Laureate Education, Inc. Earnings Recaps
Laureate Education’s shares edged down 0.3% post-earnings, reflecting a broadly in-line quarter with modest revenue growth and no evident surprises to materially move the stock.
Key takeaways
- Revenue grew 7% on a timing-adjusted, constant currency basis in Q2 2026, supported by a 10% increase in new enrollments year-to-date.
- The company raised its full-year 2026 revenue outlook by $28 million at the midpoint and adjusted EBITDA by $8 million, along with a $0.03 per share improvement in adjusted EPS guidance.
- Operational momentum includes campus expansion projects in Mexico and Peru, with two new campuses expected to open in 2027 and a clear multiyear growth pipeline.
- Investments in AI and digital infrastructure are positioned as a strategic priority to enhance learning personalization and operational efficiency.
- The geopolitical and macroeconomic environment in both Mexico and Peru appears stable, supporting the company’s confidence in its core markets.
Shares closed down 1.1% following Laureate Education’s Q1 2026 results, with the market reacting neutrally to management’s reaffirmed full-year guidance and in-line enrollment performance. Commentary highlighted macro-driven moderation in Mexico and a favorable outlook in Peru, but no material surprises emerged versus expectations.
Key takeaways
- New enrollment growth for the cycle was 13% in Peru and 4% in Mexico, both described as consistent with internal forecasts.
- Full-year 2026 guidance for enrollments, revenue, and adjusted EBITDA was reaffirmed; adjusted EPS guidance increased, reflecting $105 million in Q1 share buybacks.
- Peru’s business benefited from strong macroeconomic conditions and rising demand for online offerings, while Mexico continued to see moderation amid a softer economic backdrop.
- Approximately $9 million of revenue and related profitability are expected to shift from Q1 to the second half of 2026 due to calendar timing.
- No significant changes to the company’s strategic priorities or capital allocation, with further share repurchases anticipated through year-end.
Laureate Education reported solid third-quarter results for 2025, with revenue of $400 million and adjusted EBITDA of $95 million, both surpassing previous guidance. Growth was driven by improved intake in Peru and the opening of new campuses.
Key takeaways
- Revenue increased 7% year-over-year, with adjusted EBITDA rising 3%.
- Strong performance in Peru's secondary intake, led by online programs, and a 4% increase in primary intake in Mexico.
- New campus launches in Monterrey and Lima, marking the first since 2019, with plans for further expansion identified.
- Increased full-year 2025 guidance due to robust enrollment and operational metrics.
- Authorized a $150 million increase to the stock repurchase program, highlighting a commitment to shareholder value.