Laureate Raises 2025 Revenue Outlook to $1.615B–$1.630B as Campus Expansion Grows in Mexico and Peru

Strong Performance and Strategic Expansion at Laureate Education

Laureate Education, Inc. (LAUR) delivered impressive results during its second quarter of 2025, showcasing robust growth across multiple metrics. The company’s leadership highlighted strong execution throughout the quarter and the first half of the year, with a notable 7% increase in new enrollments and a 6% rise in total enrollments compared to the previous year. This momentum translated into a 9% revenue growth on a timing-adjusted and constant currency basis.

The CEO, Eilif Serck-Hanssen, emphasized that the company is raising its full-year 2025 outlook, increasing the midpoint of revenue guidance by $55 million and adjusted EBITDA by $16 million. He also announced that two new campuses in Monterrey, Mexico, and Lima’s Ate District are set to open in September, with two more projects in the pipeline for late next year or early 2027. These developments underscore the company’s commitment to expanding its presence in key markets.

Serck-Hanssen noted the resilience of both Mexico and Peru, citing macroeconomic stability and strong demand for quality higher education as significant tailwinds. He expressed confidence in the growing demand for affordable, high-quality education and the company’s ability to capitalize on these opportunities through its leading brands, strong value proposition, and advanced digital capabilities.

Richard M. Buskirk, Chief Financial Officer, reported that the second quarter revenue reached $524 million, with adjusted EBITDA at $214 million. Both figures exceeded the guidance provided three months ago, supported by favorable currency rates and the timing of expenses. Net income for the quarter was $97 million, with earnings per share of $0.65 on a reported basis and adjusted EPS of $0.79.

Updated Outlook and Financial Projections

For the full year 2025, management has increased its revenue guidance to a range of $1.615 billion to $1.630 billion, reflecting growth of 3% to 4% on an as-reported basis and 6% to 7% on an organic constant currency basis. Adjusted EBITDA is now expected to be between $489 million and $496 million, representing growth of 9% to 10% on an as-reported basis.

Total enrollments for the year are projected to range between 491,000 and 495,000 students, marking a 4% to 5% increase from 2024. For Q3 2025, revenue guidance is set at $375 million to $379 million, with adjusted EBITDA forecasted at $78 million to $82 million. This includes a $7 million unfavorable impact from academic calendar timing.

Buskirk highlighted that the approximately 150 basis points of margin expansion at the midpoint of the guidance will be driven by operating leverage from revenue growth, campus consolidations in Mexico, and lower corporate expenses.

Financial Results and Regional Performance

The company reported second-quarter revenue of $524 million and adjusted EBITDA of $214 million. Net income for the quarter was $97 million, with EPS of $0.65 and adjusted EPS of $0.79. Revenue for the quarter increased by 8% year-over-year on an organic constant currency basis and adjusted for the academic calendar shift, while adjusted EBITDA grew by 13%.

In Mexico, new enrollments rose by 6 through June, with total enrollments up 7%. Revenue in Mexico for Q2 increased by 9% year-over-year, and adjusted EBITDA rose by 19%. Year-to-date revenue growth in Mexico was 10%.

Peru saw total enrollment growth of 6%, with revenue increasing by 7% year-over-year and adjusted EBITDA up 9% for the quarter. Year-to-date, Peru's revenue was up 7%, and adjusted EBITDA increased by 10%, with margins expanding by 111 basis points.

Laureate ended June with $135 million in cash and $116 million in gross debt, resulting in a net cash position of $19 million. The company repurchased $71 million of common stock through June as part of its $100 million buyback program.

Q&A Highlights and Analyst Sentiment

During the earnings call, analysts raised questions about Mexico's fall intake pipeline and potential revenue upside. Serck-Hanssen noted that the company is halfway through the main intake, with strong interest from working adult students. Buskirk attributed the $20 million outperformance to FX factors and some operational outperformance from a strong enrollment intake.

Analysts also inquired about online learning trends in Peru and campus expansion plans. Serck-Hanssen mentioned that online programs in Peru are growing at double-digit rates, driven by strong interest from working adults. He confirmed the openings in Monterrey and Lima's Ate District, with two more campuses under development. He also outlined the capital expenditure algorithm, expecting CapEx to rise to 5% of revenues to support ongoing campus launches.

Analysts' tone was neutral to slightly positive, focusing on enrollment trends, digital expansion, and revenue drivers. Management maintained a confident and constructive tone, frequently referencing operational strength and ongoing momentum.

Key Takeaways and Future Outlook

Laureate Education's management highlighted strong year-to-date performance, robust enrollment growth, and increased revenue guidance for 2025. The company emphasized strategic expansion with two new campuses opening in September and plans for further development in both Mexico and Peru. Digital program growth, particularly in Peru, was described as rapidly accelerating, mirroring earlier success in Mexico. Management remains confident in the operating environment and the company's ability to drive sustainable growth, supported by disciplined execution and a strong balance sheet.