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LAUREATE EDUCATION, INC. (LAUR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 results topped internal guidance with revenue $524.2M and Adjusted EBITDA $214.5M, aided by FX and expense timing; organic constant-currency revenue +10% (timing-adjusted +$8M) and Adjusted EBITDA +18% (timing-adjusted +$7M) .
  • Versus Wall Street, LAUR delivered a revenue beat ($524.2M vs $505.4M*) and an EPS beat on S&P’s primary/normalized basis ($0.79 vs $0.72*) for Q2 2025; management attributed ~$18M of the upside to FX and ~$2M to operational outperformance .
  • Full-year 2025 outlook raised: revenue to $1.615–$1.630B (from $1.560–$1.575B) and Adjusted EBITDA to $489–$496M (from $473–$480M), reflecting stronger MXN/PEN; constant-currency growth trajectory maintained .
  • Strategic execution intact: year-to-date new enrollments +7% and total +6%; two new campuses on track for September openings (Monterrey, Mexico; East Lima/ATA, Peru) .
  • Near-term stock catalysts: continued intake momentum in Mexico, FX trajectory, and validation of raised FY outlook (plus Q3 guide: revenue $375–$379M; Adjusted EBITDA $78–$82M) .

What Went Well and What Went Wrong

What Went Well

  • Strong Q2 operating performance: revenue +5% to $524.2M; Adjusted EBITDA +15% to $214.5M; Adjusted EBITDA margin up 348 bps to 40.9% .
  • Organic demand and mix: organic constant-currency revenue +10% (timing-adjusted +$8M) and Adjusted EBITDA +18% (timing-adjusted +$7M); Mexico delivered double-digit organic gains with margin improvement .
  • Strategic expansion progressing: “opening of two new campuses this September… committed to supporting our growth initiatives while returning excess capital” — Eilif Serck‑Hanssen, CEO .

What Went Wrong

  • GAAP net income fell YoY to $97.4M (from $128.4M) despite better operating income, driven by non-cash FX losses on intercompany loans; GAAP diluted EPS $0.65 (vs $0.83) .
  • Persistent FX headwinds: management continues to flag an unfavorable translation impact vs 2024, albeit smaller than previously expected .
  • Intra-year academic calendar shifts continue to distort intra-year comparisons (Q2 benefitted ~$8M revenue and ~$7M Adjusted EBITDA, with offsets in other quarters) .

Financial Results

Summary P&L (YoY and Seq)

MetricQ2 2024Q1 2025Q2 2025
Revenue ($M)$499.2 $236.2 $524.2
Operating Income ($M)$166.6 $(13.2) $193.3
Net Income ($M)$128.4 $(19.6) $97.4
Diluted EPS (GAAP)$0.83 $(0.13) $0.65
Adjusted EBITDA ($M)$186.9 $5.4 $214.5
Adjusted EPS$0.65 $(0.11) $0.79

Actuals vs S&P Global Consensus (Q2 2025)

MetricConsensusActual
Revenue ($M)$505.35*$524.2
Primary/Normalized EPS$0.72*$0.79

Values marked with * were retrieved from S&P Global.

Segment Breakdown – Q2

SegmentQ2 2024 Revenue ($M)Q2 2025 Revenue ($M)YoY ReportedQ2 2024 Adj. EBITDA ($M)Q2 2025 Adj. EBITDA ($M)YoY Reported
Mexico$218.6 $217.4 (1%) $48.2 $57.4 19%
Peru$280.6 $306.7 9% $150.3 $167.2 11%
Corp. & Elims.— $0.1 nm $(11.6) $(10.2) 12%
Total$499.2 $524.2 5% $186.9 $214.5 15%

KPIs (Enrollments)

KPIYTD 2Q 2024YTD 2Q 2025Change
New Enrollments – Mexico61,700 65,600 6%
New Enrollments – Peru58,600 63,400 8%
New Enrollments – Total120,300 129,000 7%
Total Enrollments – Mexico223,000 237,600 7%
Total Enrollments – Peru221,200 234,500 6%
Total Enrollments – Total444,200 472,100 6%

Additional Q2 operational datapoints: Q2 New Enrollment of ~35K; timing-adjusted organic growth +42% from slide deck .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total EnrollmentFY 2025491K–495K 491K–495K Maintained
RevenueFY 2025$1.560B–$1.575B $1.615B–$1.630B Raised (+$55M midpoint)
Adjusted EBITDAFY 2025$473M–$480M $489M–$496M Raised (+$16M midpoint)
RevenueQ3 2025n/a$375M–$379M New
Adjusted EBITDAQ3 2025n/a$78M–$82M New

