Laureate Education, Inc.

Second quarter revenue was $616 million and adjusted EBITDA was $251 million; both were ahead of the prior guidance, helped by favorable currency translation and operational outperformance. On a constant-currency basis, revenue and adjusted EBITDA both increased 8% year over year. Net income was $137 million, reported EPS was $0.98, adjusted net income was $140 million, and adjusted EPS was $1. Year to date, revenue and adjusted EBITDA grew 7% versus the prior year period on a constant-currency basis after adjusting for academic calendar timing. For 2026, Laureate now expects total enrollments of 518,000 to 523,000, revenue of $1.920 billion to $1.930 billion, adjusted EBITDA of $593 million to $599 million, and adjusted EPS of $2.04 to $2.10. That implies 13% reported revenue growth, 14% to 15% reported adjusted EBITDA growth, and 19% to 22% reported adjusted EPS growth versus 2025. The company also expects adjusted EBITDA margins to rise by about 50 basis points at the midpoint and reiterated about 50% adjusted EBITDA to unlevered free cash flow conversion.

Eilif Serck-Hanssen said the quarter showed strong execution across the business, with enrollment momentum, campus expansion, and digital transformation all moving forward. He emphasized that AI is becoming a core capability across recruiting, learning, and operations, and that Laureate is building an integrated ecosystem of AI-powered learning, cloud, and education solutions. His tone was confident and expansionary, with repeated focus on long-term growth in Mexico and Peru, new campus opportunities, and continued capital returns.

Rick Buskirk highlighted seasonality and said the second quarter is typically one of the strongest for revenue and adjusted EBITDA because students are in session. He cited Q2 revenue of $616 million, adjusted EBITDA of $251 million, net income of $137 million, and adjusted EPS of $1, and noted both revenue and adjusted EBITDA were up 8% year over year on a constant-currency basis. On the balance sheet, Laureate ended June with $223 million of gross debt and $162 million of cash, or $61 million of net debt. He also said the company repurchased $181 million of stock through June and authorized a $150 million increase to the buyback program, while maintaining expectations for about 50% adjusted EBITDA to unlevered free cash flow conversion.

Analysts focused on Mexico’s September intake, the sustainability of growth, online penetration, pricing, and whether digital programs could cannibalize campus demand. Management said the September intake was about halfway complete and tracking in line with expectations, and described June intake growth of 12% for working adults as consistent with an improving operating environment. On online education, management said fully online is priced about 40% below face-to-face but carries a mid-50s contribution margin, and they stressed that online is aimed primarily at working adults ages 25 to 50, not younger campus-based students. They also said they are monitoring attrition and mix carefully, especially in Mexico, where improved retention has been supported by AI tools and reduced friction in the student journey.