Q4 2025 Laureate Education Inc Earnings Call

February 19, 2026

Eilif Serck-Hanssen: Use my phone, this one.

Operator: Good day, and thank you for standing by. Welcome to the Fiscal Year 2025 Laureate Education, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Adam Morse, Senior Vice President of Finance. Please go ahead.

Speaker #2: Good day and thank you for standing by. Welcome to the Fiscal Year 2025 Laureate Education, Inc. earnings conference call. At this time, all participants are in a listen-only mode.

Adam Morse: Good day, and thank you for standing by. Welcome to the Fiscal Year 2025 Laureate Education, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Adam Morse, Senior Vice President of Finance. Please go ahead.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone.

Speaker #2: You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.

Speaker #2: I would now like to hand the conference over to your first speaker today, Adam Morse, Senior Vice President of Finance. Please go ahead.

Speaker #1: Good morning and thank you for joining us on today's call to discuss Laureate Education's fourth quarter and year-end 2025 results. Joining me on the call today are Eilif Serckanson, President and Chief Executive Officer; and Rick Buskirk, Chief Financial Officer.

Adam Morse: Good morning, and thank you for joining us on today's call to discuss Laureate Education's Q4 and year-end 2025 results. Joining me on the call today are Eilif Serck-Hanssen, President and Chief Executive Officer, and Rick Buskirk, Chief Financial Officer. Our earnings press release is available on the investor relations section of our website at laureate.net. We've also posted a supplementary presentation to the website, which we'll be referring to during today's call. The call is being webcast, and a complete recording will be available after the call. I would like to remind you that some of the information we are providing today, including but not limited to our financial and operational guidance, constitutes forward-looking statements within the meaning of applicable US securities laws.

Speaker #1: Earnings press release is available on the Investor Relations section of our website at laureate.net. We have also posted a supplementary presentation to the website which will be referring to during today's call.

Speaker #1: The call is being webcast and a complete recording will be available after the call. I would like to remind you that some of the information we are providing today including but not limited to our financial and operational guidance constitutes forward-looking statements within the meaning of applicable U.S.

Speaker #1: securities laws. Forward-looking statements are subject to risks and uncertainties that may change at any time and therefore are actually results may differ materially from those we expected.

Adam Morse: Forward-looking statements are subject to risks and uncertainties that may change at any time, and therefore, our actual results may differ materially from those we expected. 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 U.S. Securities and Exchange Commission earlier this morning, as well as other filings made with the SEC. In addition, all forward-looking statements are based on current expectations as of the date of this conference call, and we undertake no obligation to update any forward-looking statements. Additionally, non-GAAP measures that we discuss, including and among others, adjusted EBITDA and its related margin, adjusted net income and adjusted earnings per share, total cash and equivalents, net of total debt, and free cash flow, are also detailed and reconciled to their GAAP counterparts in our press release or supplementary presentation.

Speaker #1: 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 U.S. Securities and Exchange Commission.

Speaker #1: Securities and Exchange Commission earlier this morning as well as other filings made with the SEC. In addition, all forward-looking statements are based on current expectations as of the date of this conference call.

Speaker #1: And we undertake no obligation to update any forward-looking statements. Additionally, non-GAAP measures that we discuss including and among others adjusted EBITDA and its related margin; adjusted net income and adjusted earnings per share; total cash and equivalents; net of total debt; and free cash flow are also detailed and reconciled to their GAAP counterparts in our press release or supplementary presentation.

Speaker #1: Let me now turn the call over to Eilif.

Adam Morse: Let me now turn the call over to Eilif.

Speaker #3: Thank you, Adam, and good morning, everyone. Laureate delivered another strong year of performance in 2025 with sustained revenue growth and expanding margins. Full-year revenue reached 1.7 billion dollars and adjusted EBITDA was 519 million dollars both exceeding the guidance we provided last October.

Eilif Serck-Hanssen: Thank you, Adam, and good morning, everyone. Laureate delivered another strong year of performance in 2025, with sustained revenue growth and expanding margins. Full-year revenue reached $1.7 billion, and adjusted EBITDA was $519 million, both exceeding the guidance we provided last October. Throughout 2025, we continued to execute on both our growth agenda and our productivity initiatives, which resulted in top-line growth of 9% and a historical high margin of 30.5% for the full year. We maintained strong financial discipline throughout the year and closed 2025 with a net cash position. Our cash-accretive business model enabled us to return $217 million of capital to shareholders last year through our stock repurchase program.

Speaker #3: Throughout 2025, we continued to execute on both our growth agenda and our productivity initiatives, which resulted in top-line growth of 9% and a historical high margin of 30.5% for the full year.

Speaker #3: We maintained strong financial discipline throughout the year and closed 2025 with a net cash position. Our cash-equated business model enabled us to return 217 million dollars of capital-to-shareholders last year through our stock repurchase program.

Speaker #3: We remain well-positioned to continue to invest in future growth and innovation while maintaining our commitment to returning access capital-to-shareholders. Today, we are also pleased to announce that our Board of Directors has authorized an additional 150 million dollars increase to our stock repurchase program underscoring our focus on long-term value creation for shareholders.

Eilif Serck-Hanssen: We remain well positioned to continue to invest in future growth and innovation while maintaining our commitment to returning excess capital to shareholders. Today, we are also pleased to announce that our board of directors has authorized an additional $150 million increase to our stock repurchase program, underscoring our focus on long-term value creation for shareholders. With nearly 500,000 students across Mexico and Peru, we have proven that excellence and scale can go hand in hand. The scale that we have achieved provides significant competitive advantages in terms of our ability to invest in growth, innovation, and academic excellence. In 2025, we continued to strengthen our academic offerings and made further investments in our campus networks, including the opening of two new campuses for our value brands, one in Monterrey, Mexico, and one in Lima's Ate district.

Speaker #3: With nearly 500,000 students across Mexico and Peru, we have proven that excellence and scale can go hand in hand. The scale that we have achieved provides significant competitive advantages in terms of our ability to invest in growth, innovation, and academic excellence.

Speaker #3: In 2025, we continue to strengthen our academic offerings and made further investments in our campus networks including the opening of two new campuses for our value brands, one in Monterey, Mexico, and one in Lima's ATE E district.

Speaker #3: Both projects opened on time and on budget and they performed as expected during their first year of RAMP. We also made further investments in our health sciences portfolio last year including the opening of one new medical school and one new veterinary school.

Eilif Serck-Hanssen: Both projects are opened on time and on budget, and they performed as expected during their first year of ramp. We also made further investments in our health sciences portfolio last year, including the opening of one new medical school and one new veterinary school. Health sciences programs remain a key focus for our institutions, given the long-term demand and workforce needs for graduates in that field of study. Laureate also continues to lead the way in innovation, both inside and outside the classroom. The significant investments we have made in online capabilities position us as the leader in online education in both markets. We now serve more than 100,000 students in our fully online programs focused on working adults.

