LAUR

Image source: The Motley Fool. Thursday, July 30, 2026, at 8:30 a.m. ET Senior Vice President of Finance - Adam Morse President and Chief Executive Officer - Eilif Serck-Hanssen Chief Financial Officer - Rick Buskirk Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, and thank you for standing by. Welcome to Laureate Education's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Adam Morse, Senior Vice President of Finance. Please go ahead. Adam Morse: Good morning, and thank you for joining us on today's call to discuss Laureate Education's Second Quarter 2026 results. Joining me on the call today are Eilif Serck-Hanssen, President and Chief Executive Officer; and Rick Buskirk, Chief Financial Officer. Our earnings press release is available on the Investor Relations section of our website at laureate.net. We have also posted a supplementary presentation to the website, which we will be referring to during today's call. The call is being webcast and a complete recording will be available after the call. I would like to remind you that some of the information we are providing today, including, but not limited to, our financial and operational guidance, constitutes forward-looking statements within the meaning of applicable U.S. securities laws. Forward-looking statements are subject to risks and uncertainties that may change at any time, and therefore, our actual results may differ materially from those we expected. Important factors that could cause actual results to differ materially from our expectations are disclosed in our annual report on Form 10-K filed with the U.S. Securities and Exchange Commission, our 10-Q filed earlier this morning as well as other filings made with the SEC. In addition, all forward-looking statements are based on current expectations as of the date of this conference call, and we undertake no obligation to update any forward-looking statements. Additionally, non-GAAP measures that we discuss, including and among others, adjusted EBITDA and its related margin, adjusted net income and adjusted earnings per share, total debt net of cash and cash equivalents and free cash flow are also detailed and reconciled to their GAAP counterparts in our press release or supplementary presentation. Let me now turn the call over to Eilif. Eilif Serck-Hanssen: Thank you, Adam, and good morning, everyone. I am pleased to report strong execution across the board for the second quarter and first half of 2026. Through year-to-date June, new and total enrollments were up 10% and 6%, respectively, versus the comparable period in prior year, driving 7% growth in revenue on a timing adjusted and constant currency basis. In addition to favorable operating results, we have also benefited from improved currency over the past few months. As a result, we are raising our full year 2026 outlook at the midpoint by $28 million for revenue, $8 million for adjusted EBITDA and $0.03 per share for adjusted earnings per share. The operating momentum of our business as well as a strong balance sheet and free cash flow generation continue to support our commitment to return excess capital to shareholders. Through the first half of the year, we repurchased $181 million worth of our shares. And today, we are announcing an additional $150 million increase to our stock repurchase program. Throughout the first half of the year, we continue to advance on key priorities, which include the opening of new campuses and investment in digital leadership. The 2 new campuses we opened last year in Monterrey, Mexico and Lima Peru, Ate District continue to perform in line with our expectations. Our new campus opening for this year in Puebla, Mexico is off to a strong start with enrollments already well underway for our primary intake in September. Looking beyond these projects, we have a clear multiyear road map of attractive new campus expansion opportunities across both Mexico and Peru and have already secured multiple sites to support that growth pipeline in the years to come. We do expect 2 new campus projects to be operational next year, one in Southern Lima, which is on track to open during the first quarter of 2027 and one in Merida, Mexico, which we anticipate being open in time for our primary intake in September of 2027. Further momentum for new campus openings are planned for 2028 and beyond. On the digital front, AI is becoming a core capability across our organization and an increasingly important driver of our long-term strategy. We are modernizing not only how and what we teach but also how we operate, translating technology-enabled efficiencies into greater affordability, broader access to high-quality education and further progress towards Laureate's mission. By enabling AI throughout the student journey, we aim to deliver more personalized learning experiences, strengthen student support and improve academic outcomes. At the same time, we are equipping our faculty and staff with AI-enabled tools that allow them to focus on activities that create the greatest value for our students. To support this transformation, we are investing in our data and IT infrastructure and collaborating with leading technology companies. By leveraging their expertise and capabilities, we are orchestrating and building an integrated ecosystem of AI-powered learning, cloud and education solutions for our more than 500,000 students, faculty and staff across Mexico and Peru. From a geopolitical and macroeconomic perspective, the backdrop in Mexico and Peru remains stable, and we are confident in the long-term fundamentals of both markets. In Mexico, the existing USMCA trade agreement remains in place through 2036 and continues to provide Mexico with reliable and preferential access to the U.S. and Canadian markets, supporting investments in economic cross-border opportunities across North America. Although the USMCA agreement wasn't extended during the first mandatory joint review in July of this year, the absence of consensus simply activates the annual review mechanism beginning in 2027. Mexico continues to play a central role in the regional economy as the United States' largest trading partner. And the record export level from Mexico into the United States during May shows that trade and supply chain integration between the 2 countries remain very strong. Future bilateral discussion will focus on improving market access, strengthening regional production and addressing select tariffs. In Peru, the political outlook has become more stable following the recent national elections. President Keiko Fujimori is expected to pursue a more market-oriented agenda, which could strengthen business confidence, encourage private investment and support further economic growth, reinforcing Peru's long-standing position as one of Latin America's more established and resilient market economies. That concludes my prepared remarks, and I will now turn the call over to Rick Buskirk for a more detailed financial overview of our second quarter and year-to-date performance as well as further details on our 2026 full year outlook. Rick? Richard Buskirk: Thank you, Eilif. Before I discuss our financial performance for the quarter, let me provide a few important reminders on seasonality. Campus-based higher education is a seasonal business. While the second and fourth quarters are not major enrollment intake periods, they are the strongest in terms of revenue and adjusted EBITDA as students are in session and academic activity is at its peak. The timing of the start of our classes can shift year-over-year depending on various factors such as when public universities begin classes or when holidays occur. This, in turn, affects the timing of enrollments and revenue recognition and quarter-over-quarter comparability. In terms of seasonality for 2026, we will have some intra-year calendar timing impacts as outlined on Slide 22 in our presentation. As I review our operating results, I will provide some additional color on these timing-related impacts. Let's start with Page 10 and 11, which highlight our operating and financial performance for the second quarter and year-to-date June. Total enrollments increased by 6% when compared to the prior year quarter, driven by year-to-date new enrollment growth of 10%. Revenue in the seasonally strong second quarter was $616 million and adjusted EBITDA was $251 million. Both metrics were ahead of the guidance provided 3 months ago, driven by favorable currency translation and operational outperformance. On a constant currency basis, both revenue and adjusted EBITDA for the second quarter increased by 8% year-over-year. Second quarter net income was $137 million, resulting in earnings per share of $0.98 per share on a reported basis. Second quarter adjusted net income was $140 million and adjusted earnings per share was $1 per share. When combined with the first quarter on a constant currency basis and adjusted for academic calendar timing, our overall performance for the first half of 2026 was strong and resulted in revenue and adjusted EBITDA growth of 7% versus the prior year period. Let me now provide some additional color on the performance of Mexico and Peru, starting with Page 13. Please note that all comparisons versus prior year are on a constant currency basis. Let's start with Mexico. Mexico's new enrollments increased by 7% on a year-to-date basis versus the prior year period, led by strong growth in working adult-focused fully online programs. Total enrollments increased 5%. Mexico's revenue for the second quarter increased by 10% compared to the prior year period, and adjusted EBITDA was up 9%, which included costs associated with launching our new campus in Puebla. On a year-to-date basis and adjusted for timing of the academic calendar, Mexico's revenue grew 6%, resulting from a 5% increase in average total enrollments and 1% price mix. Overall pricing was in line to slightly above inflation for our traditional face-to-face students, partially offset from a mix perspective by higher growth in working adult fully online programs. We were a little less aggressive with our pricing for our fully online programs, but still had an increase year-over-year as we continue to focus on driving strong volume growth in those programs. On a year-to-date basis and adjusted for timing of the academic calendar, adjusted EBITDA decreased by 2% versus the prior year period, reflecting the timing of investments and the ramp-up of our new Puebla campus. As discussed on our prior call, we expect margin accretion this year to be weighted towards the second half of 2026 in that market. Let's now transition to Peru on Slide 14. Peru's primary enrollment cycle concluded in mid-April with total enrollment growth of 8% year-to-date, supported by strong demand from our fully online programs serving working adults. In the second quarter, Peru's revenue increased 6% and adjusted EBITDA was up 7% versus prior year. On a year-to-date basis and adjusted for timing of the academic calendar, Peru's revenue increased 7% versus the prior year period and adjusted EBITDA increased by 13%. You will note that through year-to-date June, our growth in total enrollments and revenue are at similar rates due to the rapid scaling of fully online offerings. As discussed on our prior calls, our series of planned new campus launches for face-to-face students will start to ramp in 2027. Pricing during the primary intake was largely in line with inflation for our traditional face-to-face programs, but that was offset by the price/mix impact from fully online. Let me now briefly discuss our balance sheet position. Our balance sheet remains strong. Laureate ended June with $223 million in gross debt and $162 million in cash for a net debt position of $61 million. Through June of this year, we repurchased $181 million of common stock under our previously announced share repurchase program. Today, we announced that our Board has authorized a $150 million increase to our share repurchase program. This authorization is supported by our strong balance sheet, cash accretive business model and disciplined capital allocation. Moving on to our outlook for 2026, starting on Page 17. Today, we are increasing our full year guidance at the midpoint by $28 million for revenue, $8 million for adjusted EBITDA and $0.03 per share for adjusted earnings per share. Our updated 2026 outlook reflects an improved operational outlook as well as more favorable foreign currency exchange rates. Based on our assumed FX rates, we now expect our full year 2026 results to be as follows: total enrollments to be in the range of 518,000 to 523,000 students, reflecting growth of 4% to 5% versus 2025. Revenues to be in the range of $1.920 billion to $1.930 billion, reflecting growth of 13% on an as-reported basis and growth of 6% to 7% on a constant currency basis versus 2025. Adjusted EBITDA to be in the range of $593 million to $599 million, reflecting growth of 14% to 15% on an as-reported basis and 8% to 9% on a constant