Laureate Education Reports Strong Growth and Expansion

Laureate Education ((LAUR)) has held its Q2 earnings call. Read on for the main highlights of the call.

Laureate Education’s recent earnings call painted a picture of robust performance and strategic growth, despite facing some challenges. The sentiment was overwhelmingly positive, with strong enrollment and revenue growth, successful campus expansions, and an improved financial outlook taking center stage. While issues such as academic calendar timing and currency fluctuations were acknowledged, the overall achievements in academic excellence and strategic growth plans were emphasized.

Enrollment and Revenue Growth

Laureate Education reported impressive figures in enrollment and revenue growth. New enrollments increased by 7%, while total enrollments rose by 6%. On a timing adjusted and constant currency basis, the company saw a 9% growth in revenue, highlighting the effectiveness of its growth strategies.

Improved Financial Outlook

The company raised its full-year 2025 revenue outlook by $55 million and adjusted EBITDA by $16 million, thanks to favorable currency trends. This improved financial outlook reflects the company’s strong performance and strategic planning.

Successful Campus Expansions

Laureate Education is on track with its growth strategy, with two new campuses set to open in Monterrey, Mexico, and Lima’s Ate District in September. These expansions are expected to contribute significantly to the company’s growth.

Resilient Performance in Key Markets

Mexico and Peru continue to show economic resilience, with Mexico maintaining stability and Peru experiencing 14 consecutive months of GDP expansion, achieving a 3.1% growth year-to-date. These markets are crucial to Laureate’s strategic plans.

Strong Brand and Academic Achievements

Celebrating its 65th anniversary, Mexico’s UVM earned top reaccreditation, while UPC in Peru was ranked as the top university in the country in the 2025 THE Impact rankings. These achievements bolster Laureate’s reputation for academic excellence.

Financial Performance Exceeds Guidance

Laureate Education’s second-quarter revenue reached $524 million, with an adjusted EBITDA of $214 million, both surpassing previous guidance. This performance underscores the company’s strong financial management.

Impact of Academic Calendar Timing

The shift in the academic calendar in Peru resulted in approximately $26 million of revenue and $23 million in adjusted EBITDA being moved, affecting first-quarter results. Despite this, the company remains on a strong growth trajectory.

Currency Impact on Quarterly Results

Currency fluctuations continue to be a significant factor impacting financial performance, despite favorable adjustments. The company remains vigilant in managing these challenges.

Forward-Looking Guidance

Looking ahead, Laureate Education anticipates continued growth with a 7% increase in new enrollments and a 6% rise in total enrollments year-to-date. Revenue is expected to grow by 9% on a timing adjusted and constant currency basis, with adjusted EBITDA margins expanding by approximately 150 basis points this year. The company has raised its full-year 2025 outlook, forecasting total enrollments between 491,000 to 495,000 students, revenue between $1.615 billion to $1.630 billion, and adjusted EBITDA between $489 million to $496 million. Plans for new campus openings in Monterrey, Mexico, and Lima’s Ate District further underscore its commitment to growth.

In summary, Laureate Education’s earnings call highlighted a strong performance with significant achievements in enrollment, revenue growth, and strategic expansions. Despite some challenges, the company’s positive financial outlook and commitment to academic excellence and growth in key markets remain clear. Investors and stakeholders can look forward to continued success as Laureate Education navigates the evolving educational landscape.