Skip to content
    LAUR
    Earnings call· Jun 2026(Q2 FY26)

    LAUREATE EDUCATION Q2 FY26 earnings call LAUR

    Jul 30, 2026 Source

    Executive summary

    Laureate Education Q2 FY26 — Strong Enrollment Growth and Raised Full-Year Outlook

    Laureate Education delivered strong Q2 FY26 results, driven by robust enrollment growth and favorable currency, leading to an upward revision of its full-year guidance. The company continues to invest in campus expansion and AI-driven digital capabilities, particularly for its high-growth online programs targeting working adults. Management remains confident in its disciplined operating model to drive margin expansion and capital returns, despite some intra-year calendar timing impacts.

    Highlights

    5

    • New and total enrollments were up 10% and 6% respectively year-to-date June.

    • Revenue grew 7% on a timing adjusted and constant currency basis year-to-date June.

    • Full-year 2026 outlook raised at the midpoint by $28 million for revenue, $8 million for adjusted EBITDA, and $0.03 per share for adjusted EPS.

    • Repurchased $181 million worth of shares year-to-date, with an additional $150 million increase to the stock repurchase program authorized.

    • Peru's year-to-date adjusted EBITDA increased by 13% on a constant currency and timing-adjusted basis.

    Concerns

    1

    • Mexico's year-to-date adjusted EBITDA decreased by 2% on a constant currency and timing-adjusted basis, reflecting investments and the ramp-up of the new Puebla campus.

    Guidance & targets

    12
    CategoryTargetConfidence
    Full-year 2026 Total Enrollments
    518,000 to 523,000 students
    high materiality
    High
    Full-year 2026 Revenue
    $1.920 billion to $1.930 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $593 million to $599 million
    high materiality
    High
    Full-year 2026 Adjusted EBITDA Margin
    approximately 50 basis points increase
    medium materiality
    High
    Full-year 2026 Adjusted EBITDA to unlevered Free Cash Flow conversion
    approximately 50%
    medium materiality
    High
    Full-year 2026 Adjusted EPS
    $2.04 to $2.10 per share
    high materiality
    High
    Q3 2026 Revenue
    $471 million to $476 million
    medium materiality
    High
    Q3 2026 Adjusted EBITDA
    $134 million to $137 million
    medium materiality
    High
    New Campus Opening
    Southern Lima campus operational
    medium materiality
    High
    New Campus Opening
    Merida, Mexico campus operational
    medium materiality
    High
    Mexico Margin Expansion
    close substantial part of 6% gap
    medium materiality
    Medium
    Consolidated Margin Expansion
    30+ basis points per year
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Mexico
    Q2 adjusted EBITDA included costs for the new Puebla campus launch. YTD adjusted EBITDA decrease reflects timing of investments and Puebla ramp-up. Margin accretion expected in H2 2026. Pricing for traditional face-to-face students was in line to slightly above inflation, partially offset by less aggressive pricing for fully online programs to drive volume.
    New Enrollments YTD: +7% (constant currency)Total Enrollments YTD: +5% (constant currency)Revenue YTD (timing adjusted): +6% (constant currency)Adjusted EBITDA YTD (timing adjusted): -2% (constant currency)Average Total Enrollments YTD: +5%Price Mix YTD: +1%
    		$616M (Q2 total)+10% (Q2 constant currency)—+9% (Q2 adjusted EBITDA constant currency)
    Peru
    Primary enrollment cycle concluded mid-April, supported by strong demand from fully online programs. Growth in total enrollments and revenue are at similar rates due to rapid scaling of fully online offerings. Pricing for traditional face-to-face programs was largely in line with inflation, offset by price/mix impact from fully online. New campus launches for face-to-face students are expected to ramp in 2027.
    Total Enrollments YTD: +8% (constant currency)Revenue YTD (timing adjusted): +7% (constant currency)Adjusted EBITDA YTD (timing adjusted): +13% (constant currency)
    		$616M (Q2 total)+6% (Q2 constant currency)—+7% (Q2 adjusted EBITDA constant currency)

    Operational metrics

    19
    New Enrollments
    +10%vs. prior year
    YTD June 2026

    Company-wide.

