LAUREATE EDUCATION, INC. 10-Q

Item 1. Financial Statements (Unaudited) LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Statements of Operations IN THOUSANDS, except per share amounts For the three months ended March 31, 2025 2024 (Unaudited) (Unaudited) Revenues $ 236,162 $ 275,372 Costs and expenses: Direct costs 238,363 253,978 General and administrative expenses 10,990 10,265 Operating (loss) income ( 13,191 ) 11,129 Interest income 1,519 1,911 Interest expense ( 2,366 ) ( 4,661 ) Other expense, net ( 15 ) ( 548 ) Foreign currency exchange loss, net ( 3,199 ) ( 5,607 ) Loss on disposal of subsidiaries, net — ( 3,086 ) Loss from continuing operations before income taxes and equity in net income (loss) of affiliates ( 17,252 ) ( 862 ) Income tax expense ( 2,517 ) ( 9,922 ) Equity in net income (loss) of affiliates, net of tax 3 ( 7 ) Loss from continuing operations ( 19,766 ) ( 10,791 ) Income (loss) from discontinued operations, net of tax of $ 0 for both periods 213 ( 57 ) Net loss ( 19,553 ) ( 10,848 ) Net loss attributable to noncontrolling interests 57 97 Net loss attributable to Laureate Education, Inc. $ ( 19,496 ) $ ( 10,751 ) Basic and diluted earnings (loss) per share: Loss from continuing operations $ ( 0.13 ) $ ( 0.07 ) Income (loss) from discontinued operations — — Basic and diluted loss per share $ ( 0.13 ) $ ( 0.07 ) The accompanying notes are an integral part of these consolidated financial statements. 2 LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income IN THOUSANDS For the three months ended March 31, 2025 2024 (Unaudited) (Unaudited) Net loss $ ( 19,553 ) $ ( 10,848 ) Other comprehensive income: Foreign currency translation adjustment, net of tax of $ 0 for both periods 9,333 26,883 Total other comprehensive income 9,333 26,883 Comprehensive (loss) income ( 10,220 ) 16,035 Net comprehensive loss attributable to noncontrolling interests 60 97 Comprehensive (loss) income attributable to Laureate Education, Inc. $ ( 10,160 ) $ 16,132 The accompanying notes are an integral part of these consolidated financial statements. 3 LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Balance Sheets IN THOUSANDS, except per share amounts March 31, 2025 December 31, 2024 Assets (Unaudited) Current assets: Cash and cash equivalents $ 109,776 $ 91,350 Restricted cash 7,132 6,504 Receivables: Accounts and notes receivable 141,197 189,124 Other receivables 5,482 3,190 Allowance for doubtful accounts ( 99,287 ) ( 100,527 ) Receivables, net 47,392 91,787 Income tax receivable 23,406 7,086 Prepaid expenses and other current assets 39,325 30,020 Current assets held for sale 1,022 564 Total current assets 228,053 227,311 Property and equipment: Land 130,416 127,413 Buildings 353,340 347,522 Furniture, equipment and software 511,660 504,648 Leasehold improvements 128,233 125,690 Construction in-progress 29,456 27,997 Accumulated depreciation and amortization ( 631,078 ) ( 619,018 ) Property and equipment, net 522,027 514,252 Operating lease right-of-use assets, net 282,109 292,387 Goodwill 565,739 563,404 Tradenames, net 148,941 147,911 Deferred costs, net 4,802 4,732 Deferred income taxes 56,616 60,823 Other assets 40,319 40,830 Long-term assets held for sale 9,599 10,410 Total assets $ 1,858,205 $ 1,862,060 The accompanying notes are an integral part of these consolidated financial statements. 4 LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Balance Sheets (continued) IN THOUSANDS, except per share amounts March 31, 2025 December 31, 2024 Liabilities and stockholders' equity (Unaudited) Current liabilities: Accounts payable $ 46,973 $ 35,340 Accrued expenses 62,428 60,972 Accrued compensation and benefits 72,061 91,311 Deferred revenue and student deposits 112,480 64,340 Current portion of operating leases 50,983 48,170 Current portion of long-term debt and finance leases 21,906 41,260 Income taxes payable 453 2,371 Other current liabilities 27,299 22,941 Current liabilities held for sale 1,076 1,190 Total current liabilities 395,659 367,895 Long-term operating leases, less current portion 270,272 278,957 Long-term debt and finance leases, less current portion 90,988 59,027 Deferred compensation 8,399 8,269 Income taxes payable 133,715 136,473 Deferred income taxes 13,071 12,433 Other long-term liabilities 30,212 31,984 Long-term liabilities held for sale 8,456 8,479 Total liabilities 950,772 903,517 Redeemable equity 1,398 1,398 Stockholders' equity: Preferred stock, par value $ 