Core Viewpoint - Laureate Education, Inc. has reported solid operating results for the second quarter of 2025 and is increasing its full-year guidance due to improved foreign currency rates and strong cash flow generation [5][14]. Financial Performance - **Second Quarter 2025 Results**: Revenue was $524.2 million, a 5% increase from Q2 2024. On an organic constant currency basis, revenue increased by 10% [6][7]. Operating income rose to $193.3 million from $166.6 million, while net income decreased to $97.4 million from $128.4 million due to foreign currency exchange losses [6][10]. - **Adjusted EBITDA**: For Q2 2025, adjusted EBITDA was $214.5 million, up from $186.9 million in Q2 2024, reflecting a 15% increase [8][30]. - **Six Months Ended June 30, 2025**: Revenue was $760.3 million, a 2% decrease compared to the same period in 2024. However, on an organic constant currency basis, revenue increased by 6% [10][11]. Operating income was $180.1 million, slightly up from $177.7 million, while net income fell to $77.9 million from $117.5 million [10][11]. Enrollment Metrics - **New Enrollments**: Increased by 7% for the six months ended June 30, 2025, with total enrollments up by 6% compared to the prior year [9][10]. In Peru, new enrollments rose by 8%, while in Mexico, they increased by 6% [9]. - **Total Enrollments**: As of June 30, 2025, total enrollments reached 472,100, up from 444,200 in the previous year [28]. Balance Sheet and Capital Structure - As of June 30, 2025, the company had $135.3 million in cash and cash equivalents, with gross debt of $116.1 million, resulting in net cash of $19.2 million [12][13]. - The company repurchased approximately $71 million of its common stock under a $100 million stock repurchase program, with $27 million remaining for future repurchases [13]. Outlook for Fiscal 2025 - The company has updated its 2025 outlook, expecting revenue in the range of $1,615 million to $1,630 million, reflecting a growth of 3%-4% on an as-reported basis and 6%-7% on an organic constant currency basis [15]. Adjusted EBITDA is now expected to be between $489 million and $496 million, indicating growth of 9%-10% [15]. Total enrollments are anticipated to be between 491,000 and 495,000 students, representing a growth of 4%-5% [15].

```markdown [PART I. - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements, including statements of operations, comprehensive income, balance sheets, and cash flows, along with detailed notes providing context and breakdowns of key financial figures and accounting policies [Consolidated Statements of Operations (Three Months Ended June 30)](index=3&type=section&id=Consolidated%20Statements%20of%20Operations%20-%20Three%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Consolidated Statements of Operations (Three Months Ended June 30) | Metric | 2025 (Thousands) | 2024 (Thousands) | Change (%) | | :--------------------------------------- | :--------------- | :--------------- | :--------- | | Revenues | $524,156 | $499,245 | 5.0% | | Operating income | $193,337 | $166,595 | 16.0% | | Income from continuing operations before income taxes | $166,789 | $191,029 | -12.7% | | Income tax expense | ($69,359) | ($63,072) | -9.9% | | Net income attributable to Laureate Education, Inc. | $95,083 | $128,130 | -25.8% | | Basic and diluted earnings per share | $0.65 | $0.83 | -21.7% | [Consolidated Statements of Operations (Six Months Ended June 30)](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20-%20Six%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2025 (Thousands) | 2024 (Thousands) | Change (%) | | :--------------------------------------- | :--------------- | :--------------- | :--------- | | Revenues | $760,318 | $774,617 | -1.8% | | Operating income | $180,146 | $177,724 | 1.4% | | Income from continuing operations before income taxes | $149,537 | $190,167 | -21.4% | | Income tax expense | ($71,876) | ($72,994) | 1.5% | | Net income attributable to Laureate Education, Inc. | $75,587 | $117,379 | -35.7% | | Basic earnings per share | $0.51 | $0.75 | -32.0% | | Diluted earnings per share | $0.50 | $0.75 | -33.3% | [Consolidated Statements of Comprehensive Income (Three Months Ended June 30)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20-%20Three%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Consolidated Statements of Comprehensive Income (Three Months Ended June 30) | Metric | 2025 (Thousands) | 2024 (Thousands) | Change (%) | | :------------------------------------------------ | :--------------- | :--------------- | :--------- | | Net income | $97,426 | $128,351 | -24.1% | | Foreign currency translation adjustment, net of tax | $73,364 | ($107,546) | nm | | Total other comprehensive income (loss) | $73,364 | ($107,546) | nm | | Comprehensive income | $170,790 | $20,805 | 720.9% | | Comprehensive income attributable to Laureate Education, Inc. | $168,447 | $20,584 | 718.4% | [Consolidated Statements of Comprehensive Income (Six Months Ended June 30)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20-%20Six%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Consolidated Statements of Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (Thousands) | 2024 (Thousands) | Change (%) | | :------------------------------------------------ | :--------------- | :--------------- | :--------- | | Net income | $77,873 | $117,503 | -33.7% | | Foreign currency translation adjustment, net of tax | $82,697 | ($80,663) | nm | | Total other comprehensive income (loss) | $82,697 | ($80,663) | nm | | Comprehensive income | $160,570 | $36,840 | 335.9% | | Comprehensive income attributable to Laureate Education, Inc. | $158,287 | $36,716 | 331.1% | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets%20-%20June%2030%2C%202025%20and%20December%2031%2C%202024) Consolidated Balance Sheets (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | Change (%) | | :--------------------------------------- | :------------------------ | :-------------------------- | :--------- | | **Assets** | | | | | Total current assets | $323,469 | $227,311 | 42.3% | | Property and equipment, net | $546,873 | $514,252 | 6.4% | | Goodwill | $602,163 | $563,404 | 6.9% | | Total assets | $2,035,905 | $1,862,060 | 9.3% | | **Liabilities** | | | | | Total current liabilities | $433,093 | $367,895 | 17.7% | | Total liabilities | $983,156 | $903,517 | 8.8% | | **Stockholders' Equity** | | | | | Total stockholders' equity | $1,051,351 | $957,145 | 9.8% | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20-%20Six%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2025 (Thousands) | 2024 (Thousands) | Change (%) | | :--------------------------------------- | :--------------- | :--------------- | :--------- | | Net cash provided by operating activities | $131,831 | $73,383 | 79.6% | | Net cash used in investing activities | ($17,745) | ($22,584) | 21.4% | | Net cash used in financing activities | ($73,827) | ($8,265) | -794.0% | | Net change in Cash and cash equivalents and Restricted cash | $44,219 | $39,582 | 11.7% | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1. Description of Business](index=10&type=section&id=Note%201.%20Description%20of%20Business) Laureate Education, Inc. provides higher education programs and services through degree-granting institutions in Mexico and Peru, operating as a public benefit corporation listed on the Nasdaq Global Select Market - Laureate Education, Inc. operates higher education programs in Mexico and Peru, offering campus-based and online programs[26](index=26&type=chunk) - The company is domiciled in Delaware as a public benefit corporation, emphasizing its mission to benefit students and society[26](index=26&type=chunk) [Note 2. Revenue](index=10&type=section&id=Note%202.%20Revenue) Revenue primarily consists of tuition and educational services, recognized net of discounts, and is determined using a five-step model. Contract balances, including receivables and deferred revenue, fluctuate with academic and billing cycles - **Revenues** are primarily from tuition and educational services, recognized net of scholarships and discounts[27](index=27&type=chunk) Revenue by Reportable Segment (Three Months Ended June 30) | Segment | 2025 (Thousands) | 2024 (Thousands) | Change (%) | | :-------- | :--------------- | :--------------- | :--------- | | Mexico | $217,369 | $218,582 | -0.6% | | Peru | $306,734 | $280,637 | 9.3% | | Corporate | $53 | $26 | 103.8% | | Total | $524,156 | $499,245 | 5.0% | Revenue by Reportable Segment (Six Months Ended June 30) | Segment | 2025 (Thousands) | 2024 (Thousands) | Change (%) | | :-------- | :--------------- | :--------------- | :--------- | | Mexico | $406,624 | $432,663 | -6.0% | | Peru | $353,590 | $341,882 | 3.4% | | Corporate | $104 | $72 | 44.4% | | Total | $760,318 | $774,617 | -1.8% | - **Accounts receivable** from student contracts increased to **$245,268 thousand** as of June 30, 2025, from **$189,124 thousand** as of December 31, 2024, driven by enrollment cycles[32](index=32&type=chunk) - **Deferred revenue and student deposits** increased to **$84,290 thousand** as of June 30, 2025, from **$64,340 thousand** as of December 31, 2024, due to advance payments for future academic sessions[33](index=33&type=chunk) [Note 3. Assets Held for Sale](index=12&type=section&id=Note%203.