Laureate Education (LAUR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $236.2 million, down 14% year-over-year due to currency impacts and academic calendar timing, but organic constant currency revenue grew 10% with strong intake cycles in Mexico and Peru.

• Net loss widened to $19.6 million from $10.8 million in Q1 2024; adjusted net loss was $16.6 million.

• Adjusted EBITDA fell 82% to $5.4 million as reported, but increased 132% on an organic constant currency basis, reflecting timing and FX effects.

• Organic enrollment increased in Mexico (+8%) and Peru (+2% reported, +6% timing adjusted), with digital programs growing at double-digit rates.

• Business model remains resilient amid economic uncertainty, with strong demand for quality higher education and digital offerings.

Financial highlights

• Q1 revenue was $236.2 million and adjusted EBITDA was $5.4 million, both ahead of prior guidance but down year-over-year as reported.

• Free cash flow for Q1 2025 was $57.8 million, up from $33.2 million in Q1 2024.

• Net debt at quarter-end was $4.8–$5 million, with $109.8–$110 million in cash and $114.6–$115 million in gross debt.

• $42 million in stock repurchased in Q1; $56 million remains under current authorization.

• Adjusted EBITDA margin for Q1 2025 was 2.3%, down sharply year-over-year.

Outlook and guidance

• Full-year 2025 guidance raised: total enrollments expected at 491,000–495,000 (4–5% growth); revenue at $1,560–$1,575 million (0–1% as-reported, 6–7% organic constant currency growth).

• Adjusted EBITDA guidance increased to $473–$480 million (5–7% as-reported, 11–13% organic constant currency growth), with margin expansion of ~150 basis points.

• Q2 2025 guidance: revenue $499–$504 million, adjusted EBITDA $191–$194 million.

• Majority of Q1 timing impacts on revenue and adjusted EBITDA expected to reverse in the second half of 2025.

• FX headwinds, especially from the Mexican Peso, expected to offset operational growth in USD terms.