Laureate Education, Inc.

What they do

Laureate operates five private universities and institutes across Mexico and Peru, offering undergraduate and graduate degrees with a focus on STEM and business disciplines. The institutions deliver programs through campus-based, online, and hybrid formats, with Medicine & Health Sciences, Engineering & IT, and Business & Management representing about 75% of post-secondary enrollments. Revenues are almost entirely from private-pay students, as there are no material government-sponsored loan programs in either country.

Revenue drivers

• Mexico segment — Two institutions (UVM and UNITEC) with 269,400 students, generating 2025 revenues of $877.4 million, or 52% of total revenues.
• Peru segment — Three institutions (UPC, UPN, CIBERTEC) with 228,300 students, generating 2025 revenues of $824.4 million, or 48% of total revenues.

Recent performance

For Q2 2026, revenue rose 17% to $615.9 million, operating income was $223.4 million, and net income was $137.1 million. For the six months ended June 30, 2026, revenue increased 17% to $888.5 million, with new enrollments up 10% and total enrollments up 6%. Net income for the first half was $115.5 million, up from $77.9 million in the prior-year period. Adjusted EBITDA for the first half was $248.2 million, unfavorably affected by approximately $9 million of intra-year academic calendar timing.

Strategy

Management emphasizes adapting curricula to market demands, focusing on STEM and business disciplines, and expanding digital capabilities. The company is investing in new campuses and digital infrastructure to meet demand. It also continues to return capital to shareholders, adding $150 million to its share repurchase authorization. The company aims to leverage its scale in Mexico and Peru for shared infrastructure and operational efficiencies.

Risks

• Geographic concentration — Operations are solely in Mexico and Peru, exposing results to regional economic, political, and regulatory changes.
• Foreign currency exposure — Fluctuations in exchange rates, devaluations, and inflation in Mexico and Peru can affect financial results.
• Competitive and pricing pressure — Increases in competition in Mexican and Peruvian higher education markets could pressure tuition rates and enrollments.
• Regulatory and political risk — Changes in laws and regulations, including tariff and trade policies in the U.S., Mexico, or Peru, could adversely affect operations.

Outlook

Management expects intra-year academic calendar timing impacts on revenue and Adjusted EBITDA to be offset in the second half of 2026. The company increased its full-year 2026 guidance. The company announced a $150 million increase to its share repurchase authorization, reflecting confidence in its balance sheet and cash flow.