%20Assets%20Held%20for%20Sale) The company has classified two K-12 educational programs and several land parcels in Mexico as held for sale, aiming to focus on its core business. These assets and liabilities are recorded at the lower of carrying value or estimated fair value less costs to sell - Two K-12 educational programs and several land parcels in Mexico are classified as held for sale to allow the Mexico segment to focus on its core business[34](index=34&type=chunk) Assets and Liabilities Held for Sale | Category | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :-------------------------- | :------------------------ | :-------------------------- | | Total assets held for sale | $11,667 | $10,974 | | Total liabilities held for sale | $10,556 | $9,669 | [Note 4. Business and Geographic Segment Information](index=12&type=section&id=Note%204.%20Business%20and%20Geographic%20Segment%20Information) Laureate operates in two reportable segments, Mexico and Peru, offering profession-oriented higher education. The segments are evaluated based on Adjusted EBITDA, which is a key performance metric for management and the Board of Directors - Laureate's two reportable segments are Mexico and Peru, providing profession-oriented higher education through campus-based, online, and hybrid courses[35](index=35&type=chunk)[36](index=36&type=chunk) - **Adjusted EBITDA** is the key measure used by the chief operating decision maker to evaluate performance and allocate resources for each segment[40](index=40&type=chunk)[41](index=41&type=chunk) Adjusted EBITDA of Reportable Segments (Three and Six Months Ended June 30) | Segment | Q2 2025 (Thousands) | Q2 2024 (Thousands) | H1 2025 (Thousands) | H1 2024 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Mexico | $57,417 | $48,204 | $110,376 | $108,120 | | Peru | $167,234 | $150,340 | $128,392 | $129,630 | | Total Adjusted EBITDA of reportable segments | $224,651 | $198,544 | $238,768 | $237,750 | Total Assets by Reportable Segment (June 30, 2025 vs. December 31, 2024) | Segment | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :-------- | :------------------------ | :-------------------------- | | Mexico | $1,234,646 | $1,143,053 | | Peru | $659,722 | $567,310 | | Corporate | $141,537 | $151,697 | | Total assets | $2,035,905 | $1,862,060 | [Note 5. Goodwill](index=15&type=section&id=Note%205.%20Goodwill) Goodwill increased from December 31, 2024, to June 30, 2025, primarily due to currency translation adjustments across the Mexico and Peru segments Goodwill Net Carrying Amount (December 31, 2024 to June 30, 2025) | Segment | Balance at Dec 31, 2024 (Thousands) | Currency Translation Adjustments (Thousands) | Balance at Jun 30, 2025 (Thousands) | | :-------- | :---------------------------------- | :----------------------------------------- | :-------------------------------- | | Mexico | $491,066 | $35,757 | $526,823 | | Peru | $72,338 | $3,002 | $75,340 | | Total | $563,404 | $38,759 | $602,163 | [Note 6. Debt](index=15&type=section&id=Note%206.%20Debt) The company's outstanding long-term debt increased, including borrowings under its Senior Secured Credit Facility and finance lease obligations. Laureate was in compliance with all debt covenants as of June 30, 2025 Outstanding Long-Term Debt (June 30, 2025 vs. December 31, 2024) | Debt Type | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :------------------------------------------ | :------------------------ | :-------------------------- | | Senior Secured Credit Facility | $12,500 | $0 | | Other debt (Lines of credit, Notes payable) | $48,573 | $53,750 | | Finance lease obligations and sale-leaseback financings | $55,061 | $48,395 | | Total long-term debt and finance leases | $116,134 | $102,145 | | Long-term debt and finance leases, less current portion | $78,147 | $59,027 | - The **Senior Secured Credit Facility** had an outstanding balance of **$12,500 thousand** as of June 30, 2025, compared to **$0** as of December 31, 2024[47](index=47&type=chunk) - The company was in compliance with all financial maintenance covenants as of June 30, 2025, including the **Consolidated Senior Secured Debt to Consolidated EBITDA ratio**, which did not apply due to low utilization of the revolving credit facility[49](index=49&type=chunk) [Note 7. Commitments and Contingencies](index=16&type=section&id=Note%207.%20Commitments%20and%20Contingencies) Laureate is involved in various legal proceedings and governmental audits, for which management believes adequate defenses or accrued liabilities exist. The company also has recorded liabilities for income tax and non-income tax contingencies, and a bank guarantee for a Peruvian tax assessment - Management believes any judgment or settlement of legal proceedings would not materially impact Laureate's financial position, results of operations, or cash flows[50](index=50&type=chunk) - **Cumulative liabilities for income tax contingencies** were **$130,807 thousand** as of June 30, 2025, down from **$136,473 thousand** as of December 31, 2024[51](index=51&type=chunk) - **Accrued liabilities for civil actions (non-income tax loss contingencies)** were approximately **$12,400 thousand** as of June 30, 2025[52](index=52&type=chunk) - A **bank guarantee** for a Peruvian tax assessment totaled approximately **$7,600 thousand** as of June 30, 2025[54](index=54&type=chunk) [Note 8. Stockholders' Equity](index=17&type=section&id=Note%208.%20Stockholders%27%20Equity) Stockholders' equity increased, influenced by net income and foreign currency translation adjustments, partially offset by significant stock repurchases. The company repurchased shares from both related parties and the open market Changes in Stockholders' Equity (Six Months Ended June 30, 2025) | Metric | Balance at Dec 31, 2024 (Thousands) | Net Income (Thousands) | Stock Repurchases (Thousands) | Foreign Currency Translation Adjustment (Thousands) | Balance at Jun 30, 2025 (Thousands) | | :-------------------------------------- | :---------------------------------- | :--------------------- | :---------------------------- | :-------------------------------------------------- | :-------------------------------- | | Total Laureate Education, Inc. stockholders' equity | $959,549 | $95,083 | ($42,223) (Q1) / ($29,049) (Q2) | $9,336 (Q1) / $73,364 (Q2) | $1,051,472 | - The company repurchased **521 thousand shares** from Snow Phipps Sellers for **$9,101 thousand** on March 13, 2025[56](index=56&type=chunk) - An additional **3,149 thousand shares** were repurchased on the open market for approximately **$61,485 thousand** during the six months ended June 30, 2025, under an existing **$100,000 thousand program**[57](index=57&type=chunk)[58](index=58&type=chunk) - **Share-based compensation expense** for restricted stock unit awards was **$5,944 thousand** for the six months ended June 30, 2025, compared to **$4,296 thousand** in the prior-year period[60](index=60&type=chunk) [Note 9. Income Taxes](index=19&type=section&id=Note%209.%20Income%20Taxes) Income tax expense for the six months ended June 30, 2025, decreased slightly compared to the prior year, influenced by varying statutory tax rates in different countries and the mix of earnings from tax-paying and loss-making entities - **Income tax expense** for the six months ended June 30, 2025, was **$71,876 thousand**, a decrease from **$72,994 thousand** in the prior-year period[62](index=62&type=chunk) - The **tax rate** fluctuates due to changes in the mix of earnings between tax-paying and loss-making entities across multiple countries[62](index=62&type=chunk) [Note 10. Earnings Per Share](index=19&type=section&id=Note%2010.%20Earnings%20Per%20Share) Basic and diluted earnings per share calculations are provided for both continuing and discontinued operations, reflecting the weighted average number of common shares outstanding and the dilutive effect of share-based awards Basic and Diluted EPS (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--------------------------------------- | :--- | :--- | | Income from continuing operations (Basic & Diluted) | $0.65 | $0.83 | | Basic weighted average shares outstanding (Thousands) | 146,122 | 153,847 | | Diluted weighted average shares outstanding (Thousands) | 146,773 | 154,350 | Basic and Diluted EPS (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--------------------------------------- | :--- | :--- | | Income from continuing operations (Basic) | $0.51 | $0.75 | | Income from continuing operations (Diluted) | $0.50 | $0.75 | | Basic weighted average shares outstanding (Thousands) | 149,081 | 155,432 | | Diluted weighted average shares outstanding (Thousands) | 149,754 | 155,950 | [Note 11. Related Party Transactions](index=20&type=section&id=Note%2011.%20Related%20Party%20Transactions) The company repurchased 521 thousand shares of its common stock from the Snow Phipps Sellers, a related party, for $9,101 thousand, as part of its existing share repurchase program - On March 13, 2025, Laureate purchased **521 thousand shares** of common stock from Snow Phipps Sellers for **$17.47 per share**, totaling **$9,101 thousand**[66](index=66&type=chunk) - This related party transaction was approved by the Audit and Risk Committee and was part of the company's **$100,000 thousand share repurchase program**[66](index=66&type=chunk) [Note 12. Legal and Regulatory Matters](index=20&type=section&id=Note%2012.