Laureate Education's Q2 2025: Discrepancies in Enrollment Trends, Digital Course Growth, and Capital Strategy

Student enrollment trends and demand, fully digital course growth and market strategy, capital expenditure and growth forecasts, and capital allocation strategies are the key contradictions discussed in Laureate Education's latest 2025Q2 earnings call.



Revenue and Enrollment Growth:
- Laureate Education reported 9% revenue growth on a timing-adjusted and constant currency basis for the first half of 2025, with new enrollments up 7% and total enrollments up 6% year-over-year.
- The growth was driven by strong execution across the board, favorable currency trends, and the expansion of fully online programs for working adults.

Operating Efficiency and Margin Expansion:
- The company is on track to expand adjusted EBITDA margins by approximately 150 basis points for the year.
- This improvement is supported by disciplined execution of operating efficiency efforts and the impact of efficiency initiatives.

Mexico Market Performance:
- Mexico's revenue for the second quarter increased 9% year-over-year, with adjusted EBITDA up 19%.
- The growth was led by productivity gains and revenue flow-through, as well as steady improvements in profitability supported by efficiency efforts.

Peru Market Performance:
- Peru's revenue increased 7% year-over-year in the second quarter, with adjusted EBITDA up 9%.
- The growth was driven by strong demand from young students at the premium brand and continued expansion in fully online programs for working adults.

Campus Expansion and Strategic Investments:
- Laureate plans to open two new campuses in September, in Monterrey, Mexico, and Lima, Peru.
- These strategic investments are part of the company's growth strategy to expand access to quality higher education in high-growth areas and underscore its long-term commitment to these markets.