Laureate Education Projects Robust 2025 Growth, Raises Revenue and EBITDA Forecasts

Laureate Education (LAUR) forecasts 4-5% growth in total enrollments to 491,000-495,000 students in 2025, with revenue expected to rise 3-4% to $1,615-$1,630 million. Adjusted EBITDA is projected to increase 9-10% to $489-$496 million. The company's financial health is robust, with strong revenue growth, high profitability, and a conservative debt-to-equity ratio.

Laureate Education (LAUR), a leading provider of higher education, reported its fiscal 2025 Q2 earnings on July 31, 2025. The company fell short of analysts' expectations with an EPS of $0.65, missing the forecast of $0.72. However, Laureate 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 [1].

Revenue for the second quarter rose 5% year-over-year to $524.2 million, surpassing consensus estimates by approximately 3.7% [2]. This growth was driven by increased student enrollments, with new enrollments growing 7% overall for the six months ended June 30, 2025. However, GAAP earnings per share (EPS) came in at $0.65, below the analyst consensus of $0.72, primarily due to foreign currency translation losses on a GAAP basis. Adjusted EPS, which removes currency effects and other one-time items, was $0.79.

Operating income improved by $26.7 million, reaching $193.3 million, while adjusted EBITDA climbed to $214.5 million, up nearly 15% year over year. Both operating income and adjusted EBITDA benefited from enrollment momentum and academic calendar timing effects. The Mexico segment, for example, saw adjusted EBITDA grow 19%.

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.

The company also 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.

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. The company forecasts 4-5% growth in total enrollments to 491,000-495,000 students in 2025, with revenue expected to rise 3-4% to $1,615-$1,630 million. Adjusted EBITDA is projected to increase 9-10% to $489-$496 million.

References:
[1] https://www.ainvest.com/news/laureate-education-2025-q2-earnings-misses-targets-net-income-declines-24-1-2508/
[2] https://www.nasdaq.com/articles/laureate-laur-q2-revenue-jumps-5