%20Legal%20and%20Regulatory%20Matters) The company is subject to various legal and regulatory matters in its operating jurisdictions, but management does not expect any material adverse impact on its financial position or results of operations. There have been no material changes to the regulatory environment since the 2024 Form 10-K - Management believes that any judgment or settlement of legal proceedings would not have a material impact on Laureate's financial position, results of operations, or cash flows[67](index=67&type=chunk) - There have been no material changes to the laws and regulations affecting the company's higher education institutions since the 2024 Form 10-K[68](index=68&type=chunk) [Note 13. Supplemental Cash Flow Information](index=21&type=section&id=Note%2013.%20Supplemental%20Cash%20Flow%20Information) This note provides a reconciliation of cash, cash equivalents, and restricted cash, highlighting that restricted cash is not immediately available for current operations Reconciliation of Cash, Cash Equivalents and Restricted Cash | Metric | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | December 31, 2024 (Thousands) | | :-------------------------------------------------------------------------------- | :------------------------ | :------------------------ | :-------------------------- | | Cash and cash equivalents | $135,348 | $128,838 | $91,350 | | Restricted cash | $6,725 | $7,641 | $6,504 | | Total Cash and cash equivalents and Restricted cash shown in the Consolidated Statements of Cash Flows | $142,073 | $136,479 | $97,854 | - **Restricted cash**, totaling **$6,725 thousand** as of June 30, 2025, is not immediately available for use in current operations[69](index=69&type=chunk) [Note 14. Subsequent Events](index=21&type=section&id=Note%2014.%20Subsequent%20Events) The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, but the company does not expect it to have a material impact on its consolidated financial statements - The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, with provisions effective from 2025 to 2027[70](index=70&type=chunk) - The company is assessing the OBBBA but does not currently expect a material impact on its consolidated financial statements[70](index=70&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, and cash flows, including an overview of the business, segment performance, liquidity, capital resources, and critical accounting policies [Forward-Looking Statements](index=22&type=section&id=Forward-Looking%20Statements) This section contains a cautionary statement regarding forward-looking statements, outlining various risks and uncertainties that could cause actual results to differ materially from expectations, including operational, economic, regulatory, and market-related factors - Forward-looking statements are subject to risks and uncertainties that may change at any time, potentially causing actual results to differ materially from expectations[71](index=71&type=chunk) - Key risk factors include complex business, political, legal, regulatory, tax, and economic risks in Mexico and Peru, ability to maintain and increase tuition/enrollment, managing business growth, maintaining brand value, and **foreign currency fluctuations**[71](index=71&type=chunk) [Introduction](index=23&type=section&id=Introduction) This introduction outlines the structure of the Management's Discussion and Analysis (MD&A) section, which aims to help readers understand Laureate Education, Inc.'s results of operations, financial condition, and cash flows - The MD&A is structured into sections: Overview, Results of Operations, Liquidity and Capital Resources, Critical Accounting Policies and Estimates, and Recently Adopted Accounting Standards[77](index=77&type=chunk) [Overview](index=23&type=section&id=Overview) This section provides a high-level view of Laureate's business, its operational segments in Mexico and Peru, the challenges of international operations, the regulatory environment, key business metrics like enrollment, and the principal components of its income statement, along with factors affecting comparability [Our Business](index=23&type=section&id=Our%20Business) Laureate operates five degree-granting higher education institutions in Mexico and Peru, serving approximately 472,100 students, capitalizing on the significant demand for affordable, quality higher education in these markets - Laureate operates five institutions in Mexico and Peru, with approximately **472,100 students**[74](index=74&type=chunk)[79](index=79&type=chunk) - The company targets the 18- to 24-year-old demographic, focusing on high-quality, outcome-focused education to meet growing demand in its markets[75](index=75&type=chunk) [Our Segments](index=23&type=section&id=Our%20Segments) The Mexico and Peru segments offer profession-oriented undergraduate and graduate degrees through campus-based, online, and hybrid models, competing on price, quality, reputation, and location in markets with high demand for higher education - Mexico and Peru segments provide profession-oriented fields of study, utilizing campus-based, online, and hybrid delivery models[75](index=75&type=chunk) - In Mexico, Laureate owns two nationally licensed institutions with over **30 campuses**, while in Peru, it owns three institutions with **20 campuses**[83](index=83&type=chunk) - **Revenues** are primarily from private pay sources, as there are no material government-sponsored loan programs in Mexico or Peru[75](index=75&type=chunk) [Corporate](index=25&type=section&id=Corporate) The Corporate segment is a non-operating unit that supports global operations by establishing policies, implementing strategic initiatives, and providing financial, HR, IT, legal, and tax compliance services - Corporate provides support services such as financial, human resource, information technology, insurance, legal, and tax compliance[78](index=78&type=chunk) [Challenges](index=25&type=section&id=Challenges) Operating outside the United States exposes Laureate to complex international risks, including foreign currency fluctuations, political instability, and regulatory changes. The company plans organic growth through new programs, expanded demographics, and increased capacity - Operations are subject to complex business, economic, legal, regulatory, political, tax, and **foreign currency risks**[80](index=80&type=chunk) - Organic growth strategy includes adding new programs, expanding target student demographics, and increasing capacity at existing and new campus locations[80](index=80&type=chunk) [Regulatory Environment and Other Matters](index=25&type=section&id=Regulatory%20Environment%20and%20Other%20Matters) The company's business is subject to varying and evolving local laws and regulations, which could materially affect its operations, financial condition, and cash flows - The business is subject to uncertain and varying laws and regulations, with potential material adverse effects from future changes[81](index=81&type=chunk) [Key Business Metric: Enrollment](index=25&type=section&id=Key%20Business%20Metric%3A%20Enrollment) Enrollment is Laureate's most important non-financial metric and lead revenue indicator, influenced by continuing and new student enrollments, offset by graduations and attrition. The company implements programs to minimize attrition - **Enrollment** is defined as the number of students registered in a course on the last day of the reporting period and is the lead revenue indicator[82](index=82&type=chunk) - **Enrollment** is affected by continuing students, new students, acquisitions, graduations, attrition, and dispositions[82](index=82&type=chunk) - The company implements programs like remedial education, mentoring, counseling, and student financing to minimize attrition[84](index=84&type=chunk) [Principal Components of Income Statement](index=26&type=section&id=Principal%20Components%20of%20Income%20Statement) Revenue is primarily from tuition and educational services, driven by enrollment and pricing. Direct costs are largely variable with enrollment, while general and administrative expenses cover corporate support functions - **Revenue** is mainly from tuition and educational services, with main drivers being student enrollment and price[86](index=86&type=chunk) - **Direct costs** include labor, operating costs, depreciation, amortization, rent, utilities, bad debt, and marketing, with a significant portion being variable[87](index=87&type=chunk) - **General and administrative expenses** cover corporate departments like executive management, finance, legal, and business development[88](index=88&type=chunk) [Factors Affecting Comparability](index=26&type=section&id=Factors%20Affecting%20Comparability) Comparability of financial results is affected by foreign exchange rate fluctuations, the seasonality of academic calendars, and changes in the consolidated income tax provision due to the mix of earnings across different tax jurisdictions - **Foreign currency movements**, particularly the **Mexican peso** and **Peruvian nuevo sol** against the **USD**, impact reported revenues and expenses[89](index=89&type=chunk) - The business experiences seasonality, with stronger revenue in the second and fourth quarters due to academic calendars, while operating expenses do not fully correlate[90](index=90&type=chunk) - **Income tax expense** fluctuates due to the mix of earnings between tax-paying and loss-making entities in various countries[91](index=91&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section details the consolidated and segment-specific financial performance for the three and six months ended June 30, 2025, compared to the prior year, including revenue, costs, operating income, net income, and a reconciliation of Adjusted EBITDA [Summary Comparison of Consolidated Results (Three Months Ended June 30)](index=28&type=section&id=Summary%20Comparison%20of%20Consolidated%20Results%20(Three%20Months)) For