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 June 30, 2026 2025 (Unaudited) (Unaudited) Revenues $ 615,863 $ 524,156 Costs and expenses: Direct costs 378,197 317,351 General and administrative expenses 14,244 13,468 Operating income 223,422 193,337 Interest income 1,532 1,369 Interest expense ( 4,168 ) ( 3,145 ) Other income, net 22 804 Foreign currency exchange loss, net ( 2,038 ) ( 25,576 ) Income from continuing operations before income taxes 218,770 166,789 Income tax expense ( 81,667 ) ( 69,359 ) Income from continuing operations 137,103 97,430 Loss from discontinued operations, net of tax of $ 0 for both periods — ( 4 ) Net income 137,103 97,426 Net income attributable to noncontrolling interests — ( 2,343 ) Net income attributable to Laureate Education, Inc. $ 137,103 $ 95,083 Basic and diluted earnings (loss) per share: Income from continuing operations $ 0.98 $ 0.65 Loss from discontinued operations — — Basic and diluted earnings per share $ 0.98 $ 0.65 The accompanying notes are an integral part of these consolidated financial statements. 2 LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Statements of Operations IN THOUSANDS, except per share amounts For the six months ended June 30, 2026 2025 (Unaudited) (Unaudited) Revenues $ 888,475 $ 760,318 Costs and expenses: Direct costs 667,202 555,714 General and administrative expenses 25,378 24,458 Operating income 195,895 180,146 Interest income 3,438 2,888 Interest expense ( 7,307 ) ( 5,511 ) Other income, net 461 789 Foreign currency exchange loss, net ( 1,022 ) ( 28,775 ) Income from continuing operations before income taxes and equity in net income of affiliates 191,465 149,537 Income tax expense ( 75,956 ) ( 71,876 ) Equity in net income of affiliates, net of tax — 3 Income from continuing operations 115,509 77,664 Income from discontinued operations, net of tax of $ 0 for both periods — 209 Net income 115,509 77,873 Net income attributable to noncontrolling interests — ( 2,286 ) Net income attributable to Laureate Education, Inc. $ 115,509 $ 75,587 Basic earnings per share: Income from continuing operations $ 0.82 $ 0.51 Income from discontinued operations — — Basic earnings per share $ 0.82 $ 0.51 Diluted earnings per share: Income from continuing operations $ 0.82 $ 0.50 Income from discontinued operations — — Diluted earnings per share $ 0.82 $ 0.50 The accompanying notes are an integral part of these consolidated financial statements. 3 LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income IN THOUSANDS For the three months ended June 30, 2026 2025 (Unaudited) (Unaudited) Net income $ 137,103 $ 97,426 Other comprehensive income: Foreign currency translation adjustment, net of tax of $ 0 for both periods 27,236 73,364 Total other comprehensive income 27,236 73,364 Comprehensive income 164,339 170,790 Net comprehensive income attributable to noncontrolling interests ( 1 ) ( 2,343 ) Comprehensive income attributable to Laureate Education, Inc. $ 164,338 $ 168,447 The accompanying notes are an integral part of these consolidated financial statements. 4 LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income IN THOUSANDS For the six months ended June 30, 2026 2025 (Unaudited) (Unaudited) Net income $ 115,509 $ 77,873 Other comprehensive income: Foreign currency translation adjustment, net of tax of $ 0 for both periods 15,377 82,697 Minimum pension liability adjustment, net of tax of $ 0 for both periods 48 — Total other comprehensive income 15,425 82,697 Comprehensive income 130,934 160,570 Net comprehensive income attributable to noncontrolling interests — ( 2,283 ) Comprehensive income attributable to Laureate Education, Inc. $ 130,934 $ 158,287 The accompanying notes are an integral part of these consolidated financial statements. 