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.
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 Results
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.
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.
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.
Raised 2026 Outlook
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.
Campus and Digital Expansion Plans
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.
About Laureate Education (NASDAQ:LAUR)
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.
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