporate partnership by the end of

the year. In our view, the early proofpoint of the successful SSM Health relationship should

be an attractive selling point to additional healthcare systems. Separately, Concorde's (UTI,

Reasons for this report Buy) relationship with Heartland Dental (Private) and HCA's (HCA, Buy) acquisitions of

Galen College of Nursing and more recently The College of Healthcare Professions (Private)

✓ NDR Recap also help to validate this approach. We like the partnership model given: (1) lower cost of

student acquisition; (2) creating higher quality/more predictable enrollment streams; and (3)

potentially lowering either OpEx or capital intensity over time.

We think Street CapEx numbers in FY27 probably need to migrate closer to our $110M

(consensus: $101M). Our sense is that consensus might be underestimating the capital

intensity of the Chamberlain buildout (3-5 campuses per year, $9M-$12M upfront CapEx).

We like the expansion strategy and forecast newbuild IRRs of ~40%.

CVSA is proactively adjusting to shift from SEO to GenAI. The company is not seeing

meaningful pressure on CAC or funnel performance. Improving LLM results has prompted

focus on distributing quality content across channels like YouTube and Reddit.

Not expecting an impact from OBBBA loan caps. CVSA's primary exposure is in the Med/

Vet segment (~20% of revenue) where average borrowing of ~$330k-$380k/4 years exceeds