Laureate Education (LAUR) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 5% year-over-year to $524.2M, with organic constant currency growth of 10%, driven by higher enrollments and favorable academic calendar timing, though net income declined to $97.4M due to FX losses.

• Adjusted EBITDA for Q2 2025 increased 15% to $214.5M, reflecting strong operational performance in both Mexico and Peru.

• New enrollments rose 7% and total enrollments 6% year-over-year for the first half of 2025.

• Full-year 2025 guidance was raised at the midpoint by $55M for revenue and $16M for adjusted EBITDA, supported by improved FX rates and robust operational trends.

• Two new campuses opened in September 2025, with two more under development and additional sites identified for future expansion.

Financial highlights

• Q2 2025 revenue was $524.2M (+5% year-over-year), and adjusted EBITDA was $214.5M (+15%), both ahead of prior guidance, aided by favorable FX and academic calendar timing.

• Q2 2025 net income was $97.4M (EPS $0.65), down from $128.4M in Q2 2024, mainly due to FX translation losses.

• Adjusted net income for Q2 2025 was $118.3M (adjusted EPS $0.79).

• Free cash flow for the first half of 2025 was $113.9M, up from $50M in the prior year period.

• Net cash position at June 30, 2025, was $19.2M, with $135.3M in cash and $116.1M in gross debt.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1,615M–$1,630M (3–4% as-reported growth; 6–7% organic constant currency growth).

• Adjusted EBITDA guidance raised to $489M–$496M (9–10% as-reported growth; 11–13% organic constant currency growth).

• Total enrollments expected in the range of 491,000–495,000, up 4–5% year-over-year.

• Q3 2025 revenue guidance: $375M–$379M; adjusted EBITDA: $78M–$82M, reflecting academic calendar timing.

• FX translation impact remains unfavorable but less than previously anticipated.