the three months ended June 30, 2025, consolidated revenues increased by 5% due to higher organic enrollment and favorable academic calendar timing, but net income attributable to Laureate Education, Inc. decreased by 26% primarily due to foreign currency exchange losses Consolidated Results (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :--------------------------------------- | :-------------- | :-------------- | :--------- | | Revenues | $524.2 | $499.2 | 5% | | Direct costs | $317.4 | $319.0 | 1% | | General and administrative expenses | $13.5 | $13.7 | 1% | | Operating income | $193.3 | $166.6 | 16% | | Income from continuing operations before income taxes | $166.8 | $191.0 | -13% | | Net income attributable to Laureate Education, Inc. | $95.1 | $128.1 | -26% | - **Revenues** increased by **$25.0 million**, driven by **$32.1 million** from higher **organic enrollment** and **$17.0 million** from product mix, pricing, and timing (including **$8 million** from academic calendar timing in Mexico), partially offset by a **$24.2 million** decrease from **foreign currency exchange rates**[95](index=95&type=chunk) - Other non-operating (expense) income changed by **$52.4 million** to an expense of **$(24.8) million**, primarily due to a **foreign currency exchange loss** in 2025 compared to a gain in 2024[98](index=98&type=chunk) [Summary Comparison of Consolidated Results (Six Months Ended June 30)](index=29&type=section&id=Summary%20Comparison%20of%20Consolidated%20Results%20(Six%20Months)) For the six months ended June 30, 2025, consolidated revenues decreased by 2% primarily due to unfavorable foreign currency exchange rates, and net income attributable to Laureate Education, Inc. decreased by 36% due to foreign currency losses and prior-period gains Consolidated Results (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :--------------------------------------- | :-------------- | :-------------- | :--------- | | Revenues | $760.3 | $774.6 | -2% | | Direct costs | $555.7 | $573.0 | 3% | | General and administrative expenses | $24.5 | $23.9 | -3% | | Operating income | $180.1 | $177.7 | 1% | | Income from continuing operations before income taxes | $149.5 | $190.2 | -21% | | Net income attributable to Laureate Education, Inc. | $75.6 | $117.4 | -36% | - **Revenues** decreased by **$14.3 million**, primarily due to a **$61.8 million** decrease from **foreign currency exchange rates**, partially offset by a **$46.1 million** increase from higher **organic enrollment**[102](index=102&type=chunk) - Other non-operating (expense) income changed by **$46.3 million** to an expense of **$(28.0) million**, mainly due to a **foreign currency exchange loss** in 2025 compared to a gain in 2024, and a prior-year loss on disposal of subsidiaries[105](index=105&type=chunk) [Non-GAAP Financial Measure: Adjusted EBITDA](index=30&type=section&id=Non-GAAP%20Financial%20Measure%3A%20Adjusted%20EBITDA) Adjusted EBITDA is a key non-GAAP measure used by management to evaluate core operating performance, excluding certain non-cash and non-recurring expenses. It increased by 15% for the three months and 1% for the six months ended June 30, 2025 - **Adjusted EBITDA** is defined as net income (loss) before discontinued operations, equity in affiliates, income tax, disposal gains/losses, foreign currency, other income/expense, interest, and debt extinguishment, plus depreciation, amortization, share-based compensation, and impairment losses[107](index=107&type=chunk) Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :--------------------------------------- | :-------------- | :-------------- | :--------- | | Net income | $97.4 | $128.4 | -24% | | Income from continuing operations before income taxes | $166.8 | $191.0 | -13% | | Operating income | $193.3 | $166.6 | 16% | | Depreciation and amortization | $17.7 | $17.4 | -2% | | Share-based compensation expense | $3.5 | $2.9 | -21% | | Adjusted EBITDA | $214.5 | $186.9 | 15% | Adjusted EBITDA Reconciliation (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :--------------------------------------- | :-------------- | :-------------- | :--------- | | Net income | $77.9 | $117.5 | -34% | | Income from continuing operations before income taxes | $149.5 | $190.2 | -21% | | Operating income | $180.1 | $177.7 | 1% | | Depreciation and amortization | $33.7 | $35.5 | 5% | | Share-based compensation expense | $5.9 | $4.3 | -37% | | Adjusted EBITDA | $219.8 | $217.5 | 1% | [Segment Results](index=32&type=section&id=Segment%20Results) This section provides a detailed comparison of revenues and Adjusted EBITDA for the Mexico and Peru segments, highlighting the impact of organic enrollment, pricing, academic calendar timing, and foreign exchange rates on their performance Segment Revenues and Adjusted EBITDA (Three Months Ended June 30) | Segment | Revenues 2025 (Millions) | Revenues 2024 (Millions) | Adj. EBITDA 2025 (Millions) | Adj. EBITDA 2024 (Millions) | | :-------- | :----------------------- | :----------------------- | :-------------------------- | :-------------------------- | | Mexico | $217.4 | $218.6 | $57.4 | $48.2 | | Peru | $306.7 | $280.6 | $167.2 | $150.3 | | Corporate | $0.1 | $0.0 | ($10.2) | ($11.6) | | Consolidated Total | $524.2 | $499.2 | $214.5 | $186.9 | Segment Revenues and Adjusted EBITDA (Six Months Ended June 30) | Segment | Revenues 2025 (Millions) | Revenues 2024 (Millions) | Adj. EBITDA 2025 (Millions) | Adj. EBITDA 2024 (Millions) | | :-------- | :----------------------- | :----------------------- | :-------------------------- | :-------------------------- | | Mexico | $406.6 | $432.7 | $110.4 | $108.1 | | Peru | $353.6 | $341.9 | $128.4 | $129.6 | | Corporate | $0.1 | $0.1 | ($18.9) | ($20.2) | | Consolidated Total | $760.3 | $774.6 | $219.8 | $217.5 | [Mexico Financial Overview (Three Months Ended June 30)](index=33&type=section&id=Mexico%20Financial%20Overview%20(Three%20Months)) Mexico's revenues decreased slightly by 1% for the three months ended June 30, 2025, primarily due to the weakening Mexican peso, but Adjusted EBITDA increased by 19% driven by organic constant currency growth and favorable academic calendar timing - Mexico segment **revenues** decreased by **$1.2 million** (**1%**) for Q2 2025, unfavorably affected by the weakening **Mexican peso** against the **USD**[114](index=114&type=chunk)[117](index=117&type=chunk) - On an **organic constant currency basis**, Mexico's revenue increased by **13%**, favorably impacted by approximately **$8 million** from intra-year academic calendar timing[117](index=117&type=chunk) - **Adjusted EBITDA** for Mexico increased by **$9.2 million** (**19%**), with a **37%** increase on an **organic constant currency basis**, favorably affected by academic calendar timing[115](index=115&type=chunk) [Mexico Financial Overview (Six Months Ended June 30)](index=34&type=section&id=Mexico%20Financial%20Overview%20(Six%20Months)) For the six months ended June 30, 2025, Mexico's revenues decreased by 6% due to the weakening Mexican peso, but Adjusted EBITDA increased by 2% driven by organic revenue growth - Mexico segment **revenues** decreased by **$26.1 million** (**6%**) for H1 2025, unfavorably affected by the weakening **Mexican peso** against the **USD**[118](index=118&type=chunk)[123](index=123&type=chunk) - On an **organic constant currency basis**, Mexico's revenue increased by **10%** for H1 2025[123](index=123&type=chunk) - **Adjusted EBITDA** for Mexico increased by **$2.3 million** (**2%**), with a **20%** increase on an **organic constant currency basis**[119](index=119&type=chunk) [Peru Financial Overview (Three Months Ended June 30)](index=34&type=section&id=Peru%20Financial%20Overview%20(Three%20Months)) Peru's revenues increased by 9% for the three months ended June 30, 2025, and Adjusted EBITDA increased by 11%, primarily driven by higher revenues and a 9% increase on an organic constant currency basis - Peru segment **revenues** increased by **$26.1 million** (**9%**) for Q2 2025[124](index=124&type=chunk) - **Adjusted EBITDA** for Peru increased by **$16.9 million** (**11%**), primarily due to higher revenues, with a **9%** increase on an **organic constant currency basis**[125](index=125&type=chunk) - On an **organic constant currency basis**, Peru's **revenues** increased by **7%** for Q2 2025[130](index=130&type=chunk) [Peru Financial Overview (Six Months Ended June 30)](index=35&type=section&id=Peru%20Financial%20Overview%20(Six%20Months)) For the six months ended June 30, 2025, Peru's revenues increased by 3%, but Adjusted EBITDA decreased by 1% due to unfavorable academic calendar timing, resulting in a 3% decrease on an organic constant currency basis - Peru segment **revenues** increased by **$11.7 million** (**3%**) for H1 2025[126](index=126&type=chunk) - **Adjusted EBITDA** for Peru decreased by **$1.2 million** (**1%**), unfavorably affected by intra-year academic calendar timing, leading to a **3%** decrease on an **organic constant currency basis**[127](index=127&type=chunk) - On an **organic constant currency basis**, Peru's **revenues** increased by **1%** for H1 2025, unfavorably affected by approximately **$18 million** from later semester start dates[131](index=131&type=chunk) [Corporate Results](index=35&type=section&id=Corporate%20Results) Corporate Adjusted EBITDA improved for both the three and six months ended June 30, 2025, reflecting a decrease in corporate expenses Corporate Revenues and Adjusted EBITDA (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :-------- | :-------------- | :-------------- | :--------- | | Revenues | $0.1 | $0.0 | nm | | Expenses | $10.3 | $11.6 | 11% | | Adjusted EBITDA | ($10.2) | ($11.6) | 12% | Corporate Revenues and Adjusted EBITDA (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :-------- | :-------------- | :-------------- | :--------- | | Revenues | $0.1 | $0.1 | 0% | | Expenses | $19.0 | $20.3 | 6% | | Adjusted EBITDA | ($18.9) | ($20.2) | 6% | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses Laureate's liquidity management, including its primary cash sources from operations, secondary liquidity from cash and a revolving credit facility, and various liquidity requirements such as debt service, capital expenditures, and share repurchases [Liquidity Sources](index=36&type=section&id=Liquidity%20Sources) Laureate's primary liquidity source is cash flow from operations, mainly tuition revenue from private pay sources in Mexico and Peru. Secondary liquidity comes from cash and cash equivalents ($135.3 million) and a $155.0 million revolving credit facility, of which $12.5 million was borrowed - Primary source of cash is revenue from tuition, predominantly from private pay sources in Mexico and Peru[134](index=134&type=chunk) - Secondary liquidity includes **$135.3 million** in **cash and cash equivalents** as of June 30, 2025[135](index=135&type=chunk) - The company has a **$155.0 million revolving credit facility**, with **$12.5 million** borrowed as of June 30, 2025[135](index=135&type=chunk) [Liquidity Restrictions](index=36&type=section&id=Liquidity%20Restrictions) Liquidity is affected by restricted cash balances, which totaled $6.7 million as of June 30, 2025, primarily held for a supplemental employment retention agreement - **Restricted cash** balances totaled **$6.7 million** as of June 30, 2025, mainly for a supplemental employment retention agreement[137](index=137&type=chunk) [Indefinite Reinvestment of Historical Foreign Earnings](index=36&type=section&id=Indefinite%20Reinvestment%20of%20Historical%20Foreign%20Earnings) Laureate's policy is to indefinitely reinvest undistributed historical earnings of foreign operations outside the United States, with a significant portion of cash and cash equivalents held by foreign subsidiaries - **Undistributed historical earnings of foreign operations** are deemed indefinitely reinvested outside the United States[138](index=138&type=chunk) - **$129.5 million** of the total **$135.3 million cash and cash equivalents** were held by foreign subsidiaries as of June 30, 2025[138](index=138&type=chunk) [Liquidity Requirements](index=37&type=section&id=Liquidity%20Requirements) The company's liquidity requirements include funding for debt service, operating lease obligations, deferred compensation, working capital, operating expenses, capital expenditures, stock repurchases, and business development activities - **Liquidity requirements** include debt service, operating lease obligations, deferred compensation, working capital, operating expenses, capital expenditures, **stock repurchases**, and business development[139](index=139&type=chunk) [Debt](index=37&type=section&id=Debt) As of June 30, 2025, Laureate's debt obligations totaled $116.1 million, comprising borrowings under the Senior Secured Credit Facility, other debt, and finance lease obligations - Total **debt obligations** were **$116.1 million** as of June 30, 2025, including **$12.5 million** from the **Senior Secured Credit Facility**, **$48.6 million** in other debt, and **$55.1 million** in finance lease obligations[140](index=140&type=chunk) [Covenants](index=37&type=section&id=Covenants) The company was in compliance with all debt covenants as of June 30, 2025, including the Consolidated Senior Secured Debt to Consolidated EBITDA ratio, which was not applicable due to low utilization of the revolving credit facility - Laureate was in compliance with all **debt covenants** as of June 30, 2025[141](index=141&type=chunk) - The **Consolidated Senior Secured Debt to Consolidated EBITDA ratio** covenant did not apply as less than **25%** of the **revolving credit facility** was utilized[141](index=141&type=chunk) [Leases](index=37&type=section&id=Leases) The present value of operating lease liabilities for the company's facilities increased to $334.4 million as of June 30, 2025 - The present value of **operating lease liabilities** was **$334.4 million** as of June 30, 2025, up from **$327.1 million** as of December 31, 2024[142](index=142&type=chunk) [Capital Expenditures](index=37&type=section&id=Capital%20Expenditures) Capital expenditures decreased to $17.9 million for the six months ended June 30, 2025, primarily due to a prior-year land purchase. These expenditures support enrollment growth, new programs, and facility maintenance, funded by cash flow from operations and external financing - **Total capital expenditures** were **$17.9 million** for the six months ended June 30, 2025, a decrease from **$26.6 million** in the prior-year period[144](index=144&type=chunk) - The decrease was mainly due to the purchase of a parcel of land for a new campus in the 2024 fiscal period[144](index=144&type=chunk) - **Capital expenditures** are funded through **cash flow from operations** and external financing, supporting capacity expansion, new programs, and information technology[143](index=143&type=chunk) [Share Repurchase Programs](index=37&type=section&id=Share%20Repurchase%20Programs) The company has an ongoing $100 million stock repurchase

[Executive Summary & Highlights](index=1&type=section&id=Executive_Summary_Highlights) [Second Quarter 2025 Highlights](index=1&type=section&id=Second_Quarter_2025_Highlights) Laureate Education reported a 5% increase in reported revenue to $524.2 million for Q2 2025, with organic constant currency revenue up 10%, operating income rose to $193.3 million, and Adjusted EBITDA increased to $214.5 million, while net income decreased to $97.4 million due to foreign currency exchange losses, with new enrollments growing by 7% and total enrollments by 6% Second Quarter 2025 Key Financial Highlights | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Reported Change | Organic Constant Currency Change | | :------------------ | :--- | :--- | :--- | :--- | | Revenue | 524.2 | 499.2 | 5% | 10% | | Operating Income | 193.3 | 166.6 | - | - | | Net Income | 97.4 | 128.4 | - | - | | Adjusted EBITDA | 214.5 | 186.9 | - | - | - New enrollments increased **7%** and total enrollments increased **6%** in Q2 2025[5](index=5&type=chunk) - Net income decreased due to a loss on foreign currency exchange during Q2 2025 compared to a gain in Q2 2024[5](index=5&type=chunk) [Six Months Ended June 30, 2025 Highlights](index=1&type=section&id=Six_Months_Ended_June_30%2C_2025_Highlights) For the first six months of 2025, reported revenue decreased 2% to $760.3 million, but increased 6% on an organic constant currency basis, operating income slightly increased to $180.1 million, and Adjusted EBITDA was $219.8 million, while net income decreased to $77.9 million, primarily due to foreign currency exchange losses, with new enrollments increasing 7% and total enrollments by 6% Six Months Ended June 30, 2025 Key Financial Highlights | Metric | H1 2025 ($M) | H1 2024 ($M) | Reported Change | Organic Constant Currency Change | | :------------------ | :--- | :--- | :--- | :--- | | Revenue | 760.3 | 774.6 | (2)% | 6% | | Operating Income | 180.1 | 177.7 | - | - | | Net Income | 77.9 | 117.5 | - | - | | Adjusted EBITDA | 219.8 | 217.5 | - | - | - New enrollments increased **7%** and total enrollments increased **6%** for the six months ended June 30, 2025[5](index=5&type=chunk) - Net income decreased due to a loss on foreign currency exchange during the six months ended June 30, 2025 compared to a gain in the prior-year period[5](index=5&type=chunk) [CEO Commentary](index=2&type=section&id=CEO_Commentary) CEO Eilif Serck-Hanssen expressed satisfaction with solid Q2 operating results and announced an increase in full-year guidance due to improved foreign currency rates, highlighting the company's progress on strategic priorities, strong balance sheet, robust cash flow generation, and commitment to growth initiatives and shareholder returns - Solid operating results for Q2 2025 led to an increase in full-year outlook due to improved foreign currency rates[6](index=6&type=chunk) - Company remains on track with strategic priorities, including opening two new campuses in September[6](index=6&type=chunk) - Strong balance sheet and cash flow generation support growth initiatives and return of excess capital to shareholders[6](index=6&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed_Financial_Performance) [Second Quarter 2025 Financial Performance](index=2&type=section&id=Second_Quarter_2025_Financial_Performance) Laureate's Q2 2025 revenue increased 5% reported (10% organic constant currency) to $524.2 million, with an $8 million favorable impact from academic calendar timing, operating income grew by $26.7 million to $193.3 million, net income decreased by $31.0 million to $97.4 million, primarily due to a foreign currency exchange loss compared to a gain in the prior year, Adjusted EBITDA increased by $27.6 million to $214.5 million, favorably affected by $7 million from academic calendar timing, and basic and diluted EPS were $0.65 Second Quarter 2025 Financial Performance | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change ($M) | | :------------------ | :--- | :--- | :--- | | Revenue (Reported) | 524.2 | 499.2 | 25.0 | | Operating Income | 193.3 | 166.6 | 26.7 | | Net Income | 97.4 | 128.4 | (31.0) | | Adjusted EBITDA | 214.5 | 186.9 | 27.6 | | Basic & Diluted EPS | 0.65 | 0.83 | (0.18) | - The decrease in net income was attributable to a loss on foreign currency exchange during the second quarter of 2025 compared to a gain during the second quarter of 2024, mainly related to intercompany loan arrangements[7](index=7&type=chunk) - Revenue and Adjusted EBITDA were favorably affected by approximately **$8 million** and **$7 million**, respectively, of intra-year academic calendar timing[5](index=5&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) [Six Months Ended June 30, 2025 Financial Performance](index=2&type=section&id=Six_Months_Ended_June_30%2C_2025_Financial_Performance) For the six months ended June 30, 2025, reported revenue decreased 2% to $760.3 million (6% increase on organic constant currency basis), unfavorably affected by $18 million due to later semester start dates, operating income slightly increased to $180.1 million, net income decreased by $39.6 million to $77.9 million, primarily due to foreign currency exchange losses, Adjusted EBITDA was $219.8 million, unfavorably affected by $16 million from academic calendar timing, new enrollments increased 7% overall, with Peru up 8% and Mexico up 6%, total enrollments increased 6% overall, with Peru up 6% and Mexico up 7%, and basic and diluted EPS were $0.51 and $0.50, respectively Six Months Ended June 30, 2025 Financial Performance | Metric | H1 2025 ($M) | H1 2024 ($M) | Change ($M) | | :------------------ | :--- | :--- | :--- | | Revenue (Reported) | 760.3 | 774.6 | (14.3) | | Operating Income | 180.1 | 177.7 | 2.4 | | Net Income | 77.9 | 117.5 | (39.6) | | Adjusted EBITDA | 219.8 | 217.5 | 2.3 | | Basic EPS | 0.51 | 0.75 | (0.24) | | Diluted EPS | 0.50 | 0.75 | (0.25) | - The decrease in net income was attributable to a loss on foreign currency exchange during the six months ended June 30, 2025 compared to a gain during the six months ended June 30, 2024, mainly related to intercompany loan arrangements[10](index=10&type=chunk) - Revenue and Adjusted EBITDA were unfavorably affected by approximately **$18 million** and **$16 million**, respectively, of intra-year academic calendar timing attributable to later semester start dates in 2025 as compared to 2024[5](index=5&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) H1 2025 Enrollment Growth by Region | Metric | Mexico | Peru | Laureate | | :----- | :----- | :--- | :------- | | New Enrollments Growth | 6% | 8% | 7% | | Total Enrollments Growth | 7% | 6% | 6% | [Balance Sheet and Capital Structure](index=3&type=section&id=Balance_Sheet_and_Capital_Structure) As of June 30, 2025, Laureate maintained a strong balance sheet with $135.3 million in cash and cash equivalents and gross debt of $116.1 million, resulting in net cash of $19.2 million, the company repurchased approximately $71 million of common stock during the first six months of 2025, with $27 million remaining under the existing authorization, and total shares outstanding were 147.4 million Balance Sheet Snapshot (June 30, 2025) | Metric | Amount ($ millions) | | :----- | :------------------ | | Cash and cash equivalents | 135.3 | | Gross debt | 116.1 | | Net cash | 19.2 | - Laureate repurchased approximately **$71 million** of its common stock during the six months ended June 30, 2025, with approximately **$27 million** of share repurchase authorization remaining[13](index=13&type=chunk) - As of June 30, 2025, Laureate had **147.4 million** total shares outstanding[14](index=14&type=chunk) [Outlook and Guidance](index=3&type=section&id=Outlook_and_Guidance) [Fiscal Year 2025 Guidance Update](index=3&type=section&id=Fiscal_Year_2025_Guidance_Update) Laureate updated its full-year 2025 outlook, increasing revenue guidance by approximately $55 million and Adjusted EBITDA guidance by approximately $16 million, primarily due to more favorable foreign currency rates, with total enrollments expected to grow 4%-5%, revenues 3%-4% reported (6%-7% organic constant currency), and Adjusted EBITDA 9%-10% reported (11%-13% organic constant currency) - Full-year 2025 guidance increased due to more favorable foreign currency rates, with revenue guidance up **$55 million** and Adjusted EBITDA guidance up **$16 million**[15](index=15&type=chunk) Updated Full-Year 2025 Guidance | Metric | Range | Growth vs 2024 (Reported) | Growth vs 2024 (Organic Constant Currency) | | :------------------ | :-------------------------- | :-------------------------------- | :----------------------------------------- | | Total Enrollments | 491,000 to 495,000 students | 4%-5% | - | | Revenues | $1,615 million to $1,630 million | 3%-4% | 6%-7% (7%-8% excluding campus consolidations) | | Adjusted EBITDA | $489 million to $496 million | 9%-10% | 11%-13% | [Corporate Information](index=4&type=section&id=Corporate_Information) [Conference Call](index=4&type=section&id=Conference_Call) Laureate hosted an earnings conference call on July 31, 2025, at 8:30 am ET, with interested parties able to register to receive dial-in information, and a webcast replay, press release, and slides available on the Investor Relations section of Laureate's website - Earnings conference call held on July 31, 2025, at 8:30 am ET[19](index=19&type=chunk) - Webcast, replays, press release, and related slides are available on Laureate's Investor Relations website (www.laureate.net)[19](index=19&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking_Statements) This section serves as a cautionary note, stating that the press release contains forward-looking statements regarding future events and results, which are subject to risks and uncertainties, actual results may differ materially from these statements, and the company does not undertake to publicly update or revise them, except as required by law - Press release includes forward-looking statements concerning future events or results, identifiable by words such as 'believes,' 'expects,' 'plans,' 'estimates,' or 'anticipates'[20](index=20&type=chunk) - Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from expectations[20](index=20&type=chunk) - The company does not undertake to publicly update or revise forward-looking statements, except as required by law[20](index=20&type=chunk) [Presentation of Non-GAAP Measures](index=4&type=section&id=Presentation_of_Non-GAAP_Measures) Laureate uses several non-GAAP financial measures, including Adjusted EBITDA, Adjusted net income, Adjusted EPS, total cash and cash equivalents net of debt (net cash), Free Cash Flow, and Adjusted EBITDA to Unlevered Free Cash Flow Conversion, which are provided to offer better visibility into core operating performance, trends, and underlying earnings, as they exclude items not indicative of core results - Laureate provides non-GAAP measures (Adjusted EBITDA, Adjusted net income, Adjusted EPS, net cash, Free Cash Flow, Adjusted EBITDA to Unlevered Free Cash Flow Conversion) to help understand and evaluate core operating performance and trends[21](index=21&type=chunk)[27](index=27&type=chunk) - Adjusted EBITDA consists of net income (loss) before various non-operating and non-cash items, providing a useful measure for period-to-period comparisons of core business[22](index=22&type=chunk)[23](index=23&type=chunk) - Adjusted net income and Adjusted EPS provide insight into earnings from core operations by excluding items like discrete tax items, foreign currency exchange, and loss on disposal of subsidiaries[24](index=24&type=chunk) [About Laureate Education, Inc.](index=5&type=section&id=About_Laureate_Education%2C_Inc.) Laureate Education, Inc. operates five higher education institutions in Mexico and Peru, serving over 470,000 students, focusing on academic quality, innovation, market-leading employability outcomes, and increasing access to higher education - Operates **five** higher education institutions across Mexico and Peru[28](index=28&type=chunk) - Enrolls more than **470,000** students in high-quality undergraduate, graduate, and specialized degree programs through campus-based and online learning[28](index=28&type=chunk) - Committed to academic quality, innovation, market-leading employability outcomes, and making higher education more accessible[28](index=28&type=chunk) [Financial Statements and Reconciliations](index=6&type=section&id=Financial_Statements_Reconciliations) [Key Enrollment Metrics](index=6&type=section&id=Key_Metrics_and_Financial_Tables) For the six months ended June 30, 2025, Laureate reported a 7% increase in new enrollments and a 6% increase in total enrollments year-over-year, with Mexico seeing new enrollments up 6% and total enrollments up 7%, while Peru experienced new enrollments up 8% and total enrollments up 6% New and Total Enrollments by Segment (YTD Q2 2025 vs YTD Q2 2024) | | YTD 2Q 2025 | YTD 2Q 2024 | Change | As of 06/30/2025 | As of 06/30/2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **New Enrollments** | | | | | | | | Mexico | 65,600 | 61,700 | 6 % | | | | | Peru | 63,400 | 58,600 | 8 % | | | | | Laureate | 129,000 | 120,300 | 7 % | | | | | **Total Enrollments** | | | | | | | | Mexico | | | | 237,600 | 223,000 | 7 % | | Peru | | | | 234,500 | 221,200 | 6 % | | Laureate | | | | 472,100 | 444,200 | 6 % | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated_Statements_of_Operations) The consolidated statements of operations show that for Q2 2025, revenue increased by $25.0 million to $524.2 