5 LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Balance Sheets IN THOUSANDS, except per share amounts June 30, 2026 December 31, 2025 Assets (Unaudited) Current assets: Cash and cash equivalents $ 161,674 $ 146,703 Restricted cash 5,708 5,372 Receivables: Accounts and notes receivable 285,853 244,070 Other receivables 1,952 15,735 Allowance for doubtful accounts ( 128,271 ) ( 125,056 ) Receivables, net 159,534 134,749 Income tax receivable 3,928 2,568 Prepaid expenses and other current assets 34,529 28,956 Total current assets 365,373 318,348 Property and equipment: Land 161,666 162,595 Buildings 417,203 397,102 Furniture, equipment and software 613,801 596,546 Leasehold improvements 163,615 159,875 Construction in-progress 34,953 26,704 Accumulated depreciation and amortization ( 744,072 ) ( 714,206 ) Property and equipment, net 647,166 628,616 Operating lease right-of-use assets, net 466,215 335,626 Goodwill 648,304 637,300 Tradenames, net 168,134 166,195 Deferred costs, net 4,841 4,537 Deferred income taxes 78,056 72,159 Other assets 43,685 41,888 Long-term assets held for sale 1,717 1,681 Total assets $ 2,423,491 $ 2,206,350 The accompanying notes are an integral part of these consolidated financial statements. 6 LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Balance Sheets (continued) IN THOUSANDS, except per share amounts June 30, 2026 December 31, 2025 Liabilities and stockholders' equity (Unaudited) Current liabilities: Accounts payable $ 57,068 $ 57,126 Accrued expenses 83,371 72,669 Accrued compensation and benefits 99,884 112,591 Deferred revenue and student deposits 121,193 80,161 Current portion of operating leases 45,774 55,971 Current portion of long-term debt and finance leases 57,552 54,585 Income taxes payable 15,954 13,225 Other current liabilities 32,681 26,579 Total current liabilities 513,477 472,907 Long-term operating leases, less current portion 466,153 331,792 Long-term debt and finance leases, less current portion 164,513 73,123 Deferred compensation 7,680 7,482 Income taxes payable 74,439 78,979 Deferred income taxes 15,616 15,590 Other long-term liabilities 40,107 37,717 Total liabilities 1,281,985 1,017,590 Redeemable equity 699 1,398 Stockholders' equity: Preferred stock, par value $ 0.001 per share – 50,000 shares authorized and no shares issued and outstanding as of June 30, 2026 and December 31, 2025 — — Common stock, par value $ 0.004 per share – 700,000 shares authorized, 137,749 shares issued and outstanding as of June 30, 2026 and 142,940 shares issued and outstanding as of December 31, 2025 551 572 Additional paid-in capital 1,039,885 1,075,460 Retained earnings 390,505 416,889 Accumulated other comprehensive loss ( 289,559 ) ( 304,984 ) Total Laureate Education, Inc. stockholders' equity 1,141,382 1,187,937 Noncontrolling interests ( 575 ) ( 575 ) Total stockholders' equity 1,140,807 1,187,362 Total liabilities and stockholders' equity $ 2,423,491 $ 2,206,350 The accompanying notes are an integral part of these consolidated financial statements. 7 LAUREATE EDUCATION, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows IN THOUSANDS For the six months ended June 30, 2026 2025 Cash flows from operating activities (Unaudited) (Unaudited) Net income $ 115,509 $ 77,873 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 45,598 33,737 Amortization of operating lease right-of-use assets 17,432 16,977 Gain on lease terminations and disposals of subsidiaries and property and equipment, net ( 94 ) ( 265 ) Non-cash interest expense 1,118 762 Non-cash share-based compensation expense 6,739 5,944 Bad debt expense 31,237 23,701 Deferred income taxes ( 4,596 ) ( 1,791 ) Unrealized foreign currency exchange loss 651 28,866 Other, net ( 11,924 ) ( 7,069 ) Changes in operating assets and liabilities: Receivables ( 56,023 ) ( 72,350 ) Prepaid expenses and other assets ( 7,762 ) ( 493 ) Accounts payable and accrued expenses 10,299 3,401 Income tax receivable/payable, net ( 3,655 ) 11,071 Deferred revenue and other liabilities 28,364 11,467 Net cash provided by operating activities 172,893 