Speaker #3: Health science programs remain a key focus for our institutions given the long-term demand and workforce needs for graduates in that field of study. Laureate also continues to lead the way in innovation both inside and outside the classroom.

Speaker #3: The significant investments we have made in online capabilities position us as the leader in online education in both markets. We know serve more than 100,000 students in our fully online programs focused on working adults.

Speaker #3: Within our back office, our innovation capabilities have been acknowledged by industry leaders such as Google, who recently recognized Laureate Mexico as the most advanced company in digital marketing maturity across all industries in Spanish-speaking Latin America.

Eilif Serck-Hanssen: Within our back office, our innovation capabilities have been acknowledged by industry leaders such as Google, who recently recognized Laureate Mexico as the most advanced company in digital marketing maturity across all industries in Spanish-speaking Latin America. These type of recognitions highlight Laureate's deep digital expertise, which in turn has put us at a significant competitive advantage when it comes to embedding AI tools into our student lifecycle journey. Our investments, combined with innovation mindset, continue to drive improvement in our academic quality and student outcomes. Throughout the network, our institutions continue to be recognized as leaders in the sector. We are pleased to share the latest results from QS Stars, one of the world's leading independent university ranking and ratings organizations. For the third consecutive years, all our universities in Mexico and Peru have achieved five-star rating, the highest rating attainable in employability, online learning, and social impact.

Speaker #3: These types of recognitions highlight Laureate's deep digital expertise which in turn has put us at the significant competitive advantage when it comes to embedding AI tools into our student lifecycle journey.

Speaker #3: Our investments combined with innovation mindset continue to drive improvements in our academic quality and student outcomes. Throughout the network, our institutions continue to be recognized as leaders in the sector.

Speaker #3: We are pleased to share the latest results from QS Stars one of the world's leading independent university ranking and ratings organizations. For the third consecutive years, all our universities in Mexico and Peru have achieved five-star rating the highest rating attainable in employability, online learning, and social impact.

Speaker #3: Our institutions also received strong market recognition for academic excellence and brand leadership. A few examples from this past year include in Peru, UPC ranked the number one education brand for the fifth consecutive year by Merco and received a five-star global university rating by QS Stars.

Eilif Serck-Hanssen: Our institutions also received strong market recognition for academic excellence and brand leadership. A few examples from this past year include: in Peru, UPC ranked the number one education brand for the fifth consecutive year by Merco and received a five-star global university rating by QS Stars. In Mexico, UVM was ranked the second-best private university by Reader's Digest 2025 ranking, second only to Tec de Monterrey. Our value brands in both markets, UPN in Peru and UNITEC in Mexico, were ranked in the top 10 in their respective countries by the same ranking agencies. I extend my deepest gratitude to our faculty and staff for their commitments to academic excellence and congratulate them on these outstanding recognitions. Looking ahead, we remain confident that the demand for quality higher education in both Mexico and Peru will continue to increase.

Speaker #3: In Mexico, UVM was ranked the second best private university by Reader's Digest 2025 ranking second only to Tec de Monterey. Our value brands in both markets UPN in Peru and UNITEC in Mexico were ranked in the top 10 in their respective countries by the same ranking agencies.

Speaker #3: I extend my deepest gratitude to our faculty and staff for their commitment to academic excellence and congratulate them on these outstanding recognitions. Looking ahead, we remain confident that the demand for quality higher education in both Mexico and Peru will continue to increase.

Speaker #3: This demand is fueled by rising participation rate, strong wage premiums for graduates, and the affordability of our programs. Additionally, the private sector, which accounts for over 55% of the combined university seats in the two countries, plays a critical role in the market due to limited public resources.

Eilif Serck-Hanssen: This demand is fueled by rising participation rate, strong wage premiums for graduates, and the affordability of our programs. Additionally, the private sector, which accounts for over 55% of the combined university seats in the two countries, plays a critical role in the market due to limited public resources. For 2026, our guidance calls for U.S. dollar-reported revenue growth of 11% to 12%, of which approximately 5 points is attributable to the more favorable FX environment. Further, we expect 50 basis points of margin expansion during 2026, reflecting continued operating leverage from growth initiatives, despite some incremental costs associated with the opening of new campus locations.

Speaker #3: For 2026, our guidance call for US dollar reported revenue growth of 11 to 12% of which approximately 5.0 is attributable to the more favorable affects environment.

Speaker #3: Further, we expect 50 basis points of margin expansion during 2026 reflecting continued operating leverage from growth initiatives, despite some incremental costs associated with the opening of new campus locations.

Speaker #3: We see sustained growth opportunities in both markets including building additional new campuses for our value brands in new cities and site locations over the next five-year period and have already begun to procure land for some of these new sites.

Eilif Serck-Hanssen: We see sustained growth opportunities in both markets, including building additional new campuses for our value brands in new cities and site locations over the next 5-year period, and have already begun to procure land for some of these new sites. Additionally, we are expanding our addressable market through continued AI-enabled investments in digital education, with a significant focus on fully online segment for working adults. Many of our AI tools that we have developed for the online portfolio are also being deployed to our face-to-face students and short course upskilling efforts. From a macroeconomic perspective, we expect Mexico's GDP growth for 2026 to be relatively modest, albeit slightly better than 2025. The key upcoming event to watch is the USMCA trade negotiations. President Sheinbaum's pragmatic approach to managing the US-Mexico relationship has helped maintain a constructive tone as discussions are being kicked off.

Speaker #3: Additionally, we are expanding our addressable market through continued AI-enabled investments in digital education. With a significant focus on fully online segment for working adults.

Speaker #3: Many of our AI tools that we have developed for the online portfolio are also being deployed to our face-to-face students and short course upskilling efforts.

Speaker #3: From a macroeconomic perspective, we expect Mexico's GDP growth for 2026 to be relatively modest albeit slightly better than 2025. The key upcoming event to watch is the US MCI trade negotiations.

Speaker #3: President Sheinbaum's pragmatic approach to managing the US-Mexico relationship has helped maintain a constructive tone as discussions are being kicked off. Many economists anticipate a favorable outcome and are projecting an increase in economic activity for Mexico starting in the second half of 2026 setting the stage for a more robust GDP growth in 2027.

Eilif Serck-Hanssen: Many economists anticipate a favorable outcome and are projecting an increase in economic activity for Mexico starting in the second half of 2026, setting the stage for a more robust GDP growth in 2027. In Peru, the economy continues to perform solidly, with strong domestic demand and a favorable macro environment. Supportive monetary conditions, strong commodity prices, and new mining projects should continue to underpin strong economic activity throughout the year, even against the backdrop of a presidential election. From a supply and demand perspective in Peru, we continue to rapidly scale our fully online offerings, but are somewhat capacity constrained in our face-to-face campus operations. We expect that to be alleviated following the launch of our second new campus that opens in March 2027 in South Lima, with additional new campus projects beyond that already in the pipeline.

