What Laureate Education (LAUR) Said on Its Q3 Earnings Call

Key Points

• Q3 results exceeded guidance: Revenue reached $485 million and adjusted EBITDA $147 million, supported partly by favorable foreign exchange. Adjusted EPS doubled year over year to $0.52.
• Enrollment growth remained strong: New enrollment rose 8% and total enrollment 6%, driven by campus expansion and fully online programs, particularly in Mexico and Peru.
• Outlook and capital returns reaffirmed: Laureate maintained its 2026 guidance, expanded its share-repurchase authorization by $150 million, and plans two additional campuses in 2027 while targeting continued annual margin expansion.

Laureate Education NASDAQ: LAUR reported third-quarter 2026 revenue of $485 million and adjusted EBITDA of $147 million, with both figures exceeding the company’s prior guidance, helped by favorable foreign exchange rates.

Net income for the quarter was $101 million, or $0.73 per share, while adjusted net income was $72 million, or $0.52 per share. Adjusted earnings per share doubled from the prior-year third quarter, according to Chief Financial Officer Rick Buskirk.

The company reaffirmed its full-year outlook and expanded its share repurchase authorization by $150 million. Laureate said $225 million remained available under the authorization as of Sept. 30 on a pro forma basis for the increase.

Enrollment growth supported by campuses and online programs

President and Chief Executive Officer Eilif Serck-Hanssen said Laureate’s current enrollment cycle showed that its three principal growth initiatives were working: same-store enrollment growth, campus expansion and fully online programs for working adults.

New enrollment volumes rose 8% and total enrollment increased 6% from the comparable prior-year intake period. New campuses accounted for about 2% of new enrollment growth and roughly 1% of total enrollment growth, Buskirk said.

In Mexico, primary-intake new enrollments rose 8% year over year. The company attributed part of that increase to the launch of its Puebla campus, which contributed about 3% to Mexico’s intake growth and was performing ahead of expectations. Total enrollment in Mexico increased 5%.

Laureate also cited growth across existing campuses and online offerings in Mexico. Pricing in its traditional face-to-face and online programs was in line with cost inflation, management said.

In Peru, secondary-intake new enrollments increased 9%, led by demand for fully online programs aimed at working adults. Total Peru enrollment grew 5%. Serck-Hanssen said Laureate now has more than 40,000 fully online students in Peru.

Buskirk said the company’s rapid growth in fully online programs is affecting average revenue per student in Peru through price mix and that the effect is expected to continue into 2027. He also said fully online students have higher attrition, which is expected to reduce peak enrollment figures during the fourth quarter and contribute to Laureate’s full-year enrollment growth range of 4% to 5%.

Constant-currency operating gains

The company said third-quarter results included a $29 million foreign-currency benefit to revenue, reflecting a stronger Mexican peso and Peruvian sol during the period. On a constant-currency basis and adjusted for academic-calendar timing, third-quarter revenue rose 6% and adjusted EBITDA increased 14% from a year earlier.

Mexico’s third-quarter revenue grew 6% on that adjusted basis, while adjusted EBITDA rose 12%. Year-to-date revenue in Mexico increased 6% and adjusted EBITDA rose 3%, with results affected by the timing of investments and the ramp-up of the Puebla campus.

In Peru, adjusted third-quarter revenue rose 6% and adjusted EBITDA increased 15%. For the first nine months, Peru revenue increased 7% and adjusted EBITDA grew 14%, though Buskirk said certain expenses were timed earlier in the year and are expected to normalize in the fourth quarter.

Management noted that campus-based higher education has substantial seasonality, as classes are out of session for much of the third quarter. Academic-calendar shifts also affected quarterly comparisons. The company expects approximately $20 million of unfavorable intra-year academic-calendar timing in the fourth quarter.

Guidance reaffirmed as foreign exchange remains variable

Laureate maintained its 2026 guidance despite the Mexican peso and Peruvian sol weakening against the U.S. dollar after the third quarter. Buskirk said the range between the high and low ends of the company’s guidance largely reflects potential foreign-exchange movements.

• Total enrollment of 518,000 to 523,000 students, representing growth of 4% to 5% from 2025.
• Revenue of $1.92 billion to $1.93 billion, representing reported growth of 13% and constant-currency growth of 6% to 7%.
• Adjusted EBITDA of $593 million to $599 million, representing reported growth of 14% to 15% and constant-currency growth of 8% to 9%.
• Adjusted earnings per share of $2.04 to $2.10, representing reported growth of 19% to 22%.

For the fourth quarter, Laureate forecast revenue of $546 million to $556 million and adjusted EBITDA of $198 million to $204 million. Buskirk said third-quarter revenue outperformance relative to prior guidance was entirely driven by foreign exchange, while adjusted EBITDA outperformance reflected a roughly even mix of foreign exchange and expense timing. About $5 million of expenses are expected to shift into the fourth quarter.

Campus pipeline and capital returns

Laureate ended September with $204 million of gross debt and $190 million in cash, resulting in net debt of $14 million. The company repurchased $256 million of common stock through September, including $75 million during the third quarter.

Management said it has opened three new campuses since the start of 2025: campuses in Ate, Peru, and Monterrey, Mexico, followed by Puebla. Two additional campuses are expected to open in 2027, with a Southern Lima location planned for the first quarter and a Mérida, Mexico, campus expected before the September 2027 main intake.

Serck-Hanssen said Mérida will be a smaller campus in a secondary city, with capacity for about 6,000 students, compared with roughly 9,000 to 11,000 at a typical capital-city campus. Laureate has also secured land opportunities for additional expansion and expects campus openings to accelerate in 2028.

The company said it expects adjusted EBITDA margins to expand by about 50 basis points at the midpoint of 2026 guidance. Buskirk said Laureate expects to expand margins by an average of roughly 30 to 50 basis points annually in coming years, despite investment and ramp-up costs from new campuses.

About Laureate Education (NASDAQ:LAUR)

Laureate Education, Inc is a higher education company that operates a network of universities and other learning institutions. Its institutions provide undergraduate and graduate degree programs, professional education, and online and hybrid learning options across fields such as business, health sciences, engineering, technology, and the social sciences.

The company currently serves students primarily in Mexico and Peru. Its Mexican institutions include Universidad del Valle de México (UVM) and Universidad Tecnológica de México (UNITEC), while its Peruvian institutions include Universidad Peruana de Ciencias Aplicadas (UPC) and Universidad Privada del Norte (UPN).

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