131,831 Cash flows from investing activities Purchase of property and equipment ( 35,514 ) ( 17,879 ) Receipts from sales of property and equipment 50 134 Net cash used in investing activities ( 35,464 ) ( 17,745 ) Cash flows from financing activities Borrowings on debt 143,023 86,053 Payments on debt ( 75,225 ) ( 85,617 ) Payments of dividend equivalent rights for vested share-based awards ( 115 ) ( 455 ) Proceeds from exercise of stock options 82 128 Withholding of shares to satisfy tax withholding for vested stock awards and exercised stock options ( 4,603 ) ( 2,345 ) Payments to repurchase common stock and excise tax payments ( 185,865 ) ( 71,591 ) Net cash used in financing activities ( 122,703 ) ( 73,827 ) Effects of exchange rate changes on Cash and cash equivalents and Restricted cash 581 4,775 Change in cash included in current assets held for sale — ( 815 ) Net change in Cash and cash equivalents and Restricted cash 15,307 44,219 Cash and cash equivalents and Restricted cash at beginning of period 152,075 97,854 Cash and cash equivalents and Restricted cash at end of period $ 167,382 $ 142,073 The accompanying notes are an integral part of these consolidated financial statements. 8 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, 2025 (the 2025 Form 10-K). Note 2. Revenue Revenue Recognition Our revenues primarily consist of tuition revenues from enrolled students. We also generate other revenues from student fees, short courses, 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. 9 The following table shows the components of Revenues by reportable segment and as a percentage of total revenue for the three months ended June 30, 2026 and 2025: Mexico Peru Corporate (1) Total 2026 Tuition and educational services $ 389,895 $ 368,647 $ — $ 758,542 123 % Other 36,536 30,472 12 67,020 11 % Gross revenue 426,431 399,119 12 825,562 134 % Less: Discounts / waivers / scholarships ( 157,435 ) ( 52,264 ) — ( 209,699 ) ( 34 ) % Total $ 268,996 $ 346,855 $ 12 $ 615,863 100 % 2025 Tuition and educational services $ 306,224 $ 320,360 $ — $ 626,584 120 % Other 27,650 22,402 53 50,105 9 % Gross revenue 333,874 342,762 53 676,689 129 % Less: Discounts / waivers / scholarships ( 116,505 ) ( 36,028 ) — ( 152,533 ) ( 29 ) % Total $ 217,369 $ 306,734 $ 53 $ 524,156 100 % (1) Includes the elimination of inter-segment revenues. The following table shows the components of Revenues by reportable segment and as a percentage of total revenue for the six months ended June 30, 2026 and 2025: Mexico Peru Corporate (1) Total 2026 Tuition and educational services $ 672,238 $ 422,410 $ — $ 1,094,648 123 % Other 79,182 45,290 28 124,500 14 % Gross revenue 751,420 467,700 28 1,219,148 137 % Less: Discounts / waivers / scholarships ( 271,782 ) ( 58,891 ) — ( 330,673 ) ( 37 ) % Total $ 479,638 $ 408,809 $ 28 $ 888,475 100 % 2025 Tuition and educational services $ 550,293 $ 359,867 $ — $ 910,160 120 % Other 67,250 33,449 104 100,803 13 % Gross revenue 617,543 393,316 104 1,010,963 133 % Less: Discounts / waivers / scholarships ( 210,919 ) ( 39,726 ) — ( 250,645 ) ( 33 ) % Total $ 406,624 $ 353,590 $ 104 $ 760,318 100 % (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 $ 285,853 and $ 244,070 as of June 30, 2026 and December 31, 2025, respectively. The increase in the contract assets balance at June 30, 2026 compared to December 31, 2025 was primarily driven by enrollment cycles. 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. 10 Contract liabilities in the amount of $ 121,193 and $ 80,161 were included within the Deferred revenue and student deposits balance in the current liabilities section of the accompanying Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, respectively. The increase in the contract liability balance during the period ended June 30, 2026 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 six months ended June 30, 2026 that was included in the contract liability balance at the beginning of the year was approximately $ 64,356 . Note 3. 