First Quarter 2026 Highlights (compared to first quarter 2025):
- New enrollments increased 9%.
- Total enrollments increased 6%.
- On a reported basis, revenue increased 15% to
$272.6 million . On a constant currency basis1, revenue increased 1% and was unfavorably affected by approximately $9 million of intra-year academic calendar timing attributable to later semester start dates in the first quarter of 2026 as compared to the first quarter of 2025. - Operating loss for the first quarter of 2026 was
$(27.5) million , compared to an operating loss of$(13.2) million for the first quarter of 2025. Operating results in the first quarter of 2026 were unfavorably affected by intra-year academic calendar timing as well as higher depreciation and amortization expenses related to growth initiatives including campus expansions and new campus investments as compared to the first quarter of 2025. - Net loss for the first quarter of 2026 was
$(21.6) million , compared to a net loss of$(19.6) million for the first quarter of 2025. - Adjusted EBITDA for the first quarter (seasonally low quarter) of 2026 was
$(2.3) million , compared to Adjusted EBITDA of$5.4 million for the first quarter of 2025. Adjusted EBITDA in the first quarter of 2026 was unfavorably affected by approximately $9 million of intra-year academic calendar timing attributable to later semester start dates in 2026 as compared to 2025. - Laureate expects that the intra-year academic calendar timing impacts on revenue and Adjusted EBITDA will be offset in the third quarter.
1 Constant currency results exclude the period-over-period impact from currency fluctuations.
First Quarter 2026 Results
New enrollments for the first quarter of 2026 increased 9%, compared to new enrollment activity for the first quarter of 2025, and total enrollments were up 6% compared to the prior-year quarter.
Through the end of the enrollment intake cycle completed in
For the first quarter of 2026, revenue on a reported basis was
Adjusted EBITDA for the first quarter of 2026 was
Balance Sheet and Capital Structure
As of
Laureate repurchased approximately $105 million of its common stock during the first quarter of 2026 under the existing stock repurchase program. As of
As of
Outlook for Fiscal 2026
Laureate is updating its 2026 outlook for Adjusted Earnings Per Share (Adjusted EPS) to reflect the impact from share repurchases completed during the first quarter.
Based on assumed foreign exchange rates2, Laureate expects its full-year 2026 results to be as follows:
- Total enrollments are still expected to be in the range of 516,000 to 521,000 students, reflecting growth of 4%-5% versus 2025;
- Revenues are still expected to be in the range of
$1,890 million to$1,905 million , reflecting growth of 11%-12% on an as-reported basis and growth of 6%-7% on a constant currency basis versus 2025; - Adjusted EBITDA is still expected to be in the range of
$583 million to$593 million , reflecting growth of 12%-14% on an as-reported basis and 7%-9% on a constant currency basis versus 2025; and - Adjusted EPS is now expected to be in the range of
$2.00 -$2.08 per share3, reflecting growth of 16%-21% on an as-reported basis.
Reconciliations of forward-looking non-GAAP measures, specifically the outlook for 2026 Adjusted EBITDA and Adjusted EPS, to the relevant forward-looking GAAP measures are not being provided, as Laureate does not currently have sufficient data to accurately estimate the variables and individual adjustments for such outlooks and reconciliations. Due to this uncertainty, Laureate cannot reconcile projected Adjusted EBITDA and projected Adjusted EPS to projected net income and projected earnings per share, respectively, without unreasonable effort. Please see the “Forward-Looking Statements” section in this release for a discussion of certain risks related to this outlook.
