Laureate Education, Inc. (LAUR) Earnings

Management highlights

• 2026 is off to a good start with enrollment intake results in line with expectations for Peru and Mexico. New enrollment growth of 13% in Peru and 4% in Mexico through mid-April. • Reaffirming full-year guidance for enrollment, revenue, and adjusted EBITDA, and increasing adjusted earnings per share guidance due to share buybacks. • Enrollment intake results align with macroeconomic trends. Peru benefits from strong penetration of online offerings for working adults. Mexico's growth moderates but families prioritize higher education. • Mission to deliver affordable, high-quality education. Published 2025 Impact Report highlighting measurable outcomes like half new enrolled students are first-generation, 9 out of 10 job-seeking graduates secure employment within 12 months, etc. • Seasonality of campus-based higher education: First and third quarters are large intake periods but seasonally low for P&L; second and fourth quarters generate higher revenue and adjusted EBITDA. • Balance sheet: Ended March with $217 million in gross debt, $157 million in cash, net debt position of $60 million. Repurchased $105 million of stock in first quarter with $76 million remaining under authorization.

Guidance

• Reaffirming guidance for total enrollments, revenue, and adjusted EBITDA. Increasing adjusted earnings per share guidance by $0.05 per share. • Full-year 2026 total enrollments expected in range of 516,000 to 521,000 students, growth of 4% to 5% vs 2025. • Revenues expected in range of $1.890 billion to $1.905 billion, growth of 11% to 12% as-reported and 6% to 7% constant currency vs 2025. • Adjusted EBITDA expected in range of $583 million to $593 million, growth of 12 to 14% as-reported and 7 to 9% constant currency vs 2025, resulting in approx 50 basis points increase in adjusted EBITDA margins at midpoint. • Adjusted EBITDA to unlevered free cash flow conversion expected at approx 50% on reported basis. • Adjusted earnings per share guidance for 2026 now $2 to $2.08 per share, growth of 16% to 21% vs 2025 as-reported. • Second quarter 2026 expected revenue between $597 million and $601 million, adjusted EBITDA between $239 million to $243 million.

Segment performance

Mexico: First quarter reflects a smaller secondary intake. New and total enrollments increased 4% versus the comparable intake cycle period through April. Adjusted for academic calendar timing, revenue increased 2% versus prior year period, and adjusted EBITDA was down 16% year-over-year. Peru: New enrollments increased 13% versus last year's comparable intake led by strong growth in working adult focused fully online programs. Total enrollments were up 8% for the cycle. Adjusted for timing of the academic calendar, revenue for the seasonally low first quarter increased by 13% versus the prior year period. Adjusted EBITDA for the quarter was negative $35 million, but adjusted for timing of the academic calendar, it represents $5 million improvement versus prior year period. Revenue in first quarter was $273 million, adjusted EBITDA was negative $2 million. On constant currency basis and adjusted for academic calendar shift, revenue was up 5% year-over-year and adjusted EBITDA was essentially flat with a slight $2 million decrease from prior year due to timing of expenses and investments.

Analyst Q&A

• Q: New enrollment in Peru is solid. Wondering if it gives more tension towards upper end of enrollment range.

  A: Pleased with Peru performance driven by focus on fully online working adult market and robust macro conditions. Over last 18-24 months launched broad suite of fully online products, executed operationally and commercial efforts resonated.

• Q: Has view on macro changed since last quarter and geopolitical volatility dampened consumer in Mexico or Peru?

  A: Peruvian economy driven by natural resources, mining, farming, fishing, tourism and stable trading partners. Mexico closely tied to US, US resilient, seeing improvements in GDP, consumer confidence, employment though marginal.

• Q: In expansion of online education in Peru, how is market going and market discipline? Also on student enrollment outlook.

  A: Online performance in Peru favorable, competitors launching similar products but market disciplined. Fishing pond between young students in campus setting and fully online working adult students distinct. Enrollment outlook for year still comfortable with 4% to 5% growth as weighted by first intake and secondary impact and Mexico's primary intake in second half.

• Q: Intake in Mexico - fully comparable in terms of campuses, how much growth due to new unit campus lodge and closure of uvn campuses? Also about 50 basis point increase in margin outlook concentration.

  A: First quarter intake in Mexico is secondary intake, largely non-traditional students, online, growth essentially organic. Expect margin expansion in both Mexico and Peru. Peru ended last year at about 40%, margin accretion in Peru and Mexico. Margin expansion in Mexico despite new campus investments, with more coming in second half as some new campuses launch and no revenue yet. Delta of 25 basis points in EBITDA margin expansion largely attributable to Mexico, with continued margin expansion opportunity in both markets from scale and operational efficiencies