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. 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 18 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 Income from continuing operations before income taxes and equity in net income of affiliates, adding back the following items: Gain on disposal of subsidiaries, net, Foreign currency exchange loss, net, Other income, 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. 11 The following table presents a reconciliation of Adjusted EBITDA of our reportable segments to Income from continuing operations before income taxes and equity in net income of affiliates, as reported in the Consolidated Statements of Operations: For the three months ended For the six months ended June 30, June 30, 2026 2025 2026 2025 Adjusted EBITDA of reportable segments: Mexico $ 70,589 $ 57,417 $ 112,066 $ 110,376 Peru 190,771 167,234 155,830 128,392 Total Adjusted EBITDA of reportable segments 261,360 224,651 267,896 238,768 Reconciling items: Corporate ( 10,800 ) ( 10,174 ) ( 19,664 ) ( 18,941 ) Depreciation and amortization expense ( 23,015 ) ( 17,659 ) ( 45,598 ) ( 33,737 ) Share-based compensation expense ( 4,123 ) ( 3,481 ) ( 6,739 ) ( 5,944 ) Operating income 223,422 193,337 195,895 180,146 Interest income 1,532 1,369 3,438 2,888 Interest expense ( 4,168 ) ( 3,145 ) ( 7,307 ) ( 5,511 ) Other income, net 22 804 461 789 Foreign currency loss, net ( 2,038 ) ( 25,576 ) ( 1,022 ) ( 28,775 ) Income from continuing operations before income taxes and equity in net income of affiliates $ 218,770 $ 166,789 $ 191,465 $ 149,537 The following table presents significant segment expenses of our reportable segments: For the three months ended For the six months ended June 30, June 30, 2026 2025 2026 2025 Mexico Revenues $ 268,996 $ 217,369 $ 479,638 $ 406,624 Less: Labor costs 96,375 81,652 177,142 146,081 Lease and other facilities costs 29,060 25,108 56,066 48,199 Advertising costs 19,052 14,371 35,308 27,049 Other costs (1) 53,920 38,821 99,056 74,919 Adjusted EBITDA $ 70,589 $ 57,417 $ 112,066 $ 110,376 Peru Revenues $ 346,855 $ 306,734 $ 408,809 $ 353,590 Less: Labor costs 94,173 85,065 151,584 133,515 Lease and other facilities costs 8,823 8,504 15,736 15,878 Advertising costs 14,735 10,003 28,356 19,964 Other costs (1) 38,353 35,928 57,303 55,841 Adjusted EBITDA $ 190,771 $ 167,234 $ 155,830 $ 128,392 (1) Other costs for each reportable segment include: professional services expense, technology expense, bad debt and other direct costs. 12 The following table presents other financial information of our reportable segments: For the three months ended For the six months ended June 30, June 30, 2026 2025 2026 2025 Mexico Depreciation and amortization expense $ 14,532 $ 10,444 $ 28,878 $ 19,743 Expenditures for long-lived assets $ 13,226 $ 5,820 $ 19,454 $ 8,400 Peru Depreciation and amortization expense $ 8,482 $ 7,042 $ 16,710 $ 13,642 Expenditures for long-lived assets $ 13,185 $ 7,447 $ 15,287 $ 9,478 The following table presents the total assets of our reportable segments: June 30, 2026 December 31, 2025 Assets Mexico $ 1,555,988 $ 1,383,658 Peru 738,483 674,902 Corporate 129,020 147,790 Total assets $ 2,423,491 $ 2,206,350 Note 4. Goodwill The change in the net carrying amount of Goodwill from December 31, 2025 through June 30, 2026 was composed of the following items: Mexico Peru Total Balance at December 31, 2025 $ 557,241 $ 80,059 $ 637,300 Currency translation adjustments 12,348 ( 1,344 ) 11,004 Balance at June 30, 2026 $ 569,589 $ 78,715 $ 648,304 Note 5. Debt Outstanding long-term debt was as follows: June 30, 2026 December 31, 2025 Senior long-term debt: Senior Secured Credit Facility $ 75,000 $ — Other debt: Lines of credit 42,556 43,278 Note payable 21,822 22,313 Total senior and other debt 139,378 65,591 Finance lease obligations 83,789 63,463 Total long-term