Speaker #3: In Peru, the economy continues to perform solidly with strong domestic demand and a favorable macro environment. Supportive monetary conditions, strong commodity prices, and new mining projects should continue to underpin strong economic activity throughout the year, even against the backdrop of a presidential election.

Speaker #3: From a supply and demand perspective in Peru, we continue to rapidly scale our fully online offerings. But as somewhat capacity-constrained in our face-to-face campus operations, we expect that to be alleviated following the launch of our second new campus that opens in March of 2027 in South Lima with additional new campus projects beyond that already in the pipeline.

Speaker #3: That concludes my prepared remarks and I will now turn the call over to Rick Buskirk for a more comprehensive financial overview of the fourth quarter and full year 2025 performance as well as further details on our 2026 outlook.

Eilif Serck-Hanssen: That concludes my prepared remarks, and I will now turn the call over to Rick Buskirk for a more comprehensive financial overview of the fourth quarter and full year 2025 performance, as well as further details on our 2026 outlook. Rick?

Speaker #3: Rick?

Speaker #4: Thank you, Eilif. Before I discuss our financial performance for the quarter, let me provide a few important reminders on seasonality. Campus-based higher education is a seasonal business.

Rick Buskirk: Thank you, Eilif. Before I discuss our financial performance for the quarter, let me provide a few important reminders on seasonality. Campus-based higher education is a seasonal business. Although the fourth quarter is not a large intake period, it represents a strong earnings quarter for the company as classes are in session for much of the period. In addition, the timing of the start of our classes can shift year-over-year, depending on various factors, such as when public universities begin classes or when holidays occur. This, in turn, affects the timing of enrollments and revenue recognition and quarter-over-quarter comparability. In 2025, the beginning of classes, particularly in Peru, started later versus 2024, extending the enrollment cycle into mid-April and beyond the first quarter cutoff.

Speaker #4: Although the fourth quarter is not a large intake period, it represents a strong earnings quarter for the company as classes are in session for much of the period.

Speaker #4: In addition, the timing of the start of our classes can shift year over year depending on various factors such as when public universities begin classes or when holidays occur.

Speaker #4: This in turn affects the timing of enrollments and revenue recognition and quarter-over-quarter comparability. In 2025, the beginning of classes particularly in Peru started later versus 2024 extending the enrollment cycle into mid-April and beyond the first quarter cutoff.

Speaker #4: As a result, we had an intra-year shift in timing that resulted in approximately 25 million dollars of revenue and 21 million dollars in adjusted EBITDA to be shifted from earlier in the year to the fourth quarter.

Rick Buskirk: As a result, we had an intra-year shift in timing that resulted in approximately $25 million of revenue and $21 million in Adjusted EBITDA to be shifted from earlier in the year to the fourth quarter. Let's start with pages 11 and 12 of the supplementary presentation, which highlights our operating and financial performance for the fourth quarter and full year. Revenue in the fourth quarter was $541 million, and Adjusted EBITDA was $204 million. Both metrics were ahead of the guidance we provided three months ago, aided primarily by improved currency rates. On an Organic Constant Currency basis and adjusted for the academic calendar shift discussed earlier, revenue in the fourth quarter was up 10% year-over-year, and Adjusted EBITDA increased by 14%.

Speaker #4: Let's start with pages 11 and 12 of the supplementary presentation which highlights our operating and financial performance for the fourth quarter and full year.

Speaker #4: Revenue in the fourth quarter was 541 million dollars and adjusted EBITDA was 204 million dollars. Both metrics were ahead of the guidance we provided three months ago aided primarily by improved currency rates.

Speaker #4: On an organic constant currency basis, an adjusted for the academic calendar shift discussed earlier, revenue in the fourth quarter was up 10% year over year and adjusted EBITDA increased by 14%.

Speaker #4: Fourth quarter net income was 172 million dollars resulting in earnings per share of 1 dollar and 17 cents per share on a reported basis.

Rick Buskirk: Fourth quarter net income was $172 million, resulting in earnings per share of $1.17 per share on a reported basis. Fourth quarter adjusted net income was $112 million, and adjusted earnings per share was $0.76 per share, an increase of 46% as compared to the fourth quarter of prior year. Now moving to full-year results. For 2025, new enrollments increased 8% versus prior year, and total enrollments were up 5%. Full-year revenue was $1.702 billion, and Adjusted EBITDA was $519 million. This resulted in an Adjusted EBITDA margin of 30.5%, which is a new historic high for Laureate.

Speaker #4: Fourth quarter adjusted net income was 112 million dollars and adjusted earnings per share was 76 cents per share an increase of 46% as compared to the fourth quarter of prior year.

Speaker #4: Now moving to full-year results. For 2025, new enrollments increased 8% versus prior year and total enrollments were up 5%. Full-year revenue was 1.702 billion dollars and adjusted EBITDA was 519 million dollars.

Speaker #4: This resulted in an adjusted EBITDA margin of 30.5% which is a new historic high for LAUREATE. On an organic constant currency basis, revenue for the year increased by 8% and adjusted EBITDA was up 13%.

Rick Buskirk: On an Organic Constant Currency basis, revenue for the calendar year increased by 8%, and Adjusted EBITDA was up 13%, resulting in a 131 basis point improvement in margins, led by a 164 basis point increase in Mexico. Our continued focus on productivity is yielding strong results. Full year 2025 net income was $284 million, resulting in earnings per share of $1.89 per share on a reported basis. Adjusted net income was $256 million, and adjusted earnings per share was $1.72 per share, an increase of 22% as compared to prior year. Let me now provide some additional color on the performance of Mexico and Peru, starting with page 14.

Speaker #4: Resulting in a 131 basis point improvement in margins led by a 164 basis point increase in Mexico. Our continued focus on productivity is yielding strong results.

Speaker #4: Full-year 2025 net income was 284 million dollars resulting in earnings per share of 1 dollar and 89 cents per share on a reported basis.

Speaker #4: Adjusted net income was 256 million dollars and adjusted earnings per share was 1 dollar and 72 cents per share an increase of 22% as compared to prior year.

Speaker #4: Let me now provide some additional color on the performance of Mexico and Peru, starting with page 14. Please note that all comparisons versus the prior year are on an organic and constant currency basis.

Rick Buskirk: Please note that all comparisons versus prior year are on an organic and constant currency basis. Let's start with Mexico. New enrollments increased 5% for the year, led by growth in fully online programs focused on working adults across both our premium and value brands. Total enrollments in 2025 increased 4% compared to the prior year, or 5% same store. As Eilif referenced earlier, Mexico's macroeconomic environment has recently been characterized by slower growth. Our results underscore the resilience of our operating model and the value proposition we offer to students and their families. Mexico's revenue for Q4 increased 12% compared to the prior year period. Adjusted EBITDA for Q4 was up 10% year-over-year.

Speaker #4: Let's start with Mexico. New enrollments increased 5% for the year, led by growth in fully online programs focused on working adults across both our premium and value brands.