    Total Enrollments
    +6%vs. prior year
    YTD June 2026

    Company-wide.

    Revenue Growth
    +7%vs. prior year
    YTD June 2026

    Company-wide.

    Share Repurchases Executed
    $181 million
    YTD June 2026

    Under previously announced share repurchase program.

    Additional Share Repurchase Authorization
    $150 million
    announced Q2 2026

    Board authorized increase to share repurchase program.

    Net Debt Position
    $61 million
    as of June 2026

    Laureate ended June with $223 million in gross debt and $162 million in cash.

    Weighted Average Share Count
    approximately 139 million shares
    FY26 outlook assumption

    Assumed for adjusted EPS guidance, reflecting impact of share repurchases through June.

    Online Program Price Point
    40% belowvs. face-to-face
    current

    Price point of an online offering versus the face-to-face counterpart.

    Online Program Contribution Margin
    mid-50ssimilar to campus performance
    current

    Similar to campus performance, with superior ROIC due to no CapEx.

    Mexico Online Working Adult Students
    about 90,000
    current

    Growing in high single digits.

    Peru Online Working Adult Students
    about 20,000-25,000
    current

    Growing at a much higher rate from a smaller base.

    Mexico Higher Education Participation Rate
    about 36%
    current

    Compared to Peru high 40s and US mid-60s.

    Peru Higher Education Participation Rate
    high 40s
    current

    Compared to Mexico 36% and US mid-60s.

    US Higher Education Participation Rate
    mid-60s
    current

    Compared to Mexico 36% and Peru high 40s.

    US Online Student Penetration
    25%
    current

    Of all students are working adult fully online students.

    Mexico Online Student Penetration
    14%
    current

    Of all students are working adult fully online students.

    Peru Online Student Penetration
    less than 5%
    current

    Of all students are working adult fully online students.

    Mexico Margin Gap vs. Peru
    6%
    current

    Management aims to close a substantial part of this gap in the next 3-5 years.

    Consolidated Margin Expansion Target
    30+ basis points
    per year

    Target for Laureate's consolidated business.

    Industry KPIs

    8
    MetricValueDetails
    EPS$1.00USD
    Revenue$616 millionUSD
    Net income$140 millionUSD
    Market share—
    Operating marginapproximately 50 basis pointsbps
    Adjusted EBITDA ebita$251 millionUSD
    Cash investments balance$162 millionUSD
    Share buyback capital return$181 millionUSD

    Product announcements

    4
    ProductTypeDetails
    Puebla, Mexico Campuslaunch
    Southern Lima Campusroadmap
    Merida, Mexico Campusroadmap
    New Campus Expansion Pipelineroadmap

    Deals & partnerships

    1
    Leading technology companiesCollaboration to support AI transformation and build an integrated ecosystem of AI-powered learning, cloud, and education solutions.

    Leveraging expertise and capabilities to build an integrated ecosystem for over 500,000 students, faculty, and staff across Mexico and Peru.

    Risks & headwinds

    3
    Mexico Adjusted EBITDA decrease due to investmentsYTD June 2026

    -2% YTD (constant currency, timing adjusted)

    Mitigation: Expected margin accretion in H2 2026 as investments mature and new campuses scale.

    Intra-year academic calendar timing impactsFY26

    Affects quarter-over-quarter comparability (e.g., Q3 2026 includes $29M favorable impact)

    Mitigation: Management provides timing-adjusted figures and guidance to account for these shifts.

    USMCA agreement review mechanismbeginning 2027

    Absence of consensus on extension activates annual review mechanism

    Mitigation: Future bilateral discussions will focus on improving market access, strengthening regional production, and addressing select tariffs.

