Laureate Education, Inc. (NASDAQ: LAUR) reported first‑quarter 2026 results that included $272.6 million in revenue, up 15% from $236.2 million in Q1 2025, and a net loss of $21.6 million, a $2.0 million increase in loss compared to the prior year. Adjusted EBITDA swung to a $2.3 million loss, down from a $5.4 million loss in Q1 2025, reflecting higher depreciation and amortization tied to campus expansion and new campus investments. The company completed $105 million of share repurchases during the quarter and reported a net debt of $59.7 million as of March 31, 2026, correcting the earlier misstatement of a net cash position.
Enrollment growth was a key driver of the revenue increase, with new enrollment rising 9% and total enrollment up 6%. Management attributed the widening operating loss to the timing of the academic calendar, which deferred approximately $9 million in revenue and adjusted EBITDA, and to higher capital expenditures for campus expansion. These factors offset the positive enrollment momentum and contributed to the loss.
Comparing to the prior year, Q1 2025 revenue was $236.2 million and the net loss was $19.6 million, while adjusted EBITDA was a $5.4 million loss. The current quarter’s results therefore represent a 15% revenue gain but a 10% worsening of the loss and a shift from a $5.4 million loss to a $2.3 million loss, underscoring the impact of timing and investment costs.
Segment performance highlights that Mexico’s adjusted EBITDA fell from $53.0 million in Q1 2025 to $41.5 million in Q1 2026, while Peru’s performance was not disclosed in detail. The decline in Mexico’s adjusted EBITDA reflects the broader headwinds in that market, including currency fluctuations and the academic calendar effect.
CEO Eilif Serck‑Hanssen noted that “we are pleased to report favorable new enrollment results from the recently completed primary intake cycle in Peru and the secondary intake cycle in Mexico. Our operating trends remain on track with our expectations for the year. Additionally, we continue to return excess capital to shareholders, having completed approximately $105 million in share repurchases during the first quarter.”
Analysts had estimated Q1 2026 revenue at $270.3 million and an adjusted EPS loss of –$0.25. Laureate’s revenue beat the consensus by $2.3 million (≈0.9%) and its adjusted EPS beat the estimate by $0.08 (≈32%), indicating stronger-than‑expected enrollment and effective cost management despite the loss.
Market reaction was mixed. Investors welcomed the enrollment growth and the raised full‑year guidance, but were tempered by concerns over currency headwinds, the academic calendar timing impact, and the current quarter’s widened loss. The mixed sentiment reflects the balance between the company’s confidence in future enrollment and the short‑term profitability pressures.
The company raised its full‑year 2026 outlook to earnings per share of $2.00 to $2.08 and revenue of $1.89 billion to $1.905 billion, up from the previous guidance of $1.86 billion to $1.88 billion. The upward revision signals management’s confidence in sustained enrollment momentum and the effectiveness of its share‑repurchase program in boosting per‑share metrics.
Headwinds such as a strong U.S. dollar weakening peso and sol earnings, and the academic calendar timing, remain challenges. However, the company’s strong enrollment growth in Mexico and Peru, coupled with aggressive share repurchases, positions it to navigate these headwinds while maintaining a trajectory of revenue growth and improving per‑share earnings.
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