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    LAUR
    Earnings call· Mar 2026(Q1 FY26)

    LAUREATE EDUCATION Q1 FY26 earnings call LAUR

    Apr 30, 2026 Source

    Executive summary

    Laureate Education Q1 FY26 — Strong Enrollment Growth in Peru and Increased EPS Guidance

    Laureate Education reported a strong start to FY26, driven by robust new enrollment growth in Peru, particularly in online programs, and reaffirmed its full-year revenue and adjusted EBITDA guidance. The company raised its adjusted EPS guidance following significant share repurchases, underscoring its commitment to returning excess capital. While Mexico's macroeconomic conditions remain modest, management anticipates a recovery in the second half of 2026.

    Highlights

    5

    • New enrollment growth of 13% in Peru and 4% in Mexico through mid-April, aligning with expectations.

    • Adjusted EPS guidance increased by $0.05 per share to $2.00-$2.08, reflecting $105 million in share buybacks completed in Q1.

    • Full-year revenue guidance reaffirmed at $1.890 billion to $1.905 billion (11-12% as-reported, 6-7% constant currency).

    • Full-year adjusted EBITDA guidance reaffirmed at $583 million to $593 million (12-14% as-reported, 7-9% constant currency).

    • 9 out of 10 job-seeking graduates secure employment within 12 months of graduation, underscoring program relevance.

    Concerns

    4

    • Mexico's GDP growth for 2026 is expected to remain relatively modest, contributing to moderate enrollment momentum.

    • First quarter adjusted EBITDA was negative $2 million, with Mexico's adjusted EBITDA down 16% YoY due to investments in new campuses and timing.

    • Rapid scaling of fully online offerings in Peru will create a price mix impact on average revenue per student in 2026.

    • Fully online programs come with a higher attrition rate compared to traditional offerings.

    Guidance & targets

    11
    CategoryTargetConfidence
    Total Enrollments
    516,000 to 521,000 students
    high materiality
    High
    Revenue
    $1.890 billion to $1.905 billion
    high materiality
    High
    Adjusted EBITDA
    $583 million to $593 million
    high materiality
    High
    Adjusted EBITDA Margin
    approximately 50 basis points increase
    medium materiality
    High
    Adjusted EBITDA to Unlevered Free Cash Flow Conversion
    approximately 50%
    medium materiality
    High
    Adjusted Earnings Per Share
    $2.00 to $2.08 per share
    high materiality
    High
    Diluted Weighted Average Share Count
    approximately 141 million shares
    medium materiality
    High
    Revenue
    $597 million and $601 million
    medium materiality
    High
    Adjusted EBITDA
    $239 million to $243 million
    medium materiality
    High
    Mexico Economic Activity
    increase in economic activity
    medium materiality
    Medium
    Margin Accretion Weighting
    weighted towards the second half of the year
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Mexico
    All comparisons versus prior year quarter are on a constant currency basis. Q1 reflects a smaller secondary intake. Revenue growth for H1 FY26 expected to be fairly consistent with total company growth rate expectations. Adjusted EBITDA decline due to out-of-session period, investments in new campuses, and other timing items.
    New enrollments: 4% vs comparable intake cycleTotal enrollments: 4% vs comparable intake cyclePricing (traditional): in line with inflationPricing (online): less aggressive, still YoY increase
    		increased 2%2%—down 16%
    Peru
    All comparisons versus prior year quarter are on a constant currency basis. Q1 represents the primary intake. Strong growth in working adult-focused fully online programs. Rapid scaling of online offerings will drive majority of enrollment growth, creating a price mix impact on average revenue per student in 2026. Adjusted EBITDA is negative due to summer period (out of session), but represents a $5 million improvement versus prior year adjusted for timing.
    New enrollments: 13% vs comparable intake cycleTotal enrollments: 8% vs comparable intake cyclePricing (traditional): in line with inflationPricing (online): relatively flatFY25 margin: ~40%
    		increased 13%13%—negative $35 million

    Operational metrics

    21
    New enrollment activity concentration
    80%
    Annual

    Q1 and Q3 represent the two largest intake periods, accounting for approximately 80% of total new enrollment activity for the year.