Conference Call
Laureate will host an earnings conference call today at
2 Based on actual FX rates for January-
3 Assumes diluted weighted average shares outstanding of approximately 141 million.
Forward-Looking Statements
This press release includes statements that express Laureate’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, ‘‘forward-looking statements’’ within the meaning of the federal securities laws, which involve risks and uncertainties. Laureate’s actual results may vary significantly from the results anticipated in these forward-looking statements. You can identify forward-looking statements because they contain words such as ‘‘believes,’’ ‘‘expects,’’ ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘seeks,’’ ‘‘approximately,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘estimates’’ or ‘‘anticipates’’ or similar expressions that concern our strategy, plans or intentions. In particular, statements regarding the amount, timing, process, tax treatment and impact of any future dividends represent forward-looking statements. All statements we make relating to guidance (including, but not limited to, total enrollments, revenues, Adjusted EBITDA and Adjusted EPS), and all statements we make relating to our current growth strategy and other future plans, strategies or transactions that may be identified, explored or implemented and any litigation or dispute resulting from any completed transaction are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, including with respect to our current growth strategy and the impact of any completed divestiture or separation transaction on our remaining businesses. Accordingly, our actual results may differ materially from those we expected. We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from our expectations are disclosed in our Annual Report on Form 10-K filed with the
Presentation of Non-GAAP Measures
In addition to the results provided in accordance with
Adjusted EBITDA consists of net income (loss), before (income) loss from discontinued operations, net of tax, equity in net (income) loss of affiliates, net of tax, income tax expense (benefit), (gain) loss on disposal of subsidiaries, net, foreign currency exchange (gain) loss, net, other (income) expense, net, interest expense, interest income, and loss on debt extinguishment, plus depreciation and amortization, share-based compensation expense, and loss on impairment of assets. The exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Additionally, Adjusted EBITDA is a key input into the formula used by the compensation committee of our board of directors and our Chief Executive Officer in connection with the payment of incentive compensation to our executive officers and other members of our management team. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
We define Adjusted net income as net income (loss), before (income) loss from discontinued operations, plus discrete tax items, loss on debt extinguishment, loss (gain) on disposal of subsidiaries, net, foreign currency exchange (gain) loss, net, and loss on impairment of assets. We define Adjusted EPS as Adjusted net income divided by GAAP diluted weighted average shares outstanding. Adjusted net income and Adjusted EPS provide a useful indicator about Laureate’s earnings from core operations.
Total debt, net of cash and cash equivalents, (or net debt) consists of total gross debt less total cash and cash equivalents. Net debt provides a useful indicator about Laureate’s leverage and liquidity.
Free Cash Flow consists of operating cash flow minus capital expenditures (net of sales of PP&E). Free Cash Flow provides a useful indicator about Laureate’s ability to fund its operations and repay its debt.
Adjusted EBITDA to Unlevered Free Cash Flow Conversion consists of Unlevered Free Cash Flow (which is defined as cash flows from operating activities, less capital expenditures (net of sales of PP&E), plus net cash interest expense) divided by Adjusted EBITDA. Adjusted EBITDA to Unlevered Free Cash Flow provides useful information to investors and others in understanding and evaluating our ability to generate cash flows.
Laureate’s calculations of Adjusted EBITDA, Adjusted net income, Adjusted EPS, and total debt, net of cash and cash equivalents (or net debt) are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results. Adjusted EBITDA, Adjusted net income and Adjusted EPS are reconciled from their most directly comparable GAAP measures in the attached tables under “Non-GAAP Reconciliations.”
We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe that providing constant currency information provides valuable supplemental information regarding our results of operations, consistent with how we evaluate our performance. We calculate constant currency amounts using the change from prior-period average foreign exchange rates to current-period average foreign exchange rates, as applied to local-currency operating results for the current period.
