v3.25.3
Business and Geographic Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Business and Geographic Segment Information 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 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 from continuing operations before income taxes and equity in net income of affiliates, adding back the following items: Loss on disposal of subsidiaries, net, Foreign currency exchange (loss) gain, 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.

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 endedFor the nine months ended
September 30, September 30,
2025202420252024
Adjusted EBITDA of reportable segments:
Mexico$25,712 $19,978 $136,087 $128,098 
Peru78,065 79,788 206,457 209,418 
Total Adjusted EBITDA of reportable segments103,777 99,766 342,544 337,516 
Reconciling items:
Corporate(8,948)(8,336)(27,888)(28,576)
Depreciation and amortization expense(19,596)(16,609)(53,333)(52,099)
Share-based compensation expense(3,765)(2,781)(9,709)(7,077)
Operating income71,468 72,040 251,614 249,764 
Interest income2,136 2,356 5,024 6,271 
Interest expense(2,605)(4,979)(8,116)(14,769)
Other income, net
171 923 960 483 
Foreign currency (loss) gain, net
(2,347)14,523 (31,122)36,367 
Loss on disposal of subsidiaries, net
— — — (3,086)
Income from continuing operations before income taxes and equity in net income of affiliates
$68,823 $84,863 $218,360 $275,030 
The following table presents significant segment expenses of our reportable segments:
For the three months endedFor the nine months ended
September 30, September 30,
2025202420252024
Mexico
Revenues$194,840 $182,517 $601,464 $615,180 
Less:
Labor costs75,854 70,245 221,936 227,673 
Lease and other facilities costs27,026 27,124 75,225 87,976 
Advertising costs19,579 17,691 46,628 43,963 
Other costs (1)
46,669 47,479 121,588 127,470 
Adjusted EBITDA$25,712 $19,978 $136,087 $128,098 
Peru
Revenues$205,345 $186,070 $558,935 $527,952 
Less:
Labor costs74,014 63,059 207,529 188,364 
Lease and other facilities costs8,383 7,358 24,261 21,943 
Advertising costs10,201 9,758 30,165 25,097 
Other costs (1)
34,682 26,107 90,523 83,130 
Adjusted EBITDA$78,065 $79,788 $206,457 $209,418 
(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 endedFor the nine months ended
September 30, September 30,
2025202420252024
Mexico
Depreciation and amortization expense$12,020 $9,776 $31,764 $31,180 
Expenditures for long-lived assets$12,121 $5,288 $20,521 $15,858 
Peru
Depreciation and amortization expense$7,403 $6,602 $21,045 $20,165 
Expenditures for long-lived assets$6,066 $2,649 $15,544 $18,696 

The following table presents the total assets of our reportable segments:
September 30, 2025December 31, 2024
Assets
Mexico$1,269,422 $1,143,053 
Peru637,976 567,310 
Corporate 209,152 151,697 
Total assets$2,116,550 $1,862,060