currency basis versus 2025. This would result in an increase in adjusted EBITDA margins of approximately 50 basis points at the midpoint of guidance on a reported basis. The margin expansion expected for the second half of the year will be driven by timing of investments and the opening and scaling of new campuses. For 2026, we still expect adjusted EBITDA to unlevered free cash flow conversion of approximately 50% on a reported basis, supporting our continued emphasis on return of capital to shareholders. Lastly, adjusted earnings per share guidance for 2026 is now expected to be in the range of $2.04 to $2.10 per share, reflecting growth of 19% to 22% versus 2025 on a reported basis. This outlook assumes a weighted average share count of approximately 139 million shares, only reflecting the impact of share repurchases through June. Now moving to the third quarter guidance, which includes an expected $29 million of favorable intra-year academic calendar timing impact as illustrated on Page 22 of our presentation. For the third quarter of 2026, we expect revenue to be in the range of $471 million to $476 million and adjusted EBITDA of approximately $134 million to $137 million. Eilif, I'm now handing it back to you for your closing comments. Eilif Serck-Hanssen: Thank you, Rick. As we enter the second half of 2026 and prepare for our next major intake cycle, I remain confident in the momentum that we have built and our ability to continue to execute on our growth agenda. We are investing where we see the greatest opportunities to create long-term value, including expanding our academic portfolio, building strategic AI partnerships, scaling our digital offerings and selectively growing our campus network in attractive high-growth markets. At the same time, our disciplined operating model continues to drive margin expansion, strong cash flow generation and the financial flexibility to invest in future growth while returning excess capital to shareholders. Operator, that concludes our prepared remarks, and we're now happy to take any questions from the participants. Operator: [Operator Instructions] Our first question comes from the line of Jeff Sibler of BMO Markets. Jeffrey Silber: My first question is regarding Mexico. You've got a primary intake period coming up in a few months, probably enrolling students already. Can you give us any color in terms of how that's going? Eilif Serck-Hanssen: Jeff, this is Eilif. I'll just do a quick reminder. We did our March intake, which is a secondary intake in Mexico, which was consistent with last year's trend at about 4%. Then we had a -- that was about 25% of the intake for the year. We did expect some improvement, and we saw that in the June intake. That's largely a working adult intake, represents about 15% of the annual intake, and we were growing 12% in that intake, which was consistent with our expectations of an improving operating environment in Mexico. When it comes to the main intake in Mexico, which I think your question was about, that's about 60% of the annual intake. That's happening in September. We are about halfway through that. We have about 50% completion of that intake. And it is tracking along with my expectations, and that's as much as I'm going to comment on that intake. Jeffrey Silber: Okay. I appreciate that. And then maybe a big picture question. A number of the U.S. schools have been talking about changes in the way that students are looking for schools, switching away from traditional search engines going towards AI. I'm wondering if you're seeing that in Mexico and Peru? And if so, if there's any change in your marketing strategy there? Eilif Serck-Hanssen: Yes. We have -- I would say that we were at the cutting edge of driving that change in the market. We have partnered with Google over the years and several other key strategic digital and AI partners. And we've been recognized now for 2 years in a row by BCG and Google as being in the top decile when it comes to AI and digital marketing capabilities in the way that we are embracing AI in our recruiting and onboarding effort. And it has given us a very strong competitive advantage, where we have seen an explosive growth in our lead generation capability and significant improvement in conversion, which has taken down our cost of acquisition and also enabled us to consistently take market share in Mexico. So very, very pleased with those capabilities. And in Peru, we are deploying that same center of expertise that was developed in Mexico to roll out those capabilities there as well. Operator: Our next question comes from Marcelo Santos of JPMorgan. Marcelo Santos: I have 2. The first is a bit more long-term strategic. You have a lot of plans to open campuses. You're deploying distance learning. So how do you see the sustainability of growth in the coming years given these initiatives? Could you give us some broad views on how do you expect to grow? I'm not asking for a specific guidance, but I'm just asking for a broad outlook. And the second question is, I think you had higher -- better retention rates in Mexico in the second quarter. What were the actions that led to this improvement in retention rates? Eilif Serck-Hanssen: Great, Marcelo. I'll start kicking off on the growth algorithm. And we have a really deep and robust pipeline of growth opportunities in our core markets in Mexico and Peru. And really, there are 3 drivers of our growth in both markets. One is the rising participation rates. The rising participation rates, there's a lot of headroom there in Mexico. The participation rates are about 36% versus Peru high 40s and the United States mid-60s. So it shows you the significant opportunity for that participation rate to increase, which over the last 10 years has consistently given us very predictable and consistent growth, and I expect that to continue. The second big growth driver is the fully online working adult product, where we are marketing fully online to students aged 25 to 50. And those are largely degree completion, but also increasingly becoming postgraduate degrees. And we're really following the U.S. model there of high-quality personalized fully online experience, but targeting only that working adult consumer where online is a very good product. And in Mexico, we have about 90,000 fully online working adult students and growing in high single digits. In Peru, we have about 20,000 -- 25,000 students, and it is growing at a much higher rate, but from a smaller base and are an important long-term growth driver for both countries. And I can see you taking it -- if you're looking at 5-plus years, I can see the penetration of the fully online in Peru to kind of catch up with Mexico. So very excited about the depth of that growth lever. And then third, new campuses. In Lima, we are largely -- sorry, in Peru, we are largely a Lima operator. So there are some interesting secondary cities and also still several ZIP codes in Lima, where we don't have our full portfolio of products. So there is more growth with campuses in Lima and in large secondary cities like [indiscernible] in Mexico, which is a much larger country. Mexico, you have 135 million people. In Peru, you have 35 million people. You have 20 cities in Mexico with multimillion population centers, over 1 million population centers, which is ideal for our product portfolio. And so we have a very, very robust pipeline of campus expansion opportunities. Last year, we opened UNITEC in Monterrey. This year, we opened UNITEC in Puebla. And we have announced Merida is going to be our new campus expansion opportunity for UNITEC. And we are seeing double-digit campus expansion opportunities in Mexico alone in order to get the coverage that makes sense given our very strong brand portfolio in Mexico. So those are the 3 -- in our core business, it is participation rate, it is online penetration and it is new campuses in new ZIP code and new cities. And so I would say those are the core growth drivers to support our guidance. And let me just -- before covering your retention question, Rick, why don't you add anything on the growth algorithm that... Richard Buskirk: No, I think that was well said [indiscernible] on the growth algorithm. Eilif Serck-Hanssen: Very good, do you want to take the retention question on? Richard Buskirk: Sure. Great. On the retention, you're exactly right. We are seeing some improved retention rates in Mexico. We're very pleased with that. We spent several years focused in dissecting the entire enrollment to graduation process that our students go through, particularly on our growing online segment and have started deconstructing that digital journey that they follow and really putting in different elements to reduce friction and support their learning, including experimenting with an AI tutor. And as a result of that, we are seeing improved attrition, and we expect attrition despite online growing faster to face-to-face, which generally has a higher attrition rate. As a total consolidated in Mexico, we expect attrition improvement on a full year basis. So we're very pleased with the results, and it's been an effort that we've been very focused on, and we're seeing good results, particularly in our fully online product. Operator: Our next question comes from Alex Paris of Barrington Research. Alexander Paris: I'm glad to be on the call today after having recently initiated at -- still learning, and I appreciate your responses to the prior questions, some of which I was going to ask myself. But I thought -- and by the way, I don't know if it's just my line or in general, but it sounds like your line is cutting out from time to time, and I'm having a little trouble following it. But again, just back to the 3 core growth drivers, obviously. Operator: Can you repeat the question? I'm sorry about that. We're just having a technical difficulty. If you could just repeat it real quick, please? Alexander Paris: Okay. Yes, we were having -- I'm having a technical difficulty hearing you guys as well. I don't know where the problem is. But my question was just more to follow on to the 3 core growth drivers, participation, fully online and new campuses. I think you covered it well, but I thought since online is an important growth driver, maybe we can dig down into that a little bit more with additional color. How is it priced relative to campus-based programs? I realize it's priced at a discount. And what is its contribution to adjusted operating income, for example, or operating income? Eilif Serck-Hanssen: Great. This is Eilif again. I apologize for the technical difficulties that we seem to be having. So I've switched over to a cell phone line now. Can you hear me okay? Alexander Paris: Yes, I can. Eilif Serck-Hanssen: Perfect. So in terms of online, it's a very attractive business model. The price point of an online offering versus the face-to-face counterpart is about 40% below face-to-face. And that gives us a contribution margin in the mid-50s, which is similar to a campus performance. So similar margin contribution, 40% lower price. And of course, an ROIC that is very, very superior because there is no CapEx in online, and it's benefiting from the strong brand portfolio that we have in both Mexico and Peru. So hopefully, that answered your question. Alexander Paris: It definitely did. And then going back to a previous question, how do you market in Mexico and Peru? Is it like in the U.S., largely focused on digital marketing and Google search and et cetera? Eilif Serck-Hanssen: Well, it depends. You should think about our business in 2 different lines. We have young students who we are recruiting from high schools and they live at home. So we know exactly where they are. So the cost of acquisition for our traditional undergraduates are very, very low. We develop relationships with the high schools and the students through their middle school and high school experience. We do gamification. We do English training. We do career advising. We provide them with apps to help them in the learning experience. And then we maintain those relationships until their senior year in high school, and then we recruit them based on the campus that makes most sense vis-a-vis the ZIP code where they live. And we have about 400,000 young students in Mexico and Peru that is recruited in that manner. Then we have 100,000 working adult fully online students. And the marketing to entice that clientele is very different. You're testing that very broadly. It's largely a lead generation. It is -- a lot of it is organically generated through proprietary information sites, outreach to cover the Jeff's question earlier, we are increasingly using AI tools to reach and understand and deliver an offering that is personalized and makes sense for that particular lead or that particular individual. But we're also using search and all of the traditional tools that you are familiar with here in the United States. Operator: Our next question comes from Mauricio Cepeda