Speaker #4: Total enrollments in 2025 increased 4% compared to the prior year, or 5% same store. As Eilif referenced earlier, Mexico's macroeconomic environment has recently been characterized by slower growth.

Speaker #4: Our results underscore the resilience of our operating model and the value proposition we offer to students and their families. Mexico's revenue for the fourth quarter increased 12% compared to the prior year period.

Speaker #4: Adjusted EBITDA for the fourth quarter was up 10% year over year. For full-year 2025, revenue growth of 9% was driven by a 6% increase in average total enrollments and 3% of price mix.

Rick Buskirk: For full year 2025, revenue growth of 9% was driven by a 6% increase in average total enrollments and 3% of price mix. Overall, pricing for the year was in line with our cost of inflation for our traditional face-to-face students. Adjusted EBITDA increased 17% in 2025 versus the prior year period, expanding Mexico's margins by 164 basis points to 26.1%, driven by strong operating leverage from revenue growth and productivity gains. Let's now transition to Peru on slide 15. New enrollments increased 13% for the year, driven by double-digit growth in our fully online programs that serve working adults as we continue to scale in that segment. Total enrollments for the year increased by 7% compared to the prior year.

Speaker #4: Overall, pricing for the year was in line with our cost of inflation for our traditional face-to-face students. Adjusted EBITDA increased 17% in 2025 versus the prior year period.

Speaker #4: Expanding Mexico's margins by 164 basis points to 26.1% driven by strong operating leverage from revenue growth and productivity gains. Let's now transition to Peru on slide 15.

Speaker #4: New enrollments increased 13% for the year, driven by double-digit growth in our fully online programs that serve working adults as we continue to scale in that segment.

Speaker #4: Total enrollments for the year increased by 7% compared to the prior year. Revenue growth for the fourth quarter was 22% and adjusted EBITDA increased 49% year over year primarily due to the timing of the academic calendar I referenced earlier.

Rick Buskirk: Revenue growth for the fourth quarter was 22%, and adjusted EBITDA increased 49% year-over-year, primarily due to the timing of the academic calendar I referenced earlier. When adjusted for the timing of the academic calendar, fourth quarter revenue increased 8%, while adjusted EBITDA was up 16%. For full year 2025, revenue in Peru increased 7% year-over-year, driven by a 6% increase in average total enrollments. Overall, pricing was in line with our cost of inflation for traditional face-to-face students. We are seeing a price mix impact on average revenue per student due to the higher growth rate of our fully online programs, which are offered at a lower price point. We expect that mix impact to continue in 2026 as we scale up our online segment in Peru.

Speaker #4: When adjusted for the timing of the academic calendar, fourth quarter revenue increased 8% while adjusted EBITDA was up 16%. For full-year 2025, revenue in Peru increased 7% year over year driven by a 6% increase in average total enrollments.

Speaker #4: Overall, pricing was in line with our cost of inflation for traditional face-to-face students. We are seeing a price mix impact on average revenue per student due to the higher growth rate of our fully online programs which are offered at a lower price point.

Speaker #4: We expect that mix impact to continue in 2026 as we scale up our online segment in Peru. Adjusted EBITDA increased 9% versus the prior year with a margin expansion of 54 basis points.

Rick Buskirk: Adjusted EBITDA increased 9% versus the prior year, with a margin expansion of 54 basis points. Let me now briefly turn to our balance sheet. Laureate ended the year with $147 million in cash and $129 million in gross debt for a net cash position of $18 million.... During 2025, we repurchased $217 million of common stock under our existing authorization. Since 2019, total capital return to shareholders has exceeded $3 billion through share purchases, cash distributions, and cash dividends. Today, we announced that our board has authorized a $150 million dollar increase to our share repurchase program. This authorization is supported by our strong balance sheet, cash accretive business model, and disciplined capital allocation.

Speaker #4: Let me now briefly turn to our balance sheet. LAUREATE ended the year with 147 million dollars in cash and 129 million dollars in gross debt for a net cash position of 18 million dollars.

Speaker #4: During 2025, we repurchased 217 million dollars of common stock under our existing authorization. Since 2019, total capital return to shareholders has exceeded 3 billion dollars through share purchases, cash distributions, and cash dividends.

Speaker #4: Today, we announce that our board has authorized 150 million dollar increase to our share repurchase program. This authorization is supported by our strong balance sheet, cash accretive business model, and disciplined capital allocation.

Speaker #4: As a result of this upsizing, a total of 181 million dollars is available under the current authorizations as of year-end 2025. We expect to continue returning excess capital to shareholders in 2026.

Rick Buskirk: As a result of this upsizing, a total of $181 million is available under the current authorizations as of year-end 2025. We expect to continue returning excess capital to shareholders in 2026. Let's now transition to our discussion on guidance. We remain excited about the growth opportunities in Mexico and Peru, and expect continued operating momentum in both markets during 2026. A little context by market before getting into the ranges, reiterating some of what Eilif discussed earlier. In Mexico, the macroeconomic conditions are expected to remain soft for much of 2026, aligned with the operating environment in 2025. We expect improved conditions in the second half of the year and as we head into 2027, following the conclusion of the renegotiated USMCA agreement. In Peru, we intend to continue to rapidly scale our fully online offerings.

Speaker #4: Let's now transition to our discussion on guidance. We remain excited about the growth opportunities in Mexico and Peru and expect continued operating momentum in both markets during 2026.

Speaker #4: A little context by market before getting into the ranges. Reiterating some of what Eilif discussed earlier. In Mexico, the macroeconomic conditions are expected to remain soft for much of 2026, aligned with the operating environment in 2025.

Speaker #4: We expect improved conditions in the second half of the year and as we head into 2027 following the conclusion of the renegotiated USMCA agreement.

Speaker #4: In Peru, we intend to continue to rapidly scale our fully online offerings. As we are in the process of building incremental face-to-face capacity with our series of planned new campus launches, strong fully online growth is expected to continue to create a price mix impact on average revenue per student.

Rick Buskirk: As we are in the process of building incremental face-to-face capacity with our series of planned new campus launches, strong, fully online growth is expected to continue to create a price mix impact on average revenue per student. Lastly, we are operating in an FX environment where the Mexican peso and the Peruvian sol have appreciated significantly against the US dollar versus the same time last year. This FX environment is currently expected to create some favorable foreign currency translation effects for us as we start the year. With that context, let me now move to our guidance ranges. Based on our assumed FX rates, we expect full year 2026 results to be as follows: Total enrollments to be in the range of 516,000 to 521,000 students, reflecting growth of 4% to 5% versus 2025.

Speaker #4: Lastly, we are operating in an FX environment where the Mexican peso and the Peruvian sol have appreciated significantly against the US dollar versus the same time last year.

Speaker #4: This FX environment is currently expected to create some favorable foreign currency translation effects for us as we start the year. With that context, let me now move to our guidance ranges.