0.001 per share – 50,000 shares authorized and no shares issued and outstanding as of March 31, 2025 and December 31, 2024 — — Common stock, par value $ 0.004 per share – 700,000 shares authorized, 148,810 shares issued and outstanding as of March 31, 2025 and 150,794 shares issued and outstanding as of December 31, 2024 596 604 Additional paid-in capital 1,114,504 1,129,511 Retained earnings 246,273 291,644 Accumulated other comprehensive loss ( 452,874 ) ( 462,210 ) Total Laureate Education, Inc. stockholders' equity 908,499 959,549 Noncontrolling interests ( 2,464 ) ( 2,404 ) Total stockholders' equity 906,035 957,145 Total liabilities and stockholders' equity $ 1,858,205 $ 1,862,060 The accompanying notes are an integral part of these consolidated financial statements. 5 LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows IN THOUSANDS For the three months ended March 31, 2025 2024 Cash flows from operating activities (Unaudited) (Unaudited) Net loss $ ( 19,553 ) $ ( 10,848 ) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 16,078 18,050 Amortization of operating lease right-of-use assets 8,125 9,765 (Gain) loss on lease terminations and disposals of subsidiaries and property and equipment, net ( 255 ) 3,251 Non-cash interest expense 380 324 Non-cash share-based compensation expense 2,463 1,409 Bad debt expense 4,395 6,307 Deferred income taxes 4,860 1,267 Unrealized foreign currency exchange loss 2,932 4,964 Other, net 3,304 3,221 Changes in operating assets and liabilities: Receivables 40,931 2,301 Prepaid expenses and other assets ( 9,930 ) ( 14,475 ) Accounts payable and accrued expenses ( 18,501 ) ( 26,597 ) Income tax receivable/payable, net ( 20,940 ) ( 11,986 ) Deferred revenue and other liabilities 43,488 46,200 Net cash provided by operating activities 57,777 33,153 Cash flows from investing activities Purchase of property and equipment ( 4,612 ) ( 15,884 ) Receipts from sales of property and equipment 56 48 Payments related to sales of discontinued operations — ( 154 ) Net cash used in investing activities ( 4,556 ) ( 15,990 ) Cash flows from financing activities Proceeds from issuance of long-term debt, net of original issue discount 30,000 81,091 Payments on long-term debt ( 22,461 ) ( 26,545 ) Payment of dividend equivalent rights for vested share-based awards ( 386 ) ( 1,598 ) Proceeds from exercise of stock options 42 29 Withholding of shares to satisfy tax withholding for vested stock awards and exercised stock options ( 2,345 ) ( 1,693 ) Payments to repurchase common stock ( 39,499 ) ( 32,894 ) Payments of debt issuance costs — ( 9 ) Net cash (used in) provided by financing activities ( 34,649 ) 18,381 Effects of exchange rate changes on Cash and cash equivalents and Restricted cash 875 1,123 Change in cash included in current assets held for sale ( 393 ) 278 Net change in Cash and cash equivalents and Restricted cash 19,054 36,945 Cash and cash equivalents and Restricted cash at beginning of period 97,854 96,897 Cash and cash equivalents and Restricted cash at end of period $ 116,908 $ 133,842 The accompanying notes are an integral part of these consolidated financial statements. 6 Laureate Education, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Dollars and shares in thousands) Note 1. Description of Business Laureate Education, Inc. and subsidiaries (hereinafter Laureate, we, us, our, or the Company) provide higher education programs and services to students through a portfolio of degree-granting higher education institutions in Mexico and Peru. Laureate's programs are provided through institutions that are campus-based and through electronically distributed educational programs (online). We are domiciled in Delaware as a public benefit corporation, a demonstration of our long-term commitment to our mission to benefit our students and society. The Company completed its initial public offering (IPO) on February 6, 2017, and its shares are listed on the Nasdaq Global Select Market under the symbol “LAUR.” The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, these financial statements include all adjustments considered necessary to present a fair statement of our consolidated results of operations, financial position and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. These unaudited Consolidated Financial Statements should be read in conjunction with Laureate's audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the 2024 Form 10-K). Note 2. Revenue Revenue