LAUR — Laureate Education, Inc.

Summary of Laureate Education Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: $616 million in Q2, up 7% year-over-year on a constant currency basis.
• Adjusted EBITDA: $251 million, reflecting an 8% increase year-over-year on a constant currency basis.
• Net Income: $137 million, with reported earnings per share (EPS) of $0.98; adjusted EPS was $1.00.
• Enrollment Growth: New enrollments increased by 10% year-to-date, while total enrollments rose by 6%.
• Balance Sheet: Ended Q2 with $223 million in gross debt and $162 million in cash, resulting in a net debt position of $61 million.
• Share Repurchase: $181 million repurchased in the first half of 2026, with an additional $150 million increase to the stock repurchase program announced.

2. Strategic Updates and Business Highlights

• Campus Expansion: New campuses opened in Monterrey and Puebla, Mexico, with plans for additional campuses in Southern Lima and Merida, Mexico, expected to open in 2027.
• Digital Transformation: AI is being integrated into educational offerings and operational efficiencies, enhancing personalized learning experiences and student support.
• Market Stability: Positive geopolitical and macroeconomic conditions in Mexico and Peru, with stable trade agreements and improved political outlook in Peru.

3. Forward Guidance and Outlook

• Revised Full-Year 2026 Guidance:
  • Revenue: $1.920 billion to $1.930 billion (13% growth reported, 6-7% constant currency).
  • Adjusted EBITDA: $593 million to $599 million (14-15% growth reported, 8-9% constant currency).
  • Adjusted EPS: $2.04 to $2.10 (19-22% growth reported).
• Enrollment Projections: Expected total enrollments between 518,000 to 523,000 students, reflecting 4-5% growth versus 2025.

4. Bad News, Challenges, or Points of Concern

• Margin Pressure: Adjusted EBITDA in Mexico decreased by 2% year-to-date due to costs associated with new campus launches, although margin expansion is expected in the second half of 2026.
• Retention Rates: While improved retention rates were noted, the company is closely monitoring potential cannibalization of traditional students by online programs.
• Competitive Landscape: Increasing competition in the online education space may pressure pricing and student acquisition costs.

5. Notable Q&A Insights

• Mexico Intake Performance: The main intake period in September is tracking positively, with a 12% growth in the June intake for working adults.
• Marketing Strategy: The company is leveraging AI and digital marketing to improve lead generation and conversion rates, particularly for working adult online programs.
• Growth Drivers: Key growth drivers include rising participation rates, expansion of online programs for working adults, and new campus openings in strategic locations.
• Monitoring Online Penetration: The company is cautious about the potential dilution of tuition from increased online offerings but believes that the traditional campus experience remains essential for younger students.

Overall, Laureate Education demonstrated strong operational performance in Q2 2026, with positive enrollment trends and strategic investments in digital capabilities, while also navigating challenges related to margin pressures and competitive dynamics.