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- **Q3 Revenue Beat**: $400 million revenue and $95 million EBITDA, exceeding guidance, driven by Peru’s online growth and Mexico’s resilience.
- **New Campus Expansion**: 2 new campuses opened in Mexico and Peru, with 2 more in development, signaling long-term growth.
- **Shareholder Return**: $150 million buyback increase, part of $3B+ returned to shareholders since 2019.
- **Peru Mix Impact**: 2% expected decline in ARPU from online program growth, offset by inflation-linked pricing.
- **Strong Balance Sheet**: $241 million cash and $139 million net cash, supporting disciplined capital allocation.

**【Management Opening Remarks】**
- Adam Morse introduced the call, noting the availability of the earnings press release and supplementary presentation on the company’s website.
- He reminded participants of the forward-looking statements disclaimer and outlined non-GAAP measures used in the discussion.

**【CEO Summary Section】**
- Q3 2025 revenue was $400 million, exceeding guidance, with adjusted EBITDA of $95 million.
- Growth drivers included favorable foreign exchange rates, double-digit growth in Peru’s secondary intake (fully online working adult programs), and 4% new enrollment growth in Mexico (excluding closures).
- New campus openings in Mexico and Peru performed as expected, with 2 additional projects underway for late 2026/early 2027.
- Board authorized a $150 million increase to the stock repurchase program, bringing total available to $177 million.
- Peru’s macroeconomic stability and Mexico’s pragmatic government approach were highlighted as positive factors.

**【CFO Financial Commentary】**
- Q3 revenue growth of 6% (organic, constant currency) and 3% EBITDA growth, driven by Mexico’s 25% EBITDA increase and Peru’s 8% revenue growth.
- Year-to-date 2025 results: 8% revenue growth and 13% EBITDA growth (organic, constant currency).
- Full year 2025 guidance updated to $1.681B-$1.686B revenue (7%-8% growth) and $508M-$512M EBITDA (13%-14% growth).
- Q4 2025 outlook: $521M-$526M revenue and $194M-$198M EBITDA, reflecting academic calendar timing benefits.
- Balance sheet remains strong with $241M cash and $139M net cash position.

**【Q&A Key Highlights】**
- Peru’s Q3 revenue strength: 21% new enrollment growth in fully online programs, offsetting 2% EBITDA decline due to timing of expenses.
- Mexico’s 4% new enrollment growth (excluding closures) included 1% contribution from new campuses, with 3% same-store growth.
- Peru’s average revenue per student expected to decline 2% due to mix shift toward lower-priced fully online programs, partially offset by inflation-linked pricing for face-to-face students.

Laureate Education, Inc. (LAUR) Q3 2025 Earnings Call Transcript

- **Revenue Beat & Guidance Update**: Q2 revenue up 8% YoY (adjusted), full-year outlook raised by $55M due to FX tailwinds. 
- **Margin Expansion**: 150bps EBITDA margin growth on track, driven by efficiency and campus consolidations.
- **Digital Growth**: Fully online programs for working adults growing double-digits in both Mexico and Peru.
- **New Campuses**: Two openings in Q3, two more in development, with pipeline for 5+ new sites over next 5 years.
- **FX Impact**: MXN appreciation contributed $18M to Q2 outperformance, adding $55M to full-year revenue guidance.
- **CapEx Intensification**: 5%-7% of revenue allocated to new campus development, targeting mid-20s IRRs.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue of $524M, up 8% YoY (constant currency, timing-adjusted), driven by 7% new and 6% total enrollments. Full-year outlook raised by $55M for revenue and $16M for adjusted EBITDA.
- **Margin Expansion**: On track for 150bps adjusted EBITDA margin expansion in 2025, supported by efficiency initiatives and campus consolidations in Mexico.
- **New Campuses**: Two new campuses opening in September (Monterrey, Mexico and Lima, Peru), with two more in development for late 2026/early 2027. Multiple pipeline sites identified for next 5 years.
- **Market Resilience**: Mexico and Peru show strong economic momentum; Peru exited recession with 3.1% YoY GDP growth through Q2.
- **Digital Growth**: Fully online programs for working adults growing double-digits in both markets, mirroring Mexico's trajectory.