    Adjusted loss per share
    $0.17
    Q1 FY26

    First quarter adjusted loss per share.

    Gross debt
    $217 million
    March 31, 2026

    Gross debt position at quarter end.

    Cash balance
    $157 million
    March 31, 2026

    Cash balance at quarter end.

    Net debt
    $60 million
    March 31, 2026

    Net debt position at quarter end.

    Share repurchases completed
    $105 million
    Q1 FY26

    Amount of stock repurchased during the first quarter.

    Remaining share repurchase authorization
    $76 million
    March 31, 2026

    Amount remaining under stock repurchase authorization at quarter end.

    Revenue growth (constant currency, adjusted)
    5%YoY
    Q1 FY26

    Constant currency and adjusted for academic calendar shift.

    Adjusted EBITDA change (constant currency, adjusted)
    essentially flatYoY
    Q1 FY26

    Constant currency and adjusted for academic calendar shift, due to timing of expenses and investments for new campuses.

    Adjusted EBITDA margin increase (impact of new campus investments)
    25 basis points
    FY26

    The delta in EBITDA margin expansion attributable to new campus investments, meaning without these investments, margin expansion would have been 75 bps instead of 50 bps.

    First-generation university attendees
    50%
    Current

    Percentage of newly enrolled students who are first-generation university attendees.

    Employment rate for job-seeking graduates
    90%
    Within 12 months of graduation

    Percentage of job-seeking graduates who secure employment within 12 months.

    Payback period for education (on-campus)
    approximately 3 years
    Post-graduation

    Time to recover nominal cost of education through increased earnings compared to high school graduates.

    Payback period for education (fully online)
    even shorter
    Post-graduation

    Payback period for working adults in fully online programs is shorter than for on-campus programs.

    Online program attrition rate
    highervs traditional programs
    Current

    Fully online offerings come with a higher attrition rate as expected.

    Revenue shift due to academic calendar timing
    $9 million
    Q1 FY26

    Approximately $9 million of revenue and related profitability expected to shift out of Q1 to the second half of the year.

    Total new enrollment growth
    9%YoY
    Q1 FY26

    New enrollment volumes increased through completion of the intake cycle in April.

    Total enrollment growth
    6%YoY
    Q1 FY26

    Total enrollment volumes increased through completion of the intake cycle in April.

    Revenue
    $273 million
    Q1 FY26

    Revenue in the seasonally low first quarter.

    Adjusted EBITDA
    negative $2 million
    Q1 FY26

    Adjusted EBITDA in the seasonally low first quarter.

    Adjusted net loss
    $24 million
    Q1 FY26

    First quarter adjusted net loss.

    Industry KPIs

    5
    MetricValueDetails
    EPS$2.00 to $2.08USD per share
    Revenue$1.890 billion to $1.905 billionUSD
    Adjusted EBITDA ebita$583 million to $593 millionUSD
    Cash investments balance$157 millionUSD
    Share buyback capital return$105 millionUSD

    Risks & headwinds

    4
    Softer Macroeconomic Conditions in MexicoFY26

    GDP growth for 2026 is expected to remain relatively modest

    Mitigation: Economists project an increase in economic activity starting H2 2026; pragmatic leadership preserving stability in US-Mexico relationship.

    Price Mix Impact from Online Offerings in PeruFY26

    create a price mix impact on average revenue per student in 2026

    Mitigation: Focus on scaling the business and enhancing market-leading position for online programs by keeping prices relatively flat.

    Higher Attrition Rate for Online ProgramsOngoing

    Fully online does come with a higher attrition rate as expected

    Mitigation: Not explicitly stated, but implies managing expectations and focusing on quality to mitigate impact.