Speaker #4: Based on our assumed FX rates, we expect full-year 2026 results to be as follows. Total enrollments to be in the range of 516,000 to 521,000 students reflecting growth of 4 to 5 percent versus 2025.

Rick Buskirk: Revenues to be in the range of $1.890 billion to 1.905 billion, reflecting growth of 11% to 12% on an as-reported basis, and 6% to 7% on an organic constant currency basis versus 2025. Adjusted EBITDA to be in the range of $583 million to 593 million, reflecting growth of 12% to 14% on an as-reported basis and 7% to 9% on an organic constant currency basis versus 2025. This would result in an increase in adjusted EBITDA margins of approximately 50 basis points at the midpoint of our guidance on a reported basis. For 2026, we expect adjusted EBITDA to unlevered free cash flow conversion of approximately 50% on a reported basis, supporting our continued emphasis on return of capital to shareholders.

Speaker #4: Revenues to be in the range of 1.890 billion to 1.905 billion dollars reflecting growth of 11 to 12 percent on an as-reported basis and 6 to 7 percent on an organic constant currency basis versus 2025.

Speaker #4: Adjusted EBITDA to be in the range of 583 million to 593 million dollars reflecting growth of 12 to 14 percent on an as-reported basis and 7 to 9 percent on an organic constant currency basis versus 2025.

Speaker #4: This would result in an increase in adjusted EBITDA margins of approximately 50 basis points at the midpoint of our guidance on a reported basis.

Speaker #4: For 2026, we expect adjusted EBITDA to unleverage free cash flow conversion of approximately 50 percent on a reported basis supporting our continued emphasis on return to capital to shareholders.

Rick Buskirk: Lastly, today, we are introducing adjusted earnings per share guidance for 2026, with adjusted earnings per share to be expected to be in the range of $1.95 to 2.03 per share, reflecting growth of 13% to 18% versus 2025 on a reported basis. This non-GAAP measure is intended to provide greater transparency into our underlying profitability and improve comparability across periods. Now turning to our first quarter guidance. As a reminder, Q1 is a seasonally low quarter, as classes are largely out of session in January and much of February. In addition, in terms of the seasonality for 2026, we will have some intra-year calendar timing, as outlined on slide 22 of our presentation.

Speaker #4: Lastly, today we are introducing adjusted earnings per share guidance for 2026. With adjusted earnings per share to be expected to be in the range of $1.95 to $2.03 per share reflecting growth of 13 to 18 percent versus 2025 on a reported basis.

Speaker #4: This non-GAAP measure is intended to provide greater transparency into our underlying profitability and improved comparability across periods. Now turning to our first quarter guidance.

Speaker #4: As a reminder, Q1 is a seasonally low quarter as classes are largely out of session in January and much of February. In addition, in terms of the seasonality, for 2026, we will have some intra-year calendar timing as outlined on slide 22 of our presentation.

Speaker #4: For the first quarter specifically, approximately 9 million dollars of revenue and related profitability is expected to shift out of the first quarter to later in the year.

Rick Buskirk: For Q1, specifically, approximately $9 million of revenue and related profitability is expected to shift out of Q1 to later in the year. With that context, for Q1 of 2026, we expect revenue between $261 million and 265 million, and Adjusted EBITDA between -$20 million to -$17 million, reflecting growth in fixed costs and investments in our new campuses during a largely out-of-session period. That concludes my prepared remarks. Eilif, I'm handing it back to you for closing comments.

Speaker #4: With that context, for the first quarter of 2026, we expect revenue between 261 million and 265 million dollars and adjusted EBITDA between negative 20 million to negative 17 million dollars reflecting growth in fixed costs and investments in our new campuses during a largely out-of-session period.

Speaker #4: That concludes my prepared remarks. Eilif, I'm handing it back to you for closing comments.

Speaker #1: Thank you. 2025 was another strong year for LAUREATE in which we continue to deliver on our commitments through disciplined execution, focused growth, and innovation investments, and sustained operational excellence.

Eilif Serck-Hanssen: Thank you, Rick. 2025 was another strong year for Laureate, in which we continued to deliver on our commitments through disciplined execution, focused growth, and innovation investments, and sustained operational excellence. We see attractive growth opportunities across Mexico and Peru in the years to come, and remain committed to executing on our growth agenda. As an established emerging market company with developed market governance, we look forward to another year of value creation for all stakeholders in 2026, guided by our mission to expand access to high quality, affordable, higher education, and to positively impact the students and communities we serve. Operator, that concludes our prepared remarks, and we're now happy to take any questions from the participants.

Speaker #1: We see attractive growth opportunities across Mexico and Peru in the years to come and remain committed to executing on our growth agenda. As an established emerging market company with developed market governance, we look forward to another year of value creation for all stakeholders in 2026, guided by our mission to expand access to high-quality affordable higher education and to positively impact the students and communities we serve.

Speaker #1: Operator, that concludes our prepared remarks, and we're now happy to take any questions from the participants.

Operator: ...Certainly. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile our Q&A roster. Our first question will be coming from the line of Jeff Silber of BMO Capital Markets. Your line is open.

Speaker #2: Certainly. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Speaker #2: Please stand by while we compile our Q&A roster. Our first question will be coming from the line of Jeff Silber of BMO Capital Markets.

Speaker #2: Your line is open.

Speaker #3: Thank you so much. You mentioned in your prepared remarks potential new campus openings, and I'm just curious one, how far in advance do you have to make that decision in order to make sure that you've got the capacity?

Jeff Silber: Thank you so much. You mentioned in your prepared remarks potential new campus openings, and I'm just curious, you know, one, how far in advance do you have to make that decision in order to make sure that you've got the capacity? And two, how do you decide whether you want to create your own versus potentially buying a campus that already exists? Thanks.

Speaker #3: And two, how do you decide whether you want to create your own versus potentially buying a campus that already exists? Thanks.

Eilif Serck-Hanssen: Jeff, good morning. This is Eilif. In terms of timing, it takes about, you know, 18 to 24 months to launch a new campus, and that includes the time to find the land, get the licenses, the permits, the zoning, build the campus, and then launch, you know, first intake. In terms of buy versus build, you know, it really is a, you know, an IRR question. Typically, we have been building. When we get it exactly to the spec, it takes a little longer to ramp versus buying. But, you know, typically, it is, it's more economical for us to just, you know, build the campus.

Speaker #1: Jeff, good morning. This is Eilif. In terms of timing, it takes about 18 to 24 months to launch a new campus. That includes the time to find the land, get the licenses, the permits, the zoning, build the campus, and then launch first intake.

Speaker #1: In terms of buy versus build, it really is a IRR question. Typically, we have been building. We then we get it exactly to the spec.

Speaker #1: It takes a little longer to run versus buying. But typically, it's more economical for us to just build the campus. We have the playbook and then we get the operating model just the way that we want it.

Eilif Serck-Hanssen: We have the playbook, and then we get the operating model built, just the way that we want it.

