Laureate Education (LAUR) Investor presentation summary

Business overview and market position

• Operates a leading private higher education network in Mexico and Peru, serving nearly 500,000 students across 50+ campuses with a focus on affordable, high-quality education through face-to-face, hybrid, and online models.

• Portfolio includes five major institutions, with 75% of enrollments in STEM and business disciplines and a strong emphasis on career-oriented, applied programs.

• Holds significant market share in both countries, with top-ranked universities and technical institutes recognized for employability and social impact.

• Digital education is a core element, targeting both traditional students and working adults, with 40%-60% of teaching hours delivered online.

• Mission-driven, with 50% of new students being first-generation and a three-year payback period for graduates.

Financial performance and capital allocation

• Reported $1.7 billion in revenue for 2025, with a 10% organic five-year revenue CAGR and a 30.5% adjusted EBITDA margin.

• Strong recurring revenue model, with 97% of students on a private pay basis and stable retention rates around 76%-84%.

• Net leverage ratio reduced to near zero by end of 2025, with $105 million returned to shareholders in Q1 2026 and $76 million remaining buyback authorization.

• Over $3 billion returned to shareholders since 2019 through dividends and buybacks.

• Free cash flow for Q1 2026 was $53.6 million, reflecting disciplined capital management.

Growth strategy and outlook

• Growth driven by campus and program expansion, digital learning, and pricing optimization, with a focus on health sciences and high-demand fields.

• Selective campus expansions in major cities and increased online penetration, especially among working adults.

• 2026 guidance projects revenue of $1.89–$1.91 billion, adjusted EBITDA of $583–$593 million, and adjusted EPS of $2.00–$2.08, representing double-digit growth over 2025.

• Adjusted EBITDA margin expected to expand by ~50bps, with EBITDA to unlevered free cash flow conversion at approximately 50%.

• Market dynamics remain favorable, with rising participation rates and a growing middle class in both Mexico and Peru.