**【CFO Financial Commentary】**
- **Q2 Financials**: Adjusted EBITDA of $214M (+13% YoY), net income $97M, EPS $0.65. Year-to-date revenue +9%, EBITDA +17%.
- **Currency Impact**: $18M of Q2 outperformance due to MXN appreciation (9% YoY). Full-year FX benefit adds $55M to revenue guidance.
- **Cash Flow**: $135M cash on hand, $19M net cash. $71M shares repurchased YTD under $100M buyback program.
- **Full-Year Guidance**: Revenue $1.615B-$1.630B (+3%-4% as-reported, +6%-7% organic), EBITDA $489M-$496M (+9%-10% as-reported, +11%-13% organic).
- **Third Quarter**: Revenue $375M-$379M, EBITDA $72M-$82M (includes $7M timing shift from Q2).

**【Q&A Highlights】**
- **Enrollment Pipeline**: Encouraged by early trends in Mexico's main intake, with working adult programs growing high single-digits. Peru's online programs seeing strong demand.
- **Revenue Upside**: Q2 outperformance due to FX ($18M) and operational strength ($2M from re-enrollments). 
- **CapEx Strategy**: 5%-7% of revenue for new campus development, targeting 1-2 openings/year. New campuses expected to achieve mid-20s IRRs.


Laureate Education (LAUR)-31 Jul 25-2025 Q2 Earnings call transcript

- **Enrollment Growth Strong**: Mexico +8%, Peru +6% YoY, driving 7% total enrollment growth
- **Digital Expansion Accelerating**: 20% of students in online programs, growing 3-4x faster than face-to-face
- **Financial Resilience**: Q1 adjusted EBITDA up 132% YoY to $5M; 50% EBITDA-to-free cash flow conversion
- **FX Risk Management**: Guiding at MXN 20.50/USD despite recent MXN strength
- **Shareholder Returns**: $42M Q1 buybacks, $56M remaining under $100M program

**【CEO Opening Remarks】**
- Q1 2025 saw strong enrollment growth: 8% YoY in Mexico (face-to-face & online), 6% in Peru (face-to-face & online). Total enrollments adjusted for academic calendar shifts increased 7% YoY.
- Tightened full-year 2025 guidance: Total enrollments up 4-5%, revenue flat to +1% (USD reported), adjusted EBITDA +5-7% (USD reported). 
- Highlighted business resilience: Education spending prioritized during economic uncertainty, with 90% of graduates employed within 12 months.
- Digital education growth: 20% of students (100,000) in fully online programs, growing 3-4x faster than face-to-face.

**【CFO Financial Review】**
- Q1 2025 Results:
  - Revenue: $236M (flat YoY, +10% organic/constant currency)
  - Adjusted EBITDA: $5M (vs. $2M loss YoY)
  - Net loss: $20M (vs. $18M YoY)
- Mexico Performance:
  - Revenue +11% YoY (face-to-face +7%, online +22%)
  - Adjusted EBITDA +22% YoY
- Peru Performance:
  - Revenue +5% YoY
  - Adjusted EBITDA down $2M YoY (seasonal)
- Key Drivers:
  - Mexico campus consolidation reducing costs
  - 50% EBITDA-to-free cash flow conversion
  - $42M Q1 stock buybacks (remaining $56M authorized)

**【Q&A Highlights】**
1. **Enrollment Timing & FX**
   - Peru intake shifted 2 weeks later, impacting Q1 revenue by $26M
   - Using MXN 20.50/USD for 2025 guidance despite recent MXN strength
2. **Digital Education Growth**
   - 20% of students in online programs, growing 3-4x faster than face-to-face
   - Mexico digital penetration > Peru, but both markets showing strong momentum
3. **Capital Allocation**
   - Committed to returning 50% of EBITDA to shareholders
   - $100M buyback program halfway completed in Q1

Laureate Education (LAUR)-1 May 25-2025 Q1 Earnings call transcript

- **Record Profit Margins**: FY2024 adjusted EBITDA margin of 28.7%, highest in company history.
- **Mexico Dominance**: 10% revenue growth, 24.5% margin, exceeding 25% target.
- **Peru Recovery**: 4% revenue growth despite macro challenges, improving trends in Q4.
- **Shareholder Returns**: $100M+ returned in FY2024, 50% free cash flow conversion target.
- **Currency Risks**: 12% MXN weakness expected to weigh on FY2025 reported results.

