Laureate Boosts Outlook Amid Enrollment Surge, Q1 Loss

MIAMI, FL – April 30, 2026 – Laureate Education, Inc. (NASDAQ: LAUR) today announced a significant increase in its full-year earnings guidance, signaling strong confidence in its operational strategy despite reporting a net loss for the first quarter of 2026. The optimism is fueled by robust enrollment growth across its institutions in Mexico and Peru and a continued commitment to returning capital to shareholders.

The higher education provider reported a 9% increase in new student enrollments and a 6% rise in total enrollments for the first quarter compared to the prior year. However, the company posted a net loss of $(21.6) million, wider than the $(19.6) million loss in the same period of 2025. Laureate attributed the quarterly loss primarily to seasonal academic calendar shifts and increased expenses from strategic growth investments, impacts it expects to reverse later in the year.

Enrollment Surge in Key Latin American Markets

Laureate's performance was bolstered by impressive student demand in its two key markets. The company, which operates five universities with over 50 campuses, saw new enrollments climb to 102,700 and total enrollment reach 507,700 students. The growth was particularly pronounced in Peru, where new enrollments surged by 13% during its primary intake cycle. This aligns with trends in the country, which has a youthful population and an expanding tertiary enrollment rate that stood at 71% in 2024. Laureate's expansion of fully online programs has been a key factor in capturing this growing demand.

In Mexico, the company navigated what it described as "softer macroeconomic conditions" to achieve a 4% increase in both new and total enrollments. This resilience demonstrates the sustained demand for private higher education in a competitive market that includes major institutions like Tecnológico de Monterrey and Universidad Anáhuac. Private universities in the region often attract students with smaller class sizes, modern facilities, and a focus on career-oriented outcomes.

“We are pleased to report favorable new enrollment results from the recently completed primary intake cycle in Peru and the secondary intake cycle in Mexico,” said Eilif Serck-Hanssen, President and Chief Executive Officer, in the company's press release. “Our operating trends remain on track with our expectations for the year.”

Unpacking the Quarterly Financials

While enrollment figures painted a rosy picture, Laureate's income statement reflected the complexities of its seasonal business model. The company reported a 15% increase in revenue to $272.6 million. However, on a constant currency basis, revenue grew by just 1%, a figure significantly dampened by what the company calls "intra-year academic calendar timing."

Specifically, later semester start dates in Q1 2026 compared to Q1 2025 shifted approximately $9 million in revenue and Adjusted EBITDA out of the first quarter. Laureate's management stated this is a predictable seasonal effect and expects the financial impact to be fully offset in the third quarter. This pattern is characteristic of the academic year, where the first and third quarters are seasonally low profit periods due to holidays and breaks.

The reported operating loss of $(27.5) million, up from $(13.2) million in the prior year, was also driven by higher depreciation and amortization expenses. These costs are linked to ongoing growth initiatives, including significant investments in campus expansions and the development of new campus facilities, particularly in Mexico.

A Confident Outlook Fueled by Share Buybacks

Despite the first-quarter loss, Laureate's leadership demonstrated strong confidence by raising its full-year guidance for Adjusted Earnings Per Share (Adjusted EPS) to a range of $2.00 to $2.08. This represents a projected growth of 16% to 21% over 2025 and is a direct result of the company's aggressive capital return strategy.

During the first quarter, Laureate repurchased approximately $105 million of its common stock, effectively reducing its total shares outstanding. This move, part of an existing stock repurchase program, mechanically boosts EPS and signals management's belief that the company's stock is a valuable investment. As of March 31, 2026, the company had approximately $76 million remaining under its current repurchase authorization.

“We continue to return excess capital to shareholders, having completed approximately $105 million in share repurchases during the first quarter,” Serck-Hanssen stated. “As a result, we are increasing our full-year Adjusted Earnings Per Share guidance.”

This strategy is supported by a healthy balance sheet. Laureate ended the quarter with $157.4 million in cash and a relatively low net debt position of $59.7 million, providing ample flexibility to fund both shareholder returns and strategic growth projects.

Strategic Investments for Long-Term Growth

The investments weighing on near-term profits are central to Laureate's long-term vision. The campus expansions and new campus projects are designed to enhance its mission of expanding access to quality higher education and delivering strong employability outcomes for its students. This focus was highlighted in the company's recently published annual Impact Report, which Serck-Hanssen referenced as a testament to the work of Laureate's more than 30,000 faculty and staff.

By investing in its physical and digital infrastructure, Laureate aims to solidify its position in the competitive private education landscapes of Mexico and Peru. The company's institutions, such as Universidad Peruana de Ciencias Aplicadas (UPC) and Universidad Tecnológica del Peru, compete in a dynamic for-profit and non-profit private sector. These investments are crucial for aligning its program offerings with evolving labor market demands and ensuring its graduates are well-prepared for their careers, a key differentiator in attracting students.

While planned investments, particularly new campuses in Mexico, are expected to create margin pressure in the near term, they represent a foundational component of Laureate’s strategy to drive sustainable, long-term growth and social impact across the region.