Speaker #3: Okay. That's helpful. And then also, you talked about AI and how you're using it in your business. The market's very jittery these days about AI disruption.

Jeff Silber: Okay, that's helpful. Then also, you, you talked about AI and you know, how you're using it in your business. You know, the market's very jittery these days about AI disruption. Do you see any parts of your business that might be at risk from AI disruption? Thanks.

Speaker #3: Do you see any parts of your business that might be at risk from AI disruption? Thanks.

Speaker #1: I think AI is going to be our friend. AI is going to improve retention. It is going to improve the learning outcomes. It is going to continue for us to expand access to quality education in the markets where we are serving.

Eilif Serck-Hanssen: I think AI is going to be our friend. AI is going to, you know, improve retention. It is going to improve the learning outcomes. It is going to continue, you know, for us to expand the quality and access to quality education in the markets where we are serving. And I think, you know, the focus for us is to make sure that, you know, we are launching the programs for where tomorrow's jobs reside. And, you know, that, you know, I think that is the number one priority for us. And then that's followed closely by making sure that we are leveraging AI, you know, to continue to improve outcomes and reduce cost of education.

Speaker #1: And I think the focus for us is to make sure that we are launching the programs for where tomorrow's jobs reside. And I think that is the number one priority for us.

Speaker #1: And then that follows closely by making sure that we are leveraging AI to continue to improve outcomes and reduce cost of education.

Speaker #3: All right. Thanks so much.

Jeff Silber: All right, thanks so much.

Speaker #2: Thank you. And our next question. We'll be coming from the line of Marcelo Santos of JPMorgan. Marcelo, your line is open.

Operator: Our next question will be coming from the line of Marcelo Santos of JP Morgan. Marcelo, your line is open.

Speaker #4: Hi. Good morning to all. Thanks for taking my questions. I have also two. The first question is on the guidance for 2026. In terms of FX neutral revenue growth, it implies some deceleration versus what was presented in 2025.

[Analyst] (J.P. Morgan): Hi. Good morning to all. Thanks for taking my questions. I have also two. The first question is on the guidance for 2026. In terms of FX neutral revenue growth, it implies some deceleration versus what was presented in 2025. Could you just please comment, what are the sources, the ups and downs that lead to this slight deceleration in the FX neutral? That's the first question. And the second question is just asking about the expansion of distance learning in Peru. I wanted to ask about the market. Are you noticing a tighter discipline in the market, or are you noticing, like, the other players who are launching being more aggressive? Just wanted your comment to see how the market is developing with this new technology. Thank you.

Marcelo Santos: Hi. Good morning to all. Thanks for taking my questions. I have also two. The first question is on the guidance for 2026. In terms of FX neutral revenue growth, it implies some deceleration versus what was presented in 2025. Could you just please comment, what are the sources, the ups and downs that lead to this slight deceleration in the FX neutral? That's the first question. And the second question is just asking about the expansion of distance learning in Peru. I wanted to ask about the market. Are you noticing a tighter discipline in the market, or are you noticing, like, the other players who are launching being more aggressive? Just wanted your comment to see how the market is developing with this new technology. Thank you.

Speaker #4: Could you just please comment what are the sources, the ups and downs that lead to this slight deceleration in the FX neutral? That's the first question.

Speaker #4: And the second question is just asking about the expansion of distance learning in Peru. I wanted to ask about the market. Are you noticing a ticket discipline in the market, or are you noticing the other players who are launching being more aggressive?

Speaker #4: Just wanted your comment to see how the market is developing with this new technology. Thank you.

Eilif Serck-Hanssen: Great. Rick, you want to take guidance and I'll take the online?

Speaker #1: Great. Rick, you want to take guidance, and I'll take the online?

Speaker #3: Sure. Marcelo, good morning. Just to start off, we have shown consistent ability to continue as you know to grow the business in both strong economic times as well as softer macroeconomic times.

Operator: Sure. Marcelo, good morning. Just to start off, you know, we have shown a consistent ability to continue, as you know, to grow the business in both strong economic times as well as softer macroeconomic times, showing the resiliency of our business model and our ability to expand margins. Specific to 2026, in Mexico, as we noted in our opening remarks, the softer macroeconomic conditions are impacting our outlook. And as a reminder, the primary intake last September for Mexico was up 2% reported, 4% same store, or excluding closures, for new enrollments and 4% for total enrollments. The results from that intake carry much of our volume for 2026 in Mexico until we hit the primary intake again in Q3 in the fall.

Rick Buskirk: Sure. Marcelo, good morning. Just to start off, you know, we have shown a consistent ability to continue, as you know, to grow the business in both strong economic times as well as softer macroeconomic times, showing the resiliency of our business model and our ability to expand margins. Specific to 2026, in Mexico, as we noted in our opening remarks, the softer macroeconomic conditions are impacting our outlook. And as a reminder, the primary intake last September for Mexico was up 2% reported, 4% same store, or excluding closures, for new enrollments and 4% for total enrollments. The results from that intake carry much of our volume for 2026 in Mexico until we hit the primary intake again in Q3 in the fall.

Speaker #3: Showing the resiliency of our business model and our ability to expand margins. Specific to 2026, in Mexico, as we noted in our opening remarks, the softer macroeconomic conditions are impacting our outlook.

Speaker #3: And as a reminder, the primary intake last September for Mexico was up 2% reported, 4% same-store excluding closures. For new enrollments and 4% for total enrollments.

Speaker #3: The results from that intake carry much of our volume for 2026 in Mexico until we hit the primary intake again in Q3 in the fall.

Speaker #3: So we do expect macro conditions to be better in the second half of the year following the conclusion of USMCA. That may benefit this year's primary intake, but it happens later in the year and be felt more in 2027.

Operator: So we do expect macro conditions to be better in the second half of the year, following the conclusion of USMCA. That may benefit this year's primary intake, but it happens later in the year and be felt more in 2027. So that's Mexico. In Peru, though the macroeconomic backdrop is stronger, we've been very successful historically at filling up capacity in that market and are more capacity constrained. And as a result, we're addressing that through a series of new campus launches, including one in which we'll launch in March of next year. So those two factors are creating a slight deceleration year-over-year, but we're still very, very encouraged about it. And on top of that, we're expanding, as you saw, margins by 50 basis points.

Rick Buskirk: So we do expect macro conditions to be better in the second half of the year, following the conclusion of USMCA. That may benefit this year's primary intake, but it happens later in the year and be felt more in 2027. So that's Mexico. In Peru, though the macroeconomic backdrop is stronger, we've been very successful historically at filling up capacity in that market and are more capacity constrained. And as a result, we're addressing that through a series of new campus launches, including one in which we'll launch in March of next year. So those two factors are creating a slight deceleration year-over-year, but we're still very, very encouraged about it. And on top of that, we're expanding, as you saw, margins by 50 basis points.

Speaker #3: So that's Mexico. In Peru, though the macroeconomic backdrop is stronger, we've been very successful historically at filling up capacity in that market and are more capacity-constrained.