Recognition Laureate's revenues primarily consist of tuition and educational service revenues. We also generate other revenues from student fees and other education-related activities. These other revenues are less material to our overall financial results and have a tendency to trend with tuition revenues. Revenues are recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. These revenues are recognized net of scholarships and other discounts, refunds and waivers. Laureate's institutions have various billing and academic cycles. We determine revenue recognition through the five-step model prescribed by ASC Topic 606, Revenue from Contracts with Customers , as follows: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. We assess collectability on a portfolio basis prior to recording revenue. If a student withdraws from an institution, Laureate's obligation to issue a refund depends on the refund policy at that institution and the timing of the student's withdrawal. Generally, our refund obligations are reduced over the course of the academic term. We record refunds as a reduction of deferred revenue, as applicable. 7 The following table shows the components of Revenues by reportable segment and as a percentage of total revenue for the three months ended March 31, 2025 and 2024: Mexico Peru Corporate (1) Total 2025 Tuition and educational services $ 244,069 $ 39,507 $ — $ 283,576 120 % Other 39,600 11,047 51 50,698 22 % Gross revenue 283,669 50,554 51 334,274 142 % Less: Discounts / waivers / scholarships ( 94,414 ) ( 3,698 ) — ( 98,112 ) ( 42 ) % Total $ 189,255 $ 46,856 $ 51 $ 236,162 100 % 2024 Tuition and educational services $ 267,315 $ 54,296 $ — $ 321,611 117 % Other 47,168 11,974 47 59,189 21 % Gross revenue 314,483 66,270 47 380,800 138 % Less: Discounts / waivers / scholarships ( 100,403 ) ( 5,025 ) — ( 105,428 ) ( 38 ) % Total $ 214,080 $ 61,245 $ 47 $ 275,372 100 % (1) Includes the elimination of inter-segment revenues. Contract Balances The timing of billings, cash collections and revenue recognition results in accounts receivable (contract assets) and Deferred revenue and student deposits (contract liabilities) on the Consolidated Balance Sheets. We have various billing and academic cycles and recognize student receivables when an academic session begins, although students generally enroll in courses prior to the start of the academic session. Receivables are recognized only to the extent that it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the goods and services that will be transferred to the student. We receive advance payments or deposits from our students before revenue is recognized, which are recorded as contract liabilities in deferred revenue and student deposits. Payment terms vary by university with some universities requiring payment in advance of the academic session and other universities allowing students to pay in installments over the term of the academic session. All of our contract assets are considered accounts receivable and are included within the Accounts and notes receivable balance in the accompanying Consolidated Balance Sheets. Total accounts receivable from our contracts with students were $ 141,197 and $ 189,124 as of March 31, 2025 and December 31, 2024, respectively. The decrease in the contract assets balance at March 31, 2025 compared to December 31, 2024 was primarily driven by enrollment cycles, in particular the repayment of outstanding amounts by students re-enrolling for the next academic session. The first and third calendar quarters generally coincide with the primary and secondary intakes for our larger institutions. All contract asset amounts are classified as current. Contract liabilities in the amount of $ 112,480 and $ 64,340 were included within the Deferred revenue and student deposits balance in the current liabilities section of the accompanying Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, respectively. The increase in the contract liability balance during the period ended March 31, 2025 was the result of semester billings and cash payments received in advance of satisfying performance obligations, partially offset by revenue recognized during the period. Revenue recognized during the three months ended March 31, 2025 that was included in the contract liability balance at the beginning of the year was approximately $ 48,722 . 