debt and finance leases 223,167 129,054 Less: total unamortized deferred financing costs 1,102 1,346 Less: current portion of long-term debt and finance leases 57,552 54,585 Long-term debt and finance leases, less current portion $ 164,513 $ 73,123 13 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 June 30, 2026 and December 31, 2025, the Senior Secured Credit Facility had a total outstanding balance of $ 75,000 and $ 0 , respectively. Peru Term Loan On June 30, 2026, a Laureate subsidiary in Peru, Universidad Privada del Norte (UPN), entered into an agreement to borrow PEN 205,000 (approximately $ 60,000 at June 30, 2026). The loan bears interest at a fixed rate of 6.45 % per annum and interest payments are due quarterly. Quarterly principal payments in the amount of PEN 10,250 ($ 2,998 at June 30, 2026) are payable beginning in October 2028 through the loan’s maturity date in July 2033. As of June 30, 2026, there was no balance outstanding on this loan as the proceeds were not received until early July 2026. The terms of the loan specify that the proceeds may be used for financing or paying capital expenditures, as well as refinancing working capital lines of credit or other debt. In July 2026, UPN used approximately $ 41,000 of the total proceeds to repay working capital lines of credit and expects to use the remaining loan proceeds to fund capital expenditures related to campus expansions. As collateral for the loan, UPN pledged assets at four of its campus locations. The loan carries certain quarterly financial covenants that become effective September 30, 2026. Estimated Fair Value of Debt As of June 30, 2026 and December 31, 2025, the estimated fair value of our debt approximated its carrying value. Certain Covenants As of June 30, 2026, 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 June 30, 2026, more than 25 % of the Revolving Credit Facility was utilized, and we were in compliance with the leverage ratio covenant. In addition, indebtedness at some of our locations contain financial maintenance covenants. We were in compliance with these covenants as of June 30, 2026. Note 6. Commitments and Contingencies Contingencies Laureate is subject to legal proceedings, claims, governmental audits, and other matters 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 matters. Management believes that any judgment or settlement of these matters would not have a material impact on Laureate’s financial position, results of operations, or cash flows. Income Tax Contingencies As of June 30, 2026 and December 31, 2025, Laureate had recorded cumulative liabilities for income tax contingencies of $ 74,439 and $ 78,979 , 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 June 30, 2026 and December 31, 2025, approximately $ 13,000 and $ 12,800 , respectively, of loss contingencies were included in Other long-term liabilities and Other current liabilities on the Consolidated Balance Sheets. 14 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 $ 20,500 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 June 30, 2026 and December 31, 2025, the total amount of the guarantee was approximately $ 7,900 and $ 8,100 , respectively. During the second quarter of 2026, the Peruvian institution paid the related assessment and expects to obtain a release of the bank guarantee in the third quarter of 2026. During the third quarter of 2025, one of our Mexican institutions issued a bank guarantee in order to appeal an assessment received related to a tax audit of 2017. As of June 30, 2026 and December 31, 2025, the total amount of the guarantee was approximately $ 12,800 and $ 12,500 , respectively. Note 7. Stockholders’ Equity The components of net changes in stockholders’ equity for the six months ended June 30, 2026 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, 2025 142,940 $ 572 $ 1,075,460 $ 416,889 $ ( 304,984 ) $ ( 575 ) $ 1,187,362 Non-cash share-based