Laureate Education, Inc. Q4 FY2025 earnings call

• Laureate delivered strong 2025 performance with $1.7B full year revenue and $519M adjusted EBITDA, exceeding guidance. • Executed on growth and productivity initiatives, achieving 9% top line growth and 30.5% margin. • Returned $217M to shareholders via stock repurchase, Board authorized $150M increase to repurchase program. • Strengthened academic offerings, opened 2 new campuses in 2025, invested in Health Sciences portfolio. • Recognized for innovation, Laureate Mexico advanced in digital marketing, institutions achieved 5-star QS Stars ratings. • Confident in demand for quality higher education in Mexico and Peru, fueled by factors like rising participation, wage premiums, and private sector role.

Full year 2025 revenue reached $1.7 billion, adjusted EBITDA was $519 million. Mexico: New enrollments increased 5% for the year, total enrollments up 4% (5% same-store). Fourth quarter revenue up 12% y-o-y, adjusted EBITDA up 10% y-o-y. Full year 2025 revenue growth 9%, adjusted EBITDA up 17%, margin 26.1%. Peru: New enrollments increased 13% for the year, total enrollments up 7%. Fourth quarter revenue up 22% y-o-y, adjusted EBITDA up 49% y-o-y. Full year 2025 revenue up 7% y-o-y, adjusted EBITDA up 9%, margin with 54 basis points expansion.

• 2026 U.S. dollar reported revenue growth 11%-12%, ~5 points from favorable FX, expect 50 basis points margin expansion. • 2026 total enrollments range 516,000-521,000 (4%-5% growth vs 2025), revenue $1.890B-$1.905B (11%-12% as-reported, 6%-7% organic constant currency), adjusted EBITDA $583M-$593M (12%-14% as-reported, 7%-9% organic constant currency). • Adjusted EPS guidance $1.95-$2.03 per share (13%-18% growth vs 2025). • First quarter 2026 revenue $261M-$265M, adjusted EBITDA negative $20M-$17M due to seasonality and new campus investments.

Q: Mentioned potential new campus openings, how far in advance and buy vs build?

A: Takes 18-24 months to launch new campus. Typically build as more economical, have playbook to get operating model as wanted.

Q: Concern about AI disruption?

A: AI is friend, will improve retention, learning outcomes, expand access to quality education, focus on launching programs for future jobs and leveraging AI to improve outcomes and reduce cost.

Q: FX-neutral revenue growth deceleration in 2026?

A: Mexico's softer macro conditions, Peru's capacity constraints, but still encouraged, margins to expand 50 basis points.

Q: Online/distance learning in Peru market?

A: Accelerating well, market receptive, little cannibalization with face-to-face, cautious on pricing in working adult segment for growth.

Q: Adjusted EPS guidance assumptions?

A: Slight increase in G&A with new campuses, taxes generally in line, higher interest income.

Q: Capacity constraint in Peru?

A: Running higher utilization in Mexico, not material yet, adding new campuses in Lima and classrooms in existing campuses.