LAUR — Laureate Education, Inc.

Summary of Laureate Education Q3 2025 Earnings Call

1. Key Financial Results and Metrics:

   • Q3 2025 revenue was $400 million, exceeding guidance.
   • Adjusted EBITDA reached $95 million, also above expectations.
   • Net income for the quarter was $34 million, with adjusted net income at $37 million, translating to adjusted earnings per share of $0.25 (up 14% year-over-year).
   • Year-to-date results showed revenue growth of 8% and adjusted EBITDA growth of 13% on an organic constant currency basis.
   • The company ended the quarter with $241 million in cash and $102 million in gross debt, resulting in a net cash position of $139 million.

2. Strategic Updates and Business Highlights:

   • Strong performance in Peru, particularly in fully online working adult programs, which drove a 21% increase in new enrollments.
   • Opened two new campuses in Monterrey, Mexico, and Lima, Peru, marking the first new campus launches since 2019.
   • A $150 million increase in the stock repurchase program was authorized, reflecting a commitment to capital allocation and shareholder value.
   • Positive macroeconomic conditions in Peru, with GDP growth projected at approximately 3%, and a stable political environment in Mexico supporting growth.

3. Forward Guidance and Outlook:

   • Full year 2025 revenue guidance was raised to $1.681 billion to $1.686 billion, reflecting 7% to 8% growth.
   • Adjusted EBITDA guidance increased to $508 million to $512 million, indicating 13% to 14% growth.
   • Anticipated total enrollments for 2025 are approximately 494,000 students, a 5% increase versus 2024.
   • Fourth quarter revenue is expected to be in the range of $521 million to $526 million, with adjusted EBITDA projected between $194 million and $198 million.

4. Bad News, Challenges, or Points of Concern:

   • The macroeconomic environment in Mexico remains sluggish, potentially impacting future growth.
   • Adjusted EBITDA in Peru declined by 2% year-over-year due to timing of expenses, although this is expected to normalize in the fourth quarter.
   • The timing of class starts affected revenue recognition, shifting approximately $26 million of revenue and $23 million in adjusted EBITDA from Q1 to Q4.

5. Notable Q&A Insights:

   • Management indicated that Peru's strong revenue growth is supported by recovering consumer sentiment and a value proposition appealing to both premium and value segments.
   • New campus contributions to enrollment growth in Mexico accounted for 1 percentage point, with 3% growth attributed to existing campuses.
   • Future pricing in Peru is expected to align with inflation, with a potential mix impact of up to 2% from the growth in fully online programs.

Overall, Laureate Education demonstrated strong financial performance in Q3 2025, with positive growth trends in both Mexico and Peru, despite some macroeconomic challenges and timing-related impacts on revenue recognition. The company remains optimistic about its growth trajectory and strategic initiatives moving forward.