    What to watch in Q3 FY26

    5

    Mexico September Intake Performance

    next quarter
    Current50% complete, tracking expectations
    TargetSuccessful completion of intake, strong enrollment numbers

    Why it matters

    The September intake represents 60% of annual intake for Mexico and is a key indicator of future revenue and enrollment growth.

    When it comes to the main intake in Mexico, which I think your question was about, that's about 60% of the annual intake. That's happening in September. We are about halfway through that. We have about 50% completion of that intake. And it is tracking along with my expectations, and that's as much as I'm going to comment on that intake.

    Q&A highlights

    7

    How is the main September intake in Mexico tracking, given it's the largest intake period?

    The main September intake in Mexico, which accounts for about 60% of annual intake, is about 50% complete and is tracking along with management's expectations.

    “When it comes to the main intake in Mexico, which I think your question was about, that's about 60% of the annual intake. That's happening in September. We are about halfway through that. We have about 50% completion of that intake. And it is tracking along with my expectations, and that's as much as I'm going to comment on that intake.”

    asked by Jeffrey Silber · answered by Eilif Serck-Hanssen

    2 min read6 chapters

    Detailed Narrative

    01

    AI Integration and Digital Transformation

    Laureate is embedding AI across its organization to modernize teaching, operations, and the student journey, aiming for personalized learning, strengthened student support, and improved academic outcomes. The company is investing in data and IT infrastructure and collaborating with leading technology companies to build an integrated AI-powered ecosystem for its 500,000+ students, faculty, and staff in Mexico and Peru. This transformation also equips faculty and staff with AI tools to enhance their focus on high-value activities.

    02

    Strategic Campus Expansion

    The company has a clear multiyear roadmap for new campus expansion in Mexico and Peru, having already secured multiple sites. New campuses opened last year in Monterrey, Mexico, and Lima Peru (Ate District) are performing as expected. The new Puebla, Mexico campus, opened this year, is off to a strong start. Two additional campuses are planned for 2027: Southern Lima (Q1 2027) and Merida, Mexico (September 2027), with further expansion slated for 2028 and beyond.

    03

    Geopolitical and Macroeconomic Stability

    The geopolitical and macroeconomic environment in Mexico and Peru remains stable. The USMCA trade agreement with Mexico is in place through 2036, supporting cross-border investments, with an annual review mechanism activating in 2027. Mexico continues to be the United States' largest trading partner, with record export levels. In Peru, the political outlook has stabilized post-elections, with President Keiko Fujimori expected to pursue market-oriented policies, potentially strengthening business confidence and economic growth.

    04

    Seasonality and Academic Calendar Timing

    Higher education is a seasonal business, with Q2 and Q4 being the strongest for revenue and adjusted EBITDA due to peak academic activity. The timing of📎 class starts can shift year-over-year, affecting enrollment and revenue recognition comparability. For 2026, intra-year calendar timing impact📎s are expected, with Q3 benefiting from an estimated $29 million favorable impact.

    05

    Online Program Strategy and Market Penetration

    Laureate's online programs primarily target working adults aged 25-50, focusing on degree completion and postgraduate degrees. This segment is seen as a significant long-term growth driver, with Mexico's online penetration at 14% and Peru's below 5%, compared to 25% in the US. The company believes there is substantial headroom for growth given the larger proportion of working adults without degrees in Mexico and Peru. Online programs are priced approximately 40% below face-to-face offerings but yield similar mid-50s contribution margins and superior ROIC due to minimal CapEx.

    06

    Student Acquisition and Retention Initiatives

    Laureate leverages AI and digital marketing for lead generation, improved conversion, and reduced acquisition costs, particularly in Mexico. For traditional students, relationships with high schools are cultivated through various engagement programs. The company has also seen improved retention rates in Mexico, especially within its online segment, attributed to efforts in deconstructing the student journey, reducing friction, and implementing support tools like AI tutors.

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