of Morgan Stanley. Mauricio Cepeda: We have 2 questions here. The first one about the Mexico margin expansion throughout time. So we saw that Mexico improved a lot of the margin in the past from this campus consolidation actions, the fixed cost dilution, some operating efficiencies. But as those benefits mature and it seems that they mature a little bit already, what would be the main sources for this next wave of margin expansion? And over which time frame should they become visible? And the second question is -- sorry, sorry, go on. Eilif Serck-Hanssen: No, go ahead. I was jumping in, but let's get both questions out and then we'll take them one at a time. Mauricio Cepeda: Okay. Okay. So it's pretty straightforward about the online penetration, right? So we see that online penetration is increasing. And of course, because of the average price, it somehow dilutes the tuition. But at which level do you think they will begin offsetting the enrollment and margin benefits? And what early indicators are you monitoring for the cannibalization for higher acquisition costs or competitive price pressure? Eilif Serck-Hanssen: Very good. In terms of the margin expansion for Mexico, I will hand that over to Rick, and then I will pick it up again on the online penetration. Richard Buskirk: Yes, as you said, we have had tremendous success in expanding margins in Mexico from around 20% to 26% historically. We have a great operating model on a go-forward basis now set with a very centralized cost structure. So we see notable opportunities to continue on a healthy operating leverage and flow-through margin of incremental revenue as well as we do still have some targeted efficiencies that we're working on to streamline operations across the different lines. So we do expect to continue to expand margins when you adjust for rent because we lease our properties in Mexico, and we own them in Peru. It's about a 6% plus delta. So as we've said historically, we are working on closing that gap and management believes we can close a substantial part of that gap in the next 3 to 5 years. And so what we've said on a consolidated basis is it is the target of Laureate to continue to see margin expansion, and we expect to see margin expansion in the range of 30% plus per year. So that's where we're at. Eilif Serck-Hanssen: 30 basis points. Richard Buskirk: Yes, 30 basis points. Eilif Serck-Hanssen: So that's -- so margin expansion for Mexico coming to flow through and additional productivity opportunities and will be the source of -- the biggest source of the 30 basis points or more margin expansion for the consolidated business. On your second point on online penetration, this is the way I would think about it, Mauricio. In the United States, 25% of all students are working adult fully online students. So it is a segment that makes a tremendous amount of sense for that working adult students, and it is at scale. In Mexico, it is at 14%, and in Peru, it's less than 5%. And so you would expect online penetration in Mexico and Peru at least to get to the U.S. It really should become significantly larger than in the U.S. because the mix of 25- to 50-year olds in Mexico and Peru that doesn't have a degree is much bigger than the mix of 25- to 50-year olds in the U.S. that doesn't have an undergraduate degree. So the fishing tongs are much bigger in Mexico and Peru on a relative basis for that working adult student than it is in the United States. So will it go to 25%, Will it go to 35? Will it go to 45? I don't know. But we're just at the beginning of a very exciting journey to deliver high-quality education in a flexible manner to that working adult professional that is looking to get into management or get in from -- move from a local company to an international company and create a significant increased earnings potential. I'll pause there and see if that answered your question. Mauricio Cepeda: Yes. The point is that I believe it's kind of a given, right? I think the distance learning is really penetrating everywhere. But the point is that, well, the market growth seems positive, but are you going to monitor for cannibalization because maybe younger students will go for it, too. And at the end of the day, there will be a ticket dilution even if you keep the margin, so it can decrease your bottom line growth, right? So are you monitoring for it, which is the, let's say, the saturation point? Are you -- is there any kind of monitoring in general that you're. Eilif Serck-Hanssen: Yes. We are monitoring this very, very carefully. And as I said, I really believe online is a terrific tool for the working adult students. I don't think it makes a lot of sense for the average 17-, 18-year-old to sit in his or her bedroom to get an online undergraduate degree. Very few 17-, 18-year-olds are going to be successful doing that. So we are monitoring all of our students that are in the online program. And the vast majority, 95-plus percent of our students that are in a location where we have a campus and are below 25 years old or below -- in the early 20s will be in a campus setting. So very few 18-, 19-, 20-, 21-, 22-year-old students in our network will be in an online operation. There will be some very unique circumstances where -- for that to be facilitated. So we are marketing face-to-face or hybrid to young students and the price point on face-to-face versus hybrid is essentially the same because it is the students themselves that decide how much hybridity to do depending on their flexibility if they're working part time alongside the studies. But the fully online, that is where we are marketing to working adults, 25- to 50-year-olds, and that is where we are offering a significantly lower price point because the cost of delivery is lighter and the self-discipline and the ability to work independent is very different. So we are not following -- maybe where you're coming from is -- some of the more challenging experiences in Brazil. We're not following that model at all, we are following the model that we have seen in the United States that has worked really, really well for us in Mexico that we are deploying now in Peru and very similar to what you would be seeing in Europe and also in other Latin American countries. I think Brazil is the outlier because Brazil has had some very unique challenges with overcapacity following the unwinding of FIAs and unfortunately, went down the path with the train the consumer that if you can't afford a face-to-face, you should still go for DL. And it has been a challenge and regulatory steps are now being taken to try to clean that up. But that -- those dynamics doesn't exist in our markets. And certainly, we are not promoting to go down that path. To the contrary, we are very disciplined. We have a great product for young students that involves the campus experience. And then we have a very high-quality online product with a lot of flexibility and a lot of built-in digital and AI tools that is designed to support that working adult professional that is balancing studies, a job and a family. Operator: [Operator Instructions] I am showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect. Before you buy stock in Laureate Education, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Laureate Education wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $395,463!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,268,290!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 4, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Laureate Education (LAUR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Thursday, July 30, 2026 at 8:30 a.m. ET Senior Vice President of Finance - Adam Morse President and Chief Executive Officer - Eilif Serck-Hanssen Chief Financial Officer - Rick Buskirk Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, and thank you for standing by. Welcome to Laureate Education's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Adam Morse, Senior Vice President of Finance. Please go ahead. Adam Morse: Good morning, and thank you for joining us on today's call to discuss Laureate Education's Second Quarter 2026 results. Joining me on the call today are Eilif Serck-Hanssen, President and Chief Executive Officer; and Rick Buskirk, Chief Financial Officer. Our earnings press release is available on the Investor Relations section of our website at laureate.net. We have also posted a supplementary presentation to the website, which we will be referring to during today's call. The call is being webcast and a complete recording will be available after the call. I would like to remind you that some of the information we are providing today, including, but not limited to, our financial and operational guidance, constitutes forward-looking statements within the meaning of applicable U.S. securities laws. Forward-looking statements are subject to risks and uncertainties that may change at any time, and therefore, our actual results may differ materially from those we expected. Important factors that could cause actual results to differ materially from our expectations are disclosed in our annual report on Form 10-K filed with the U.S. Securities and Exchange Commission, our 10-Q filed earlier this morning as well as other filings made with the SEC. In addition, all forward-looking statements are based on current expectations as of the date of this conference call, and we undertake no obligation to update any forward-looking statements. Additionally, non-GAAP measures that we discuss, including and among others, adjusted EBITDA and its related margin, adjusted net income and adjusted earnings per share, total debt net of cash and cash equivalents and free cash flow are also detailed and reconciled to their GAAP counterparts in our press release or supplementary presentation. Let me now turn the call over to Eilif. Eilif Serck-Hanssen: Thank you, Adam, and good morning, everyone. I am pleased to report strong execution across the board for the second quarter and first half of 2026. Through year-to-date June, new and total enrollments were up 10% and 6%, respectively, versus the comparable period in prior year, driving 7% growth in revenue on a timing adjusted and constant currency basis. In addition to favorable operating results, we have also benefited from improved currency over the past few months. As a result, we are raising our full year 2026 outlook at the midpoint by $28 million for revenue, $8 million for adjusted EBITDA and $0.03 per share for adjusted earnings per share. The operating momentum of our business as well as a strong balance sheet and free cash flow generation continue to support our commitment to return excess capital to shareholders. Through the first half of the year, we repurchased $181 million worth of our shares. And today, we are announcing an additional $150 million increase to our stock repurchase program. Throughout the first half of the year, we continue to advance on key priorities, which include the opening of new campuses and investment in digital leadership. The 2 new campuses we opened last year in Monterrey, Mexico and Lima Peru, Ate District continue to perform in line with our expectations. Our new campus opening for this year in Puebla, Mexico is off to a strong start with enrollments already well underway for our primary intake in September. Looking beyond these projects, we have a clear multiyear road map of attractive new campus expansion opportunities across both Mexico and Peru and have already secured multiple sites to support that growth pipeline in the years to come. We do expect 2 new campus projects to be operational next year, one in Southern Lima, which is on track to open during the first quarter of 2027 and one in Merida, Mexico, which we anticipate being open in time for our primary intake in September of 2027. Further momentum for new campus openings are planned for 2028 and beyond. On the digital front, AI is becoming a core capability across our organization and an increasingly important driver of our long-term strategy. We are modernizing not only how and what we teach but also how we operate, translating technology-enabled efficiencies into greater affordability, broader access to high-quality education and further progress towards Laureate's mission. By enabling AI throughout the student journey, we aim to deliver more personalized learning experiences, strengthen student support and improve academic outcomes. At the same time, we are equipping our faculty and staff with AI-enabled tools that allow them to focus on activities that create the greatest value for our students. To support this transformation, we are investing in our data and IT infrastructure and collaborating with leading technology companies. By leveraging their expertise and capabilities, we are orchestrating and building an integrated ecosystem of AI-powered learning, cloud and education solutions for our more than 500,000 students, faculty and staff across Mexico and Peru. From a geopolitical and