    Investments in New CampusesFY26, particularly H1

    slight drag of 50 basis points in Mexico; 25 basis points delta on company-wide margin expansion

    Mitigation: New campuses (e.g., Puebla) will open starting in September, generating revenue in the second half of the year.

    What to watch in Q2 FY26

    4

    Mexico Macroeconomic Recovery

    H2 FY26
    CurrentGDP growth for 2026 is expected to remain relatively modest
    Targetincrease in economic activity for Mexico starting in the second half of 2026

    Why it matters

    Mexico's macro recovery is expected to drive more robust GDP growth in 2027 and improve enrollment momentum, impacting overall company performance.

    Many economists are projecting an increase in economic activity for Mexico starting in the second half of 2026, setting the stage for a more robust GDP growth in 2027.

    Q&A highlights

    6

    The new enrollment in Peru was very solid (13% growth). Does this give management more confidence in reaching the upper end of the full-year enrollment guidance range?

    Eilif Serck-Hanssen expressed satisfaction with Peru's performance, attributing it to focused efforts in penetrating the fully online working adult market and robust macroeconomic conditions. He highlighted successful execution in launching online products and commercial efforts.

    “Yes, we are very pleased with the performance in Peru. It's driven by our focused effort to penetrate the fully online working adult market as well as benefiting from robust macro conditions in Peru.”

    asked by Ryan Griffin · answered by Eilif Serck-Hanssen

    2 min read5 chapters

    Detailed Narrative

    01

    Enrollment Performance and Macro Trends

    Laureate Education achieved new enrollment growth of 13% in Peru and 4% in Mexico through mid-April, aligning with expectations. Peru's performance is bolstered by robust macroeconomic conditions, including strong domestic demand, new mining projects, and strong commodity prices, as well as strong penetration of online offerings for working adults. Mexico's growth is more moderate due to softer macroeconomic conditions, though economists project increased economic activity starting in H2 2026, setting the stage for more robust GDP growth in 2027.

    02

    Strategic Focus on Online Education

    The company is rapidly scaling fully online offerings in Peru, targeting working adult students (25-50 years old) seeking degree completion. This strategy is driving the majority of enrollment growth in Peru for the year, with management noting no meaningful cannibalization between online working adult students and young campus students. Pricing for online programs is kept relatively flat for the time being to focus on scaling the business and enhancing market-leading position.

    03

    Financial Performance and Seasonality

    Q1 FY26 revenue was $273 million and adjusted EBITDA was negative $2 million, both ahead of guidance due to favorable FX rates and some timing of📎 expenses. On a constant currency basis and adjusted for academic calendar shifts, Q1 revenue was up 5% year-over-year, and adjusted EBITDA was essentially flat, with a slight $2 million decrease from prior year. The company highlighted the seasonal nature of its business, with Q1 and Q3 representing the two largest intake periods (80% of new enrollment activity) but being seasonally low for P&L, while Q2 and Q4 generate higher revenue and adjusted EBITDA.

    04

    Capital Allocation and Shareholder Returns

    Laureate repurchased $105 million of stock during Q1 FY26, with $76 million remaining under its stock repurchase authorization at quarter-end. This led to an increase in adjusted EPS guidance for the full year. The company remains committed to continuing to return excess capital to shareholders, supported by a strong balance sheet and its cash-accretive business model.

    05

    Impact and Outcomes

    Laureate emphasizes its mission of delivering affordable, high-quality education. Key measurable outcomes highlighted include 50% of newly enrolled students being first-generation university attendees. Additionally, 9 out of 10 job-seeking graduates secure employment within 12 months of graduation. Graduates of on-campus programs recover the nominal cost of their education in approximately 3 years through increased earnings, with an even shorter payback period for working adults in fully online programs.

    AI-generated summary of the company’s earnings call. Not investment advice.