Speaker #3: And as a result, we're addressing that through a series of new campus launches. Including one in which we'll launch in March of next year.

Speaker #3: So those two factors are creating a slight deceleration year over year, but we're still very, very encouraged about it. And on top of that, we're expanding, as you saw, margins by 50 basis points.

Operator: That 50 basis point margin expansion is including the netting effect of investments in these new campuses, which creates an offset around 25 basis points. So we're absorbing that 25 basis points within the 50 basis points margin expansion. So again, a little deceleration, but we feel great about this business and our ability to grow in good economic times and slower economic times, and that's some more clarity for you. I'll pause there and see if you have any more questions.

Speaker #3: That 50 basis point margin expansion is including the netting effect of investments in these new campuses, which creates an offset of around 25 basis points.

Rick Buskirk: That 50 basis point margin expansion is including the netting effect of investments in these new campuses, which creates an offset around 25 basis points. So we're absorbing that 25 basis points within the 50 basis points margin expansion. So again, a little deceleration, but we feel great about this business and our ability to grow in good economic times and slower economic times, and that's some more clarity for you. I'll pause there and see if you have any more questions.

Speaker #3: So we're absorbing that 25 basis points within the 50 basis points margin expansion. So again, a little deceleration, but we feel great about this business and our ability to grow a good economic times and slower economic times, and that's a more clarity for you.

Speaker #3: I'll pause there and see if you have any more questions.

Eilif Serck-Hanssen: Any questions-

Eilif Serck-Hanssen: Any questions on guidance?

[Analyst] (J.P. Morgan): No, no, it's pretty clear.

Marcelo Santos: No, no, it's pretty clear.

Speaker #4: No, no. It's pretty clear.

Eilif Serck-Hanssen: -on guidance?... Great, great, Marcelo. Your second question was on the online or distance learning in Peru. That is accelerating, you know, really, really well for us. The market is very receptive to the innovative product portfolio that we have launched over the last couple of years. We're growing robustly in that market. And as I think I've mentioned before, it is a product that is designed for the working adult consumer. So it is very distinct and separate for the face-to-face undergraduate programs that we are selling to, you know, young students, high school leavers. And for that reason, there's very little cannibalization between these two product offerings.

Eilif Serck-Hanssen: Great, great, Marcelo. Your second question was on the online or distance learning in Peru. That is accelerating, you know, really, really well for us. The market is very receptive to the innovative product portfolio that we have launched over the last couple of years. We're growing robustly in that market. And as I think I've mentioned before, it is a product that is designed for the working adult consumer. So it is very distinct and separate for the face-to-face undergraduate programs that we are selling to, you know, young students, high school leavers. And for that reason, there's very little cannibalization between these two product offerings.

Speaker #1: Great, Marcelo. Your second question was online or distance learning in Peru. That is accelerating really, really well for us. The market is very receptive.

Speaker #1: To the innovative product portfolio that we have launched over the last couple of years, we're growing robustly in that market. And as I think I've mentioned before, it is a product that is designed for the working adult consumer.

Speaker #1: So, it is very distinct and separate for the face-to-face undergraduate programs that we are selling to young students, high school leavers. And for that reason, there's very little cannibalization between these two product offerings.

Speaker #1: In terms of pricing, we have done our price volume elasticity studies. And so we have been a little bit more cautious in taking pricing increases in the working adult segment in favor of rapid growth in that market.

Eilif Serck-Hanssen: In terms of pricing, we have done our, you know, price volume elasticity studies, and so we have been a little bit more cautious in taking pricing increases in the working adult segment in favor of rapid growth in that market. So ops are, you know, flattish in the online segment, but the growth is very, very robust.

Speaker #1: So ops are flattish. In the online segment, but the growth is very, very robust.

Speaker #4: Okay. Very clear. Thank you both for the answers.

Operator: Okay, very clear. Thank you both for, for the answers.

Marcelo Santos: Okay, very clear. Thank you both for, for the answers.

Speaker #2: Yeah. And our next question will be coming from the line of Lucas Nagano of Morgan Stanley. Your line is open, Lucas.

Adam Morse: Thank you. And our next question will be coming from the line of Lucas Nagano of Morgan Stanley. Your line is open, Lucas.

Operator: Thank you. And our next question will be coming from the line of Lucas Nagano of Morgan Stanley. Your line is open, Lucas.

Operator: Hey, good morning, Eilif, Rick, and Adam. Thanks for taking my questions. The first one is related to the Adjusted EPS guidance. So the question is, if below the EBITDA line, there is any implied change, material change in your assumptions versus 2025, either in capital structure or taxes? And the second question is about the capacity constraint in Peru. To what extent should it affect new enrollments and price and mix this year, based on what you said, these drivers should be addressed next year with the new campuses? Thank you.

Lucas Nagano: Hey, good morning, Eilif, Rick, and Adam. Thanks for taking my questions. The first one is related to the Adjusted EPS guidance. So the question is, if below the EBITDA line, there is any implied change, material change in your assumptions versus 2025, either in capital structure or taxes? And the second question is about the capacity constraint in Peru. To what extent should it affect new enrollments and price and mix this year, based on what you said, these drivers should be addressed next year with the new campuses? Thank you.

Speaker #5: Hey, good morning. I live for Rick and Adam. Thanks for taking my questions up. The first one is related to the adjusted EPS guidance.

Speaker #5: So the question is, if below the EBITDA line, there is any implied change material change in your assumptions versus 2025, either in capital structure or taxes?

Speaker #5: And the second question is, about the capacity-constraining in Peru. To what extent should it affect new enrollments and pricing mix this year based on what you said these drivers should be addressed next year with the new campuses?

Speaker #5: Thank you.

Speaker #3: Yeah, sure. And in terms of our adjusted EPS guidance, we're happy to provide that, number one. It's an important metric for us as we continue to move forward.

Operator: Yeah, sure. And in terms of our adjusted EPS guidance, we're happy to provide that, number one. It's, it's an important metric for us as we continue to move forward as a high-quality company. Relative to last year, I think you'll see a small increase in DNA, as we bring new campuses online. I think you will also see that taxes should be generally in line, slightly improved. And then lastly, you'll see a little bit higher interest income, because of the funding of our new campuses in Peru.

Rick Buskirk: Yeah, sure. And in terms of our adjusted EPS guidance, we're happy to provide that, number one. It's, it's an important metric for us as we continue to move forward as a high-quality company. Relative to last year, I think you'll see a small increase in DNA, as we bring new campuses online. I think you will also see that taxes should be generally in line, slightly improved. And then lastly, you'll see a little bit higher interest income, because of the funding of our new campuses in Peru.

Speaker #3: It's a high-quality company. The relative to last year, I think you'll see a small increase in DNA as we bring new campuses online. I think you will also see that taxes should be generally online, slightly improved.

Speaker #3: And then lastly, you'll see a little bit higher interest income because of the funding of our new campuses in Peru.

