LAUREATE EDUCATION, INC.LAUR
LAUREATE EDUCATION, INC. Segments Disclosure
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. Students in our Mexican institutions typically finance their own education.
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 20 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 (loss) from continuing operations before income taxes and equity in net income of affiliates, adding back the following items: (Loss) gain on disposals of subsidiaries, net, Foreign currency exchange (loss) gain, net, Other income (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 tables provide financial information for our reportable segments, including a reconciliation of Adjusted EBITDA 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 years ended December 31, 2025, 2024 and 2023:
| Mexico | Peru | Corporate | Total | ||||||||||||||||||||
| 2025 | |||||||||||||||||||||||
| Revenues | $ | 877,392 | $ | 824,396 | $ | 142 | $ | 1,701,930 | |||||||||||||||
| Depreciation and amortization expense | 44,826 | 29,115 | 554 | 74,495 | |||||||||||||||||||
| Total assets | 1,383,658 | 674,902 | 147,790 | 2,206,350 | |||||||||||||||||||
| Expenditures for long-lived assets | 47,678 | 55,365 | — | 103,043 | |||||||||||||||||||
| 2024 | |||||||||||||||||||||||
| Revenues | $ | 841,236 | $ | 725,199 | $ | 207 | $ | 1,566,642 | |||||||||||||||
| Depreciation and amortization expense | 40,617 | 26,677 | 947 | 68,241 | |||||||||||||||||||
| Total assets | 1,143,053 | 567,310 | 151,697 | 1,862,060 | |||||||||||||||||||
| Expenditures for long-lived assets | 40,410 | 31,493 | — | 71,903 | |||||||||||||||||||
| 2023 | |||||||||||||||||||||||
| Revenues | $ | 782,611 | $ | 701,699 | $ | (22) | $ | 1,484,288 | |||||||||||||||
| Depreciation and amortization expense | 39,421 | 27,951 | 2,246 | 69,618 | |||||||||||||||||||
| Loss on impairment of assets | 1,620 | — | 1,453 | 3,073 | |||||||||||||||||||
| Expenditures for long-lived assets | 37,411 | 18,980 | 66 | 56,457 | |||||||||||||||||||
| For the years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Adjusted EBITDA of reportable segments: | |||||||||||||||||
| Mexico | $ | 229,403 | $ | 206,496 | $ | 176,954 | |||||||||||
| Peru | 328,604 | 283,375 | 286,850 | ||||||||||||||
| Total Adjusted EBITDA of reportable segments | 558,007 | 489,871 | 463,804 | ||||||||||||||
| Reconciling items: | |||||||||||||||||
| Corporate | (39,069) | (39,804) | (45,177) | ||||||||||||||
| Depreciation and amortization expense | (74,494) | (68,241) | (69,618) | ||||||||||||||
| Loss on impairment of assets | — | — | (3,073) | ||||||||||||||
| Share-based compensation expense | (13,342) | (7,843) | (7,114) | ||||||||||||||
| Operating income | 431,102 | 373,983 | 338,822 | ||||||||||||||
| Interest income | 7,103 | 8,058 | 9,085 | ||||||||||||||
| Interest expense | (10,661) | (18,102) | (20,986) | ||||||||||||||
| Other income (expense), net | 7,936 | 1,222 | (325) | ||||||||||||||
| Foreign currency exchange (loss) gain, net | (34,571) | 50,658 | (75,702) | ||||||||||||||
| (Loss) gain on disposals of subsidiaries, net | — | (1,304) | 3,567 | ||||||||||||||
| Loss on debt extinguishment | — | (31) | — | ||||||||||||||
| Income from continuing operations before income taxes and equity in net income of affiliates | $ | 400,909 | $ | 414,484 | $ | 254,461 | |||||||||||
The following table presents significant segment expenses of our reportable segments:
| For the years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Mexico | |||||||||||||||||
| Revenues | $ | 877,392 | $ | 841,236 | $ | 782,611 | |||||||||||
| Less: | |||||||||||||||||
| Labor costs | 313,159 | 303,468 | 291,037 | ||||||||||||||
| Lease and other facilities costs | 104,860 | 114,840 | 117,376 | ||||||||||||||
| Advertising costs | 55,291 | 51,064 | 44,444 | ||||||||||||||
Other costs (1) | 174,679 | 165,368 | 152,800 | ||||||||||||||
| Adjusted EBITDA | $ | 229,403 | $ | 206,496 | $ | 176,954 | |||||||||||
| Peru | |||||||||||||||||
| Revenues | $ | 824,396 | $ | 725,199 | $ | 701,699 | |||||||||||
| Less: | |||||||||||||||||
| Labor costs | 294,458 | 255,388 | 249,972 | ||||||||||||||
| Lease and other facilities costs | 31,952 | 30,158 | 29,801 | ||||||||||||||
| Advertising costs | 42,297 | 37,248 | 30,884 | ||||||||||||||
Other costs (1) | 127,085 | 119,030 | 104,192 | ||||||||||||||
| Adjusted EBITDA | $ | 328,604 | $ | 283,375 | $ | 286,850 | |||||||||||
(1) Other costs for each reportable segment include: professional services expense, technology expense, bad debt and other direct costs.
Geographic Information
No individual customer accounted for more than 10% of Laureate’s consolidated revenues. Revenues from customers by geographic area, primarily generated by students enrolled at institutions in those areas, were as follows:
| For the years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
External Revenues(2) | |||||||||||||||||
| Mexico | $ | 877,392 | $ | 841,236 | $ | 782,046 | |||||||||||
| Peru | 824,396 | 725,175 | 701,443 | ||||||||||||||
| United States | 142 | 231 | 799 | ||||||||||||||
| Consolidated total | $ | 1,701,930 | $ | 1,566,642 | $ | 1,484,288 | |||||||||||
(2) Excludes intercompany revenues for 2024 and 2023 and therefore does not agree to the table above.
Long-lived assets are composed of Property and equipment, net. Laureate’s long-lived assets by geographic area were as follows:
| December 31, | 2025 | 2024 | |||||||||
| Long-lived assets | |||||||||||
| Mexico | $ | 261,831 | $ | 213,381 | |||||||
| Peru | 366,774 | 300,307 | |||||||||
| United States | 11 | 564 | |||||||||
| Consolidated total | $ | 628,616 | $ | 514,252 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.