Third quarter and nine months ended September 30, 2026
Filed Oct 29, 2026LAUREATE EDUCATION REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2026 Company Reaffirms Full-Year 2026 Guidance Announces $150 Million Increase in Share Repurchase Authorization
Third-quarter reported revenue increased 21% to $485.1 million, operating income increased to $119.1 million from $71.5 million, and Adjusted EBITDA increased to $146.8 million from $94.8 million. Enrollment growth continued in both Mexico and Peru, while the company reaffirmed its full-year 2026 outlook and expanded its share repurchase authorization by $150 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third-quarter revenueGAAP | $485.1M | – | 21% |
| Third-quarter revenue constant currency growthnon-GAAP | 14% | – | 14% |
| Third-quarter direct costsGAAP | $353.4M | – | $36.9 million |
| Third-quarter general and administrative expensesGAAP | $12.6M | – | $0.4 million |
| Third-quarter operating incomeGAAP | $119.1M | – | $47.6 million |
| Third-quarter net incomeGAAP | $101.2M | – | $66.8 million |
| Third-quarter net income attributable to Laureate Education, Inc.GAAP | $101.2M | – | $66.7 million |
| Third-quarter basic earnings per shareGAAP | $0.74 | – | $0.51 |
| Third-quarter diluted earnings per shareGAAP | $0.73 | – | $0.50 |
| Third-quarter Adjusted net incomenon-GAAP | $71.7M | – | – |
| Third-quarter Adjusted EPSnon-GAAP | $0.52 | – | – |
| Third-quarter Adjusted EBITDAnon-GAAP | $146.8M | – | 55% |
| Nine-month revenueGAAP | $1.37B | – | 18% |
| Nine-month revenue constant currency growthnon-GAAP | 8% | – | 8% |
| Nine-month direct costsGAAP | $1.02B | – | $148.3 million |
| Nine-month general and administrative expensesGAAP | $37.9M | – | $1.2 million |
| Nine-month operating incomeGAAP | $315M | – | $63.4 million |
| Nine-month net incomeGAAP | $216.7M | – | $104.4 million |
| Nine-month net income attributable to Laureate Education, Inc.GAAP | $216.7M | – | $106.6 million |
| Nine-month basic earnings per shareGAAP | $1.55 | – | $0.81 |
| Nine-month diluted earnings per shareGAAP | $1.54 | – | $0.80 |
| Nine-month Adjusted net incomenon-GAAP | $187.6M | – | – |
| Nine-month Adjusted EPSnon-GAAP | $1.33 | – | – |
| Nine-month Adjusted EBITDAnon-GAAP | $395.1M | – | 26% |
| Nine-month new enrollmentsother | 281,800 | – | 9% |
| Total enrollments as of September 30other | 539,600 | – | 6% |
| Nine-month net cash provided by operating activitiesGAAP | $324.6M | – | $51.8 million |
| Nine-month purchase of property and equipmentGAAP | −$63.4M | – | $(27.3) million |
| Cash and cash equivalents as of September 30, 2026GAAP | $189.9M | – | $43.2 million |
| Gross debt as of September 30, 2026other | $204.2M | – | – |
| Net debt as of September 30, 2026non-GAAP | $14.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Mexico revenue, third quarterConstant currency revenue increased 22%. | $256.5M | – | 32% |
| Peru revenue, third quarterConstant currency revenue increased 7%. | $228.6M | – | 11% |
| Mexico revenue, nine monthsConstant currency revenue increased 9%. | $736.1M | – | 22% |
| Peru revenue, nine monthsConstant currency revenue increased 8%. | $637.4M | – | 14% |
Full-year 2026 outlook
- Revenue$1,920 million to $1,930 million, reflecting growth of 13% on an as-reported basis and growth of 6%-7% on a constant currency basis versus 2025
- NoteTotal enrollments are expected to be in the range of 518,000 to 523,000 students, reflecting growth of 4%-5% versus 2025
- NoteAdjusted EBITDA is expected to be in the range of $593 million to $599 million, reflecting growth of 14%-15% on an as-reported basis and 8%-9% on a constant currency basis versus 2025
- NoteAdjusted EPS is expected to be in the range of $2.04 - $2.10 per share, reflecting growth of 19%-22% on an as-reported basis versus 2025
- NoteBased on actual FX rates for January-October 2026, and assumed FX rates (local currency per U.S. Dollar) of MXN 18.60 and PEN 3.45 for November 2026 - December 2026
Capital returns
- Laureate repurchased approximately $256 million of its common stock during the nine months ended September 30, 2026.
- As of September 30, 2026, Laureate had approximately $75.2 million of stock repurchase authorization remaining under its existing stock repurchase program.
- On October 29, 2026, the Company announced that its board of directors had approved a $150 million increase to its existing stock repurchase program.
- After giving effect to this new authorization and taking into account the cumulative repurchases through September 30, 2026, the Company may repurchase up to approximately $225.2 million of its common stock under its stock repurchase program, which has no fixed expiration date.
What drove it
- Third-quarter reported revenue increased 21%, while constant currency revenue increased 14%.
- Third-quarter reported revenue was favorably affected by approximately $29 million of intra-year academic calendar timing attributable to semester start dates in 2026 as compared to 2025.
- Third-quarter Adjusted EBITDA was favorably affected by approximately $26 million of intra-year academic calendar timing.
- Nine-month new enrollments increased 9% and total enrollments increased 6%.
- New and total enrollments in Peru increased 10% and 5%, respectively, compared to the prior-year period.
