Laureate Education (LAUR) Q2 2026 earnings summary

Executive summary

• Q2 and H1 2026 delivered strong operating momentum, with Q2 revenue up 17% to $615.9M and net income rising to $137.1M, driven by higher enrollments and digital initiatives.

• New enrollments increased 10% and total enrollments 6% year-over-year, with both Mexico and Peru showing robust growth; Peru outpaced Mexico in year-to-date EBITDA gains.

• Full-year 2026 guidance was raised for revenue ($1.92B–$1.93B), adjusted EBITDA ($593M–$599M), and adjusted EPS ($2.04–$2.10), reflecting operational momentum and favorable FX.

• Continued investment in new campuses, digital leadership, and AI integration, with new campus launches in Monterrey, Lima, and Puebla, and further expansion planned.

• Announced a $150M increase in share repurchase authorization, with $181M in buybacks completed in H1 2026.

Financial highlights

• Q2 2026 revenue: $615.9M (+17%); adjusted EBITDA: $250.6M (+17%); net income: $137.1M (+44%); EPS: $0.98 (up from $0.65); free cash flow for H1: $137.4M.

• H1 2026 revenue: $888.5M (+17%); adjusted EBITDA: $248.2M (+13%); net income: $115.5M (+53%).

• Mexico Q2 revenue: $269M (+24% reported, +10% constant currency); Peru Q2 revenue: $346.9M (+13% reported, +6% constant currency).

• Adjusted EBITDA margin for Q2: 40.7%; net debt as of June 30, 2026: $61M ($223M gross debt, $162M cash).

• Capital expenditures for H1 2026: $35.5M, mainly for campus expansions and equipment.

Outlook and guidance

• Full-year 2026 revenue guidance: $1.92B–$1.93B (+13% as-reported, +6–7% constant currency); adjusted EBITDA: $593M–$599M (+14–15% as-reported, +8–9% constant currency); adjusted EPS: $2.04–$2.10 (+19–22%).

• Q3 2026 revenue expected at $471M–$476M; adjusted EBITDA at $134M–$137M.

• Total enrollments for 2026 expected at 518,000–523,000 (+4–5%).

• Adjusted EBITDA to unlevered free cash flow conversion expected at ~50%.

• Margin expansion of ~50 bps expected for 2026.