Laureate Education’s second quarter results reflected broad-based enrollment growth and continued momentum in its digital and face-to-face programs across Mexico and Peru. Management credited disciplined execution and productivity initiatives for improved operating margins, while highlighting that higher student demand, especially in working adult online programs, contributed to revenue gains. CEO Eilif Serck-Hanssen cited “strong growth in working adult-focused fully online programs” and emphasized the significance of recent campus developments in supporting the company’s expansion strategy.
Is now the time to buy LAUR? Find out in our full research report (it’s free).
Laureate Education (LAUR) Q2 CY2025 Highlights:
- Revenue: $524.2 million vs analyst estimates of $516.4 million (5% year-on-year growth, 1.5% beat)
- Adjusted EPS: $0.79 vs analyst estimates of $0.72 (9.7% beat)
- Adjusted EBITDA: $214.5 million vs analyst estimates of $196 million (40.9% margin, 9.5% beat)
- The company lifted its revenue guidance for the full year to $1.62 billion at the midpoint from $1.57 billion, a 3.5% increase
- EBITDA guidance for the full year is $492.5 million at the midpoint, above analyst estimates of $483 million
- Operating Margin: 36.9%, up from 33.4% in the same quarter last year
- Enrolled Students: 472,100, up 27,900 year on year
- Market Capitalization: $3.92 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Laureate Education’s Q2 Earnings Call
- Ryan (BMO Capital Markets) asked about early trends in Mexico’s application pipeline for the fall intake. CEO Eilif Serck-Hanssen replied that the company is “encouraged by the strength of the working adult students” and that the main intake for traditional undergraduates is progressing well so far.
- Ryan (BMO Capital Markets) followed up on revenue outperformance drivers. CFO Richard Buskirk confirmed that “the $20 million of outperformance versus the high end of the range was primarily associated with FX,” with some operational gains from strong enrollments carrying forward.
- Lucas Dai Nagano (Morgan Stanley) inquired about the trajectory of online learning in Peru versus Mexico. Serck-Hanssen described “double-digit” growth in Peru’s online programs and noted strong parallels to Mexico’s earlier digital expansion.
- Lucas Dai Nagano (Morgan Stanley) asked about new campus investments and regional focus. Serck-Hanssen outlined upcoming openings in Monterrey and Lima, highlighting strong demand and multi-year maturation timelines for new campuses.
- Lucas Dai Nagano (Morgan Stanley) pressed for details on capital expenditures for campus growth. Serck-Hanssen explained that CapEx will rise to about 5% of revenues to support one to two launches per year, and could increase further if more campuses are added.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be tracking (1) enrollment trends for both young and working adult students, especially as new campuses open; (2) the pace of adoption and revenue impact from expanded digital and online programs in Peru and Mexico; and (3) developments in the regulatory and macroeconomic environment, particularly around U.S.-Mexico trade negotiations. The ability to execute on campus launches and digital scaling will remain key to Laureate’s growth trajectory.
Laureate Education currently trades at $26.57, up from $22.84 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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