compensation — — 2,616 — — — 2,616 Purchase and retirement of common stock ( 3,168 ) ( 13 ) ( 23,835 ) ( 82,307 ) — — ( 106,155 ) Exercise of stock options and vesting of restricted stock units, net of shares withheld to satisfy tax withholding 206 1 ( 2,364 ) — — — ( 2,363 ) Net loss — — — ( 21,594 ) — — ( 21,594 ) Foreign currency translation adjustment, net of tax of $ 0 — — — — ( 11,858 ) ( 1 ) ( 11,859 ) Minimum pension liability adjustment, net of tax of $ 0 — — — — 48 — 48 Balance at March 31, 2026 139,978 $ 560 $ 1,051,877 $ 312,988 $ ( 316,794 ) $ ( 576 ) $ 1,048,055 Non-cash share-based compensation — — 4,123 — — — 4,123 Purchase and retirement of common stock ( 2,237 ) ( 9 ) ( 16,814 ) ( 59,586 ) — — ( 76,409 ) Exercise of stock options and vesting of restricted stock units, net of shares withheld to satisfy tax withholding 8 — — — — — — Reclassification of redeemable equity to non-redeemable equity — — 699 — — — 699 Net income — — — 137,103 — — 137,103 Foreign currency translation adjustment, net of tax of $ 0 — — — — 27,235 1 27,236 Balance at June 30, 2026 137,749 $ 551 $ 1,039,885 $ 390,505 $ ( 289,559 ) $ ( 575 ) $ 1,140,807 15 Stock Repurchases On September 13, 2024, the Company announced that its Board of Directors had approved a $ 100,000 stock purchase program . On October 30, 2025, the Company announced that its Board of Directors had approved a $ 150,000 increase to the authorization for the Company’s stock repurchase program. On February 19, 2026, the Company announced that its Board of Directors had approved an additional $ 150,000 increase to the existing authorization for the Company’s stock repurchase program, for a total authorization of $ 400,000 . As of June 30, 2026, the Company had $ 184 of capacity remaining under its stock repurchase authorization. On July 30, 2026, the Company announced that its Board of Directors had approved an additional $ 150,000 increase to the existing authorization for the Company’s stock repurchase program, which has no fixed expiration date. 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 of Directors 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 six months ended June 30, 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 Non-cash share-based compensation — — 3,481 — — — 3,481 Purchase and retirement of common stock ( 1,489 ) ( 6 ) ( 11,153 ) ( 17,890 ) — — ( 29,049 ) Exercise of stock options and vesting of restricted stock units, net of shares withheld to satisfy tax withholding 42 — 86 — — — 86 Equitable adjustments to stock-based awards — — 8 — — — 8 Net income — — — 95,083 — 2,343 97,426 Foreign currency translation adjustment, net of tax of $ 0 — — — — 73,364 — 73,364 Balance at June 30, 2025 147,363 $ 590 $ 1,106,926 $ 323,466 $ ( 379,510 ) $ ( 121 ) $ 1,051,351 Share-based Compensation Expense During the three and six months ended June 30, 2026 and 2025, the Company recorded share-based compensation expense for restricted stock unit awards of $ 4,123 and $ 3,481 , respectively, and $ 6,739 and $ 5,944 , respectively. 16 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: June 30, 2026 December 31, 2025 Laureate Education, Inc. Noncontrolling Interests Total Laureate Education, Inc. Noncontrolling Interests Total Foreign currency translation adjustment $ ( 298,233 ) $ 961 $ ( 297,272 ) $ ( 313,610 ) $ 961 $ ( 312,649 ) Unrealized gain on derivatives 10,416 — 10,416 10,416 — 10,416 Minimum pension liability adjustment ( 1,742 ) — ( 1,742 ) ( 1,790 ) — ( 1,790 ) Accumulated other comprehensive loss $ ( 289,559 ) $ 961 $ ( 288,598 ) $ ( 304,984 ) $ 961 $ ( 304,023 ) Note 8. Income Taxes Laureate’s income tax provisions for all periods consist of federal, state and foreign income taxes. The tax provisions for the six months ended June 30, 2026 and 2025 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 six months ended June 30, 2026, the Company recognized income tax expense of $ 75,956 , as compared to $ 71,876 in the prior-year period. Note 9. Earnings 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. 