**【CEO Opening Remarks】**
- Laureate achieved record performance in FY2024 with 10% organic revenue growth and a 28.7% adjusted EBITDA margin, the highest in company history.
- Mexico and Peru operations drove growth, with 6 new medical schools and 2 dental schools opened, reflecting strong demand for health sciences education.
- FY2025 outlook includes flat to down 1% reported revenue due to MXN weakness, but 6-7% local currency growth and 4-6% EBITDA expansion.
- Share buybacks remain a priority, with $98M remaining under the current program.

**【CFO Financial Highlights】**
- FY2024 results: $1.567B revenue, $450M adjusted EBITDA, $1.35 non-GAAP EPS.
- Mexico: 10% revenue growth, 19% EBITDA expansion, 24.5% margin (vs. 2023 target of 25%).
- Peru: 4% revenue growth, 1% EBITDA decline due to macroeconomic headwinds, but improving trends in Q4.
- FY2025 guidance: $1.545-1.570B revenue, $467-477M EBITDA, 50% free cash flow conversion.

**【Q&A Key Takeaways】**
- Mexico economic outlook: 1% GDP growth in 2025, but long-term bullish due to strong US-MX trade ties.
- Shareholder returns: 50% of unlevered free cash flow to be returned via buybacks.
- Peru intake: 6% new enrollment growth in FY2024, with positive momentum in digital programs.
- Tax rate: ~40% run rate excluding one-time items, stable going forward.

Laureate Education, Inc. (LAUR) Q4 2024 Earnings Call Transcript

Laureate Education (LAUR)-31 Oct 24-2024 Q3 Earnings call transcript

Laureate Education (LAUR)-1 Aug 24-2024 Q2 Earnings call transcript

Laureate Education (LAUR)-2 May 24-2024 Q1 Earnings call transcript

Laureate Education (LAUR)-22 Feb 24-2023 Q4 Earnings call transcript

Laureate Education (LAUR)-2 Nov 23-2023 Q3 Earnings call transcript

Laureate Education (LAUR)-4 May 23-2023 Q1 Earnings call transcript

Laureate Education (LAUR)-23 Feb 23-2022 Q4 Earnings call transcript

Laureate Education (LAUR)-3 Nov 22-2022 Q3 Earnings call transcript

Laureate Education (LAUR)-5 Aug 22-2022 Q2 Earnings call transcript

Laureate Education (LAUR)-8 May 22-2022 Q1 Earnings call transcript

Laureate Education (LAUR)-24 Feb 22-2021 Q4 Earnings call transcript

Laureate Education (LAUR)-6 Nov 21-2021 Q3 Earnings call transcript

Laureate Education (LAUR)-7 Aug 21-2021 Q2 Earnings call transcript

Laureate Education (LAUR)-8 May 21-2021 Q1 Earnings call transcript

Laureate Education (LAUR)-28 Feb 21-2020 Q4 Earnings call transcript

Laureate Education (LAUR)-8 Nov 20-2020 Q3 Earnings call transcript

Laureate Education (LAUR)-9 Aug 20-2020 Q2 Earnings call transcript

Laureate Education (LAUR)-10 May 20-2020 Q1 Earnings call transcript

Laureate Education (LAUR)-28 Feb 20-2019 Q4 Earnings call transcript

Laureate Education (LAUR)-8 Nov 19-2019 Q3 Earnings call transcript

Laureate Education (LAUR)-11 Aug 19-2019 Q2 Earnings call transcript

Laureate Education (LAUR)-13 May 19-2019 Q1 Earnings call transcript

Laureate Education (LAUR)-1 Mar 19-2018 Q4 Earnings call transcript

Laureate Education (LAUR)-13 Nov 18-2018 Q3 Earnings call transcript

Laureate Education (LAUR)-12 Aug 18-2018 Q2 Earnings call transcript

Laureate Education (LAUR)-13 May 18-2018 Q1 Earnings call transcript

Laureate Education (LAUR)-20 Mar 18-2017 Q4 Earnings call transcript

Laureate Education (LAUR)-9 Nov 17-2017 Q3 Earnings call transcript

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