LAUR Q1 2026 Earnings Call Summary

Revenue: $273 million, ahead of guidance due to favorable foreign exchange rates and expense timing.
Adjusted EBITDA: Negative $2 million, slightly better than expectations; adjusted for calendar shifts, it was flat year-over-year.
Net Loss: $22 million, translating to a loss per share of $0.15; adjusted net loss was $24 million with a loss per share of $0.17.
Enrollment Growth: New enrollments increased 9% and total enrollments rose 6% year-over-year.
Debt Position: Gross debt of $217 million, cash of $157 million, resulting in a net debt of $60 million.
Share Buybacks: $105 million completed in Q1, with $76 million remaining under the repurchase authorization.

Enrollment in Peru showed strong growth of 13%, driven by online offerings for working adults, while Mexico's growth was 4% amid softer economic conditions.
The company is focused on expanding its online education offerings, particularly for working adults, which is expected to drive future enrollment growth.
The recent impact report highlighted that half of new students are first-generation university attendees, with 90% of job-seeking graduates securing employment within 12 months.

2026 Enrollment Guidance: Expected to be between 516,000 and 521,000 students, reflecting a growth of 4% to 5%.
Revenue Guidance: Projected between $1.890 billion and $1.905 billion, indicating growth of 11% to 12% on an as-reported basis.
Adjusted EBITDA Guidance: Expected between $583 million and $593 million, with an increase in adjusted EBITDA margins of approximately 50 basis points.
Adjusted EPS Guidance: Increased to $2.00 to $2.08 per share, reflecting a growth of 16% to 21%.

Negative EBITDA: The company reported a negative adjusted EBITDA in a seasonally low quarter, indicating challenges in profitability during this period.
Economic Conditions: Mexico is experiencing modest GDP growth, which may impact enrollment and revenue growth in the short term.
Attrition Rates: Fully online programs have a higher attrition rate, potentially affecting total enrollment growth compared to historical trends.
Investment Impact: New campus investments in Mexico are expected to drag margins slightly in the short term, although they are projected to enhance long-term growth.

Management expressed optimism about the strong enrollment performance in Peru and its potential to push towards the upper end of enrollment guidance.
The macroeconomic outlook remains stable, with improvements in GDP and consumer confidence in both Mexico and Peru, despite geopolitical challenges.
Competitors are entering the online education space in Peru, but Laureate's offerings are seen as distinct and well-positioned for working adults.
The margin expansion outlook is positive for both Mexico and Peru, with expectations of significant improvements in the second half of 2026 as new campuses begin operations.

This summary encapsulates the key points from the earnings call, providing a balanced view of Laureate Education's performance and outlook.

LAUR — Laureate Education, Inc.