LAUR · Laureate Education, Inc.

Laureate’s Q1 2026 results reflect strong enrollment momentum—new and total enrollments up 9% and 6% year-over-year—yet financial performance was pressured by two transitory, quantified headwinds: $9 million in intra-year academic calendar timing (due to later semester start dates in 2026 versus 2025) and elevated depreciation/amortization tied to campus expansion and new campus investments. Revenue grew 15% on a reported basis to $272.6 million, but constant currency growth was only 1%, underscoring the outsized impact of timing and FX. Operating loss more than doubled to $(27.5) million, and Adjusted EBITDA turned negative at $(2.3) million—down from $5.4 million—both directly attributed to the same $9 million timing effect plus growth-related capital expenses. Management explicitly stated this impact will reverse in Q3, reinforcing its seasonality-driven nature. Notably, the company executed $105 million in share repurchases during the quarter—reducing shares outstanding to 140.0 million—and used that action to raise full-year Adjusted EPS guidance to $2.00–$2.08, a 16%–21% increase over prior-year as-reported guidance. This reflects confidence in underlying operational execution and capital allocation discipline. The balance sheet remains healthy, with $157.4 million in cash against $217.1 million in gross debt, yielding net debt of $59.7 million and $76 million of remaining buyback capacity. CEO Eilif Serck-Hanssen emphasized continued traction in Peru’s primary intake and resilience in Mexico’s secondary intake despite macroeconomic softness—highlighting scalable online programs and working-adult offerings as key growth levers. The earnings release and presentation reaffirm Laureate’s strategic focus on enrollment growth, margin expansion through scale, and disciplined capital return—all anchored to its mission-driven presence in high-potential, underpenetrated higher education markets in Mexico and Peru.