8 Note 3. Assets Held for Sale Two of the Company’s subsidiaries that operate K-12 educational programs in Mexico are classified as held for sale under ASC 360-10-45-9, “Long-Lived Assets Classified as Held for Sale.” The sale of the K-12 campuses is intended to allow the Mexico segment to focus on its core business. The planned sale of this disposal group does not represent a strategic shift and therefore does not qualify for presentation as a discontinued operation in the Consolidated Financial Statements. In addition, several parcels of land at campuses in Mexico are classified as held for sale under ASC 360-10-45-9. The assets and liabilities are recorded at the lower of their carrying values or their estimated fair values less costs to sell. The carrying amounts of the major classes of assets and liabilities that were classified as held for sale are presented in the following table: March 31, 2025 December 31, 2024 Assets Held for Sale Cash and cash equivalents $ 636 $ 246 Receivables, net 329 319 Property and equipment, net 2,112 2,897 Operating lease right-of-use assets, net 7,487 7,512 Other assets 57 — Total assets held for sale $ 10,621 $ 10,974 Liabilities Held for Sale Deferred revenue and student deposits $ 693 $ 756 Operating leases, including current portion 7,580 7,606 Long-term debt, including current portion 697 704 Other liabilities 562 603 Total liabilities held for sale $ 9,532 $ 9,669 The long-term debt balance represents a finance lease for property. Note 4. Business and Geographic Segment Information Laureate’s educational services are offered through two reportable segments: Mexico and Peru. Laureate determines its segments based on information utilized by the chief operating decision maker to allocate resources and assess performance. Laureate’s Chief Executive Officer is the chief operating decision maker. Our segments generate revenues by providing an education that emphasizes profession-oriented fields of study with undergraduate and graduate degrees in a wide range of disciplines. Our educational offerings utilize campus-based, online and hybrid (a combination of online and in-classroom) courses and programs to deliver their curriculum. The Mexico and Peru markets are characterized by what we believe is a significant imbalance between supply and demand. The demand for higher education is large and growing and is fueled by several demographic and economic factors, including a growing middle class, global growth in services and technology-related industries and recognition of the significant personal and economic benefits gained by graduates of higher education institutions. The target demographics are primarily 18- to 24-year-olds in the countries in which we compete. We compete with other private higher education institutions on the basis of price, educational quality, reputation and location. We believe that we compare favorably with competitors because of our focus on quality, professional-oriented curriculum and the competitive advantages provided by our in-country networks. There are a number of private and public institutions in both of the countries in which we operate, and it is difficult to predict how the markets will evolve and how many competitors there will be in the future. We expect competition to increase as the Mexican and Peruvian markets mature. Essentially all of our revenues were generated from private pay sources as there are no material government-sponsored loan programs in Mexico or Peru. Specifics related to both of our reportable segments are discussed below. In Mexico, the private sector plays a meaningful role in higher education, bridging supply and demand imbalances created by a lack of capacity at public universities. Laureate owns two nationally licensed institutions and is present throughout the country with a footprint of over 30 campuses. 9 In Peru, private universities are increasingly providing the capacity to meet growing demand in the higher-education market. Laureate owns three institutions in Peru, with a footprint of 19 campuses. Inter-segment transactions are accounted for in a similar manner as third-party transactions and are eliminated in consolidation. The Corporate amounts presented in the following tables include corporate charges that were not allocated to our reportable segments and adjustments to eliminate inter-segment items. The chief operating decision maker uses Adjusted EBITDA to evaluate performance and to allocate resources for each segment in the annual budget and monthly forecasting process. Adjusted EBITDA is