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Business and Geographic Segment Information
 12 Months Ended
Dec. 31, 2024
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. 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 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 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 gain (loss), net, Other income (expense), net, Loss on debt extinguishment, Interest expense, Interest income, Depreciation and amortization expense, Loss on impairment of assets, Share-based compensation expense and expenses related to our Excellence-in-Process (EiP) initiative. Our EiP initiative was completed as of December 31, 2021, except for certain EiP expenses during 2022 related to the run out of programs that began in prior periods. EiP was an enterprise-wide initiative to optimize and standardize Laureate’s processes, creating vertical integration of procurement, information technology, finance, accounting and human resources. It included the establishment of regional shared services organizations (SSOs), as well as improvements to the Company's system of internal controls over financial reporting. The EiP initiative also included other back- and mid-office areas, as well as certain student-facing activities, expenses associated with streamlining the organizational structure, an enterprise-wide program aimed at revenue growth, and certain non-recurring costs incurred in connection with previous dispositions. The chief 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, 2024, 2023 and 2022:
MexicoPeruCorporateTotal
2024
Revenues$841,236 $725,199 $207 $1,566,642 
Depreciation and amortization expense40,617 26,677 947 68,241 
Total assets1,143,053 567,310 151,697 1,862,060 
Expenditures for long-lived assets40,410 31,493 — 71,903 
2023
Revenues$782,611 $701,699 $(22)$1,484,288 
Depreciation and amortization expense39,421 27,951 2,246 69,618 
Loss on impairment of assets1,620 — 1,453 3,073 
Total assets1,396,605 559,428 169,583 2,125,616 
Expenditures for long-lived assets37,411 18,980 66 56,457 
2022
Revenues$613,942 $624,238 $4,091 $1,242,271 
Depreciation and amortization expense31,369 23,953 3,810 59,132 
Loss on impairment of assets144 — — 144 
Expenditures for long-lived assets36,045 16,777 246 53,068 

For the years ended December 31,202420232022
Adjusted EBITDA of reportable segments:
Mexico$206,496 $176,954 $123,368 
Peru283,375 286,850 266,660 
Total Adjusted EBITDA of reportable segments489,871 463,804 390,028 
Reconciling items:
Corporate(39,804)(45,177)(51,151)
Depreciation and amortization expense(68,241)(69,618)(59,132)
Loss on impairment of assets— (3,073)(144)
Share-based compensation expense(7,843)(7,114)(8,776)
EiP expenses— — (813)
Operating income373,983 338,822 270,012 
Interest income8,058 9,085 7,567 
Interest expense(18,102)(20,986)(16,418)
Other income (expense), net1,222 (325)770 
Foreign currency exchange gain (loss), net50,658 (75,702)(17,444)
(Loss) gain on disposals of subsidiaries, net(1,304)3,567 1,364 
Loss on debt extinguishment(31)— — 
Income from continuing operations before income taxes and equity in net income of affiliates$414,484 $254,461 $245,851 
The following table presents significant segment expenses of our reportable segments:
For the years ended December 31,202420232022
Mexico
Revenues$841,236 $782,611 $613,942 
Less:
Labor costs303,468 291,037 241,153 
Lease and other facilities costs114,840 117,376 95,621 
Advertising costs51,064 44,444 34,175 
Other costs (1)
165,368 152,800 119,625 
Adjusted EBITDA$206,496 $176,954 $123,368 
Peru
Revenues$725,199 $701,699 $624,238 
Less:
Labor costs255,388 249,972 217,687 
Lease and other facilities costs30,158 29,801 26,168 
Advertising costs37,248 30,884 27,456 
Other costs (1)
119,030 104,192 86,267 
Adjusted EBITDA$283,375 $286,850 $266,660 
(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 31,202420232022
External Revenues(2)
Mexico $841,236 $782,046 $613,623 
Peru725,175 701,443 624,167 
United States231 799 4,481 
Consolidated total$1,566,642 $1,484,288 $1,242,271 
(2) Excludes intercompany revenues 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 31,20242023
Long-lived assets
Mexico $213,381 $260,053 
Peru300,307 300,655 
United States564 1,518 
Consolidated total$514,252 $562,226