laur-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2025

☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________.

Commission File Number: 001-38002

Laureate Education, Inc.

(Exact name of registrant as specified in its charter)

Delaware

52-1492296

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

PMB 1158, 1000 Brickell Avenue, Suite 715,

Miami,

Florida

33131

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (786) 209-3368

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.004 per share	LAUR	The NASDAQ Stock Market LLC
		Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer ☐ Non-accelerated filer ☐

Smaller reporting company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class						Outstanding at March 31, 2025
Common stock, par value $0.004 per share						148,810,163 shares


INDEX
PART I. - FINANCIAL INFORMATION		Page No.

Item 1.	Financial Statements (Unaudited)



	Consolidated Statements of Operations - Three months ended March 31, 2025 and March 31, 2024	2



	Consolidated Statements of Comprehensive Income - Three months ended March 31, 2025 and March 31, 2024	3

	Consolidated Balance Sheets - March 31, 2025 and December 31, 2024	4

	Consolidated Statements of Cash Flows - Three months ended March 31, 2025 and March 31, 2024	6

	Notes to Consolidated Financial Statements	7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	31

PART II. - OTHER INFORMATION

Item 1.	Legal Proceedings	32

Item 1A.	Risk Factors	32

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 5.	Other Information	32

Item 6.	Exhibits	33

SIGNATURES		34

PART I - FINANCIAL INFORMATION

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.

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.

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.

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.

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.

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.

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.

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.

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)

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

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.

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

SEC Form 10-Q filed by Laureate Education Inc.