defined as Loss from continuing operations before income taxes and equity in net income (loss) of affiliates, adding back the following items: Loss on disposal of subsidiaries, net, Foreign currency exchange loss, net, Other expense, net, Loss on debt extinguishment, Interest expense, Interest income, Depreciation and amortization expense, Loss on impairment of assets, and Share-based compensation expense. The chief operating decision maker considers budget-to-actual variances for Adjusted EBITDA when making decisions about allocating resources to the segments. Adjusted EBITDA is also a key measure used by our management and Board of Directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Additionally, Adjusted EBITDA is a key financial measure used by the compensation committee of our Board of Directors and our Chief Executive Officer in connection with the payment of incentive compensation to our executive officers and other members of our management team. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. We use total assets as the measure of assets for reportable segments. The following table presents a reconciliation of Adjusted EBITDA of our reportable segments to Loss from continuing operations before income taxes and equity in net income (loss) of affiliates, as reported in the Consolidated Statements of Operations: For the three months ended March 31, 2025 2024 Adjusted EBITDA of reportable segments: Mexico $ 52,959 $ 59,916 Peru ( 38,842 ) ( 20,710 ) Total Adjusted EBITDA of reportable segments 14,117 39,206 Reconciling items: Corporate ( 8,767 ) ( 8,618 ) Depreciation and amortization expense ( 16,078 ) ( 18,050 ) Share-based compensation expense ( 2,463 ) ( 1,409 ) Operating (loss) income ( 13,191 ) 11,129 Interest income 1,519 1,911 Interest expense ( 2,366 ) ( 4,661 ) Other expense, net ( 15 ) ( 548 ) Foreign currency loss, net ( 3,199 ) ( 5,607 ) Loss on disposal of subsidiaries, net — ( 3,086 ) Loss from continuing operations before income taxes and equity in net income (loss) of affiliates $ ( 17,252 ) $ ( 862 ) 10 The following table presents significant segment expenses of our reportable segments: For the three months ended March 31, 2025 2024 Mexico Revenues $ 189,255 $ 214,080 Less: Labor costs 64,429 71,368 Lease and other facilities costs 23,091 31,819 Advertising costs 12,678 13,441 Other costs (1) 36,098 37,536 Adjusted EBITDA $ 52,959 $ 59,916 Peru Revenues $ 46,856 $ 61,245 Less: Labor costs 48,450 46,108 Lease and other facilities costs 7,374 7,758 Advertising costs 9,961 7,512 Other costs (1) 19,913 20,577 Adjusted EBITDA $ ( 38,842 ) $ ( 20,710 ) (1) Other costs for each reportable segment include: professional services expense, technology expense, bad debt and other direct costs. The following table presents other financial information of our reportable segments: For the three months ended March 31, 2025 2024 Mexico Depreciation and amortization expense $ 9,300 $ 10,990 Expenditures for long-lived assets $ 2,580 $ 3,419 Peru Depreciation and amortization expense $ 6,600 $ 6,782 Expenditures for long-lived assets $ 2,032 $ 12,465 The following table presents the total assets of our reportable segments: March 31, 2025 December 31, 2024 Assets Mexico $ 1,140,641 $ 1,143,053 Peru 557,242 567,310 Corporate 160,322 151,697 Total assets $ 1,858,205 $ 1,862,060 11 Note 5. Goodwill The change in the net carrying amount of Goodwill from December 31, 2024 through March 31, 2025 was composed of the following items: Mexico Peru Total Balance at December 31, 2024 $ 491,066 $ 72,338 $ 563,404 Currency translation adjustments 649 1,686 2,335 Balance at March 31, 2025 $ 491,715 $ 74,024 $ 565,739 Note 6. Debt Outstanding long-term debt was as follows: March 31, 2025 December 31, 2024 Senior long-term debt: Senior Secured Credit Facility $ 30,000 $ — Other debt: Lines of credit 10,044 29,989 Notes payable and other debt 23,646 23,761 Total senior and other debt 63,690 53,750 Finance lease obligations and sale-leaseback financings 50,933 48,395 Total long-term debt and finance leases 114,623 102,145 Less: total unamortized deferred financing costs 1,729 1,858 Less: current portion of long-term debt and finance leases 21,906 41,260 Long-term debt and finance leases, less current portion $ 90,988 $ 59,027 Senior Secured Credit Facility The Company maintains a revolving credit facility (the Revolving Credit Facility) under its credit agreement (the Amended Credit Agreement) that provides