Financial Data and Key Metrics Changes - Total enrollments increased by 6% year-over-year, driven by a 7% growth in new enrollments [15][17] - Revenue for the second quarter was $524 million, with adjusted EBITDA at $214 million, both metrics exceeding previous guidance [15][16] - Adjusted net income for the second quarter was $118 million, resulting in adjusted earnings per share of $0.79 [16] Business Line Data and Key Metrics Changes - In Mexico, new enrollments increased by 6%, with total enrollments up 7% [17] - Mexico's revenue for the second quarter increased by 9% year-over-year, while adjusted EBITDA rose by 19% [18] - In Peru, total enrollment growth was 6%, with revenue increasing by 7% and adjusted EBITDA up 9% [19] Market Data and Key Metrics Changes - Mexico's economic resilience is supported by solid financial systems and continued interest rate cuts, positioning it for improved GDP growth [9] - Peru's economy has shown a turnaround with 3.1% GDP growth year-to-date, supported by stable inflation and low interest rates [10] Company Strategy and Development Direction - The company is expanding its campus footprint with new openings in Monterrey, Mexico, and Lima, Peru, as part of its growth strategy [8] - The focus is on broadening the academic portfolio and scaling digital offerings to serve working adults [25] - The company has identified numerous potential sites for development in Mexico and Peru over the next five years [8] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the demand for quality higher education across both markets, despite geopolitical complexities [11] - The company is raising its full-year 2025 outlook for revenue by $55 million and adjusted EBITDA by $16 million [7][21] - The operating trends remain solid, with expectations for total enrollments to grow by 4% to 5% versus 2024 [22] Other Important Information - The company ended June with $135 million in cash and $116 million in gross debt, resulting in a net cash position of $19 million [20] - The third quarter is expected to be the largest cash flow intake period, with plans to return excess capital to shareholders [20] Q&A Session Summary Question: Any indications on the student application pipeline for Mexico's primary intake period this fall? - Management is encouraged by the trends, noting strong growth in working adult enrollments and positive indicators for traditional undergraduate students [28][30] Question: What contributed to the revenue upside for the quarter? - The outperformance was primarily associated with foreign exchange rates, with $18 million attributed to FX and $2 million to operational performance [31][32] Question: How is the online learning trend developing in Peru? - The online learning business in Peru is growing double digits, with strong interest from working adult students, similar to trends seen in Mexico [36][37] Question: Can you provide details about the new campuses being opened? - Two new campuses are set to open in September, one in Monterrey for Unitech and one in Lima for UPN, with strong demand anticipated [38][39]

Financial Data and Key Metrics Changes - The first quarter revenue was $236 million, with adjusted EBITDA of $5 million, both metrics exceeding previous guidance [16][20] - On an organic constant currency basis, revenue increased by 10% year over year, and adjusted EBITDA rose by 132% [16][20] - 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 [16][20] 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 [17][18] - In Peru, new enrollments rose by 6%, with total enrollments up by 5%, reflecting a recovery from the previous recession [19][20] - Adjusted EBITDA in Mexico increased by 22%, while in Peru, it decreased by $2 million due to seasonality [18][20] Market Data and Key Metrics Changes - The company noted a favorable operating environment in Peru, with GDP growth projected at approximately 3% for 2025 [9] - Mexico's economic ties to the US and its fiscal discipline provide a solid foundation for growth despite recent trade tensions [8][9] - The company expects continued volatility in both markets but remains cautiously optimistic about growth opportunities [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 [8][10] - The focus is on expanding access to affordable, high-quality education while maintaining a strong balance sheet [10][28] - The company is committed to returning excess capital to shareholders, with a stock repurchase program in place [20][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, which has proven effective during economic downturns [7][8] - The company is tightening its full-year guidance, anticipating a 1,000 student increase in total enrollments and a $10 million increase in revenues [22][24] - The outlook for 2025 includes total enrollments in the range of 491,000 to 495,000 students, with revenue expected to be flat to slightly up [25][26] Other Important Information - The company repurchased $42 million of stock during the quarter, with $56 million remaining under the stock repurchase authorization [20][21] - The first quarter's revenue and adjusted EBITDA were impacted by a shift in the academic calendar, with approximately $26 million of revenue expected to shift to the second half of the year [15][23] Q&A Session Summary Question: Are you seeing any hesitancy from potential students in Mexico? - Management noted robust demand during the recent intake, particularly from working adult students, and expects the primary intake to mirror last year's performance [32][33] Question: Can you clarify the intake cycle and normalization of numbers? - Management confirmed that the intake cycle in Peru started later, affecting the reported numbers, but the adjusted figures reflect a 6% increase in new enrollments [38][40] Question: What is the outlook for fully digital courses? - 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 [50][51] Question: What is the capital allocation strategy moving forward? - The company plans to return excess cash to shareholders, with a commitment to convert 50% of EBITDA into free cash flow [53][54]