Has the view on the macro environment changed since last quarter, and has recent geopolitical volatility in the U.S. dampened consumer sentiment in Mexico and Peru?

Eilif Serck-Hanssen stated that the macro view has not significantly changed. He noted Peru's economy is stable due to diverse resources and trade partners, while Mexico is closely tied to the resilient U.S. economy, showing encouraging, albeit marginal, improvements in GDP, consumer confidence, and employment. “No, not really. I mean the Peruvian economy is really driven by natural resources, mining, farming, fishing, tourism and a very broad set of trading partners, both the Americas, Asia, China and Europe.”

How is the expansion of online education in Peru progressing, and what is the market discipline like, especially regarding competitors?

Eilif Serck-Hanssen explained that the market is responding favorably to their online product offerings, which are dedicated to working adults (25-50 years old) for degree completion. He acknowledged competitors launching similar products but emphasized that the market is disciplined, with distinct segments for online working adults and young campus students, minimizing cannibalization. “This is fully online offering is really dedicated for the working adult 25 to 50-year-old students. It's largely driven by degree completion. There is no meaningful cannibalization between the working adult students that want a fully online experience versus young students who want and need a campus experience...”

The full-year enrollment outlook (4-5% growth) is below the Q1 reported growth (9% new, 6% total). Does this imply an expected slowdown in Mexico?

Rick Buskirk clarified that the full-year guidance remains comfortable. Q1's higher growth was driven by Peru's primary intake, while Mexico's primary intake occurs in the second half. He also noted that fully online programs, while expanding, come with a higher attrition rate, which impacts total enrollment growth relative to new enrollment. “Yes, on a weighted basis, we were higher in the first intake this year, but that is driven by Peru, and we still have the secondary impact or the impact from the primary intake of Mexico in the second half.”

LAUR

Laureate Education (LAUR) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Consumer Staples· Apr 30, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Total Enrollments	516,000 to 521,000 students high materiality	Full Year 2026 · FY26	High
Revenue	$1.890 billion to $1.905 billion high materiality	Full Year 2026 · FY26	High
Adjusted EBITDA	$583 million to $593 million high materiality	Full Year 2026 · FY26	High
Adjusted EBITDA Margin	approximately 50 basis points increase medium materiality	Full Year 2026 · FY26	High
Adjusted EBITDA to Unlevered Free Cash Flow Conversion	approximately 50% medium materiality	Full Year 2026 · FY26	High
Adjusted Earnings Per Share	$2.00 to $2.08 per share high materiality	Full Year 2026 · FY26	High
Diluted Weighted Average Share Count	approximately 141 million shares medium materiality	Full Year 2026 · FY26	High
Revenue	$597 million and $601 million medium materiality	Q2 · FY26	High
Adjusted EBITDA	$239 million to $243 million medium materiality	Q2 · FY26	High
Mexico Economic Activity	increase in economic activity medium materiality	Second Half 2026 · FY26	Medium
Margin Accretion Weighting	weighted towards the second half of the year medium materiality	Second Half 2026 · FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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

Risks & headwinds

Softer Macroeconomic Conditions in Mexico FY26

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 Peru FY26

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 Programs Ongoing

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 Campuses FY26, 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

Mexico Macroeconomic Recovery

H2 FY26

Current GDP growth for 2026 is expected to remain relatively modest

Target increase 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.

Find out whether LAUR delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.