for $ 155,000 of revolving credit loans maturing September 18, 2028. The credit available to be borrowed under the Amended Credit Agreement, whether as revolving loans or term loans, if any, are referred to herein collectively as the “Senior Secured Credit Facility.” As of March 31, 2025 and December 31, 2024, the Senior Secured Credit Facility had a total outstanding balance of $ 30,000 and $ 0 , respectively. Estimated Fair Value of Debt As of March 31, 2025 and December 31, 2024, the estimated fair value of our debt approximated its carrying value. Certain Covenants As of March 31, 2025, our Amended Credit Agreement contained certain negative covenants including, among others: (1) limitations on additional indebtedness; (2) limitations on dividends; (3) limitations on asset sales, including the sale of ownership interests in subsidiaries and sale-leaseback transactions; and (4) limitations on liens, guarantees, loans or investments. The Amended Credit Agreement provides, solely with respect to the revolving credit facility, that the Company shall not permit its Consolidated Senior Secured Debt to Consolidated EBITDA ratio, as defined in the Amended Credit Agreement, to exceed 3 as of the last day of each quarter commencing with the quarter ending December 31, 2019 and thereafter. The Amended Credit Agreement also provides that if less than 25 % of the revolving credit facility is utilized as of that date, then such financial covenant shall not apply. As of March 31, 2025, this condition was satisfied and, therefore, we were not subject to the leverage ratio. In addition, indebtedness at some of our locations contain financial maintenance covenants. We were in compliance with these covenants as of March 31, 2025. 12 Note 7. Commitments and Contingencies Contingencies Laureate is subject to legal actions arising in the ordinary course of its business. In management's opinion, we have adequate legal defenses, insurance coverage and/or accrued liabilities with respect to the eventuality of such actions. We do not believe that any settlement would have a material impact on our Consolidated Financial Statements. Income Tax Contingencies As of March 31, 2025 and December 31, 2024, Laureate had recorded cumulative liabilities for income tax contingencies of $ 133,715 and $ 136,473 , respectively. Non-Income Tax Loss Contingencies Laureate has accrued liabilities for certain civil actions against our institutions, a portion of which existed prior to our acquisition of these entities. Laureate intends to vigorously defend against these matters. As of March 31, 2025 and December 31, 2024, approximately $ 11,800 and $ 13,500 , respectively, of loss contingencies were included in Other long-term liabilities and Other current liabilities on the Consolidated Balance Sheets. We have also identified certain loss contingencies that we have assessed as being reasonably possible of loss, but not probable of loss, and could have an adverse effect on the Company’s results of operations if the outcomes are unfavorable. In the aggregate, we estimate that the reasonably possible loss for these unrecorded contingencies could be up to approximately $ 17,000 if the outcomes were unfavorable. Guarantees During the first quarter of 2021, one of our Peruvian institutions issued a bank guarantee in order to appeal a tax assessment received related to tax audits of 2014 and 2015. As of March 31, 2025 and December 31, 2024, the total amount of the guarantee was approximately $ 7,500 and $ 7,300 , respectively. Note 8. Stockholders’ Equity The components of net changes in stockholders’ equity for the three months ended March 31, 2025 are as follows: Laureate Education, Inc. Stockholders Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total stockholders’ equity Shares Amount Balance at December 31, 2024 150,794 $ 604 $ 1,129,511 $ 291,644 $ ( 462,210 ) $ ( 2,404 ) $ 957,145 Non-cash share-based compensation — — 2,463 — — — 2,463 Purchase and retirement of common stock ( 2,181 ) ( 9 ) ( 16,339 ) ( 25,875 ) — — ( 42,223 ) Exercise of stock options and vesting of restricted stock units, net of shares withheld to satisfy tax withholding 197 1 ( 1,129 ) — — — ( 1,128 ) Equitable adjustments to stock-based awards — — ( 2 ) — — — ( 2 ) Net loss — — — ( 19,496 ) — ( 57 ) ( 19,553 ) Foreign currency translation adjustment, net of tax of $ 0 — — — — 9,336 ( 3 ) 9,333 Balance at March 31, 2025 148,810 $ 596 $ 1,114,504 $ 246,273 $ ( 452,874 ) $ ( 2,464 ) $ 906,035 13 Stock Repurchases On March 13, 2025, the Company entered into a stock purchase agreement with each of Snow Phipps Group, L.P., Snow Phipps Group (B), L.P., Snow Phipps Group (Offshore), L.P., Snow Phipps Group (RPV), L.P. and SPG Co-Investment, L.P. (together, the Snow Phipps Sellers), pursuant to which the Company purchased an aggregate of 521 shares of its common stock from the Snow Phipps Sellers at a purchase price of $ 17.47 per share for an aggregate purchase price of $ 9,101 . Additionally, during the first quarter of 2025, the Company repurchased 1,660 shares of its common stock on the open market at prevailing market prices pursuant to a Rule 10b5-1 stock repurchase plan, in accordance with applicable rules and regulations promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act), for total open market repurchases of approximately $ 32,747 . The above repurchases were pursuant to the Company’s existing $ 100,000 stock purchase program that was announced on September 13, 2024 . The Company intends to finance the repurchases with free cash flow, excess cash and liquidity on-hand, including available capacity under its Revolving Credit Facility. The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations promulgated under the Exchange Act. Repurchases may be effected pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Exchange Act. The Company’s board will review the share repurchase program periodically and may authorize adjustment of its terms and size or suspend or discontinue the program. Under this stock repurchase program, all shares repurchased are immediately retired. Upon retirement of repurchased stock, the excess of the purchase price plus excise tax over par value is allocated to additional paid-in capital, subject to certain limitations. Any remainder is allocated to retained earnings to the extent that positive retained earnings exist. The components of net changes in stockholders’ equity for the three months ended March 31, 2024 are as follows: Laureate Education, Inc. Stockholders Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total stockholders’ equity Shares Amount Balance at December 31, 2023 157,586 $ 630 $ 1,179,721 $ 41,862 $ ( 272,144 ) $ ( 2,329 ) $ 947,740 Non-cash share-based compensation — — 1,409 — — — 1,409 Purchase and retirement of common stock ( 2,607 ) ( 10 ) ( 19,512 ) ( 13,700 ) — — ( 33,222 ) Exercise of stock options and vesting of restricted stock units, net of shares withheld to satisfy tax withholding 181 1 ( 774 ) — — — ( 773 ) Equitable adjustments to stock-based awards — — 21 — — — 21 Net loss — — — ( 10,751 ) — ( 97 ) ( 10,848 ) Foreign currency translation adjustment, net of tax of $ 0 — — — — 26,883 — 26,883 Balance at March 31, 2024 155,160 $ 621 $ 1,160,865 $ 17,411 $ ( 245,261 ) $ ( 2,426 ) $ 931,210 14 Share-based Compensation Expense During the three months ended March 31, 2025 and 2024, the Company recorded share-based compensation expense for restricted stock unit awards of $ 2,463 and $ 1,409 , respectively. Accumulated Other Comprehen sive Income (Loss) Accumulated other comprehensive income (loss) (AOCI) in our Consolidated Balance Sheets includes the accumulated translation adjustments arising from translation of foreign subsidiaries’ financial statements, the unrealized gain on a derivative designated as an effective net investment hedge, and the accumulated net gains or losses that are not recognized as components of net periodic benefit cost for our minimum pension liability. The AOCI related to the net investment hedge will be deferred from earnings until the sale or liquidation of the hedged investee. Laureate reports changes in AOCI on our Consolidated Statements of Stockholders’ Equity. The components of these balances were as follows: March 31, 2025 December 31, 2024 Laureate Education, Inc. Noncontrolling Interests Total Laureate Education, Inc. Noncontrolling Interests Total Foreign currency translation adjustment $ ( 462,368 ) $ 962 $ ( 461,406 ) $ ( 471,704 ) $ 965 $ ( 470,739 ) Unrealized gain on derivatives 10,416 — 10,416 10,416 — 10,416 Minimum pension liability adjustment ( 922 ) — ( 922 ) ( 922 ) — ( 922 ) Accumulated other comprehensive loss $ ( 452,874 ) $ 962 $ ( 451,912 ) $ ( 462,210 ) $ 965 $ ( 461,245 ) Note 9. Income Taxes Laureate's income tax provisions for all periods consist of federal, state and foreign income taxes. The tax provisions for the three months ended March 31, 2025 and 2024 are based on estimated full-year effective tax rates, adjusted for discrete income tax items related specifically to the interim periods. Laureate has operations in multiple countries at various statutory tax rates and other operations that are loss-making entities for which it is not more likely than not that a tax benefit will be realized on the loss. For the three months ended March 31, 2025, the Company recognized income tax expense of $ 2,517 , as compared to $ 9,922 in the prior-year period. 