17 The following tables summarize the computations of basic and diluted earnings per share: For the three months ended June 30, 2026 2025 Numerator used in basic and diluted earnings per common share for continuing operations: Income from continuing operations $ 137,103 $ 97,430 Income attributable to noncontrolling interests — ( 2,343 ) Net income from continuing operations for basic and diluted earnings per share $ 137,103 $ 95,087 Numerator used in basic and diluted earnings per common share for discontinued operations: Loss from discontinued operations, net of tax $ — $ ( 4 ) Denominator used in basic and diluted earnings per common share: Basic weighted average shares outstanding 139,214 146,122 Dilutive effect of stock options 238 225 Dilutive effect of restricted stock units 487 426 Diluted weighted average shares outstanding 139,939 146,773 Basic and diluted earnings (loss) per share: Income from continuing operations $ 0.98 $ 0.65 Loss from discontinued operations — — Basic and diluted earnings per share $ 0.98 $ 0.65 For the six months ended June 30, 2026 2025 Numerator used in basic and diluted earnings per common share for continuing operations: Income from continuing operations $ 115,509 $ 77,664 Income attributable to noncontrolling interests — ( 2,286 ) Net income from continuing operations for basic and diluted earnings per share $ 115,509 $ 75,378 Numerator used in basic and diluted earnings per common share for discontinued operations: Net income from discontinued operations for basic and diluted earnings per share $ — $ 209 Denominator used in basic and diluted earnings per common share: Basic and diluted weighted average shares outstanding 140,746 149,081 Dilutive effect of stock options 242 225 Dilutive effect of restricted stock units 569 448 Diluted weighted average shares outstanding 141,557 149,754 Basic earnings per share: Income from continuing operations $ 0.82 $ 0.51 Income from discontinued operations — — Basic earnings per share $ 0.82 $ 0.51 Diluted earnings per share: Income from continuing operations $ 0.82 $ 0.50 Income from discontinued operations — — Diluted earnings per share $ 0.82 $ 0.50 18 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 June 30, For the six months ended June 30, 2026 2025 2026 2025 Restricted stock units 91 17 73 8 Note 10. Legal and Regulatory Matters Laureate is subject to legal proceedings, claims, governmental audits, and other matters 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 matters. Management believes that any judgment or settlement of these matters 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 2025 Form 10‑K. Note 11. 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 June 30, 2025 balance. The June 30, 2026 and June 30, 2025 balances sum to the amounts shown in the Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025: June 30, 2026 June 30, 2025 December 31, 2025 Cash and cash equivalents $ 161,674 $ 135,348 $ 146,703 Restricted cash 5,708 6,725 5,372 Total Cash and cash equivalents and Restricted cash shown in the Consolidated Statements of Cash Flows $ 167,382 $ 142,073 $ 152,075 Restricted cash represents cash that is not immediately available for use in current operations. Supplemental Noncash Information During the first quarter of 2026, the Company recorded additional operating lease right-of-use assets and operating lease liabilities of approximately $ 134,000 that were predominantly related to the extension of leases for campus real estate in our Mexico segment. Note 12. Subsequent Events As discussed in Note 7, Stockholders’ Equity, on July 30, 2026, the Company announced that its Board of Directors had approved an additional $ 150,000 increase to the existing authorization for the Company’s stock repurchase program, which has no fixed expiration date. 19