macroeconomic perspective, the backdrop in Mexico and Peru remains stable, and we are confident in the long-term fundamentals of both markets. In Mexico, the existing USMCA trade agreement remains in place through 2036 and continues to provide Mexico with reliable and preferential access to the U.S. and Canadian markets, supporting investments in economic cross-border opportunities across North America. Although the USMCA agreement wasn't extended during the first mandatory joint review in July of this year, the absence of consensus simply activates the annual review mechanism beginning in 2027. Mexico continues to play a central role in the regional economy as the United States' largest trading partner. And the record export level from Mexico into the United States during May shows that trade and supply chain integration between the 2 countries remain very strong. Future bilateral discussion will focus on improving market access, strengthening regional production and addressing select tariffs. In Peru, the political outlook has become more stable following the recent national elections. President Keiko Fujimori is expected to pursue a more market-oriented agenda, which could strengthen business confidence, encourage private investment and support further economic growth, reinforcing Peru's long-standing position as one of Latin America's more established and resilient market economies. That concludes my prepared remarks, and I will now turn the call over to Rick Buskirk for a more detailed financial overview of our second quarter and year-to-date performance as well as further details on our 2026 full year outlook. Rick? Richard Buskirk: Thank you, Eilif. Before I discuss our financial performance for the quarter, let me provide a few important reminders on seasonality. Campus-based higher education is a seasonal business. While the second and fourth quarters are not major enrollment intake periods, they are the strongest in terms of revenue and adjusted EBITDA as students are in session and academic activity is at its peak. The timing of the start of our classes can shift year-over-year depending on various factors such as when public universities begin classes or when holidays occur. This, in turn, affects the timing of enrollments and revenue recognition and quarter-over-quarter comparability. In terms of seasonality for 2026, we will have some intra-year calendar timing impacts as outlined on Slide 22 in our presentation. As I review our operating results, I will provide some additional color on these timing-related impacts. Let's start with Page 10 and 11, which highlight our operating and financial performance for the second quarter and year-to-date June. Total enrollments increased by 6% when compared to the prior year quarter, driven by year-to-date new enrollment growth of 10%. Revenue in the seasonally strong second quarter was $616 million and adjusted EBITDA was $251 million. Both metrics were ahead of the guidance provided 3 months ago, driven by favorable currency translation and operational outperformance. On a constant currency basis, both revenue and adjusted EBITDA for the second quarter increased by 8% year-over-year. Second quarter net income was $137 million, resulting in earnings per share of $0.98 per share on a reported basis. Second quarter adjusted net income was $140 million and adjusted earnings per share was $1 per share. When combined with the first quarter on a constant currency basis and adjusted for academic calendar timing, our overall performance for the first half of 2026 was strong and resulted in revenue and adjusted EBITDA growth of 7% versus the prior year period. Let me now provide some additional color on the performance of Mexico and Peru, starting with Page 13. Please note that all comparisons versus prior year are on a constant currency basis. Let's start with Mexico. Mexico's new enrollments increased by 7% on a year-to-date basis versus the prior year period, led by strong growth in working adult-focused fully online programs. Total enrollments increased 5%. Mexico's revenue for the second quarter increased by 10% compared to the prior year period, and adjusted EBITDA was up 9%, which included costs associated with launching our new campus in Puebla. On a year-to-date basis and adjusted for timing of the academic calendar, Mexico's revenue grew 6%, resulting from a 5% increase in average total enrollments and 1% price mix. Overall pricing was in line to slightly above inflation for our traditional face-to-face students, partially offset from a mix perspective by higher growth in working adult fully online programs. We were a little less aggressive with our pricing for our fully online programs, but still had an increase year-over-year as we continue to focus on driving strong volume growth in those programs. On a year-to-date basis and adjusted for timing of the academic calendar, adjusted EBITDA decreased by 2% versus the prior year period, reflecting the timing of investments and the ramp-up of our new Puebla campus. As discussed on our prior call, we expect margin accretion this year to be weighted towards the second half of 2026 in that market. Let's now transition to Peru on Slide 14. Peru's primary enrollment cycle concluded in mid-April with total enrollment growth of 8% year-to-date, supported by strong demand from our fully online programs serving working adults. In the second quarter, Peru's revenue increased 6% and adjusted EBITDA was up 7% versus prior year. On a year-to-date basis and adjusted for timing of the academic calendar, Peru's revenue increased 7% versus the prior year period and adjusted EBITDA increased by 13%. You will note that through year-to-date June, our growth in total enrollments and revenue are at similar rates due to the rapid scaling of fully online offerings. As discussed on our prior calls, our series of planned new campus launches for face-to-face students will start to ramp in 2027. Pricing during the primary intake was largely in line with inflation for our traditional face-to-face programs, but that was offset by the price/mix impact from fully online. Let me now briefly discuss our balance sheet position. Our balance sheet remains strong. Laureate ended June with $223 million in gross debt and $162 million in cash for a net debt position of $61 million. Through June of this year, we repurchased $181 million of common stock under our previously announced share repurchase program. Today, we announced that our Board has authorized a $150 million increase to our share repurchase program. This authorization is supported by our strong balance sheet, cash accretive business model and disciplined capital allocation. Moving on to our outlook for 2026, starting on Page 17. Today, we are increasing our full year guidance at the midpoint by $28 million for revenue, $8 million for adjusted EBITDA and $0.03 per share for adjusted earnings per share. Our updated 2026 outlook reflects an improved operational outlook as well as more favorable foreign currency exchange rates. Based on our assumed FX rates, we now expect our full year 2026 results to be as follows: total enrollments to be in the range of 518,000 to 523,000 students, reflecting growth of 4% to 5% versus 2025. Revenues to be in the range of $1.920 billion to $1.930 billion, reflecting growth of 13% on an as-reported basis and growth of 6% to 7% on a constant currency basis versus 2025. Adjusted EBITDA to be in the range of $593 million to $599 million, reflecting growth of 14% to 15% on an as-reported basis and 8% to 9% on a constant currency basis versus 2025. This would result in an increase in adjusted EBITDA margins of approximately 50 basis points at the midpoint of guidance on a reported basis. The margin expansion expected for the second half of the year will be driven by timing of investments and the opening and scaling of new campuses. For 2026, we still expect adjusted EBITDA to unlevered free cash flow conversion of approximately 50% on a reported basis, supporting our continued emphasis on return of capital to shareholders. Lastly, adjusted earnings per share guidance for 2026 is now expected to be in the range of $2.04 to $2.10 per share, reflecting growth of 19% to 22% versus 2025 on a reported basis. This outlook assumes a weighted average share count of approximately 139 million shares, only reflecting the impact of share repurchases through June. Now moving to the third quarter guidance, which includes an expected $29 million of favorable intra-year academic calendar timing impact as illustrated on Page 22 of our presentation. For the third quarter of 2026, we expect revenue to be in the range of $471 million to $476 million and adjusted EBITDA of approximately $134 million to $137 million. Eilif, I'm now handing it back to you for your closing comments. Eilif Serck-Hanssen: Thank you, Rick. As we enter the second half of 2026 and prepare for our next major intake cycle, I remain confident in the momentum that we have built and our ability to continue to execute on our growth agenda. We are investing where we see the greatest opportunities to create long-term value, including expanding our academic portfolio, building strategic AI partnerships, scaling our digital offerings and selectively growing our campus network in attractive high-growth markets. At the same time, our disciplined operating model continues to drive margin expansion, strong cash flow generation and the financial flexibility to invest in future growth while returning excess capital to shareholders. Operator, that concludes our prepared remarks, and we're now happy to take any questions from the participants. Operator: [Operator Instructions] Our first question comes from the line of Jeff Sibler of BMO Markets. Jeffrey Silber: My first question is regarding Mexico. You've got a primary intake period coming up in a few months, probably enrolling students already. Can you give us any color in terms of how that's going? Eilif Serck-Hanssen: Jeff, this is Eilif. I'll just do a quick reminder. We did our March intake, which is a secondary intake in Mexico, which was consistent with last year's trend at about 4%. Then we had a -- that was about 25% of the intake for the year. We did expect some improvement, and we saw that in the June intake. That's largely a working adult intake, represents about 15% of the annual intake, and we were growing 12% in that intake, which was consistent with our expectations of an improving operating environment in Mexico. When it comes to the main intake in Mexico, which I think your question was about, that's about 60% of the annual intake. That's happening in September. We are about halfway through that. We have about 50% completion of that intake. And it is tracking along with my expectations, and that's as much as I'm going to comment on that intake. Jeffrey Silber: Okay. I appreciate that. And then maybe a big picture question. A number of the U.S. schools have been talking about changes in the way that students are looking for schools, switching away from traditional search engines going towards AI. I'm wondering if you're seeing that in Mexico and Peru? And if so, if there's any change in your marketing strategy there? Eilif Serck-Hanssen: Yes. We have -- I would say that we were at the cutting edge of driving that change in the market. We have partnered with Google over the years and several other key strategic digital and AI partners. And we've been recognized now for 2 years in a row by BCG and Google as being in the top decile when it comes to AI and digital marketing capabilities in the way that we are embracing AI in our recruiting and onboarding effort. And it has given us a very strong competitive advantage, where we have seen an explosive growth in our lead generation capability and significant improvement in conversion, which has taken down our cost of acquisition and also enabled us to consistently take market share in Mexico. So very, very pleased with those capabilities. And in Peru, we are deploying that same center of expertise that was developed in Mexico to roll out those capabilities there as well. Operator: Our next question comes from Marcelo Santos of JPMorgan. Marcelo Santos: I have 2. The first is a bit more long-term strategic. You have a lot of plans to open campuses. You're deploying distance learning. So how do you see the sustainability of growth in the coming years given these initiatives? Could you give us some broad views on how do you expect to grow? I'm not asking for a specific guidance, but I'm just asking for a broad outlook. And the second question is, I think you had higher -- better retention rates in Mexico in the second quarter. What were the actions that led to this improvement in retention rates? Eilif Serck-Hanssen: Great, Marcelo. I'll start kicking off on the growth algorithm. And we have a really deep and robust pipeline of growth opportunities in our core markets in Mexico and Peru. And really, there are 3 drivers of our growth in both