Operator: Perfect. Very clear.

Lucas Nagano: Perfect. Very clear.

Speaker #5: Perfect. Very clear.

Adam Morse: As a reminder, to ask a question-

Operator: As a reminder, to ask a question-

Speaker #2: As a reminder to ask a question.

Operator: Oh.

Lucas Nagano: Oh.

Speaker #5: Oh.

Speaker #2: I'm sorry?

Adam Morse: I'm sorry.

Operator: I'm sorry.

Operator: Sorry, I think in your second question was related to-

Rick Buskirk: Sorry, I think in your second question was related to-

Speaker #3: Sorry. I think in your second question, what's related to.

Eilif Serck-Hanssen: Yeah, the second, second question on, yeah, capacity constraints. You know, we are running higher utilization in Mexico than in Peru. So same store has, you know, a little bit more restrictions. It's not, you know, material at this point, but it's one of the reasons why we're adding more capacity with new campus launches in still in Lima for our value brand, as well as adding, you know, more classrooms to existing campuses in Peru.

Speaker #1: Yeah, the second question on capacity constraints. We are running higher utilization in Mexico than in Peru. So same-store has a little bit more restrictions.

Speaker #1: It's not material at this point, but it's one of the reasons why we're adding more capacity with new campus launches still in Lima. For our value brand, as well as adding more classrooms to existing campuses.

Speaker #1: In Peru.

Speaker #3: And Lucas, just to follow on to what Ila said, I think you saw very strong fully online growth last year in Peru. As a result, we had 7% volume growth, 7% revenue growth.

Operator: Lucas, just to follow on to what Eilif said, I think you saw, you know, very strong, fully online growth last year in Peru. As a result, we had 7% volume growth, 7%, 7% revenue growth. If you looked at average enrollments, it was 6%, so it was about 1%, price mix. I think you'll see a big, impact of price mix, as well this year in, in Peru, as we continue to really provide some leadership position in the fully online segment and go after that. That pattern should recur in 2026.

Rick Buskirk: Lucas, just to follow on to what Eilif said, I think you saw, you know, very strong, fully online growth last year in Peru. As a result, we had 7% volume growth, 7%, 7% revenue growth. If you looked at average enrollments, it was 6%, so it was about 1%, price mix. I think you'll see a big, impact of price mix, as well this year in, in Peru, as we continue to really provide some leadership position in the fully online segment and go after that. That pattern should recur in 2026.

Speaker #3: If you looked at average enrollments, it was 6%. So it was about 1% price mix. I think you'll see a big impact of price mix as well this year in Peru as we continue to really provide some leadership position in the fully online segment and go after that.

Speaker #3: That pattern should recur in 2026.

Operator: Okay, very clear. Thank you.

Lucas Nagano: Okay, very clear. Thank you.

Speaker #5: That's a very clear one. Thank you.

Speaker #1: Thanks, Lucas.

Eilif Serck-Hanssen: Thanks, Lucas.

Speaker #2: And our next question. We'll be coming from Eduardo Rezende of UBS. Eduardo, your line is open.

Adam Morse: Our next question will be coming from Eduardo Rezende of UBS. Eduardo, your line is open.

Operator: Our next question will be coming from Eduardo Rezende of UBS. Eduardo, your line is open.

[Analyst] (UBS): Good morning, and thanks for the opportunity. I got just one question from my side. Talking about the softer economic activity expected in Peru this year, especially with discussions regarding USMCA, do you see any risk of this potentially impacting the company's ongoing investment plans in the country? And how do you see tuitions evolving the scenario and your capacity to pass through the costs in Mexico this year? That's all from my side. Thank you.

Eduardo Resende: Good morning, and thanks for the opportunity. I got just one question from my side. Talking about the softer economic activity expected in Peru this year, especially with discussions regarding USMCA, do you see any risk of this potentially impacting the company's ongoing investment plans in the country? And how do you see tuitions evolving the scenario and your capacity to pass through the costs in Mexico this year? That's all from my side. Thank you.

Speaker #5: Good morning. Thanks for the opportunity. I guess just one question from my side. Talking about the softer economic activity, the expected in Peru this year, especially with discussions regarding USMCA, do you see any risk of this potentially impacting the companies' ongoing investment plans in the country?

Speaker #5: And how do you see tuitions involving this scenario and your capacity to pass through the costs in Mexico this year? So that's all from my side.

Speaker #5: Thank you.

Speaker #1: Thanks, Eduardo. So the softer economic conditions in Mexico is really a continuation of what we have seen since the second half of 2024. And it was driven by some uncertainties following the election.

Eilif Serck-Hanssen: Thanks, Eduardo. So the softer economic conditions in Mexico is really a continuation of what we have seen since the second half of 2024. And it was driven by, you know, some uncertainties following the election, the uncertainty around the tariffs and the trade situation between Mexico and the United States. And so that softer GDP production in 2025, it was, you know, below 1%. In 2026, it's expected to be somewhere between, you know, 1.4, 1.5% GDP.

Speaker #1: The uncertainty around tariffs and the trade situation between Mexico and the United States—and so that softer GDP projection in 2025, it was below 1%.

Speaker #1: In 2026, it's expected to be somewhere between 1.4, 1.5 percent GDP. And then the expectations is that post-USMCA, there will be an uptick in direct foreign investment again into Mexico as we saw in 2023.

Eilif Serck-Hanssen: Then the expectations is that post-USMCA, there will be an uptick in direct foreign investment again into Mexico, as we saw in 2023, that is going to then drive GDP growth up into 2 to 3 percentage point range. So how I would describe 2026 is a continuation of 2025, but slightly better. And during 2025, you know, we saw volume production of 3 to 4 percent growth, and we saw pricing consistent with inflation. And you know, it is that kind of momentum that I expect continuing into 2026, with potentially some upside in the second half of 2026, when there's clarity on USMCA and hence the level of you know, private investment in the country.

Speaker #1: That is going to then drive GDP growth up into the 2 to 3 percentage point range. So how I would describe 2026 is a continuation of 2025 or slightly better.

Speaker #1: And during 2025, we saw volume production of 3 to 4 percent growth. And we saw pricing consistent with inflation. And it is that kind of momentum that I expect continuing into 2026 with potentially some upside in the second half of 2026 when there's clarity on USMCA and hence the level of private investment in the country.

[Analyst] (UBS): Super clear. Thank you.

Eduardo Resende: Super clear. Thank you.

Speaker #5: It's very clear. Thank you.

Adam Morse: I am showing no further questions. I thank you for all participating on today's conference call. This concludes today's call. You may now disconnect.

Speaker #2: And I am showing no further questions. I thank you all for participating on today's conference call. This concludes today's call. You may now disconnect.

Operator: I am showing no further questions. I thank you for all participating on today's conference call. This concludes today's call. You may now disconnect.

Operator: Goodbye.

Q4 2025 Laureate Education Inc Earnings Call

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