About
Key Metrics and Financial Tables
(Dollars in millions, except per share amounts, and may not sum due to rounding)
| New and Total Enrollments by segment | |||||||||||||||||||
| New Enrollments | Total Enrollments | ||||||||||||||||||
| Change | Change | ||||||||||||||||||
| YTD 1Q 2026 | YTD 1Q 2025 | Total | Timing Adj.(1) | As of | As of | Total | Timing Adj.(1) | ||||||||||||
| 45,300 | 44,200 | 2 | % | 4 | % | 259,900 | 250,200 | 4 | % | 4 | % | ||||||||
| 57,400 | 49,800 | 15 | % | 13 | % | 247,800 | 226,800 | 9 | % | 8 | % | ||||||||
| Laureate | 102,700 | 94,000 | 9 | % | 9 | % | 507,700 | 477,000 | 6 | % | 6 | % | |||||||
(1) Includes enrollments through completion of the intake cycles that ended in
| Consolidated Statements of Operations | |||||||||||
| For the three months ended | |||||||||||
| IN MILLIONS (except per share amounts) | 2026 | 2025 | Change | ||||||||
| Revenues | $ | 272.6 | $ | 236.2 | $ | 36.4 | |||||
| Costs and expenses: | |||||||||||
| Direct costs | 289.0 | 238.4 | 50.6 | ||||||||
| General and administrative expenses | 11.1 | 11.0 | 0.1 | ||||||||
| Operating loss | (27.5 | ) | (13.2 | ) | (14.3 | ) | |||||
| Interest income | 1.9 | 1.5 | 0.4 | ||||||||
| Interest expense | (3.1 | ) | (2.4 | ) | (0.7 | ) | |||||
| Other income, net | 0.4 | — | 0.4 | ||||||||
| Foreign currency exchange gain (loss), net | 1.0 | (3.2 | ) | 4.2 | |||||||
| Loss from continuing operations before income taxes | (27.3 | ) | (17.3 | ) | (10.0 | ) | |||||
| Income tax benefit (expense) | 5.7 | (2.5 | ) | 8.2 | |||||||
| Loss from continuing operations | (21.6 | ) | (19.8 | ) | (1.8 | ) | |||||
| Income from discontinued operations, net of tax | — | 0.2 | (0.2 | ) | |||||||
| Net loss | (21.6 | ) | (19.6 | ) | (2.0 | ) | |||||
| Net loss attributable to noncontrolling interests | — | 0.1 | (0.1 | ) | |||||||
| Net loss attributable to | $ | (21.6 | ) | $ | (19.5 | ) | $ | (2.1 | ) | ||
| Basic and diluted earnings (loss) per share: | |||||||||||
| Basic and diluted weighted average shares outstanding | 142.3 | 147.6 | (5.3 | ) | |||||||
| Basic and diluted loss per share | $ | (0.15 | ) | $ | (0.13 | ) | $ | (0.02 | ) | ||
| Revenue and Adjusted EBITDA by segment IN MILLIONS | |||||||||||||||||||||||||
| % Change | $ Variance Components | ||||||||||||||||||||||||
| For the three months ended | 2026 | 2025 | Reported | Constant Currency(1) | Total | Constant Currency | FX | ||||||||||||||||||
| Revenues | |||||||||||||||||||||||||
| $ | 210.6 | $ | 189.3 | 11 | % | (4 | )% | $ | 21.3 | $ | (8.3 | ) | $ | 29.6 | |||||||||||
| 62.0 | 46.9 | 32 | % | 21 | % | 15.1 | 9.9 | 5.2 | |||||||||||||||||
| Corporate & Eliminations | — | 0.1 | (100 | )% | (100 | )% | (0.1 | ) | (0.1 | ) | — | ||||||||||||||
| Total Revenues | $ | 272.6 | $ | 236.2 | 15 | % | 1 | % | $ | 36.4 | $ | 1.6 | $ | 34.8 | |||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||
| $ | 41.5 | $ | 53.0 | (22 | )% | (33 | )% | $ | (11.5 | ) | $ | (17.4 | ) | $ | 5.9 | ||||||||||
| (34.9 | ) | (38.8 | ) | 10 | % | 18 | % | 3.9 | 7.1 | (3.2 | ) | ||||||||||||||
| Corporate & Eliminations | (8.9 | ) | (8.8 | ) | (1 | )% | (1 | )% | (0.1 | ) | (0.1 | ) | — | ||||||||||||
| Total Adjusted EBITDA | $ | (2.3 | ) | $ | 5.4 | (143 | )% | (193 | )% | $ | (7.7 | ) | $ | (10.4 | ) | $ | 2.7 | ||||||||
(1) Constant Currency results exclude the period-over-period impact from currency fluctuations. Constant Currency is calculated using the change from prior-period average foreign exchange rates to current-period average foreign exchange rates, as applied to local-currency operating results for the current period. The “Constant Currency” percentage changes are calculated by dividing the Constant Currency amounts by the 2025 Revenues and Adjusted EBITDA amounts.