markets. One is the rising participation rates. The rising participation rates, there's a lot of headroom there in Mexico. The participation rates are about 36% versus Peru high 40s and the United States mid-60s. So it shows you the significant opportunity for that participation rate to increase, which over the last 10 years has consistently given us very predictable and consistent growth, and I expect that to continue. The second big growth driver is the fully online working adult product, where we are marketing fully online to students aged 25 to 50. And those are largely degree completion, but also increasingly becoming postgraduate degrees. And we're really following the U.S. model there of high-quality personalized fully online experience, but targeting only that working adult consumer where online is a very good product. And in Mexico, we have about 90,000 fully online working adult students and growing in high single digits. In Peru, we have about 20,000 -- 25,000 students, and it is growing at a much higher rate, but from a smaller base and are an important long-term growth driver for both countries. And I can see you taking it -- if you're looking at 5-plus years, I can see the penetration of the fully online in Peru to kind of catch up with Mexico. So very excited about the depth of that growth lever. And then third, new campuses. In Lima, we are largely -- sorry, in Peru, we are largely a Lima operator. So there are some interesting secondary cities and also still several ZIP codes in Lima, where we don't have our full portfolio of products. So there is more growth with campuses in Lima and in large secondary cities like [indiscernible] in Mexico, which is a much larger country. Mexico, you have 135 million people. In Peru, you have 35 million people. You have 20 cities in Mexico with multimillion population centers, over 1 million population centers, which is ideal for our product portfolio. And so we have a very, very robust pipeline of campus expansion opportunities. Last year, we opened UNITEC in Monterrey. This year, we opened UNITEC in Puebla. And we have announced Merida is going to be our new campus expansion opportunity for UNITEC. And we are seeing double-digit campus expansion opportunities in Mexico alone in order to get the coverage that makes sense given our very strong brand portfolio in Mexico. So those are the 3 -- in our core business, it is participation rate, it is online penetration and it is new campuses in new ZIP code and new cities. And so I would say those are the core growth drivers to support our guidance. And let me just -- before covering your retention question, Rick, why don't you add anything on the growth algorithm that... Richard Buskirk: No, I think that was well said [indiscernible] on the growth algorithm. Eilif Serck-Hanssen: Very good, do you want to take the retention question on? Richard Buskirk: Sure. Great. On the retention, you're exactly right. We are seeing some improved retention rates in Mexico. We're very pleased with that. We spent several years focused in dissecting the entire enrollment to graduation process that our students go through, particularly on our growing online segment and have started deconstructing that digital journey that they follow and really putting in different elements to reduce friction and support their learning, including experimenting with an AI tutor. And as a result of that, we are seeing improved attrition, and we expect attrition despite online growing faster to face-to-face, which generally has a higher attrition rate. As a total consolidated in Mexico, we expect attrition improvement on a full year basis. So we're very pleased with the results, and it's been an effort that we've been very focused on, and we're seeing good results, particularly in our fully online product. Operator: Our next question comes from Alex Paris of Barrington Research. Alexander Paris: I'm glad to be on the call today after having recently initiated at -- still learning, and I appreciate your responses to the prior questions, some of which I was going to ask myself. But I thought -- and by the way, I don't know if it's just my line or in general, but it sounds like your line is cutting out from time to time, and I'm having a little trouble following it. But again, just back to the 3 core growth drivers, obviously. Operator: Can you repeat the question? I'm sorry about that. We're just having a technical difficulty. If you could just repeat it real quick, please? Alexander Paris: Okay. Yes, we were having -- I'm having a technical difficulty hearing you guys as well. I don't know where the problem is. But my question was just more to follow on to the 3 core growth drivers, participation, fully online and new campuses. I think you covered it well, but I thought since online is an important growth driver, maybe we can dig down into that a little bit more with additional color. How is it priced relative to campus-based programs? I realize it's priced at a discount. And what is its contribution to adjusted operating income, for example, or operating income? Eilif Serck-Hanssen: Great. This is Eilif again. I apologize for the technical difficulties that we seem to be having. So I've switched over to a cell phone line now. Can you hear me okay? Alexander Paris: Yes, I can. Eilif Serck-Hanssen: Perfect. So in terms of online, it's a very attractive business model. The price point of an online offering versus the face-to-face counterpart is about 40% below face-to-face. And that gives us a contribution margin in the mid-50s, which is similar to a campus performance. So similar margin contribution, 40% lower price. And of course, an ROIC that is very, very superior because there is no CapEx in online, and it's benefiting from the strong brand portfolio that we have in both Mexico and Peru. So hopefully, that answered your question. Alexander Paris: It definitely did. And then going back to a previous question, how do you market in Mexico and Peru? Is it like in the U.S., largely focused on digital marketing and Google search and et cetera? Eilif Serck-Hanssen: Well, it depends. You should think about our business in 2 different lines. We have young students who we are recruiting from high schools and they live at home. So we know exactly where they are. So the cost of acquisition for our traditional undergraduates are very, very low. We develop relationships with the high schools and the students through their middle school and high school experience. We do gamification. We do English training. We do career advising. We provide them with apps to help them in the learning experience. And then we maintain those relationships until their senior year in high school, and then we recruit them based on the campus that makes most sense vis-a-vis the ZIP code where they live. And we have about 400,000 young students in Mexico and Peru that is recruited in that manner. Then we have 100,000 working adult fully online students. And the marketing to entice that clientele is very different. You're testing that very broadly. It's largely a lead generation. It is -- a lot of it is organically generated through proprietary information sites, outreach to cover the Jeff's question earlier, we are increasingly using AI tools to reach and understand and deliver an offering that is personalized and makes sense for that particular lead or that particular individual. But we're also using search and all of the traditional tools that you are familiar with here in the United States. Operator: Our next question comes from Mauricio Cepeda of Morgan Stanley. Mauricio Cepeda: We have 2 questions here. The first one about the Mexico margin expansion throughout time. So we saw that Mexico improved a lot of the margin in the past from this campus consolidation actions, the fixed cost dilution, some operating efficiencies. But as those benefits mature and it seems that they mature a little bit already, what would be the main sources for this next wave of margin expansion? And over which time frame should they become visible? And the second question is -- sorry, sorry, go on. Eilif Serck-Hanssen: No, go ahead. I was jumping in, but let's get both questions out and then we'll take them one at a time. Mauricio Cepeda: Okay. Okay. So it's pretty straightforward about the online penetration, right? So we see that online penetration is increasing. And of course, because of the average price, it somehow dilutes the tuition. But at which level do you think they will begin offsetting the enrollment and margin benefits? And what early indicators are you monitoring for the cannibalization for higher acquisition costs or competitive price pressure? Eilif Serck-Hanssen: Very good. In terms of the margin expansion for Mexico, I will hand that over to Rick, and then I will pick it up again on the online penetration. Richard Buskirk: Yes, as you said, we have had tremendous success in expanding margins in Mexico from around 20% to 26% historically. We have a great operating model on a go-forward basis now set with a very centralized cost structure. So we see notable opportunities to continue on a healthy operating leverage and flow-through margin of incremental revenue as well as we do still have some targeted efficiencies that we're working on to streamline operations across the different lines. So we do expect to continue to expand margins when you adjust for rent because we lease our properties in Mexico, and we own them in Peru. It's about a 6% plus delta. So as we've said historically, we are working on closing that gap and management believes we can close a substantial part of that gap in the next 3 to 5 years. And so what we've said on a consolidated basis is it is the target of Laureate to continue to see margin expansion, and we expect to see margin expansion in the range of 30% plus per year. So that's where we're at. Eilif Serck-Hanssen: 30 basis points. Richard Buskirk: Yes, 30 basis points. Eilif Serck-Hanssen: So that's -- so margin expansion for Mexico coming to flow through and additional productivity opportunities and will be the source of -- the biggest source of the 30 basis points or more margin expansion for the consolidated business. On your second point on online penetration, this is the way I would think about it, Mauricio. In the United States, 25% of all students are working adult fully online students. So it is a segment that makes a tremendous amount of sense for that working adult students, and it is at scale. In Mexico, it is at 14%, and in Peru, it's less than 5%. And so you would expect online penetration in Mexico and Peru at least to get to the U.S. It really should become significantly larger than in the U.S. because the mix of 25- to 50-year olds in Mexico and Peru that doesn't have a degree is much bigger than the mix of 25- to 50-year olds in the U.S. that doesn't have an undergraduate degree. So the fishing tongs are much bigger in Mexico and Peru on a relative basis for that working adult student than it is in the United States. So will it go to 25%, Will it go to 35? Will it go to 45? I don't know. But we're just at the beginning of a very exciting journey to deliver high-quality education in a flexible manner to that working adult professional that is looking to get into management or get in from -- move from a local company to an international company and create a significant increased earnings potential. I'll pause there and see if that answered your question. Mauricio Cepeda: Yes. The point is that I believe it's kind of a given, right? I think the distance learning is really penetrating everywhere. But the point is that, well, the market growth seems positive, but are you going to monitor for cannibalization because maybe younger students will go for it, too. And at the end of the day, there will be a ticket dilution even if you keep the margin, so it can decrease your bottom line growth, right? So are you monitoring for it, which is the, let's say, the saturation point? Are you -- is there any kind of monitoring in general that you're. Eilif Serck-Hanssen: Yes. We are monitoring this very, very carefully. And as I said, I really believe online is a terrific tool for the working adult students. I don't think it makes a lot of sense for the average 17-, 18-year-old to sit in his or her bedroom to get an online undergraduate degree. Very few 17-, 18-year-olds are going to be successful doing that. So we are monitoring all of our students that are in the online program. And the vast majority, 95-plus percent of our students that are in a location where we have a campus and are below 25 years old or below -- in the early 20s will be in a campus setting. So very few 18-, 19-, 20-, 21-, 22-year-old students in our network will be in an online operation. There will be some very unique circumstances where -- for that to be facilitated. So we are marketing face-to-face or hybrid to young students and the price point on face-to-face versus hybrid is essentially the same because it is the students