million, while for the six months, revenue decreased by $14.3 million to $760.3 million, net income for Q2 2025 was $97.4 million (EPS $0.65), down from $128.4 million in Q2 2024, and for the six months, net income was $77.9 million (EPS $0.50), down from $117.5 million in the prior year, largely due to foreign currency exchange losses Consolidated Statements of Operations (Key Figures) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change ($M) | H1 2025 ($M) | H1 2024 ($M) | Change ($M) | | :-------------------------------- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | 524.2 | 499.2 | 25.0 | 760.3 | 774.6 | (14.3) | | Operating income | 193.3 | 166.6 | 26.7 | 180.1 | 177.7 | 2.4 | | Net income | 97.4 | 128.4 | (31.0) | 77.9 | 117.5 | (39.6) | | Basic earnings per share | 0.65 | 0.83 | (0.18) | 0.51 | 0.75 | (0.24) | | Diluted earnings per share | 0.65 | 0.83 | (0.18) | 0.50 | 0.75 | (0.25) | [Revenue and Adjusted EBITDA by Segment](index=8&type=section&id=Revenue_and_Adjusted_EBITDA_by_segment) For Q2 2025, Mexico's revenue decreased 1% reported but increased 13% organic constant currency, while Peru's revenue increased 9% reported and 7% organic constant currency, Adjusted EBITDA for Mexico increased 19% reported (37% organic constant currency) and for Peru increased 11% reported (9% organic constant currency), for the six months, Mexico's revenue decreased 6% reported (10% organic constant currency), and Peru's revenue increased 3% reported (1% organic constant currency), Adjusted EBITDA for Mexico increased 2% reported (20% organic constant currency), while Peru's decreased 1% reported (3% organic constant currency), and foreign currency fluctuations had a significant negative impact on reported figures, especially for Mexico Q2 2025 Revenue and Adjusted EBITDA by Segment | Metric | 2025 ($M) | 2024 ($M) | Reported % Change | Organic Constant Currency % Change | FX Impact ($M) | | :------------------ | :--- | :--- | :--- | :--- | :--- | | **Revenues** | | | | | | | Mexico | 217.4 | 218.6 | (1)% | 13% | (30.5) | | Peru | 306.7 | 280.6 | 9% | 7% | 6.3 | | Total Revenues | 524.2 | 499.2 | 5% | 10% | (24.2) | | **Adjusted EBITDA** | | | | | | | Mexico | 57.4 | 48.2 | 19% | 37% | (8.7) | | Peru | 167.2 | 150.3 | 11% | 9% | 3.4 | | Total Adjusted EBITDA | 214.5 | 186.9 | 15% | 18% | (5.3) | H1 2025 Revenue and Adjusted EBITDA by Segment | Metric | 2025 ($M) | 2024 ($M) | Reported % Change | Organic Constant Currency % Change | FX Impact ($M) | | :------------------ | :--- | :--- | :--- | :--- | :--- | | **Revenues** | | | | | | | Mexico | 406.6 | 432.7 | (6)% | 10% | (68.8) | | Peru | 353.6 | 341.9 | 3% | 1% | 7.0 | | Total Revenues | 760.3 | 774.6 | (2)% | 6% | (61.8) | | **Adjusted EBITDA** | | | | | | | Mexico | 110.4 | 108.1 | 2% | 20% | (19.7) | | Peru | 128.4 | 129.6 | (1)% | (3)% | 2.9 | | Total Adjusted EBITDA | 219.8 | 217.5 | 1% | 9% | (16.8) | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated_Balance_Sheets) As of June 30, 2025, Laureate's total assets increased to $2,035.9 million from $1,862.1 million at December 31, 2024, driven by higher cash and cash equivalents, receivables, property and equipment, and goodwill, total liabilities also increased to $983.2 million, while total stockholders' equity grew to $1,051.4 million Consolidated Balance Sheet (Key Figures) | Metric | June 30, 2025 ($M) | December 31, 2024 ($M) | Change ($M) | | :-------------------------------- | :--- | :--- | :--- | | Cash and cash equivalents | 135.3 | 91.4 | 43.9 | | Total assets | 2,035.9 | 1,862.1 | 173.8 | | Total liabilities | 983.2 | 903.5 | 79.7 | | Total stockholders' equity | 1,051.4 | 957.1 | 94.3 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated_Statements_of_Cash_Flows) For the six months ended June 30, 2025, net cash provided by operating activities significantly increased to $131.8 million from $73.4 million in the prior year, primarily due to changes in working capital and unrealized foreign currency exchange, net cash used in investing activities decreased to $17.7 million, while net cash used in financing activities substantially increased to $73.8 million, mainly due to common stock repurchases Consolidated Statements of Cash Flows (Key Figures) | Metric | H1 2025 ($M) | H1 2024 ($M) | Change ($M) | | :-------------------------------- | :--- | :--- | :--- | | Net cash provided by operating activities | 131.8 | 73.4 | 58.4 | | Net cash used in investing activities | (17.7) | (22.6) | 4.9 | | Net cash used in financing activities | (73.8) | (8.3) | (65.5) | | Net change in Cash and cash equivalents | 44.2 | 39.6 | 4.6 | [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP_Reconciliations) This section provides detailed reconciliations from GAAP net income to various non-GAAP measures, including Adjusted EBITDA, Adjusted net income, and Adjusted EPS, for both the three and six months ended June 30, 2025 and 2024, with key adjustments including income tax expense, foreign currency exchange loss/gain, interest expense/income, depreciation and amortization, and share-based compensation [Net Income to Adjusted EBITDA Reconciliation](index=11&type=section&id=Net_Income_to_Adjusted_EBITDA_Reconciliation) Net Income to Adjusted EBITDA Reconciliation (Q2 & H1) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | H1 2025 ($M) | H1 2024 ($M) | | :-------------------------------- | :--- | :--- | :--- | :--- | | Net income | 97.4 | 128.4 | 77.9 | 117.5 | | Plus: Income tax expense | 69.4 | 63.1 | 71.9 | 73.0 | | Plus: Foreign currency exchange loss (gain), net | 25.6 | (27.5) | 28.8 | (21.8) | | Plus: Interest expense | 3.1 | 5.1 | 5.5 | 9.8 | | Less: Interest income | (1.4) | (2.0) | (2.9) | (3.9) | | Plus: Depreciation and amortization | 17.7 | 17.4 | 33.7 | 35.5 | | Plus: Share-based compensation expense | 3.5 | 2.9 | 5.9 | 4.3 | | **Adjusted EBITDA** | **214.5** | **186.9** | **219.8** | **217.5** | [Net Income to Adjusted Net Income and Adjusted EPS Reconciliation (Three Months)](index=12&type=section&id=Net_Income_to_Adjusted_Net_Income_and_Adjusted_EPS_Reconciliation_Three_Months) Net Income to Adjusted Net Income and Adjusted EPS Reconciliation (Q2) | Metric | Q2 2025 ($M) | Q2 2025 (per share) | Q2 2024 ($M) | Q2 2024 (per share) | | :-------------------------------- | :--- | :--- | :--- | :--- | | Net income | 97.4 | 0.65 | 128.4 | 0.83 | | Plus: Discrete tax items | (4.7) | (0.03) | — | — | | Plus: Foreign currency exchange loss (gain), net | 25.6 | 0.17 | (27.5) | (0.18) | | **Adjusted net income** | **118.3** | **0.79** | **100.5** | **0.65** | | Diluted weighted average shares outstanding | | 146.8 | | 154.4 | [Net Income to Adjusted Net Income and Adjusted EPS Reconciliation (Six Months)](index=13&type=section&id=Net_Income_to_Adjusted_Net_Income_and_Adjusted_EPS_Reconciliation_Six_Months) Net Income to Adjusted Net Income and Adjusted EPS Reconciliation (H1) | Metric | H1 2025 ($M) | H1 2025 (per share) | H1 2024 ($M) | H1 2024 (per share) | | :-------------------------------- | :--- | :--- | :--- | :--- | | Net income | 77.9 | 0.50 | 117.5 | 0.75 | | Plus: Discrete tax items | (4.7) | (0.03) | — | — | | Plus: Loss on disposal of subsidiaries, net | — | — | 3.1 | 0.02 | | Plus: Foreign currency exchange loss (gain), net | 28.8 | 0.19 | (21.8) | (0.14) | | **Adjusted net income** | **101.7** | **0.66** | **98.4** | **0.63** | | Diluted weighted average shares outstanding | | 149.8 | | 156.0 |

Group 1 - Betterware de Mexico SAPI de C (BWMX) is currently outperforming its Consumer Discretionary peers with a year-to-date return of 10.4%, compared to the sector average of 9.7% [4] - The Zacks Consensus Estimate for BWMX's full-year earnings has increased by 21.4% over the past 90 days, indicating a stronger analyst sentiment and improving earnings outlook [4] - BWMX holds a Zacks Rank of 1 (Strong Buy), suggesting it has the characteristics to outperform the market in the near term [3] Group 2 - Betterware de Mexico SAPI de C is part of the Consumer Products - Discretionary industry, which is currently ranked 80 in the Zacks Industry Rank, with stocks in this group having lost about 9.6% year-to-date [6] - In contrast, Laureate Education (LAUR), another stock in the Consumer Discretionary sector, has a year-to-date return of 25.9% and also holds a Zacks Rank of 1 (Strong Buy) [5] - The Schools industry, to which Laureate Education belongs, is currently ranked 31 and has seen a slight increase of 0.5% year-to-date [6]

Core Viewpoint - Laureate Education, Inc. is set to release its financial results for the quarter ending June 30, 2025, on July 31, 2025, prior to the stock market opening, followed by a conference call to discuss the results and business outlook [1]. Group 1 - The conference call for investors and analysts will take place at 8:30 a.m. ET on the same day as the earnings release [1]. - Interested parties can register to receive dial-in information for the earnings conference call [1]. - A webcast of the conference call, including replays, will be available on the Investor Relations section of the Company's website [2]. Group 2 - Laureate Education, Inc. operates five higher education institutions in Mexico and Peru, with an enrollment of over 470,000 students in various degree programs [3]. - The Company emphasizes academic quality, innovation, and aims for market-leading employability outcomes while making higher education more accessible [3]. - The Company believes that the success of its students contributes to the prosperity of countries and benefits societies [3].