| Consolidated Balance Sheets | |||||||||
| IN MILLIONS | Change | ||||||||
| Assets | |||||||||
| Cash and cash equivalents | $ | 157.4 | $ | 146.7 | $ | 10.7 | |||
| Receivables (current), net | 55.5 | 134.7 | (79.2 | ) | |||||
| Other current assets | 57.8 | 36.9 | 20.9 | ||||||
| Property and equipment, net | 633.5 | 628.6 | 4.9 | ||||||
| Operating lease right-of-use assets, net | 453.8 | 335.6 | 118.2 | ||||||
| 800.3 | 803.5 | (3.2 | ) | ||||||
| Deferred income taxes | 74.6 | 72.2 | 2.4 | ||||||
| Other long-term assets | 46.7 | 46.4 | 0.3 | ||||||
| Current and long-term assets held for sale | 1.7 | 1.7 | — | ||||||
| Total assets | $ | 2,281.1 | $ | 2,206.4 | $ | 74.7 | |||
| Liabilities and stockholders' equity | |||||||||
| Accounts payable and accrued expenses | $ | 211.2 | $ | 242.4 | $ | (31.2 | ) | ||
| Deferred revenue and student deposits | 130.4 | 80.2 | 50.2 | ||||||
| Total operating leases, including current portion | 506.9 | 387.8 | 119.1 | ||||||
| Total long-term debt, including current portion | 215.8 | 127.7 | 88.1 | ||||||
| Other liabilities | 167.5 | 179.6 | (12.1 | ) | |||||
| Total liabilities | 1,231.7 | 1,017.6 | 214.1 | ||||||
| Redeemable equity | 1.4 | 1.4 | — | ||||||
| Total stockholders' equity | 1,048.1 | 1,187.4 | (139.3 | ) | |||||
| Total liabilities and stockholders' equity | $ | 2,281.1 | $ | 2,206.4 | $ | 74.7 | |||
| Consolidated Statements of Cash Flows | |||||||||||
| For the three months ended | |||||||||||
| IN MILLIONS | 2026 | 2025 | Change | ||||||||
| Cash flows from operating activities | |||||||||||
| Net loss | $ | (21.6 | ) | $ | (19.6 | ) | $ | (2.0 | ) | ||
| Depreciation and amortization | 22.6 | 16.1 | 6.5 | ||||||||
| Gain on lease terminations and disposals of subsidiaries and property and equipment, net | (0.1 | ) | (0.3 | ) | 0.2 | ||||||
| Deferred income taxes | (2.6 | ) | 4.9 | (7.5 | ) | ||||||
| Unrealized foreign currency exchange (gain) loss | (1.5 | ) | 2.9 | (4.4 | ) | ||||||
| Income tax receivable/payable, net | (31.9 | ) | (20.9 | ) | (11.0 | ) | |||||
| Working capital, excluding tax accounts | 74.6 | 56.0 | 18.6 | ||||||||
| Other non-cash adjustments | 22.5 | 18.7 | 3.8 | ||||||||
| Net cash provided by operating activities | 61.9 | 57.8 | 4.1 | ||||||||
| Cash flows from investing activities | |||||||||||
| Purchase of property and equipment | (8.3 | ) | (4.6 | ) | (3.7 | ) | |||||
| Receipts from sales of property and equipment | — | 0.1 | (0.1 | ) | |||||||
| Net cash used in investing activities | (8.3 | ) | (4.6 | ) | (3.7 | ) | |||||
| Cash flows from financing activities | |||||||||||
| Increase in long-term debt, net | 71.5 | 7.5 | 64.0 | ||||||||
| Payments to repurchase common stock and excise tax payments | (108.2 | ) | (39.5 | ) | (68.7 | ) | |||||
| Financing other, net | (4.6 | ) | (2.7 | ) | (1.9 | ) | |||||
| Net cash used in financing activities | (41.3 | ) | (34.6 | ) | (6.7 | ) | |||||
| Effects of exchange rate changes on Cash and cash equivalents and Restricted cash | (1.4 | ) | 0.9 | (2.3 | ) | ||||||
| Change in cash included in current assets held for sale | — | (0.4 | ) | 0.4 | |||||||
| Net change in Cash and cash equivalents and Restricted cash | 10.9 | 19.1 | (8.2 | ) | |||||||
