LAUR — Laureate Education, Inc.

Summary of Laureate Education, Inc. Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: $273 million, exceeding guidance due to favorable FX rates and timing of expenses.
• Adjusted EBITDA: Negative $2 million; on a constant currency basis, it was essentially flat year-over-year.
• Net Loss: $22 million, translating to a loss per share of $0.15; adjusted net loss was $24 million with an adjusted loss per share of $0.17.
• Enrollment: New enrollments increased by 9%, total enrollments rose by 6% year-over-year.
• Debt Position: Gross debt of $217 million and cash of $157 million, resulting in a net debt position of $60 million.
• Share Buybacks: $105 million completed in Q1, with $76 million remaining under the repurchase authorization.

2. Strategic Updates and Business Highlights

• Enrollment Growth: Strong performance in Peru (13% growth) attributed to online offerings for working adults; Mexico saw a 4% increase in new enrollments.
• Market Conditions: Peru's economy is stable with strong domestic demand, while Mexico's growth is expected to improve in the second half of 2026.
• Online Education: The expansion of fully online programs in Peru is driving enrollment growth, particularly among working adults.
• Impact Report: The company published a 2025 impact report highlighting the success of its students and the importance of education in economic mobility.

3. Forward Guidance and Outlook

• Enrollment Guidance: Full-year enrollment expected to be between 516,000 to 521,000 students, reflecting 4% to 5% growth.
• Revenue Guidance: Projected revenue of $1.890 billion to $1.905 billion, indicating 11% to 12% growth.
• Adjusted EBITDA Guidance: Expected to be between $583 million and $593 million, reflecting 12% to 14% growth.
• Adjusted EPS Guidance: Increased to $2.00 to $2.08 per share, reflecting a growth of 16% to 21%.

4. Bad News, Challenges, or Points of Concern

• Seasonality Impact: The first quarter is traditionally low for revenue and profitability due to seasonal factors; $9 million in revenue shifted to the second half of the year.
• Mexico's Economic Conditions: The macroeconomic environment in Mexico remains soft, which could moderate growth.
• Attrition Rates: Online programs may experience higher attrition rates, potentially impacting total enrollment growth compared to historical trends.

5. Notable Q&A Insights

• Enrollment Performance: The strong enrollment in Peru could push the company towards the upper end of its enrollment guidance.
• Macro Conditions: No significant changes in macroeconomic outlook; both countries are showing signs of stability and gradual improvement.
• Online Education Market: The online education segment in Peru is growing, with competitors entering the market, but the company maintains a disciplined approach.
• Margin Expansion: Expected margin growth in both Mexico and Peru, with a notable impact from new campus investments in Mexico, which may temporarily affect margins.

This summary captures the essential elements of Laureate Education's Q1 2026 earnings call, highlighting both the positive developments and the challenges faced by the company.