Summary of Laureate Education (LAUR) FY Conference Call Company Overview - **Company**: Laureate Education - **Industry**: Higher Education Services - **Geographic Focus**: Mexico and Peru - **Market Position**: Largest operator of higher education services in both countries, significantly larger than competitors [3][4] Financial Performance - **Revenue**: $1.6 billion with a growth rate of approximately 10% annually [4][28] - **EBITDA Margin**: Close to 30% [4][28] - **Student Enrollment**: Approximately 500,000 students across 50 campuses, averaging 10,000 students per campus [4][5] - **Free Cash Flow**: 50% of EBITDA converts into free cash flow, with plans to return excess cash to shareholders [28][29] Market Dynamics - **Private Sector Role**: 55% of university seats in Mexico and Peru are provided by the private sector, which simplifies the regulatory environment [6] - **Student Segmentation**: Market segmented into premium and value products, with premium offerings costing around $4,500 per year [9][10] - **Growth Drivers**: Rising participation rates in higher education, currently at 36% for ages 18-24 in Mexico and Peru, compared to 62% in the US [18][19] Strategic Focus - **Program Offerings**: Focus on business, health sciences, engineering, and STEM products, with a mix of traditional, hybrid, and fully online delivery methods [5][15] - **Market Expansion**: Plans to launch two new campuses this year and two more next year, targeting top cities for growth [21][25] - **Vocational Training**: Development of technical vocational degrees to address skill shortages, particularly in the employer demand perspective [26] Competitive Advantages - **Brand Strength**: Institutions like UPC in Peru are highly ranked, contributing to strong brand equity [13] - **Accreditation and Quality**: High accreditation levels and quality of education enhance the institution's reputation [13][15] - **Cost Efficiency**: Segmentation allows for cost-effective student acquisition and recruitment [11][12] Economic Resilience - **Bad Debt Management**: Maintains a low bad debt rate of around 2.5% in good economic times, with potential increases during economic downturns [32][33] - **Cash Flow Stability**: The payment structure ensures steady cash collections, contributing to a working capital neutral position [31] Shareholder Returns - **Capital Returned**: Since 2019, $3 billion returned to shareholders through stock buybacks and dividends [29] - **Future Intentions**: Plans to continue returning free cash flow to shareholders, with an expected generation of $235 million in free cash flow this year [29][30]

Group 1: Company Overview - GDEV Inc. is part of the Consumer Discretionary group, which consists of 255 companies and currently ranks 13 within the Zacks Sector Rank [2] - GDEV Inc. has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Group 2: Performance Metrics - GDEV has gained approximately 14% year-to-date, outperforming the average return of 5.9% for the Consumer Discretionary sector [4] - In comparison, Laureate Education (LAUR), another stock in the Consumer Discretionary sector, has a year-to-date return of 19.9% [4] - GDEV belongs to the Gaming industry, which includes 42 stocks and currently ranks 133 in the Zacks Industry Rank, with an average gain of 4.7% this year [5] Group 3: Analyst Sentiment - The Zacks Consensus Estimate for GDEV's full-year earnings has increased by 21.5% over the past 90 days, indicating improved analyst sentiment [3] - Laureate Education's current year EPS estimate has increased by 6% over the past three months, also holding a Zacks Rank of 2 (Buy) [5][6]

Industry Overview - The Zacks Schools industry is experiencing a rebound driven by increased demand for career-focused programs in healthcare, skilled trades, cybersecurity, and IT, supported by a labor market that values job-ready skills and government initiatives promoting non-degree pathways [1][4] - The industry is addressing the critical shortage of healthcare workers through rigorous, workforce-aligned training programs [5] Trends Influencing the Industry - Digital innovation is a key driver of differentiation, with companies investing in adaptive learning tools and scalable online platforms to enhance engagement and support flexible learning for working adults [2][7] - There is a rising demand for workforce-oriented programs, particularly among adult learners and career switchers, as the labor market increasingly values job-ready skills over traditional degrees [4] - The sector is witnessing consolidation, with larger players acquiring niche or financially weaker institutions to expand offerings and improve scale [6] Financial Performance and Market Position - The Zacks Schools industry currently ranks 30 within the broader Zacks Consumer Discretionary sector, placing it in the top 12% of over 250 Zacks industries, indicating strong near-term prospects [10][11] - The industry's earnings estimates for 2025 have increased to $1.38 per share from $1.37 since April 2025, reflecting growing analyst confidence in the group's earnings growth potential [12] Enrollment and Revenue Growth - For-profit providers are expected to see enrollment and revenue growth in 2025, driven by demographic tailwinds, state and federal support for vocational education, and digital innovation [2] - Companies like Stride, Inc., Laureate Education, Inc., and American Public Education, Inc. are positioned to benefit from these trends, with significant enrollment growth reported [21][29][25] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings ratio of 16.86X, compared to the S&P 500's 21.81X and the sector's 19.73X, indicating potential undervaluation [17][20] Company Highlights - Stride, Inc. reported a 20% rise in total enrollment, with a 12.8% increase in General Education and a 32% increase in Career Learning [21] - American Public Education has seen a 60.2% stock increase over the past year, with earnings expected to grow 150.9% in 2025 [25] - Laureate Education's fully online programs account for about 20% of its student base, growing at three to four times the pace of face-to-face programs [28] - Perdoceo Education has benefited from a 10.6% enrollment increase at Colorado Technical University, driven by strong student engagement [32] - Lincoln Educational Services has achieved an 82.4% stock increase over the past year, supported by strong enrollment growth and operational efficiencies [36]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Laureate Education (LAUR) - LAUR currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] - Over the past week, LAUR shares increased by 2.65%, outperforming the Zacks Schools industry, which rose by 0.41% [5] - In the last month, LAUR's price change was 16%, compared to the industry's 13.14% [5] - Over the past quarter, LAUR shares increased by 10.69%, and over the last year, they gained 39.48%, while the S&P 500 moved -3.42% and 14.16%, respectively [6] - The average 20-day trading volume for LAUR is 794,663 shares, indicating a bullish sign with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for LAUR have increased, while none have decreased, raising the consensus estimate from $1.58 to $1.67 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions [9] Conclusion - Considering the positive momentum indicators and earnings outlook, LAUR is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Financial Data and Key Metrics Changes - The first quarter revenue was $236 million, with adjusted EBITDA of $5 million, both metrics exceeding previous guidance [18][22] - On an organic constant currency basis, revenue increased by 10% year over year, and adjusted EBITDA rose by 132% [18][22] - The first quarter net loss was $20 million, resulting in a loss per share of $0.13, while the adjusted net loss was $17 million with an adjusted loss per share of $0.11 [18][22] Business Line Data and Key Metrics Changes - In Mexico, new enrollments increased by 8%, with total enrollments up by 7%, driven by strong growth in fully online programs [19][20] - In Peru, new enrollments rose by 6%, with total enrollments up by 5%, reflecting a favorable operating environment post-recession [21][22] - Adjusted for timing of the academic calendar, revenue in Mexico increased by 11% and adjusted EBITDA was up by 22% [20][22] Market Data and Key Metrics Changes - The company noted that participation rates in higher education in Mexico and Peru are growing but remain below developed markets, indicating significant growth opportunities [29] - The macroeconomic backdrop in Peru is stable, with GDP growth projected at approximately 3% for 2025, while Mexico's economic ties to the US provide a solid foundation for growth despite recent trade tensions [9][10] Company Strategy and Development Direction - The company aims to capitalize on the growing demand for quality higher education in Mexico and Peru, leveraging its strong digital capabilities and leading brands [8][29] - The company is committed to returning excess capital to shareholders, with a focus on maintaining a strong balance sheet and efficient operations through campus consolidations in Mexico [22][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, which has historically performed well during economic downturns [7][9] - The company anticipates continued volatility in the macroeconomic environment but remains optimistic about growth prospects in both markets [10][29] Other Important Information - The company repurchased $42 million of stock during the quarter and has $56 million remaining under its stock repurchase authorization [22][27] - The company expects total enrollments for 2025 to be between 491,000 and 495,000 students, reflecting growth of 4% to 5% versus 2024 [26] Q&A Session Summary Question: Are you seeing any hesitancy from potential students in Mexico? - Management noted robust demand during the recent secondary intake, particularly among working adult students, and expects the primary intake to mirror last year's performance [33][34] Question: Can you clarify the intake cycle and normalization of numbers? - Management confirmed that the intake cycle in Peru was delayed by two weeks, which affected the reported numbers but did not indicate any other normalization [39][40] Question: What is the status of fully digital courses? - Management reported that fully online courses are growing at a double-digit rate, significantly outpacing traditional face-to-face programs, with about 20% of the student population enrolled in digital learning [51][52] Question: What are the plans for capital allocation moving forward? - The company is committed to returning excess cash to shareholders, with plans to continue stock repurchases as guided by their capital allocation strategy [54][55]