| Cash and cash equivalents and Restricted cash at beginning of period | 152.1 | 97.9 | 54.2 | ||||||||
| Cash and cash equivalents and Restricted cash at end of period | $ | 163.0 | $ | 116.9 | $ | 46.1 | |||||
Non-GAAP Reconciliation (1 of 2)
| The following table reconciles Net loss to Adjusted EBITDA: | |||||||||||
| For the three months ended | |||||||||||
| IN MILLIONS | 2026 | 2025 | Change | ||||||||
| Net loss | $ | (21.6 | ) | $ | (19.6 | ) | $ | (2.0 | ) | ||
| Plus: | |||||||||||
| Income from discontinued operations, net of tax | — | (0.2 | ) | 0.2 | |||||||
| Loss from continuing operations | (21.6 | ) | (19.8 | ) | (1.8 | ) | |||||
| Plus: | |||||||||||
| Income tax (benefit) expense | (5.7 | ) | 2.5 | (8.2 | ) | ||||||
| Loss from continuing operations before income taxes | (27.3 | ) | (17.3 | ) | (10.0 | ) | |||||
| Plus: | |||||||||||
| Foreign currency exchange (gain) loss, net | (1.0 | ) | 3.2 | (4.2 | ) | ||||||
| Other income, net | (0.4 | ) | — | (0.4 | ) | ||||||
| Interest expense | 3.1 | 2.4 | 0.7 | ||||||||
| Interest income | (1.9 | ) | (1.5 | ) | (0.4 | ) | |||||
| Operating loss | (27.5 | ) | (13.2 | ) | (14.3 | ) | |||||
| Plus: | |||||||||||
| Depreciation and amortization | 22.6 | 16.1 | 6.5 | ||||||||
| EBITDA | (4.9 | ) | 2.9 | (7.8 | ) | ||||||
| Plus: | |||||||||||
| Share-based compensation expense(1) | 2.6 | 2.5 | 0.1 | ||||||||
| Adjusted EBITDA | $ | (2.3 | ) | $ | 5.4 | $ | (7.7 | ) | |||
(1) Represents non-cash, share-based compensation expense pursuant to the provisions of ASC Topic 718, "Stock Compensation."
Non-GAAP Reconciliations (2 of 2)
| The following table reconciles Net loss to Adjusted net loss and Adjusted EPS: | |||||||||||||||
| For the three months ended | |||||||||||||||
| 2026 | 2025 | ||||||||||||||
| IN MILLIONS, except per share amounts | (per share)(1) | (per share)(1) | |||||||||||||
| Net loss | $ | (21.6 | ) | $ | (0.15 | ) | $ | (19.6 | ) | $ | (0.13 | ) | |||
| Plus: | |||||||||||||||
| Income from discontinued operations, net of tax | — | — | (0.2 | ) | — | ||||||||||
| Loss from continuing operations | (21.6 | ) | (0.15 | ) | (19.8 | ) | (0.13 | ) | |||||||
| Plus: | |||||||||||||||
| Discrete tax items(2) | (1.3 | ) | (0.01 | ) | 1.9 | 0.01 | |||||||||
| Loss on debt extinguishment | — | — | — | — | |||||||||||
| Loss on disposal of subsidiaries, net | — | — | — | — | |||||||||||
| Foreign currency exchange (gain) loss, net | (1.0 | ) | (0.01 | ) | 3.2 | 0.02 | |||||||||
| Loss on impairment of assets | — | — | — | — | |||||||||||
| Adjusted net loss | $ | (23.9 | ) | $ | (0.17 | ) | $ | (14.7 | ) | $ | (0.10 | ) | |||
| Diluted weighted average shares outstanding | 142.3 | 147.6 | |||||||||||||
(1) Per share amounts on a dilutive basis. Earnings per share is calculated based on income available to common shareholders, which excludes income attributable to noncontrolling interests.
(2) Beginning in the fourth quarter of 2025, Laureate determined that the interest related to certain legacy tax liabilities, which is recorded as a component of income tax (benefit) expense and totaled
Investor Relations Contact:
ir@laureate.net
Media Contacts:
Adam Smith
adam.smith@laureate.net
Source:
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