themselves that decide how much hybridity to do depending on their flexibility if they're working part time alongside the studies. But the fully online, that is where we are marketing to working adults, 25- to 50-year-olds, and that is where we are offering a significantly lower price point because the cost of delivery is lighter and the self-discipline and the ability to work independent is very different. So we are not following -- maybe where you're coming from is -- some of the more challenging experiences in Brazil. We're not following that model at all, we are following the model that we have seen in the United States that has worked really, really well for us in Mexico that we are deploying now in Peru and very similar to what you would be seeing in Europe and also in other Latin American countries. I think Brazil is the outlier because Brazil has had some very unique challenges with overcapacity following the unwinding of FIAs and unfortunately, went down the path with the train the consumer that if you can't afford a face-to-face, you should still go for DL. And it has been a challenge and regulatory steps are now being taken to try to clean that up. But that -- those dynamics doesn't exist in our markets. And certainly, we are not promoting to go down that path. To the contrary, we are very disciplined. We have a great product for young students that involves the campus experience. And then we have a very high-quality online product with a lot of flexibility and a lot of built-in digital and AI tools that is designed to support that working adult professional that is balancing studies, a job and a family. Operator: [Operator Instructions] I am showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect. Before you buy stock in Laureate Education, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Laureate Education wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 31, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Laureate Education (LAUR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by strong execution in Mexico and Peru, with new enrollments increasing 10% year-to-date, leading to a 7% revenue growth on a timing-adjusted basis. Management attributes operational outperformance to the rapid scaling of fully online programs for working adults and the successful launch of new campuses in Monterrey and Lima. Strategic positioning is being enhanced through AI integration across the student journey, which management claims has improved lead generation and conversion while reducing acquisition costs. The market environment in Mexico remains stable despite the lack of immediate USMCA extension, with management citing record export levels as evidence of continued regional supply chain integration. In Peru, the political outlook is characterized as more stable following recent elections, with expectations for a market-oriented agenda to bolster business confidence and private investment. Operational drivers include a disciplined focus on pricing that largely tracks inflation for face-to-face programs, while being less aggressive in online segments to prioritize volume growth. Full-year 2026 guidance was raised at the midpoint by $28 million for revenue and $8 million for adjusted EBITDA, reflecting both operational momentum and favorable currency translation. Management expects margin expansion of approximately 50 basis points for the full year, with accretion weighted toward the second half due to the scaling of the new Puebla campus. The growth roadmap includes two new campus openings in 2027—one in Southern Lima and one in Merida, Mexico—with a pipeline of double-digit expansion opportunities planned for 2028 and beyond. Guidance assumes a weighted average share count of 139 million, reflecting repurchases through June but not accounting for the newly authorized $150 million buyback program. Third-quarter outlook includes an expected $29 million favorable impact from intra-year academic calendar timing shifts. The Board authorized an additional $150 million for share repurchases, following $181 million already executed in the first half of the year, supported by a strong net debt position of $61 million. Management highlighted a structural difference in margins between Mexico and Peru, noting a 6% gap due to Mexico's leased property model versus Peru's owned assets, with a goal to close this gap over 3-5 years. Investments in data and IT infrastructure are being prioritized to build an integrated ecosystem of AI-powered learning and cloud solutions for over 500,000 students and staff. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated the September intake, which represents 60% of the annual total, is approximately 50% complete and tracking in line with expectations. This follows a 12% growth in the June working adult intake, which management cited as a sign of an improving operating environment. Laureate claims to be in the top decile for AI marketing capabilities, resulting in explosive growth in lead generation and significant improvements in conversion rates. These capabilities have allowed the company to reduce student acquisition costs and consistently gain market share in Mexico, with plans to roll out the same expertise in Peru. Management dismissed concerns about online programs cannibalizing face-to-face enrollment, noting that 95% of students under age 25 remain in campus-based or hybrid settings. The growth algorithm relies on rising participation rates, online penetration for the 25-50 age demographic, and a robust pipeline of new campus openings in secondary cities. Management explicitly distinguished their strategy from the 'Brazil model,' stating they will not use low-cost online degrees to target younger students who require a campus experience. Online programs are priced approximately 40% below face-to-face counterparts but deliver similar contribution margins in the mid-50% range. The business model is described as highly attractive due to superior Return on Invested Capital (ROIC), as it requires no capital expenditure for physical infrastructure.

Company Increases Full-Year 2026 Guidance and Announces $150 Million Increase in Share Repurchase Authorization MIAMI, July 30, 2026 (GLOBE NEWSWIRE) -- Laureate Education, Inc. (NASDAQ: LAUR), which operates five higher education institutions across Mexico and Peru, today announced financial results for the second quarter and six months ended June 30, 2026. Second Quarter 2026 Highlights (compared to second quarter 2025): On a reported basis, revenue increased 17% to $615.9 million. On a constant currency basis1, revenue increased 8%. Operating income for the second quarter of 2026 was $223.4 million, compared to operating income of $193.3 million for the second quarter of 2025. Net income for the second quarter of 2026 was $137.1 million, compared to net income of $97.4 million for the second quarter of 2025. Adjusted EBITDA for the second quarter of 2026 was $250.6 million, compared to Adjusted EBITDA of $214.5 million for the second quarter of 2025. Six Months Ended June 30, 2026 Highlights (compared to six months ended June 30, 2025): New enrollments increased 10%. Total enrollments increased 6%. On a reported basis, revenue increased 17% to $888.5 million. On a constant currency basis1, revenue increased 6% and was unfavorably affected by approximately $9 million of intra-year academic calendar timing attributable to later semester start dates in the first half of 2026 as compared to the first half of 2025. Operating income for the six months ended June 30, 2026 was $195.9 million, compared to operating income of $180.1 million for the six months ended June 30, 2025. Net income for the six months ended June 30, 2026 was $115.5 million, compared to net income of $77.9 million for the six months ended June 30, 2025. The increase in net income was mainly driven by higher operating income as well as the effect of changes in foreign currency exchange rates on intercompany balances compared to the 2025 period. Adjusted EBITDA for the six months ended June 30, 2026 was $248.2 million, compared to Adjusted EBITDA of $219.8 million for the six months ended June 30, 2025. Adjusted EBITDA in the first half of 2026 was unfavorably affected by approximately $9 million of intra-year academic calendar timing attributable to later semester start dates in 2026 as compared to 2025. Laureate expects that the intra-year academic calendar timing impacts on revenue and Adjusted EBITDA will be offset in the second half of the year. 1 Constant currency results exclude the period-over-period impact from currency fluctuations. Eilif Serck-Hanssen, President and Chief Executive Officer, said, “Second quarter results demonstrate strong operating momentum, including the launch of a new campus and continued expansion of our digital capabilities to meet market demand. I am pleased to announce an increase to our full-year guidance. We are also adding $150 million to our share repurchase program, reflecting our strong balance sheet and commitment to returning capital to shareholders.” Second Quarter 2026 Results For the second quarter of 2026, revenue on a reported basis was $615.9 million, an increase of $91.7 million, or 17%, compared to the second quarter of 2025. On a constant currency basis, revenue increased 8%. Operating income for the second quarter of 2026 was $223.4 million, compared to $193.3 million for the second quarter of 2025, an increase of $30.1 million. Net income for the second quarter of 2026 was $137.1 million, compared to net income of $97.4 million for the second quarter of 2025. Basic and diluted earnings per share for the second quarter of 2026 were $0.98. Adjusted EBITDA for the second quarter of 2026 was $250.6 million, compared to Adjusted EBITDA of $214.5 million for the second quarter of 2025. Six Months Ended June 30, 2026 Results New enrollments for the six months ended June 30, 2026 increased 10%, compared to new enrollment activity for the six months ended June 30, 2025, and total enrollments were up 6% compared to the prior-year period. New and total enrollments in Peru increased 14% and 8%, respectively, compared to the prior-year period. New and total enrollments in Mexico were up 7% and 5%, respectively, compared to the prior-year period. For the six months ended June 30, 2026, revenue on a reported basis was $888.5 million, an increase of $128.2 million, or 17%, compared to the six months ended June 30, 2025. On a constant currency basis, revenue increased 6%. Revenue for the first half of 2026 was unfavorably affected by approximately $9 million of intra-year academic calendar timing attributable to later semester start dates in 2026 as compared to 2025. Operating income for the six months ended June 30, 2026 was $195.9 million, compared to $180.1 million for the six months ended June 30, 2025, an increase of $15.8 million. Net income for the six months ended June 30, 2026 was $115.5 million, compared to net income of $77.9 million for the six months ended June 30, 2025. The increase in net income was mainly driven by higher operating income as well as the effect of changes in foreign currency exchange rates on intercompany balances compared to the 2025 period. Basic and diluted earnings per share for the six months ended June 30, 2026 were $0.82. Adjusted EBITDA for the six months ended June 30, 2026 was $248.2 million, compared to Adjusted EBITDA of $219.8 million for the six months ended June 30, 2025. Adjusted EBITDA for the first half of 2026 was unfavorably affected by approximately $9 million of intra-year academic calendar timing attributable to later semester start dates in the 2026 period as compared to the 2025 period. Balance Sheet and Capital Structure As of June 30, 2026, Laureate had $161.7 million of cash and cash equivalents and gross debt of $223.2 million. Accordingly, net debt was $61.5 million as of June 30, 2026. Laureate repurchased approximately $76 million of its common stock during the six months ended June 30, 2026 under the existing stock repurchase program, almost fully utilizing the remaining authorization at that time. On July 30, 2026, the Company announced that its Board of Directors had approved an additional $150 million increase to the existing authorization for the Company’s stock repurchase program, which has no fixed expiration date. As of June 30, 2026, Laureate had 137.7 million total shares outstanding. Outlook for Fiscal 2026 Laureate is updating its 2026 outlook to reflect an improved operational outlook as well as more favorable foreign currency exchange rates. Based on assumed foreign exchange rates2, Laureate expects its full-year 2026 results to be as follows: Total enrollments are now expected to be in the range of 518,000 to 523,000 students, reflecting growth of 4%-5% versus 2025; Revenues are now expected to be in the range of $1,920 million to $1,930 million, reflecting growth of 13% on an as-reported basis and growth of 6%-7% on a constant currency basis versus 2025; Adjusted EBITDA is now expected to be in the range of $593 million to $599 million, reflecting growth of 14%-15% on an as-reported basis and 8%-9% on a constant currency basis versus 2025; and Adjusted EPS is now expected to be in the range of $2.04 - $2.10 per share3, reflecting growth of 19%-22% on an as-reported basis versus 2025. Reconciliations of forward-looking non-GAAP measures, specifically the outlook for 2026 Adjusted EBITDA and Adjusted EPS, to the relevant forward-looking GAAP measures are not being provided, as Laureate does not currently have sufficient data to accurately estimate the variables and individual adjustments for such outlooks and reconciliations. Due to this uncertainty, Laureate cannot reconcile projected Adjusted EBITDA and projected Adjusted EPS to projected net income and projected earnings per share, respectively, without unreasonable effort. Please see the “Forward-Looking Statements” section in this release for a discussion of certain risks related to this outlook. Conference Call Laureate will host an earnings conference call today at 8:30 am ET. Interested parties are invited to listen to the earnings call by registering at https://bit.ly/LAURQ22026 to receive dial-in information. The webcast of the conference call, including replays, and a copy of this press release and the related slides will be made available through the Investor Relations section of Laureate’s website at www.laureate.net. 2 Based on actual FX rates for January-July 2026, and assumed FX rates (local currency per U.S. Dollar) of MXN 17.55 and PEN 3.41 for August 2026 - December 2026. FX impact may change based on fluctuations in currency rates in future periods. 