Management reiterated that constant-currency operational outlook is unchanged; FY raises reflect FX favorability (MXN, PEN) .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24 and Q1’25)Current Period (Q2’25)Trend
Constant-currency growth and marginsFY24: Rev +7% cc; FY25 guide highlighted cc growth with reported FX headwinds Q2 organic cc revenue +10%; margin +348 bps; reaffirmed ~150 bps margin expansion for 2025 Improving
FX impact (MXN/PEN)FY25 guide flagged Mexican peso headwinds on USD reporting Raised FY25 outlook on stronger FX; still some YoY FX headwind vs 2024 Less Negative
Academic calendar timingQ1: -$26M revenue; -$23M Adjusted EBITDA timing impact; expected offset in 2H Q2: +$8M revenue; +$7M Adjusted EBITDA; Q3 expected -$7M revenue impact; net offset in 2H Neutralizing
Digital/online programsScaling digital offering for working adults (Q1 PR) Peru fully online growing double digits; Mexico online growth continues Positive
New campusesNo near-term openings in Q1; planning underway Two campuses opening Sept (Monterrey/UNITEC; East Lima/UPN), 2 more planned in 2026/27 Positive
Capital returnsFY24 $102M buybacks; strong FCF focus H1 2025: $71M repurchased; $27M auth. remaining Ongoing

Management Commentary

  • “We are pleased with the solid operating results for the second quarter and are increasing our full year outlook following an improvement in foreign currency rates… opening of two new campuses this September… remain committed to supporting our growth initiatives while returning excess capital to our shareholders.” — Eilif Serck‑Hanssen, CEO .
  • “Q2 revenue was $524M and Adjusted EBITDA $214M… both ahead of guidance aided by favorable currency rates and timing of expenses… Q2 adjusted EPS $0.79.” — Rick Buskirk, CFO .
  • “Peru’s primary intake concluded in mid‑April with total enrollment growth of 6%… Mexico profitability continues to improve driven by efficiency initiatives.” — CFO .

Q&A Highlights

  • Mexico fall intake pipeline: Management “encouraged” at midpoint of intake; working‑adult C2 (June–July) grew high single digits, with traditional student intake underway .
  • Q2 revenue beat drivers: ~$20M above the high end of guidance; ~$18M FX (MXN appreciated ~9%), ~$2M operational carry‑through from earlier intakes .
  • Peru online trajectory: fully online programs growing double digits; launched initial wave of programs; expected to mirror Mexico’s online development over 4–5 years .
  • Campus openings and CapEx: September openings in Monterrey (UNITEC) and East Lima/ATA (UPN); with 1–2 campus launches per year, CapEx scales to ~5% of revenue (potentially 6–7% with additional campus), supporting an 8–10% revenue growth “algorithm” .

Estimates Context

  • Q2 2025 delivery vs S&P Global consensus: Revenue $524.2M vs $505.35M*; Primary/Normalized EPS $0.79 vs $0.72* — both beats .
  • FY 2025 context: Company guidance $1.615–$1.630B revenue, $489–$496M Adjusted EBITDA ; S&P Global FY25 revenue consensus $1.680B* implies guidance is below consensus midpoint and may prompt downward consensus revisions absent FX tailwinds or operational upside.
  • Estimate coverage is thin (Q2: 2 revenue and 1 EPS estimates; FY: 5 revenue, 2 EPS), increasing potential for revisions as the main Mexico intake concludes [GetEstimates].

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

  • Quality beat with Q2 revenue and adjusted EPS above Street, primarily on FX tailwinds and disciplined expense timing; underlying organic demand remains healthy .
  • FY25 guidance raised on FX, but constant‑currency operational outlook unchanged; watch the trajectory of MXN/PEN and ensuing translation effects .
  • Mexico margin expansion and productivity initiatives are flowing through to consolidated margins; Mexico Adj. EBITDA +19% YoY in Q2 .
  • Academic calendar shifts continue to affect intra‑year quarterly phasing; Q3 guide embeds a ~$7M revenue headwind, with offsets expected in Q4 .
  • Capital returns continue with $71M H1 repurchases and net cash position of ~$19M; liquidity supports growth capex for campus expansion while returning excess capital .
  • Monitor Peru online growth and new campus ramps (Monterrey, East Lima) as medium‑term enrollment and margin catalysts .
  • Near‑term trading focus: FX trends, Mexico intake conversion, and whether raised FY midpoint can be exceeded; consensus may need to align with FX‑adjusted guidance ranges [GetEstimates].

Appendix: Additional Context

  • Balance sheet snapshot (6/30/25): Cash & equivalents $135.3M; gross debt $116.1M; net cash $19.2M; 147.4M shares o/s .
  • Non‑GAAP: Q2 Adjusted EPS $0.79 excludes non‑cash FX losses and discrete tax items; GAAP diluted EPS $0.65 .

Sources: Q2 2025 press release and tables –; 8‑K (Items 2.02, 7.01) and presentation excerpts including guidance details –; Q2 2025 earnings call transcript –; Q1 2025 press release for prior quarter trend and prior guidance –; Q4 2024 press release for baseline and trend –. Values marked with * were retrieved from S&P Global.