15 Note 10. Earnings (Loss) Per Share Laureate computes basic earnings per share (EPS) by dividing income available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted EPS reflects the potential dilution that would occur if share-based compensation awards were exercised or converted into common stock. To calculate the diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of stock options, restricted stock units, and any other share-based compensation arrangements determined using the treasury stock method. The following table summarizes the computations of basic and diluted earnings (loss) per share: For the three months ended March 31, 2025 2024 Numerator used in basic and diluted earnings (loss) per common share for continuing operations: Loss from continuing operations $ ( 19,766 ) $ ( 10,791 ) Loss attributable to noncontrolling interests 57 97 Net loss from continuing operations for basic and diluted earnings per share $ ( 19,709 ) $ ( 10,694 ) Numerator used in basic and diluted earnings (loss) per common share for discontinued operations: Net income (loss) from discontinued operations for basic and diluted earnings (loss) per share $ 213 $ ( 57 ) Denominator used in basic and diluted earnings (loss) per common share: Basic and diluted weighted average shares outstanding 147,563 157,011 Basic and diluted earnings (loss) per share: Loss from continuing operations $ ( 0.13 ) $ ( 0.07 ) Income (loss) from discontinued operations — — Basic and diluted loss per share $ ( 0.13 ) $ ( 0.07 ) The following table summarizes the number of restricted stock units that were excluded from the diluted EPS calculations because the effect would have been antidilutive: For the three months ended March 31, 2025 2024 Stock options 316 359 Restricted stock units 1,179 722 Note 11. Related Party Transactions 2025 Stock Repurchases As discussed in Note 8, Stockholders’ Equity, on March 13, 2025, the Company entered into a stock purchase agreement with the Snow Phipps Sellers pursuant to which the Company purchased an aggregate of 521 shares of its common stock from the Snow Phipps Sellers at a purchase price of $ 17.47 per share for an aggregate purchase price of $ 9,101 . This repurchase, which was approved as a related party transaction by the Audit and Risk Committee of the Company’s Board of Directors, was pursuant to the Company’s existing $ 100,000 share repurchase program that was announced on September 13, 2024. 16 Note 12. Legal and Regulatory Matters Laureate is subject to legal proceedings arising in the ordinary course of business. In management’s opinion, we have adequate legal defenses, insurance coverage, and/or accrued liabilities with respect to the eventuality of these actions. Management believes that any settlement would not have a material impact on Laureate’s financial position, results of operations, or cash flows. Our institutions are subject to uncertain and varying laws and regulations, and any changes to these laws or regulations or their application to us may materially adversely affect our business, financial condition and results of operations. There have been no material changes to the laws and regulations affecting our higher education institutions that are described in our 2024 Form 10‑K. Note 13. Supplemental Cash Flow Information Reconciliation of Cash and cash equivalents and Restricted cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets, as well as the March 31, 2024 balance. The March 31, 2025 and March 31, 2024 balances sum to the amounts shown in the Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024: March 31, 2025 March 31, 2024 December 31, 2024 Cash and cash equivalents $ 109,776 $ 126,226 $ 91,350 Restricted cash 7,132 7,616 6,504 Total Cash and cash equivalents and Restricted cash shown in the Consolidated Statements of Cash Flows $ 116,908 $ 133,842 $ 97,854 Restricted cash represents cash that is not immediately available for use in current operations. 17