Oct 29, 2026 earnings call — Enrollment strength and larger share repurchase program
Laureate reported Q3 revenue of $485 million and adjusted EBITDA of $147 million, and announced a $150 million increase to its share repurchase program.
Revenue $0.5B (est $0.5B) · EPS $0.52 (est $0.48)
Key quotes
"In Mexico, the primary intake is largely completed with new enrollment growth of 8% versus comparable intake period last year, driven by a very successful launch of our new campus in Pueblo, as well as continued growth in existing campuses and online."
"Peru's secondary new enrollment intake grew 9% versus the prior year intake period. Driven by fully online programs as we continue to leverage our leading digital capabilities. To meet growing market demand for working adults."
"That gives us the confidence to reaffirm the full year guidance expectations and announce an additional $150 million increase to our stock repurchase program reinforcing our disciplined capital allocation strategy and commitment to long term shareholder value creation."
Analyst Q&A 5
new campuses and FX vs expenses
Q (Jeff Silber · BMO): Where were the two other campuses opened this year and did they affect the quarter? Also, can you separate the Q4 guidance impact from FX versus timing of expenses in Peru?
A: They said the new campuses are in the Ate district of East Lima and Monterrey, and Puebla opened on time and slightly ahead of expectations. Those new campuses are in their second year and take 4 to 5 years to fill, contributing to digital enrollment. For results, Q3 outperformance was driven by FX and adjusted EBITDA beat was about a 50-50 split of FX and expense timing; they reaffirm full year guidance but lowered Q4 because the peso weakened.
"The outperformance in Q3 was primarily driven by FX." — Richard Buskirk (CFO)
timing of revenue and campus pipeline
Q (Alexander Paris · Barrington): Is the revenue shifted from Q4 moving into Q1 next year? What drives the high/low of your guidance range? Also, when will new campus opportunities come online and are two campuses planned for 2027?
A: They said the timing shift is all intra-year and not into Q1. They showed on Slide 21 that about $28 million was shifted into Q3 in Mexico and $1 million in Peru, with $6 million and $4 million shifted out of Q4. The guidance high/low spread is driven mainly by FX: if FX holds you get the midpoint, if FX improves you hit the high, if it weakens you hit the low. On the pipeline, they have a sizable inventory of new campus opportunities (more in Mexico), expect some higher CapEx in H2 2026 to secure land, campuses take about 18 to 24 months to build, and they still expect a couple of campuses in 2027 (two planned: one in each market).
"We have around $28 million shifted into Q3 in Mexico and $1 million in Peru in Q3, and $6 million and $4 million shipped out of Q4." — Richard Buskirk (CFO)
enrollment outlook and margins
Q (Marcelo Santos · JPMorgan): What could make enrollment growth slow into Q4 — is guidance conservative or is there a specific factor? And what is the margin outlook for the coming years?
A: They said the guidance range of 4 to 5% reflects that September 30 is peak enrollment and normal inter-cycle attrition in Q4 lowers the average to about the high of 5%. This year the effect is larger because Peru had a stronger mix of wholly online students, which have higher attrition. On margins, they said they already delivered over 500 basis points of improvement and expect to expand margins on average around 30 to 50 basis points per year, despite new-campus drag.
"Since we had a stronger mix of wholly online, particularly in Peru that has a higher attrition, that is what is happening structurally." — Richard Buskirk (CFO)
new-campus margin drag and Peru competition
Q (Samuel Alves · BTG Pactual): How much are new greenfield campuses diluting margins now? And have you seen more aggressive competition or price cuts in Peru for fully online programs?
A: They said the new campuses are reducing margin by around 50 basis points in Mexico and about 25 basis points consolidated, causing roughly a $5 million drag today because they are paying rent and increased marketing while campuses fill. On Peru competition, they said competitors are launching online products, but student choice is driven by brand, product, experience and price; Laureate's strategy is high quality at an affordable price and they now have over 40 thousand fully online students in Peru.
"So on the on the first question, as it relates to the impact of the new campuses, as we said, in prior calls and in this 1, the impact is around 50 basis points on margin in Mexico and about 25 basis points consolidated." — Richard Buskirk (CFO)
Merida campus size and online mix
Q (Mauricio Cepeda · Morgan Stanley): How does the Merida campus compare in capacity and CapEx to campuses in Monterrey, Puebla and Mexico City? And how much of Mexican intake growth is face-to-face versus online?
A: They said Merida is a smaller, secondary-city campus with about 6 thousand students capacity compared with a typical capital-city campus of 9 thousand to 11 thousand, but it has a similar IRR profile and strong brand pull. They did not give a standardized CapEx number in this answer. On online, they said online is complementary, leverages back office and brand, targets working adult nontraditional students, and face-to-face targets high-school leavers with marketing within a 15- to 20-kilometer radius of their 55 campuses.
"So in terms of the Merida campus, it is a smaller campus because the secondary is there." — Eilif Serck-Hanssen (CEO)