3 Assumes diluted weighted average shares outstanding of approximately 139 million.Forward-Looking Statements This press release includes statements that express Laureate’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, ‘‘forward-looking statements’’ within the meaning of the federal securities laws, which involve risks and uncertainties. Laureate’s actual results may vary significantly from the results anticipated in these forward-looking statements. You can identify forward-looking statements because they contain words such as ‘‘believes,’’ ‘‘expects,’’ ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘seeks,’’ ‘‘approximately,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘estimates’’ or ‘‘anticipates’’ or similar expressions that concern our strategy, plans or intentions. In particular, statements regarding the amount, timing, process, tax treatment and impact of any future dividends represent forward-looking statements. All statements we make relating to guidance (including, but not limited to, total enrollments, revenues, Adjusted EBITDA and Adjusted EPS), and all statements we make relating to our current growth strategy and other future plans, strategies or transactions that may be identified, explored or implemented and any litigation or dispute resulting from any completed transaction are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, including with respect to our current growth strategy and the impact of any completed divestiture or separation transaction on our remaining businesses. Accordingly, our actual results may differ materially from those we expected. We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from our expectations are disclosed in our Annual Report on Form 10-K filed with the SEC on February 19, 2026, our subsequent Quarterly Reports on Form 10-Q filed, and to be filed, with the SEC and other filings made with the SEC. These forward-looking statements speak only as of the time of this release and we do not undertake to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law. Presentation of Non-GAAP Measures In addition to the results provided in accordance with U.S. generally accepted accounting principles (GAAP) throughout this press release, Laureate provides the non-GAAP measurements of Adjusted EBITDA, Adjusted net income, Adjusted EPS, and total debt, net of cash and cash equivalents (or net debt). We have included the non-GAAP measures of Adjusted EBITDA and net debt because they are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. We have included the non-GAAP measures of Adjusted net income and Adjusted EPS because management believes that these measures provide investors with better visibility into Laureate's underlying earnings as they exclude items that may not be indicative of our core operating results. Adjusted EBITDA consists of net income (loss), before (income) loss from discontinued operations, net of tax, equity in net (income) loss of affiliates, net of tax, income tax expense (benefit), (gain) loss on disposal of subsidiaries, net, foreign currency exchange (gain) loss, net, other (income) expense, net, interest expense, interest income, and loss on debt extinguishment, plus depreciation and amortization, share-based compensation expense, and loss on impairment of assets. The exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Additionally, Adjusted EBITDA is a key input into the formula used by the compensation committee of our board of directors and our Chief Executive Officer in connection with the payment of incentive compensation to our executive officers and other members of our management team. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. We define Adjusted net income as net income (loss), before (income) loss from discontinued operations, plus discrete tax items, loss on debt extinguishment, loss (gain) on disposal of subsidiaries, net, foreign currency exchange (gain) loss, net, and loss on impairment of assets. We define Adjusted EPS as Adjusted net income divided by GAAP diluted weighted average shares outstanding. Adjusted net income and Adjusted EPS provide a useful indicator about Laureate’s earnings from core operations. Total debt, net of cash and cash equivalents, (or net debt) consists of total gross debt less total cash and cash equivalents. Net debt provides a useful indicator about Laureate’s leverage and liquidity. Free Cash Flow consists of operating cash flow minus capital expenditures (net of sales of PP&E). Free Cash Flow provides a useful indicator about Laureate’s ability to fund its operations and repay its debt. Adjusted EBITDA to Unlevered Free Cash Flow Conversion consists of Unlevered Free Cash Flow (which is defined as cash flows from operating activities, less capital expenditures (net of sales of PP&E), plus net cash interest expense) divided by Adjusted EBITDA. Adjusted EBITDA to Unlevered Free Cash Flow provides useful information to investors and others in understanding and evaluating our ability to generate cash flows. Laureate’s calculations of Adjusted EBITDA, Adjusted net income, Adjusted EPS, and total debt, net of cash and cash equivalents (or net debt) are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results. Adjusted EBITDA, Adjusted net income and Adjusted EPS are reconciled from their most directly comparable GAAP measures in the attached tables under “Non-GAAP Reconciliations.” We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe that providing constant currency information provides valuable supplemental information regarding our results of operations, consistent with how we evaluate our performance. We calculate constant currency amounts using the change from prior-period average foreign exchange rates to current-period average foreign exchange rates, as applied to local-currency operating results for the current period. About Laureate Education, Inc. Laureate Education, Inc. operates five higher education institutions across Mexico and Peru, enrolling approximately 500,000 students in high-quality undergraduate, graduate, and specialized degree programs through campus-based and online learning. Our universities have a deep commitment to academic quality and innovation, strive for market-leading employability outcomes, and work to make higher education more accessible. At Laureate, we know that when our students succeed, countries prosper, and societies benefit. Learn more at laureate.net. Key Metrics and Financial Tables(Dollars in millions, except per share amounts, and may not sum due to rounding) New and Total Enrollments by segment Consolidated Statements of Operations Revenue and Adjusted EBITDA by segment IN MILLIONS (1) Constant Currency results exclude the period-over-period impact from currency fluctuations. Constant Currency is calculated using the change from prior-period average foreign exchange rates to current-period average foreign exchange rates, as applied to local-currency operating results for the current period. The “Constant Currency” percentage changes are calculated by dividing the Constant Currency amounts by the 2025 Revenues and Adjusted EBITDA amounts. Consolidated Balance Sheets Consolidated Statements of Cash Flows Non-GAAP Reconciliation (1 of 3) The following table reconciles Net income to Adjusted EBITDA: (1) Represents non-cash, share-based compensation expense pursuant to the provisions of ASC Topic 718, "Stock Compensation." Non-GAAP Reconciliations (2 of 3) The following table reconciles Net income to Adjusted net income and Adjusted EPS: (1) Per share amounts on a dilutive basis. Earnings per share is calculated based on income available to common shareholders, which excludes income attributable to noncontrolling interests.(2) Discrete tax items for 2025 represent a non-recurring, non-cash income tax benefit of approximately $4.7 million that was recorded upon resolution of a tax contingency related to a dormant subsidiary, partially offset by $1.8 million interest expense related to legacy tax liabilities. Beginning in the fourth quarter of 2025, Laureate determined that the interest related to certain legacy tax liabilities, which is recorded as a component of income tax (benefit) expense and totaled $0.7 million and $1.8 million for the three months ended June 30, 2026 and 2025, respectively, should be excluded from Adjusted net income and treated as a discrete tax item as this provides a more useful indicator of Laureate's earnings from core operations. For comparability and to conform the prior year to the current presentation, Laureate has revised the 2025 amount for discrete tax items by $1.8 million to adjust for the interest related to these legacy tax liabilities that was recorded during the three months ended June 30, 2025. Non-GAAP Reconciliations (3 of 3) The following table reconciles Net income to Adjusted net income and Adjusted EPS: (1) Per share amounts on a dilutive basis. Earnings per share is calculated based on income available to common shareholders, which excludes income attributable to noncontrolling interests. (2) Discrete tax items for 2025 represent a non-recurring, non-cash income tax benefit of approximately $4.7 million that was recorded upon resolution of a tax contingency related to a dormant subsidiary, partially offset by $3.7 million interest expense related to legacy tax liabilities. The reduction of interest during the six months ended June 30, 2026 related to a court ruling that reduced a statutory interest rate. Beginning in the fourth quarter of 2025, Laureate determined that the interest related to certain legacy tax liabilities, which is recorded as a component of income tax (benefit) expense and totaled $(0.6) million and $3.7 million for the six months ended June 30, 2026 and 2025, respectively, should be excluded from Adjusted net income and treated as a discrete tax item as this provides a more useful indicator of Laureate's earnings from core operations. For comparability and to conform the prior year to the current presentation, Laureate has revised the 2025 amount for discrete tax items by $3.7 million to adjust for the interest related to these legacy tax liabilities that was recorded during the six months ended June 30, 2025. Investor Relations Contact: [email protected] Media Contacts:

Interested in Laureate Education? Here are five stocks we like better. Laureate Education raised its 2026 outlook after second-quarter revenue reached $616 million and adjusted EBITDA totaled $251 million, with both increasing 8% year over year on a constant-currency basis. Growth was supported by stronger enrollment trends, including a 10% year-to-date increase in new enrollments and a 6% rise in total enrollments. Mexico and Peru reported continued demand for fully online programs, particularly among working adults. The board increased the share-repurchase authorization by $150 million after the company repurchased $181 million of stock in the first half of 2026; Laureate also plans additional campuses in Mexico and Peru and continued investment in AI-enabled education technology. Laureate Education (NASDAQ:LAUR) raised its full-year 2026 outlook after reporting higher enrollments, revenue and adjusted EBITDA for the second quarter, supported by operating performance and favorable currency translation. President and Chief Executive Officer Eilif Serck-Hanssen said year-to-date new enrollments increased 10% through June, while total enrollments rose 6% from the comparable prior-year period. On a timing-adjusted, constant-currency basis, revenue increased 7% during the first half. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The company also announced that its board authorized a $150 million increase to its share repurchase program. Laureate repurchased $181 million of common stock during the first half of 2026. Second-quarter revenue was $616 million and adjusted EBITDA was $251 million, both above the company's prior guidance, Chief Financial Officer Rick Buskirk said. On a constant-currency basis, revenue and adjusted EBITDA each increased 8% year over year. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Laureate reported net income of $137 million, or $0.98 per share, for the quarter. Adjusted net income totaled $140 million, or $1.00 per share. Buskirk noted that campus-based higher education has seasonal characteristics, with the second and fourth quarters typically representing the strongest periods for revenue and adjusted EBITDA because students are in session. The timing of academic calendars and class starts can affect comparisons between quarters, he said. Mexico new enrollments rose 7% year to date, led by working-adult fully online programs. Mexico total enrollments increased 5%, while second-quarter revenue rose 10% and adjusted EBITDA increased 9% on a constant-currency basis. Peru total enrollments increased 8% year to date, supported by demand for fully online offerings for working adults. Peru second-quarter revenue increased 6% and adjusted EBITDA rose 7% on a constant-currency basis. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? In Mexico, revenue increased 6% year to date on a timing-adjusted basis, reflecting a 5% increase in average total enrollments and 1% price mix, Buskirk said. Year-to-date adjusted EBITDA declined 2% as the company invested in and ramped its new Puebla campus. Laureate expects margin accretion in Mexico to be weighted toward the second half of 2026. In Peru, timing-adjusted year-to-date revenue increased 7% and adjusted EBITDA rose 13%. The company said fully online offerings have been scaling rapidly in the country, while planned face-to-face campus expansions are expected to begin ramping in 2027. Laureate increased its full-year guidance at the midpoint by $28 million for revenue, $8 million for adjusted EBITDA and $0.03 for adjusted earnings per share. The updated outlook reflects improved operating expectations and more favorable foreign exchange rates, Buskirk said. The company now expects: Total enrollments of 518,000 to 523,000, representing 4% to 5% growth from 2025. Revenue of $1.920 billion to $1.930 billion, up 13% on a reported basis and 6% to 7% on a constant-currency basis. Adjusted EBITDA of $593 million to $599 million, up 14% to 15% on a reported basis and 8% to 9% on a constant-currency basis. Adjusted earnings per share of $2.04 to $2.10, representing reported growth of 19% to 22% from 2025. At the midpoint of its outlook, Laureate expects approximately 50 basis points of reported adjusted EBITDA margin expansion for the year. It continues to expect adjusted EBITDA-to-unlevered-free-cash-flow conversion of about 50%. For the third quarter, the company forecast revenue of $471 million to $476 million and adjusted EBITDA of approximately $134 million to $137 million. The outlook includes an expected $29 million favorable impact from intra-year academic-calendar timing. Serck-Hanssen said the campuses opened last year in Monterrey, Mexico, and Lima's Ate District have performed in line with expectations. The company’s new Puebla campus has begun enrolling students for its primary September intake. Laureate expects to open two additional campuses in 2027: one in southern Lima during the first quarter and another in Mérida, Mexico, ahead of the September intake. The company said it has secured multiple sites for additional campus opportunities in Mexico and Peru beyond 2027. Management also emphasized investments in artificial intelligence, data and IT infrastructure. Serck-Hanssen said the company is working with technology partners to develop an integrated ecosystem of AI-powered learning, cloud and education tools for more than 500,000 students, faculty and staff across Mexico and Peru. During the question-and-answer session, Serck-Hanssen said Mexico’s September primary intake, which accounts for roughly 60% of annual intake, was about halfway complete and tracking with his expectations. He said the June intake, largely focused on working adults and accounting for about 15% of annual intake, grew 12%. Buskirk said Laureate has seen improved retention in Mexico, particularly in fully online programs, after examining the student journey from enrollment through graduation and introducing tools designed to reduce friction and support learning, including experimentation with an AI tutor. Management said its online programs are targeted primarily at working adults ages 25 to 50, while younger students are generally recruited into face-to-face or hybrid offerings. Serck-Hanssen said fully online programs are priced about 40% below face-to-face programs but generate contribution margins in the mid-50% range, with lower capital expenditure requirements. Laureate Education, Inc (NASDAQ: LAUR) is a leading global network of higher education institutions dedicated to providing undergraduate, graduate and certificate programs to a diverse student body. The company designs and delivers academic offerings through a combination of campus-based and online platforms, focusing on fields such as business, health sciences, engineering, education and hospitality management. By aligning its curriculum with regional workforce needs, Laureate aims to equip students with practical skills and industry insights that support career advancement and lifelong learning. Through its network, Laureate operates a broad portfolio of universities and colleges, including both longstanding campus institutions and digitally native programs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Laureate Education Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Laureate Education (LAUR) came out with quarterly earnings of $1 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.17%. A quarter ago, it was expected that this for-profit higher education purveyor would post a loss of $0.17 per share when it actually produced a loss of $0.17, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Laureate Education, which belongs to the Zacks Schools industry, posted revenues of $615.9 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.29%. This compares to year-ago revenues of $524.2 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Laureate Education shares have added about 14.1% since the beginning of the year versus the S&P 500's gain of 6.9%. While Laureate Education has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Laureate Education was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $476.3 million in revenues for the coming quarter and $2.09 on $1.92 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Schools is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Covista (CVSA), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This for-profit education company is expected to post quarterly earnings of $1.90 per share in its upcoming report, which represents a year-over-year change of +14.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Covista's revenues are expected to be $485.01 million, up 6.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Laureate Education (LAUR) : Free Stock Analysis Report Covista Inc. (CVSA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Strategic Education (STRA) came out with quarterly earnings of $1.76 per share, missing the Zacks Consensus Estimate of $1.79 per share. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.68%. A quarter ago, it was expected that this for-profit education company would post earnings of $1.51 per share when it actually produced earnings of $1.42, delivering a surprise of -5.96%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Strategic Education, which belongs to the Zacks Schools industry, posted revenues of $337.26 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.14%. This compares to year-ago revenues of $321.47 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Strategic Education shares have added about 1.5% since the beginning of the year versus the S&P 500's gain of 8.5%. While Strategic Education has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Strategic Education was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.89 on $325.77 million in revenues for the coming quarter and $7.20 on $1.29 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Schools is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Laureate Education (LAUR), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This for-profit higher education purveyor is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of +21.5%. The consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. Laureate Education's revenues are expected to be $605.46 million, up 15.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strategic Education Inc. (STRA) : Free Stock Analysis Report Laureate Education (LAUR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Van Berkom & Associates Inc. disclosed a new position in Option Care Health (NASDAQ:OPCH) as of its May 07, 2026, SEC filing, acquiring 1,587,636 shares in a trade estimated at $51.54 million based on quarterly average pricing. According to a May 07, 2026, SEC filing, Van Berkom & Associates Inc. initiated a new position in Option Care Health by purchasing 1,587,636 shares. The estimated transaction value is $51.54 million, calculated using the average closing price during the first quarter of 2026. The quarter-end value of the stake was $42.74 million, capturing the combined effect of share purchases and price changes. This was a new position, amounting to 1.41% of the fund's 13F reportable assets under management as of March 31, 2026. Top holdings after the filing: NASDAQ:SNEX: $111.64 million (3.7% of AUM) NYSE:DOCN: $110.95 million (3.7% of AUM) NASDAQ:LAUR: $108.12 million (3.6% of AUM) NASDAQ:ENSG: $104.82 million (3.5% of AUM) NASDAQ:VCTR: $101.81 million (3.4% of AUM) As of May 6, 2026, shares were priced at $20.45, down 37.5% over one year and trailing the S&P 500 by 68.90 percentage points. Option Care Health provides a range of home and alternate site infusion therapies, including anti-infectives, immunoglobulin, parenteral and enteral nutrition, and chronic disease treatments. The firm operates a service-based model delivering infusion therapies and clinical support. It serves patients with acute and chronic conditions across the United States, targeting individuals requiring complex infusion therapy outside of traditional hospital settings. Option Care Health, Inc. is a leading provider of home and alternate site infusion services in the United States, leveraging a national footprint and clinical expertise to deliver complex therapies. Shares of Option Care Health cratered roughly 24% after the company’s April 30 earnings release, which showed first-quarter revenue rising just 1.3% year over year to $1.35 billion while adjusted EBITDA fell 6.3% to $104.8 million. Management also acknowledged “mixed performance” and cut full-year guidance to between $5.675 billion and $5.775 billion in revenue. Still, there were some encouraging signs beneath the selloff. The company expanded its revolving credit facility from $400 million to $850 million and repurchased $17.5 million in stock during the quarter. Option Care also remains the nation’s largest independent provider of home infusion services, giving it meaningful scale in a healthcare niche with long-term demand tailwinds. Of course, Van Berkom’s purchase was before the drop. And with that in mind, the move ultimately looks like a long-term bet on a beaten-down healthcare services company whose growth story temporarily hit a wall. The challenge is that the latest earnings report made clear that some investors are no longer willing to give Option Care the benefit of the doubt on slowing momentum. But if growth reaccelerates, the selloff could eventually look overdone. Before you buy stock in Option Care Health, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Option Care Health wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $476,034!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,274,109!* Now, it’s worth noting Stock Advisor’s total average return is 974% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 7, 2026. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DigitalOcean. The Motley Fool has a disclosure policy. This Healthcare Stock Fell 24% After Earnings. One Fund Bought $51 Million Before the Drop was originally published by The Motley Fool