Laureate Education Reports 5% Revenue Increase, Boosts 2025 Guidance to $1,615-1,630 Million

Laureate Education reported Q2 2025 revenue of $524.2 million, a 5% increase YoY, with adjusted EBITDA rising to $214.5 million. New enrollments increased 7% and total enrollments rose 6% across Mexico and Peru operations. The company updated its 2025 guidance, projecting revenue between $1,615 million and $1,630 million and adjusted EBITDA between $489 million and $496 million.

Laureate Education Inc. (LAUR) reported its financial results for the second quarter of 2025, revealing a miss on earnings per share (EPS) expectations but a beat on revenue forecasts. The company posted an EPS of $0.65, falling short of the forecasted $0.72, marking a surprise of -9.72%. However, revenue reached $524 million, surpassing the anticipated $502 million. Following these announcements, Laureate’s stock experienced a pre-market decline of 1.23%, trading at $22.55.

Key Takeaways
EPS was below expectations at $0.65, compared to a forecast of $0.72. Revenue exceeded forecasts, reaching $524 million. Stock price dropped 1.23% in pre-market trading. Full-year revenue guidance set at $1.615-$1.630 billion. Continued focus on digital offerings and campus expansions.

Laureate Education demonstrated strong revenue growth in the second quarter, driven by its strategic focus on expanding digital offerings and new campus openings. Despite the EPS miss, the company maintained robust revenue growth, reflecting its ability to adapt to market demands in Mexico and Peru. Compared to previous quarters, the revenue beat indicates resilience in Laureate’s business model, although the EPS miss highlights potential cost pressures or investment needs.

Financial Highlights
Revenue: $524 million, up 8% on an organic constant currency basis. Adjusted EBITDA: $214 million, a 13% increase organically. Net Income: $97 million, translating to $0.65 per share. Adjusted Net Income: $118 million, or $0.79 per share. Earnings vs. Forecast Laureate’s EPS of $0.65 fell short of the projected $0.72, a miss of approximately 9.72%. This contrasts with the company’s revenue performance, which exceeded expectations by 4.42%, reaching $524 million against a forecast of $502 million. This mixed result underscores the challenge of balancing profitability with revenue growth.

Market Reaction
In response to the earnings announcement, Laureate’s stock fell 1.23% in pre-market trading, reflecting investor disappointment over the EPS miss. The stock traded at $22.55, down from its last close of $22.83, and remains within its 52-week range of $13.60 to $24.57. This movement aligns with broader market trends where companies missing earnings expectations often face immediate stock price declines. Despite the recent dip, InvestingPro data shows impressive returns with a 47.29% price gain over the past year and a 24.82% year-to-date return. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading below its intrinsic value, suggesting potential upside opportunity.

Outlook & Guidance
Laureate provided full-year revenue guidance of $1.615-$1.630 billion, indicating growth of 3-4%. The company also anticipates adjusted EBITDA growth of 9-10%, projecting $489-$496 million. Strategic initiatives include scaling digital offerings and opening new campuses in Mexico and Peru, aiming for a 6-7% organic constant currency revenue growth.

Executive Commentary
CEO Eilif Serkantin emphasized Laureate’s strong market position, stating, "We hold a privileged position as the leading private higher education provider in Mexico and Peru." He also highlighted the company’s growth agenda, noting, "Our growth agenda continues to advance across both of our core markets."

Risks and Challenges
Cost pressures impacting EPS despite revenue growth. Potential market saturation in key regions. Economic uncertainties in Mexico and Peru could affect enrollment. Competition from other educational providers. Execution risks associated with new campus openings.

Reference List:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-laureate-education-q2-2025-misses-eps-forecast-stock-dips-93CH-4163695