- New and total enrollments in Mexico were up 8% and 6%, respectively, compared to the prior-year period.
- Third-quarter net income was mainly driven by higher operating income and a discrete tax benefit of $25.4 million.
- Mexico third-quarter Adjusted EBITDA increased 142% on a reported basis, while Peru third-quarter Adjusted EBITDA increased 20%.
Concerns
- Laureate expects the intra-year academic calendar timing impacts on revenue and Adjusted EBITDA will be offset in the fourth quarter of 2026.
- Third-quarter and nine-month net income included a discrete tax benefit of $25.4 million.
- Foreign currency exchange loss, net was $4.7 million for the third quarter of 2026 and $3.7 million for the nine months ended September 30, 2026.
- Purchase of property and equipment was $(63.4) million for the nine months ended September 30, 2026, compared to $(36.1) million for the prior-year period.
- FX impact may change based on fluctuations in currency rates in future periods.
What to watch
- Whether the expected fourth-quarter offset of the intra-year academic calendar timing impacts occurs.
- Full-year total enrollments relative to the guided range of 518,000 to 523,000 students.
- Full-year revenue relative to the guided range of $1,920 million to $1,930 million.
- Full-year Adjusted EBITDA relative to the guided range of $593 million to $599 million.
- Use of the approximately $225.2 million remaining share repurchase capacity.
Balance sheet and cash flow
- Cash and cash equivalents were $189.9 million as of September 30, 2026.
- Gross debt was $204.2 million as of September 30, 2026.
- Net debt was $14.3 million as of September 30, 2026.
- Total long-term debt, including current portion, was $202.7 million as of September 30, 2026, compared to $127.7 million as of December 31, 2025.
- Net cash provided by operating activities was $324.6 million for the nine months ended September 30, 2026, compared to $272.8 million for the nine months ended September 30, 2025.
- Purchase of property and equipment was $(63.4) million for the nine months ended September 30, 2026, compared to $(36.1) million for the nine months ended September 30, 2025.
- Payments to repurchase common stock and excise tax payments were $(258.9) million for the nine months ended September 30, 2026, compared to $(71.6) million for the nine months ended September 30, 2025.
- Increase in long-term debt, net was $42.6 million for the nine months ended September 30, 2026, compared to $(22.6) million for the nine months ended September 30, 2025.
Analysis
Laureate reported strong third-quarter operating results. Revenue increased 21% to $485.1 million, with constant currency revenue growth of 14%. Operating income increased to $119.1 million from $71.5 million, while Adjusted EBITDA increased to $146.8 million from $94.8 million. Mexico generated third-quarter revenue growth of 32% and Adjusted EBITDA growth of 142%, while Peru generated revenue growth of 11% and Adjusted EBITDA growth of 20%.
Enrollment trends supported the reported growth. Nine-month new enrollments increased 9% to 281,800 and total enrollments increased 6% to 539,600. Mexico new enrollments increased 8% and total enrollments increased 6%, while Peru new enrollments increased 10% and total enrollments increased 5%. Management cited a successful launch of the new Puebla campus in Mexico, growth in existing Mexico campuses, and online demand from working adults in Peru.
Reported profitability benefited from items that warrant separation from underlying operating momentum. Third-quarter revenue was favorably affected by approximately $29 million of intra-year academic calendar timing, and third-quarter Adjusted EBITDA was favorably affected by approximately $26 million from that timing. Net income also included a discrete tax benefit of $25.4 million. The company expects the revenue and Adjusted EBITDA effects of the academic-calendar timing to be offset in the fourth quarter of 2026.
Nine-month operating cash flow increased to $324.6 million from $272.8 million, while purchases of property and equipment increased to $(63.4) million from $(36.1) million. Laureate reported $189.9 million of cash and cash equivalents, $204.2 million of gross debt, and $14.3 million of net debt as of September 30, 2026. It repurchased approximately $256 million of common stock during the first nine months and increased its repurchase authorization by $150 million, leaving capacity to repurchase up to approximately $225.2 million.
The company reaffirmed its full-year 2026 outlook for revenue of $1,920 million to $1,930 million, Adjusted EBITDA of $593 million to $599 million, and Adjusted EPS of $2.04 - $2.10 per share. The outlook assumes MXN 18.60 and PEN 3.45 local currency per U.S. Dollar for November 2026 through December 2026. The principal reported-period items to monitor are the fourth-quarter reversal of calendar timing, currency movements, enrollment delivery, and conversion of operating performance into the reaffirmed full-year ranges.
Management, verbatim
We are pleased to report strong new enrollment intakes in both of our markets. The primary intake in Mexico included a very successful launch of our new campus in Puebla, as well as further growth in existing campuses. During the secondary intake in Peru, we continued to leverage our fully online capabilities to meet growing demand for working adults as that market scales.
Eilif Serck-Hanssen, President and Chief Executive Officer
Today we are announcing an additional $150 million increase to our share repurchase program, reflecting continued favorable operating momentum in the business, our strong balance sheet and commitment to returning capital to shareholders.
Eilif Serck-Hanssen, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Gross profit was not reported.
- GAAP and non-GAAP operating margin were not reported.
- Tax rate was not reported.
- Free Cash Flow was defined but no Free Cash Flow amount was reported.
- Dividend amount and dividend guidance were not reported.
- Prior-quarter comparisons were not reported for the disclosed operating metrics.
- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- A reconciliation of full-year 2026 Adjusted EBITDA and Adjusted EPS guidance to GAAP measures was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.