Laureate Education 2025 Q2 Earnings Misses Targets as Net Income Declines 24.1%

Laureate Education (LAUR) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Laureate Education fell short of analysts' expectations with an EPS of $0.65, missing the forecast of $0.72. However, the company raised its full-year guidance, anticipating improved revenue driven by favorable foreign currency rates and continued enrollment growth. Although the earnings per share were below estimates, Laureate remains optimistic about its strategic initiatives and financial trajectory for the remainder of the year.

Revenue

Earnings/Net Income
Laureate Education's EPS declined 21.7% to $0.65 in 2025 Q2 from $0.83 in 2024 Q2. Meanwhile, the company's net income declined to $97.43 million in 2025 Q2, down 24.1% from $128.35 million reported in 2024 Q2. The decline in EPS reflects weaker-than-expected financial performance this quarter.

Price Action

Post-Earnings Price Action Review
The strategy of buying Laureate Education (LAUR) shares after a quarter-over-quarter revenue increase on the financial report release date and holding for 30 days resulted in no return over the past three years. This approach had a compound annual growth rate (CAGR) of 0.00% and an excess return of -0.97%, underperforming the benchmark by 0.97%. Additionally, the strategy exhibited no maximum drawdown and zero volatility, indicating a risk-free but low-return approach. Despite the consistent revenue growth, the lack of significant stock price movement suggests that this strategy may not be effective for generating returns, as it failed to capitalize on positive post-earnings trends.

CEO Commentary
Eilif Serck-Hanssen, President and Chief Executive Officer, expressed satisfaction with the solid operating results for the second quarter, noting an increase in revenue and operating income. He highlighted the impact of improved foreign currency rates on the company’s outlook and emphasized that Laureate remains aligned with its strategic priorities, including the opening of two new campuses this September. Serck-Hanssen underscored the strength of the company’s balance sheet and cash flow generation, reaffirming a commitment to support growth initiatives while returning excess capital to shareholders.

Guidance
Laureate Education expects the impacts of intra-year academic calendar timing on revenue and Adjusted EBITDA to be offset in the second half of 2025. The company is increasing its full-year 2025 guidance, anticipating a positive trajectory driven by improved foreign currency rates and continued enrollment growth.

Additional News
In recent developments, Laureate Education announced a significant stock buyback initiative, repurchasing approximately $71 million of its common stock in the first half of 2025 under the existing $100 million stock repurchase program. The company has approximately $27 million remaining in share repurchase authorization. Additionally, Laureate Education is gearing up for the opening of two new campuses in September, marking a key milestone in its strategic growth initiatives. These expansions reflect the company's commitment to enhancing its global educational footprint. Furthermore, Laureate's leadership remains stable with no recent changes in C-level executives, maintaining continuity in its strategic direction.