Laureate Education, Inc.

and thank you for standing by. Welcome to the Laureate Education Third Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Adam Morse, Senior Vice President of Finance. Please go ahead.

Good morning, and thank you for joining us on today's call to discuss Laureate Education's third quarter and year-to-date 2025 results. Joining me on the call today are Iliff Sarkanson, President and Chief Executive Officer, and Rick Buskirk, Chief Financial Officer. Our earnings press release is available on the Investor Relations section of our website at laureate.net. We've also posted a supplementary presentation to the website, which we'll be referring to during today's call. Call is being webcast, and a complete recording will be available after the call. I would like to remind you that some of the information we are providing today, including, but not limited to, our financial and operational guidance constitutes forward-looking statements within the meaning of applicable U.S. securities laws. Forward-looking statements are subject to risks and uncertainties that may change at any time, and therefore, our actual results may differ materially from those we expected. Important factors that could cause actual results to differ materially from our expectations are disclosed in our annual report on Form 10-K, followed with the U.S. Securities and Exchange Commission, our 10Q filed earlier this morning, as well as other filings made with the SEC. In addition, all forward-looking statements are based on current expectations as of the date of this conference call, and we undertake no obligation to update any forward-looking statements. Additionally, non-GAAP measures that we discuss, including and among others, adjusted EBITDA and its related margin, adjusted net income, and adjusted earnings per share, total cash and equivalents, net of total debt, and free cash flow are also detailed and reconciled to their GAAP counterparts in our press release or supplementary presentation. Let me now turn the call over to Iliff.

Thank you, Adam, and good morning, everyone. Today, we are pleased to report strong operating and financial performance for the third quarter, along with the results of our recently completed intake cycles. Third quarter revenue was $400 million and adjusted EBITDA was $95 million. Both metrics were ahead of the guidance we provided in July. Favorable results for the quarter were driven by improved foreign currency rates and double-digit growth in Peru's secondary intake. led by fully online working adult programs as we continue to scale in that segment, albeit from a smaller base. The primary intake in Mexico was up 4% excluding campus closures and in line with our expectations. The solid results during the intake were against the backdrop of a softer macroeconomic environment, reinforcing the resiliency of our business model. During the intake cycle, we also opened two new campuses for our value brand institutions, one in Monterrey, Mexico, and one in Lima's Ate District in Peru. Both campuses opened on time, on budget, and performed as expected. These campus openings were our first new campus launches since 2019. We also have two additional new campus projects underway. one in each market, and expect these to open late next year or early in 2027. Beyond that, we have identified numerous other cities and site locations in both Mexico and Peru that are ripe for development over the next several years. The completion of the intake cycle provides us with strong visibility for the remainder of the year, and we are announcing an increase to our full year 2025 outlook, which Rick will cover in more detail later in his prepared remarks. Our balance sheet remains exceptionally strong, and today we are also pleased to announce that our board has authorized a $150 million increase to our stock repurchase program, underscoring our disciplined approach to capital allocation and focus on long-term value creation for our shareholders. From a macro perspective, Peru's economy continues to perform well, driven by robust domestic demand, new mining projects, strong commodity prices, rising wages, and low inflation. GDP growth for this year is projected at approximately 3%, with a similar pace expected to continue through 2026, reinforcing the country's path towards sustainable growth. In Mexico, President Scheinbaum's administration marked its first year in office with a public approval rating above 70%. The government has maintained fiscal discipline, advanced industrial modernization, and promoted infrastructure investments through stronger public-private collaboration. U.S. trade policy uncertainties have caused the current macroeconomic environment to be a bit sluggish. However, Scheinbaum's pragmatic approach to managing the U.S.-Mexico relationship has helped maintain a constructive tone ahead of the upcoming USMCA review. Most economists anticipate an increase in economic activity in the second half of 2026 and into 2027, following completion of these trade negotiations. That concludes my prepared remarks, and I'm now handing the call over to Rick for the financial overview of the third quarter, as well as guidance for the fourth quarter and the full year 2025.