Laureate Education (LAUR) risk factors, FY2024 10-K

Risks Relating to Our Business

1. 01We operate a portfolio of degree-granting higher education institutions in Mexico and Peru and are subject to complex business, economic, legal, political, tax and foreign currency risks, which risks may be difficult to adequately address
2. 02If we cannot maintain student enrollments in our institutions and maintain tuition levels, our results of operations may be materially adversely affected
3. 03Our success depends substantially on the value of the local brands of each of our institutions, each of which may be materially adversely affected by changes in current and prospective students’ perception of our reputation and the use of social media
4. 04Our reputation may be negatively influenced by the actions of other for-profit and private institutions
5. 05Growing our online academic programs could be difficult for us
6. 06Our success depends, in part, on the effectiveness of our marketing and advertising programs in recruiting new students
7. 07If we do not effectively manage our growth and business, our results of operations may be materially adversely affected
8. 08Our institutions are subject to uncertain and varying laws and regulations, and any changes to these laws or regulations or their application to us may materially adversely affect our business, financial condition and results of operations
9. 09The higher education market is very competitive, and we may not be able to compete effectively
10. 10If our graduates are unable to obtain professional licenses or certifications required for employment in their chosen fields of study, our reputation may suffer and we may face declining enrollments and revenues or be subject to student litigation
11. 11Our business may be materially adversely affected if we are not able to maintain or improve the content of our existing academic programs or to develop new programs on a timely basis and in a cost-effective manner
12. 12Failure to keep pace with changing market needs and technology could harm our ability to attract students
13. 13Our reported revenues and earnings may be negatively affected by the strengthening of the U.S. dollar and currency exchange rates
14. 14We may have exposure to greater-than-anticipated tax liabilities
15. 15Connectivity constraints or technology system breaches and/or disruptions to our computer networks could have a material adverse effect on our ability to attract and retain students and subject us to liability, reputational damage or interrupt the operation of our business
16. 16Any breach, theft or loss of personal information that we collect or any violations of the privacy and information security laws and regulations to which we are subject could materially adversely affect our reputation and operations
17. 17Goodwill and indefinite-lived intangibles make up a significant portion of our total assets, and if we determine that goodwill or indefinite-lived intangibles become impaired in the future, net income and operating income in such years may be materially and adversely affected
18. 18We are incorporating artificial intelligence technologies into our programs and processes which may present business, compliance and reputational risks
19. 19We experience seasonal fluctuations in our results of operations
20. 20Protests and strikes may disrupt our ability to hold classes as well as our ability to attract and retain students, which could materially adversely affect our operations
21. 21We may be unable to operate one or more of our institutions or suffer liability or loss due to a natural or other disaster, including as a result of the effects of climate change
22. 22If we are unable to upgrade our campuses, they may become less attractive to parents and students and we may fail to grow our business
23. 23Our success and ability to grow depend on the ability to hire and retain large numbers of talented people. The process of hiring employees with the combination of skills and attributes required to implement our business strategy can be difficult and time-consuming
24. 24Litigation and divestiture-related indemnification obligations may materially adversely affect our business, financial condition and results of operations
25. 25An epidemic, pandemic or other public health emergency could have a material adverse effect on our business, financial condition, cash flows and results of operations
26. 26We have in the past had material weaknesses in our internal control over financial reporting
27. 27no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected

Risks Relating to Our Indebtedness

1. 28Our debt agreements contain, and future debt agreements may contain, restrictions that may limit our flexibility in operating our business
2. 29We rely on funds from our operating subsidiaries to meet our debt service and other obligations
3. 30Disruptions of the credit and equity markets worldwide may impede or prevent our access to the capital markets for additional funding to conduct our business and may affect the availability or cost of borrowing under our existing credit facility

Risks Relating to Investing in Our Common Stock

1. 31As a public benefit corporation, our focus on a specific public benefit purpose and producing a positive effect for society may negatively influence our financial performance
2. 32If we or our existing investors sell or announce an intention to sell additional shares of our common stock, the market price of our common stock could decline
3. 33The trading price of our common stock is subject to volatility. Additionally, if we do not maintain adequate or favorable coverage of our common stock by securities analysts, the trading price of our common stock could decline
4. 34The provision of our amended and restated certificate of incorporation requiring exclusive venue in the Court of Chancery in the State of Delaware for certain types of lawsuits may have the effect of discouraging lawsuits against our directors and officers

Risks Relating to Peruvian Nonresident Capital Gains Tax

1. 35Sale of our common stock may trigger taxes payable in Peru
2. 36Direct or indirect transfer of company common shares may result in Peruvian tax liability to the Company