Laureate Education — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported revenue for Q3 2026 increased 21% to $485.1 million (constant currency +14%); nine-month revenue increased 18% to $1,373.6 million (constant currency +8%).
• Q3 2026 operating income was $119.1 million vs. $71.5 million in Q3 2025; nine-month operating income was $315.0 million vs. $251.6 million in the prior year period.
• Q3 2026 net income was $101.2 million vs. $34.4 million in Q3 2025; nine-month net income was $216.7 million vs. $112.3 million in the prior year period.
• Q3 2026 Adjusted EBITDA was $146.8 million vs. $94.8 million in Q3 2025; nine-month Adjusted EBITDA was $395.1 million vs. $314.7 million in the prior year period.
• Q3 2026 basic and diluted EPS were $0.74 and $0.73, respectively; nine-month basic and diluted EPS were $1.55 and $1.54, respectively.
• Net debt was $14.3 million as of September 30, 2026, calculated from $189.9 million in cash and cash equivalents and $204.2 million in gross debt.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $324.6 million, compared to $272.8 million in the prior year period.

Guidance and Future Outlook:

• Laureate reaffirmed its full-year 2026 outlook.
• Full-year 2026 total enrollments are expected to range from 518,000 to 523,000 students (4%-5% growth vs. 2025).
• Full-year 2026 revenue is expected to range from $1,920 million to $1,930 million (13% growth reported, 6%-7% constant currency).
• Full-year 2026 Adjusted EBITDA is expected to range from $593 million to $599 million (14%-15% growth reported, 8%-9% constant currency).
• Full-year 2026 Adjusted EPS is expected to range from $2.04 to $2.10 (19%-22% growth reported).
• The company expects intra-year academic calendar timing impacts on revenue and Adjusted EBITDA to be offset in the fourth quarter of 2026.

Business Segments and Product Lines:

• New enrollments increased 9% for the nine months ended September 30, 2026; total enrollments increased 6%.
• Mexico new enrollments increased 8% and total enrollments increased 6% year-over-year.
• Peru new enrollments increased 10% and total enrollments increased 5% year-over-year.
• Mexico Q3 2026 revenue grew 32% to $256.5 million; nine-month revenue grew 22% to $736.1 million.
• Peru Q3 2026 revenue grew 11% to $228.6 million; nine-month revenue grew 14% to $637.4 million.
• Mexico Q3 2026 Adjusted EBITDA grew 142% to $62.1 million; nine-month Adjusted EBITDA grew 28% to $174.1 million.
• Peru Q3 2026 Adjusted EBITDA grew 20% to $94.0 million; nine-month Adjusted EBITDA grew 21% to $249.8 million.
• The company launched a new campus in Puebla, Mexico, during the primary intake.
• The company leveraged fully online capabilities in Peru to meet demand from working adults.

Market and Competitive Landscape:

• The company operates five higher education institutions across Mexico and Peru.
• Constant currency results exclude the period-over-period impact from currency fluctuations.
• Revenue growth was favorably affected by approximately $29 million (Q3) and $20 million (nine months) of intra-year academic calendar timing attributable to semester start dates in 2026 compared to 2025.
• Nine-month net income growth was driven by higher operating income, changes in foreign currency exchange rates on intercompany balances, and a discrete tax benefit.

Risks and Challenges:

• Actual results may vary significantly from forward-looking statements due to risks and uncertainties, including foreign exchange rate fluctuations.
• Guidance assumes specific foreign exchange rates: MXN 18.60 and PEN 3.45 for November and December 2026; actual FX rates for January-October 2026 were used for prior periods.
• The company cannot reconcile projected Adjusted EBITDA and Adjusted EPS to projected net income and EPS without unreasonable effort due to insufficient data to estimate variables and adjustments.
• Forward-looking statements are subject to risks including the impact of completed divestitures or separation transactions on remaining businesses.

Management Commentary and Tone:

• Eilif Serck-Hanssen, President and CEO, reported strong new enrollment intakes in both markets.
• Management highlighted the successful launch of the new Puebla campus in Mexico and the scaling of online capabilities for working adults in Peru.
• Management expressed confidence in continued favorable operating momentum, a strong balance sheet, and a commitment to returning capital to shareholders.

Other Key Points:

• The Board of Directors approved a $150 million increase to the existing share repurchase program on October 29, 2026.
• Total stock repurchase authorization capacity is approximately $225.2 million after the new authorization and cumulative repurchases through September 30, 2026.
• Approximately $256 million of common stock was repurchased during the nine months ended September 30, 2026.
• Approximately $75.2 million of stock repurchase authorization remained under the existing program as of September 30, 2026, prior to the increase.
• Total shares outstanding were 135.7 million as of September 30, 2026.
• A discrete tax benefit of $25.4 million was recorded during the third quarter and nine months of 2026, primarily from the resolution of a legacy tax contingency.
• Deferred revenue and student deposits increased to $110.2 million as of September 30, 2026, from $80.2 million as of December 31, 2025.
• Total long-term debt increased to $202.7 million as of September 30, 2026, from $127.7 million as of December 31, 2025.